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10 April 2018
Atlantic County Man Charged with Robbing Marlton BankRead the Press Release
CAMDEN, N.J. – A Brigantine, New Jersey, man appeared in federal court today to face allegations that he robbed a PNC Bank in Marlton, New Jersey, on Dec. 8, 2017, U.S. Attorney Craig Carpenito announced.
Matthew Burney, 43, is charged by complaint with one count of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.
According to the complaint:
On Dec 8, 2017, Burney, while wearing a mask that covered the lower part of his face, allegedly entered the PNC Bank in Marlton and threatened to shoot the occupants if they activated the alarm. He pointed what appeared to be semi-automatic handgun at one of the tellers, threatened to shoot her, and demanded all the money from her teller drawer. The teller gave Burney some cash. Burney then approached a second teller, demanded money from her, and then fled the bank after she gave him more cash. Burney was arrested on Dec. 15, 2017 and has been in state custody since that time.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI Trenton Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the Evesham, New Jersey, police department, under the direction of Chief Christopher Chew; the Bristol Township, Pennsylvania, police department, under the direction of Chief Robert Coulton, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Cofina, with the investigation.
The government is represented by Senior Litigation Counsel Norman Gross of the U.S. Attorney’s Office in Camden.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Trenton
Armed Career Criminal Sent to Prison on Firearms ChargeRead the Press Release
CORPUS CHRISTI, Texas - A local man has been ordered to federal prison following his conviction of illegal possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Adam Alfredo Flores, 36, of Corpus Christi, pleaded guilty Jan. 4, 2018, to felon in possession of a firearm.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Flores to 180 months imprisonment to be immediately followed by three years of supervised release. Flores had previously been convicted in state court for numerous felonies. In handing down the sentence today, the court determined him to be an armed career criminal.
In July 2017, officers with the Corpus Christi Police Department (CCPD) conducted a traffic stop on a vehicle for disregarding a stop sign. Flores was identified as the front seat passenger, at which time authorities discovered a loaded .22 caliber handgun underneath his seat. Flores, who had a previous felony conviction, is prohibited from possessing firearms and ammunition per federal law.
He was taken into custody as a part of Operation City Shield, a coordinated federal, state and local law enforcement effort to identify violent offenders, stop gun violence and protect the community.
In custody since his arrest, Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the CCPD conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Arizona Women Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
PHOENIX – Yesterday, U.S. District Judge G. Murray Snow sentenced Carlita Frances O’Neal, 43, of Phoenix, Ariz., to 13 months in federal prison, followed by three years of supervised release. O’Neal had previously pleaded guilty to making false a claim against the United States in connection with her filing of a false tax return. O’Neal’s co-defendant, Jeannine Lynn Clark, 58, of Florence, Ariz., was sentenced to eight months in federal prison, followed by three years of supervised release. Clark had also previously pleaded guilty to making a false claim in connection with her filing of a false tax return. Both women were ordered to pay restitution to the Internal Revenue Service.
Between 2011 and 2013, O’Neal and Clark prepared false tax returns for themselves and their acquaintances using made up income and withholding information, which enabled them to qualify for the Earned Income Tax Credit and increase the false tax refund claimed on the returns. Initially, Clark recruited individuals into the fraudulent scheme by claiming she could get them a large tax refund using only basic information such as their name, address, Social Security number, and date of birth. O’Neal then used the personally identifying information gathered by Clark to prepare fraudulent federal income tax returns and submit them to the IRS electronically. To increase the amount of the false tax refund, O’Neal used fictitious wage and withholding information for the taxpayers. O’Neal received a portion of each false tax refund and paid Clark a referral fee for each individual Clark recruited. O’Neal and Clark later stopped working together, but both of them continued preparing false tax returns on their own using the same fraudulent methods. In total, between 2011 and 2013, O’Neal and Clark prepared and filed approximately 75 fraudulent tax returns, which falsely claimed tax refunds totaling more than $300,000.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Bridget Minder, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00732-GMS
RELEASE NUMBER: 2018-034_O’Neal_Clark
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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.
Acting Assistant Attorney General John P. Cronan Delivers Remarks at the 35th International Drug Enforcement ConferenceRead the Press Release
Remarks as prepared for delivery
It is a privilege to speak with you representing the U.S. Department of Justice. As the Acting Assistant Attorney General of the Department of Justice’s Criminal Division, I oversee approximately 700 attorneys spread across 17 sections and offices, mostly in Washington D.C., but also many stationed in offices around the world. Among other things, prosecutors in the Criminal Division investigate and prosecute transnational organized crime, large-scale international narcotics trafficking, international money laundering, and cyber-related crimes including the use of the dark web to engage in illegal activity. The Criminal Division also houses our Office of International Affairs, which handles all of our foreign legal assistance matters.
I am honored today to have the opportunity to speak with this assembly of proud, brave, and accomplished law enforcement officers. This is a critical conference, taking place at this critical time. Today more than ever, we must take stock of not only the successes we have achieved, but more importantly of the hard work that lies ahead of us, as we join together in the ongoing fight against international drug trafficking.
Our fight against drug cartels and transnational criminal organizations is the very definition of a fight that transcends borders. It is a shared fight. It is a fight against ever-evolving and innovating threats and methods. And it is a fight in which we as law enforcement collectively can, and must, do better.
The costs have never been higher. Today, in the United States, we are facing the deadliest drug crisis in our history. Approximately 64,000 Americans died from drug overdoses in 2016. That was the highest drug death toll – and the fastest increase in that death toll – in American history. One American dies of a drug overdose every nine minutes. Drug overdoses are now the leading cause of death for Americans under the age of 50.
These numbers are staggering, but their sheer scale can almost numb us to the reality of profound human loss that the drug crisis is causing. Each one of those deaths is a tragedy that reverberates through families and communities, multiplying its corrosive, debilitating effects. Effects that are borne by the dead, for sure, but also effects that are borne, perhaps more painfully, by the living whom they leave behind. These insidious effects are what make the scourge of opioids, including prescription drugs, heroin, and synthetic drugs like fentanyl, so dangerous and terrifying.
The traffickers who manufacture and distribute the destructive drugs that are ravaging our communities know precisely what they are doing, and they also are only too aware of our efforts to thwart them. That is why drug traffickers are forging underground marketplaces, exploiting the Internet and cryptocurrencies, and simultaneously challenging the stability and security of our financial institutions. Drug traffickers are moving money to the tune of hundreds of billions of dollars in ill-gotten profits. The task for those of us in law enforcement is to not only stanch the flow of drugs, but also the flow of illicit money.
Today, I want to talk about that specific problem: the flow of illicit money. Money is the lifeblood of any criminal organization, be it a pill mill, a transnational drug cartel, or a terrorist organization. Money is the very reason that criminal enterprises exist and persist. If we can map out, and stamp out, the financial networks through which the money is moving, we will go a long way in paralyzing these criminal organizations well before we have to endure, first-hand, the destructive effects of their poisons in our communities.
How do we stem the tide of illicit money?
First, we need to follow not just the money, but also the marketplaces. We need to stay one step ahead when it comes to identifying, regulating, tracking, and seizing the marketplaces that criminals are using for their illegal activities. In this day and age, sophisticated criminals are constantly forging and finding new platforms on which they can buy and sell, recruit, and launder. And naturally, markets that operate in the shadows, hidden from law enforcement, are those most appealing to criminals. We need to bring those shadowy markets into the light.
The so-called “dark web” is illustrative of this challenge. It is, by its nature, transnational. It relies on anonymity software that masks the true identities of visitors and their locations. It conceals IP addresses. And because of its hidden nature, the dark web is both a haven and a hub for some of the most prolific drug suppliers and criminal actors across the globe.
Dark web markets have been used to traffic in deadly drugs, illegal weapons, toxic chemicals, stolen identities, stolen credit cards, child pornography, and even people’s credentials for online accounts. With the click of a mouse, you can have synthetic opioids delivered right to your doorstep. And dark web markets have been used to launder hundreds of millions of dollars derived from illegal transactions. Illicit money flows are finding their way into new corners of the Internet each day.
The transnational economy of the dark web demands a transnational response. And we are delivering.
Working closely together with our international partners, we have shut down some of the worst offenders on the dark web. Last July, the U.S. Department of Justice executed the largest takedown of a dark web market in history when we seized AlphaBay. The AlphaBay site was the largest criminal marketplace on the Internet, at its peak hosting upwards of 40,000 vendors, 200,000 users, and 220,000 drug sale listings. We have tied purchases made on AlphaBay to multiple overdose deaths across the United States, including the tragic death of a 13-year-old boy whose classmate purchased a synthetic opioid on AlphaBay.
With the cooperation of Europol and our host country, the Netherlands, as well as our partners in Thailand, Lithuania, Canada, the United Kingdom, France, and Germany, we seized AlphaBay’s servers and infrastructure. We froze millions of dollars’ worth of cryptocurrencies that represented AlphaBay’s illicit proceeds. We arrested the site administrator in Thailand. And we are pursuing his and his wife’s assets throughout the world, from Thailand, Cyprus, and Lichtenstein to Antigua and Barbuda.
Shortly after the AlphaBay seizure, Dutch authorities, with support from Europol, took down the Hansa marketplace. Hansa was the third largest criminal marketplace on the dark web, also trading high volumes of illegal drugs and goods. The Hansa takedown also was a highly coordinated international operation – and it was an operation carefully designed to maximize impact by seizing and covertly taking over control of Hansa for about a month. This allowed law enforcement to monitor activities on the platform and collect valuable information on significant law enforcement targets who were using the market for criminal purposes.
In January of this year, U.S. Attorney General Jeff Sessions created the Joint Criminal Opioid Darknet Enforcement team, known as J-CODE. J-CODE reflects the United States’ recognition that a major driver of the increase in opioid overdose deaths is the growing black market trade of illicit fentanyl and fentanyl analogues on the Internet. J-CODE effectively doubles our investment in the fight against online drug trafficking on the dark web, dedicating dozens more FBI agents, intelligence analysts, and professional staff to this long-term effort. And J-CODE puts an emphasis on the need for international coordination and working with our overseas Drug Enforcement Administration and FBI offices to shut down the dark web markets peddling deadly drugs.
Just a few months into its creation, we already have seen successes from the work being done by the J-CODE team. Last week, the Attorney General announced initial results of Operation Disarray, which is the J-CODE’s first coordinated law enforcement operation targeting opioid trafficking on the dark web. During the week of March 27, U.S. law enforcement made eight arrests, conducted more than 160 interviews of people who had bought or sold opioids and other drugs online, identified 19 overdose deaths, and executed numerous search warrants, resulting in the seizure of weapons, drugs, and counterfeit currency.
Transnational criminals who wish to take advantage of the perceived secrecy of the dark web should beware: law enforcement is smart to your techniques, and we will labor tirelessly across borders, with the full support of our governments, to dismantle your operations.
Together, we are inflicting significant blows on dark web markets. And, if we continue to work collectively, we will do more. If we are to keep pace with illegal markets as they shift and grow and change platforms, we too will need to be nimble and adaptive.
We need to work together to follow the virtual money flows, while being vigilant as we monitor the ever-fluid landscape and features of cryptocurrencies. We need to ensure that we seize not just end products, but the markets themselves. We must target not just the market creator, but the creator’s assets, enablers, and financial network. The very features of markets on the dark web that make them so attractive to bad actors pose a challenge – but also an opportunity – for law enforcement to be smarter, probe deeper, and move faster.
How else can we stem the tide of illicit money?
We also need to aggressively combat money laundering, using all tools in our law enforcement toolbox – marrying traditional criminal prosecution with civil forfeiture, financial sanctions, and rigorous enforcement of compliance obligations on financial institutions.
As we all know, drug cartels are adept at filtering “dirty” money through various transactions until the funds appear to be “clean” proceeds from legitimate activities, rendering them available for use. This enables criminals to readily mask, move, and access their ill-gotten gains without jeopardizing their illegal activities. They do this through traditional money laundering methods, such as black market peso exchanges, cash couriers, and trade-based money laundering. But they also employ increasingly complex schemes – utilizing shell companies, or transfers through reputable financial institutions, lawyers, and other professionals that enshroud their illegal proceeds in a veneer of legitimacy.
At the U.S. Department of Justice, we seek to leverage the full panoply of tools at our disposal to combat the means and methods of money launderers. That, of course, includes criminal prosecutions of those who violate our money laundering laws.
One of our recent investigations, for example, targeted an alleged drug trafficking and money laundering organization largely based in Sinaloa, Mexico. Since at least 2012, the organization allegedly transported massive amounts of cocaine, heroin, and methamphetamine into the United States. But that was not all; the organization also allegedly smuggled their drug trafficking proceeds from the United States back into Mexico, laundering more than an estimated $100 million dollars. Some money allegedly was laundered through Mexican money exchange houses, while other money allegedly was deposited with U.S. banks and wire-transferred to Mexican accounts controlled by the organization.
Our prosecutors brought criminal charges against 15 defendants, including individuals responsible for the movement of the illicit proceeds. To date, eight of those defendants, including the owner of a currency exchange house in Sinaloa and a peso broker operating out of Sinaloa, have pleaded guilty and been sentenced to significant jail time.
But the law enforcement tools at our disposal are not limited to bringing criminal charges. Take, for example, the case of Jorge Cifuentes-Villa, who is facing criminal prosecution in the United States. Cifuentes-Villa led a drug trafficking and money laundering organization closely tied to the Sinaloa Cartel and he has been designated by the United States as a Consolidated Priority Organization Target, a designation reserved for the most dangerous and prolific narcotics traffickers.
In addition to the criminal charges against Cifuentes-Villa, our prosecutors also brought two multi-million dollar civil forfeiture actions against assets tied to Cifuentes-Villa’s drug trafficking activities. Meanwhile, the U.S. Department of Treasury levied financial sanctions against Cifuentes-Villa, identifying him as a Specially Designated Narcotics Trafficker, to effectively cut him off from transactions with any U.S. persons or businesses.
The path to civil forfeiture of Cifuentes-Villa’s assets began with a vehicle stop in 2009. A single money courier was found in possession of approximately $780,000 in drug proceeds. With that lead, investigators traced money through various companies’ bank accounts that were used to launder on the cartel’s behalf. They traced the money all the way back to transactions eight years before the vehicle stop. Investigators learned that in 2001, a shell company in the British Virgin Islands had received approximately $11 million in funds. And that $11 million subsequently was moved through eight brokerage accounts, before it finally landed in two accounts at Wells Fargo Advisors.
The tracing showed that the shell company had received the funds from yet another entity in the British Virgin Islands, an entity that was owned by a man who went by the name, Sergio Osuna-Villareal. We identified Sergio Osuna-Villareal as an alias of Jorge Cifuentes-Villa. The investigation revealed that Cifuentes-Villa had transferred more than $10 million in drug proceeds to the shell company as liquidation of the assets of his murdered drug partner. And in 2012, we sought forfeiture – successfully – of both the approximately $11 million from the Wells Fargo Advisors’ accounts and a $1.2 million condominium in Miami, Florida that we also traced to Cifuentes-Villa.
Those examples underscore the array of tools that we stand ready to deploy against money launderers for drug cartels. With the close cooperation of our international partners, we not only can bring wrongdoers to justice in our courts, but we also can trace where their money traveled and how and when. We can then reclaim their ill-gotten gains, block their assets, and prevent U.S. persons from dealing with them.
We also must be forward-leaning in holding accountable the enablers that move or legitimize the funds of drug traffickers. Just as cartels zero in on any weak link in the chain – by exploiting financial institutions with ineffective anti-money-laundering protocols – we too will continue to aggressively target financial institutions that turn a blind eye to the mass transit of illicit proceeds through their accounts.
To be sure, the examples I have mentioned over the past few minutes barely scratch the surface of the money flows that fuel and refuel the global drug trade. But as with the dark web, the very money laundering tactics that the criminals hope will throw us off should embolden us, focus us, and bring us together.
And it is by working together that we are able to most effectively target those illicit proceeds. Money laundering mechanisms are transnational by design. The painstaking work by our agents and prosecutors of mapping out those networks necessitates foreign wiretaps, foreign cooperating sources, and foreign law enforcement surveillance. It calls for timely sharing of international financial intelligence and prompt responses to mutual legal assistance requests. It requires foreign agents to authenticate photographs, wiretaps, and seizure evidence, and provide eyewitness testimony. On all these fronts and more, we can and must better synchronize our efforts.
Drug cartels count on our inability to connect the dots across borders and financial institutions. But with concerted international efforts to target illicit proceeds from every legal angle, we can more effectively connect those very dots and unravel the illicit networks driving the drug crisis.
Thank you, and I look forward to working with you all.
Accused Computer Hacker Returned to United States to Appear in U.S. CourtRead the Press Release
An accused computer hacker sought by the United States was recently returned to the United States to stand trial. On March 30, 2018, Yevgeniy Aleksandrovich Nikulin, 30, of Moscow, Russia, made his initial appearance in federal court, following his extradition from the Czech Republic. He was charged by the United States in 2016 with illegally accessing computers belonging to LinkedIn, Dropbox, and Formspring. Nikulin was arrested in October 2016, pursuant to a U.S.-issued INTERPOL Red Notice processed by INTERPOL Washington—the U.S. National Central Bureau. He had been in the custody of the Czech Republic since then. The United States submitted an official request to the Czech government for his extradition in November 2016. On March 29, 2018, the Minister of Justice of the Czech Republic ordered Nikulin extradited to the United States. Read more about the Federal case against Nikulin here:
The INTERPOL Red Notice
- Each INTERPOL member country maintains a National Central Bureau (NCB) staffed by its own highly trained law enforcement officials.
- An INTERPOL Red Notice is a request to locate and provisionally arrest an individual pending extradition. It is issued by the INTERPOL General Secretariat at the request of a member country’s NCB or an international tribunal based on a valid national arrest warrant. It is not an international arrest warrant.
- INTERPOL cannot compel any member country to arrest an individual who is the subject of a Red Notice. Each member country decides for itself what legal value to give a Red Notice within their borders.
- When INTERPOL publishes a Red Notice this is simply to inform all member countries that the person is wanted based on an arrest warrant or equivalent judicial decision issued by a country or an international tribunal. INTERPOL does not issue arrest warrants.
9 April 2018
Virginia Man Pleads Guilty to Producing Child Pornography Depicting Victims in the PhilippinesRead the Press Release
A Manassas, Virginia man pleaded guilty today to using the Internet to pay women to sexually abuse children as young as six years old in the Philippines while he produced numerous images of the abuse.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
According to court documents, from at least October 2011 until February 2012, Dwayne Stinson, 53, used an electronic payment service to pay women in the Philippines he was chatting with to sexually abuse children while he directed the abuse. He admitted that some of the children were as young as six or seven years old. The defendant contemporaneously produced numerous screenshot images of the abuse and stored them on his computer.
Stinson pleaded guilty to one count of production of child pornography before U.S. District Judge Liam O’Grady. His sentencing is scheduled for Aug. 24, 2018.
The Prince William County Police Department and Northern Virginia/District of Columbia Internet Crimes Against Children Task Force (NOVA/DC ICAC) assisted in the investigation. CEOS Trial Attorney James E. Burke IV and Assistant U.S. Attorney Whitney Russell for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Two Tennessee Health Care Executives Charged for Role in $4.6 Million Medicare Kickback SchemeRead the Press Release
Two Tennessee health care executives were charged in an indictment unsealed today for their alleged participation in a $4.6 million Medicare kickback scheme involving durable medical equipment (DME).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Director Mark Gwyn of the Tennessee Bureau of Investigation (TBI) Medicaid Fraud Control Unit made the announcement.
John Davis, 40, of Brentwood, Tennessee, and Brenda Montgomery, 69, of Camden, Tennessee, were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and seven counts of paying and receiving health care kickbacks. Davis is the former CEO of Comprehensive Pain Specialists (CPS), a large, multi-state pain management company. Montgomery is the owner, founder and CEO of CCC Medical Inc., a DME company with five locations in Tennessee and headquartered in Camden. Davis and Montgomery were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Alistair E. Newbern of the Middle District of Tennessee.
“The charges against John Davis and Brenda Montgomery, alleging almost three quarters of a million dollars in illegal health care kickbacks and the submission of over $4.6 million in fraudulent claims to Medicare, demonstrate the Department of Justice’s commitment to protect taxpayer dollars and to hold corporate executives accountable for fraudulent and abusive conduct,” said Acting Assistant Attorney General Cronan. “Kickbacks such as those alleged in the indictment distort markets and undermine public trust. The Criminal Division and our law enforcement partners will continue to root out fraud, waste and abuse in our health care programs, no matter how complex the schemes.”
“Our Medicare program is designed to help those who are most vulnerable and in need of medical services and equipment,” said U.S. Attorney Cochran. "Stealing funds from our health care system places the vulnerable at greater risk and diverts public funds into the pockets of the greedy individuals who exploit those with the greatest need. We will be un-relenting in our efforts to bring to justice, those individuals and corporations who choose to profit at the expense of the health of those individuals with the greatest need.”
“Kickback schemes like this one do not benefit patients or the Medicare program,” said Special Agent in Charge Jackson. “These arrangements are simply designed to line the pockets of the defendants at the expense of the taxpayer.”
“In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs,” said DCIS Special Agent in Charge Khin. “These defendants selfishly put greed and personal gain before the safety and well-being of our military members, their families, and retirees, who deserve the best medical care available.”
“Having the support and cooperation of our partner local, state and federal agencies is critical in our combined efforts to protect Tennesseans from individuals attempting to derive a personal benefit at the expense of patients and taxpayers,” said TBI Director Gwyn.
The indictment alleges that from at least June 2011 until at least June 2017, Montgomery agreed to pay Davis, the CEO of CPS, illegal kickbacks in exchange for Medicare referrals for DME ordered by CPS employees that Davis referred to CCC Medical. As alleged in the indictment, Montgomery agreed to pay Davis 60 percent of Medicare proceeds collected on claims billed for DME ordered by CPS providers and referred by Davis. In addition, the indictment alleges that Davis and Montgomery took a number of steps to conceal their illegal agreement, including making kickback payments through a nominee, creating and filing false tax documents, and, for Davis, intervening as CEO to prevent the owners of CPS from obtaining their own Medicare DME supplier numbers that would have allowed CPS to bill for its own Medicare DME orders.
Beginning in or around May 2015, according to the indictment, Davis and Montgomery renegotiated their illegal agreement to further obscure their personal contract from Medicare and from CPS owners and employees. The indictment alleges that from approximately May 2015 until approximately November 2015, Montgomery agreed to pay Davis $200,000 for the sham purchase of a shell entity known as ProMed Solutions LLC (ProMed). Davis and Montgomery renegotiated the sham transaction after Montgomery complained that her referrals from CPS had been lower than expected, and Montgomery ultimately paid $150,000 for the shell, ProMed, according to allegations in the indictment. The true purpose of this payment was to induce Davis to continue driving CPS referrals to CCC Medical, the indictment alleges.
The indictment alleges that Montgomery, through CCC Medical, submitted over $4.6 million in fraudulent claims to Medicare, and that Medicare paid a total of $2.6 million on those claims. Further, the indictment alleges that Montgomery paid more than $770,000 in illegal kickbacks to Davis.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by HHS-OIG, DCIS and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Trial Attorney Anthony Burba of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee and are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws throughout the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have collectively billed the Medicare program for over $12.5 billion.Twin Brothers Indicted for Being Felons in Possession of FirearmsRead the Press Release
BOSTON – Twin brothers from Hyannis were charged in federal court in Boston with being felons in possession of firearms and ammunition.
Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, both 25, were charged in an indictment unsealed today with one count each of being a felon in possession of firearms and ammunition. Denzel Smith was arrested today and appeared before U.S. District Court Magistrate Judge Judith G. Dein, who ordered him detained pending a detention hearing, which is scheduled for tomorrow. Di’lon Smith is currently in state custody; his initial appearance in federal court has not yet been scheduled.
The indictment alleges that on Nov. 29, 2017, the Smith brothers, who were each previously convicted of a felony, possessed a Smith & Wesson .22 caliber revolver, a Heckler & Koch .9 caliber pistol, six rounds of .22 caliber ammunition, and 18 rounds of .9 caliber ammunition.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Bakersfield Brothers Plead Guilty to Operating a Warehouse to Manufacture and Distribute Synthetic CannabinoidsRead the Press Release
FRESNO, Calif. — Brothers Yousef Aezah, 28; Adhim Aezah, 23; and Dirar Aezah, 19, all of Bakersfield, pleaded guilty today to maintaining a drug-involved premise for the purpose of manufacturing and distributing synthetic cannabinoids or “spice,” U.S. Attorney McGregor W. Scott announced. As part of the guilty pleas, the defendants agreed to forfeit more than $1 million in U.S. currency that was seized from them during their arrests.
According to the plea agreements, the defendants maintained a warehouse in Bakersfield that they used to manufacture and distribute synthetic cannabinoids, including AB-CHMINACA, a Schedule I controlled substance.
This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The defendants remain out of custody and are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 16, 2018. The defendants face a maximum statutory penalty of 20 years in prison and a $500,000 criminal 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.
Tennessee Man Indicted for Hate Crime and Lying to the FBIRead the Press Release
The Department of Justice today announced that Christopher Beckham, 32, of Nashville, Tennessee, was indicted by a federal grand jury in the Middle District of Tennessee on charges of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act and lying to the FBI. Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Don Cochran of the Middle District of Tennessee made the announcement.
According to the indictment, on or about Oct. 24, 2017, in the Middle District of Tennessee, Beckham saw two teenage girls wearing hijabs and said “Allahu Akbar!” and “Go back to your country!” He then attacked the girls’ father by swinging a knife and punching at him, and shouted derogatory comments at the family. Moreover, according to the indictment, on or about March 12, 2018, Beckham falsely claimed to FBI special agents that he saw the girls trying to break into cars; that he never swung a knife at their father; and that, after he pulled out his knife, the girls yelled “Allahu Akbar!,” and then either one or both of them hit him on the back of the head.
If convicted on the hate crime charge, Beckham faces a maximum sentence of ten years in prison, three years of supervised release, and a fine of up to $250,000. The charge of making false statements to the FBI provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara Beth Myers of the Middle District of Tennessee and Trial Attorneys Christine M. Siscaretti and Rachel Kincaid of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Supporting Crime Victims’ RightsRead the Press Release
Recent statistics show Americans are the victims of 20 million crimes each year, affecting both individuals and communities. Since 1981, a week in April has been designated as National Crime Victims’ Rights Week, to bring attention to the rights of victims, highlight the impact crime has on families, friends and the community, and promote laws, policies, and programs to help victims of crime. This week provides an opportunity for communities to reflect on the history of the victims’ rights movement, celebrate its progress and renew commitments to ensure all victims of crime have the rights and services they need to recover and receive the justice they deserve. The Department of Justice Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year, April 8-14, 2018, is designated as National Crime Victims’ Rights Week. The theme, Expand the Circle: Reach All Victims, emphasizes the importance of how the investment of communities in crime victims expands the opportunity for them to disclose their victimization, connect with services, and receive the support they need. Building relationships and engaging our communities across professional, cultural, economic, and other divides to remove barriers to reporting and accessing services is essential to supporting the needs of all victims of crime. In 2004, Congress passed the Crime Victims’ Rights Act, giving victims in federal criminal proceedings certain enforceable rights. The U.S. Attorney's Office for the Eastern District of Tennessee is committed to ensuring crime victims associated with prosecutions handled by our office are provided with all the rights they are entitled to by law. Our district, like federal districts across the country, has dedicated personnel to ensure victims are treated with fairness and respect as they journey through the federal criminal justice system. Among other things, our victim assistance specialists provide notice of case events; inform victims of their rights, and keep victims informed about case proceedings. The U.S. Attorney’s Office plays a vital role in helping to fund state victim compensation and assistance programs through its collection of court-ordered fines and assessments. The Crime Victims Fund, administered by OVC, supports a variety of programs and services that focus on helping victims in the immediate aftermath of crime and continue to support them as they rebuild their lives. Fines and assessments ordered by the U.S. District Court and collected by the U.S. Attorney’s Office go directly into the Crime Victims Fund to be distributed to every U.S. state and territory to finance their victim compensation and assistance programs. The prosecutors in the U.S. Attorney’s Office for the Eastern District of Tennessee have always been committed to supporting and providing service to victims of all federal crimes, including violent crimes, fraud, identity theft, human trafficking, elder abuse and exploitation, and sexual crimes against children. And, we will continue to prosecute the individuals who commit these crimes, sending a message to other would-be perpetrators that their actions will not be tolerated. I encourage everyone to participate in events in your community during National Crime Victims’ Week. While this particular week is dedicated to all crime victims, there are specific victim-related observances throughout the year in which you can also participate. For additional information about these events as well as National Crime Victims’ Rights Week, please visit OVC’s website at www.ovc.gov. J. Douglas Overbey United States Attorney Eastern District of TennesseeSinaloa Cartel Trafficker Sentenced; Jesus Manuel Salazar-Nunez Sent Tractor-Trailers Packed with Methamphetamine, Cocaine and Heroin into the United StatesRead the Press Release
Assistant U.S. Attorney Matthew J. Sutton (619) 546-8941
NEWS RELEASE SUMMARY – April 6, 2018
SAN DIEGO – Sinaloa Cartel drug trafficker Jesus Manuel Salazar-Nunez was sentenced to 135 months in prison today and 5 years of supervised release for his role in a drug trafficking cell responsible for shipping methamphetamine, cocaine, and heroin from Mexico for importation into San Diego.
According to court records, in 2015, Drug Enforcement Administration agents intercepted the communications of Salazar-Nunez and other high-level Sinaloa Cartel members making arrangements for tractor-trailers to travel from Sinaloa, Mexico to Baja California, Mexico, carrying methamphetamine, cocaine, and heroin hidden among canned food and drinks, frozen shrimp and vegetable boxes and other household goods. Once they arrived at a Tijuana warehouse, the narcotics were unloaded, distributed to couriers and smuggled into San Diego, California.
Salazar-Nunez recruited drivers, made arrangements with narcotics customers to use their transportation services, deposited narcotics proceeds into various Mexican bank accounts, and designed items to make it appear that the tractor-trailer loads contained all legitimate items. On September 16, 2015, agents arrested Salazar-Nunez when he flew into Hartsfield-Jackson Atlanta International Airport from Guadalajara, Mexico.
On August 14, 2017, the day scheduled for his trial, Salazar-Nunez entered a guilty plea before United States District Court Judge Dana M. Sabraw to an indictment charging him with conspiracy to import methamphetamine, cocaine, and heroin into the United States. As part of his guilty plea in the case, Salazar-Nunez admitted to making arrangements for four tractor-trailer shipments. Thanks to the cooperation of United States and Mexican law enforcement, all four of these tractor-trailers were seized in March, April, and August of 2015 in Mexico.
In court today, Judge Sabraw explained that a severe sentence was warranted because of the enormous size and lengthy scope of Salazar-Nunez’s drug trafficking activities. Noting that Salazar-Nunez used his education and professional achievements, as a college educated businessman, to help move hundreds of kilograms of narcotics month after month from Mexico to San Diego, Judge Sabraw said to Salazar-Nunez: “You are not an ordinary defendant….and you need to recognize how wrong it was.”
“Today marks yet another severe blow to the operations of the Sinaloa Cartel,” stated United States Attorney Adam L. Braverman. “The Cartel’s drug trafficking empire continues to be diminished and their power eroded with this prosecution. The dedicated efforts of our law enforcement partners in San Diego and Mexico, who greatly assisted with these seizures, shows our continued commitment to dismantle the Sinaloa Cartel.”
“Our communities might not know Mr. Salazar-Nunez by name, but they are very familiar with living in the aftermath of lives destroyed by drug addiction,” said DEA San Diego Special Agent in Charge Karen Flowers. “Addiction fed by his greed has robbed many San Diegans of their future. The San Diego law enforcement community will continue to keep the pressure on and save lives.”
This case is part of a five-year investigation led by the Southern District of California, that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel. This investigation has also offered one of the most comprehensive views to date of the inner workings of one of the world’s most prolific, violent and powerful drug cartels. Cartel members and associates were targeted in this massive investigation involving multiple countries, numerous law enforcement agencies around the United States, a number of federal districts and over 250 court-authorized wiretaps in this district alone.
This investigation is also the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States was represented in court by Assistant U.S. Attorney Matthew J. Sutton.
DEFENDANT Criminal Case No. 15-CR-2380-DMS
Jesus Manuel Salazar-Nunez Age: 35 Culiacan, Mexico
SUMMARY OF CHARGES
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
Customs and Border Protection, Office of Field Operations
Customs and Border Protection, Office of Border Patrol
United States Marshals Service
Internal Revenue Service
Federal Bureau of Investigation
United States Attorney’s Office, Northern District of Georgia
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego Law Enforcement Coordination Center
Mexico’s Secretaria de la Defensa Nacional (SEDENA)
Mexico’s Procuraduria General de la Republica (PGR)
Schenectady Man Pleads Guilty to Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – Anthony M. DeRose, a/k/a “Gus,” age 23, of Schenectady, New York, pled guilty today to possessing and intending to sell furanyl fentanyl, a synthetic opioid.
The announcement was made by United States Attorney Grant C. Jaquith.
On August 21, 2017, Schenectady County Sheriff’s Deputies arrested DeRose on an outstanding warrant. They searched him and found, inside his right pants pocket, one clear plastic bag containing 145 smaller white bags or envelopes, each of which contained furanyl fentanyl. As part of his plea, DeRose admitted that he intended to distribute the furanyl fentanyl, which has been a federally controlled substance since November 29, 2016.
United States District Judge Mae A. D’Agostino will sentence DeRose on August 7, 2018. He faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Schenectady County Sheriff’s Office and the U.S. Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Rochester Couple Charged with Sexually Exploiting A 10 Year Old ChildRead 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 Bonnie Hughes and John Kohlmeier, Jr., both of Greece, NY, were arrested and charged by criminal complaint with production, receipt, and possession of child pornography, and coercing and enticing a minor to engage in unlawful sexual activity. The charges carry a mandatory minimum sentence of 15 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, in early 2018, defendant Kohlmeier was having sexually explicit conversations with a 10-year female (minor victim) via cellular telephone. On March 19, 2018, defendant Hughes, at Kohlmeier’s request, took two sexually explicit photographs of the minor victim. Subsequently, Kohlmeier and Hughes engaged in sexual conduct with the minor victim.The Greece Police Department previously arrested Kohlmeier and Hughes, and they are currently be held in state custody on state charges.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Greece Police Department, under the direction of Chief Patrick D. Phelan; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Robert K. Hur Is Sworn in as the 48th United States Attorney for the District of MarylandRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States Chief District Judge James K. Bredar swore in Robert K. Hur today as the 48th United States Attorney for the District of Maryland.
As U.S. Attorney, Mr. Hur is the chief federal law enforcement officer in the District of Maryland. Mr. Hur will oversee the investigation and litigation of all criminal and civil cases brought on behalf of the United States in the District of Maryland. He will supervise an office of approximately 88 Assistant U.S. Attorneys and 72 support personnel, who handle a high volume of important cases including domestic and international terrorism, narcotics trafficking, organized crime, gang violence, public corruption, cybercrime, financial and healthcare fraud, and civil rights violations.
Before taking office as U.S. Attorney, Mr. Hur served as Principal Associate Deputy Attorney General with the Department of Justice in Washington, DC. In that position, Mr. Hur was a member of the Department’s senior leadership team and the top aide to Deputy Attorney General Rod J. Rosenstein, assisting him with oversight of all components of the Department.
Mr. Hur served as an Assistant U.S. Attorney in the District of Maryland from 2007 to 2014, where he prosecuted gang violence, firearms offenses, and narcotics trafficking, as well as white-collar offenses including financial institutions fraud, public corruption, mortgage fraud, tax offenses, computer network intrusions, and intellectual property theft. He received the Attorney General’s Distinguished Service Award for superior performance and excellence as a lawyer.
Before joining the U.S. Attorney’s Office, Mr. Hur served as Special Assistant and later Counsel to the Assistant Attorney General in charge of the Criminal Division, where he handled counterterrorism, corporate fraud, and appellate matters.
In addition to his service with the Department of Justice, Mr. Hur was a litigation partner with a major law firm in Washington, D.C., where he represented companies and individuals facing criminal and regulatory enforcement actions before the Department of Justice, the Securities and Exchange Commission, and other federal agencies, as well as related civil litigation.
Mr. Hur began his legal career as a law clerk for the late William H. Rehnquist, Chief Justice of the United States, and Judge Alex Kozinski of the U.S. Court of Appeals for the Ninth Circuit.
Mr. Hur received his A.B. degree, magna cum laude with highest honors, from Harvard College. He received his J.D. from Stanford Law School, where he served as Executive Editor of the Stanford Law Review.
Rancho Santa Fe Couple Sentenced to Prison for Roles in Concealing $1.5 Million in Bankruptcy Assets, Evading $6 Million in Taxes and Committing Bank FraudRead the Press Release
Assistant U. S. Attorneys Michael J. Heyman and Joseph J.M. Orabona
NEWS RELEASE SUMMARY – April 6, 2018
SAN DIEGO – On April 5, 2018, J. Douglass Jennings, a disbarred California attorney, was sentenced to 34 months in federal prison for committing bankruptcy fraud (concealment of assets) and for tax evasion. His wife Peggy Jennings was sentenced to four months in federal custody for committing bank fraud.
Mr. Jennings once touted in a commercial that he managed “one of the nation’s leading estate and tax planning law firms.” He appeared on talk-shows and authored two books, including what he claimed in court filings was “highly regarded and one of the best and most complete estate planning treatises to date.” Mr. Jennings also practiced what he described in an advertisement as a “faith-based” approach to financial planning, with some referring to him as “Uncle Doug.”
In January 2010, Mr. and Mrs. Jennings filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the Southern District of California, In re J. Douglass Jennings, Jr. and Peggy L. Jennings, Case No. 11-04720. On September 11, 2017, Mr. Jennings pleaded guilty to devising a scheme to defraud his unsecured creditors by concealing numerous assets and income during the bankruptcy. Those assets and income, valued at nearly $1.5 million, included:
- A stock interest in a real-estate venture valued at approximately $1 million;
- A 53.2 foot luxury yacht known as the “Sea Eagle” valued at approximately $150,000;
- Antique silver items valued at approximately $165,139; and
- $138,694 in salary payments and other benefits in violation of a Bankruptcy Court order.
Mr. Jennings also pleaded guilty to evasion of tax payments in the amount of $5,927,093.00.
At the sentencing hearing, the Honorable Gonzalo Curiel quoted one of the victims of the fraud who described Mr. Jennings as having “manufactured a diabolical morass of massive complexity around his bankruptcy.” Judge Curiel further described Mr. Jennings’ conduct as “callous, uncaring, and deceitful.” Mr. Jennings was sentenced to 34 months in custody for this conduct and his lack of remorse. The sentence was also imposed to deter Mr. Jennings from committing fraudulent conduct in the future since he was already “planning his comeback and planning his resurrection.” The judgment additionally included an order to pay restitution to victims in the amount of $1,453,833.00 and restitution to the IRS in the amount of $5,927,093.00.
Peggy Jennings was sentenced to bank fraud in the related action, United States v. Peggy L. Jennings, Case No. 17CR2306-GPC. Mrs. Jennings had forged her mother’s signature on loan documents, fraudulently transferred funds into her mother’s bank accounts to make it appear that her mother had substantial income, submitted false documents to the bank, and intended to cause the bank losses exceeding more than $226,000. Mrs. Jennings was sentenced to 4 months in custody and ordered to pay a $50,000 fine and $145,481.71 in restitution.
“The bankruptcy system is designed to provide honest debtors a fresh start,” said United States Attorney Adam L. Braverman. “Manipulation of that system through fraudulent acts can cause significant harm and suffering to innocent victims, and will be vigorously pursued.”
“Mr. Jennings’ abuse of his position and manipulation of the system for his own personal gain will not be tolerated,” said IRS-CI Special Agent in Charge R. Damon Rowe. “This case is an example of fraud and deceit at the highest level. Jennings utilized his reputation and experience to lure victims and perpetrate his scheme. Investigating these types of cases and ensuring those responsible are brought to justice continue to be a top priority for the IRS- Criminal Investigation Division.”
“This sentencing reinforces the FBI’s commitment to restoring the public’s faith in the bankruptcy system through the unwinding of this intricate web of deception, bringing this husband and wife team to justice,” said FBI Special Agent in Charge John A. Brown. “Through our partnerships with the Internal Revenue Service and other government institutions, the FBI will continue to pursue and prosecute criminals who defraud American citizens and the U.S. Government.”
“I am grateful to U.S. Attorney Braverman and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by these successful criminal prosecutions,” stated Tiffany L. Carroll, Acting U.S. Trustee for the Southern District of California, Hawaii, Guam, and the Northern Mariana Islands (Region 15). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 15 is headquartered in San Diego with offices in Honolulu and Guam.
DEFENDANT Case Number 17CR2722-GPC
J. Douglas Jennings, Jr. Age: 73 Rancho Santa Fe, CA
SUMMARY OF CHARGES FOR J. DOUGLASS JENNINGS:
Bankruptcy Fraud – Title 18, U.S.C., Section 152(1)
Evasion of Tax Payment – Title, 26 U.S.C., Section 7201
DEFENDANT Case Number 17CR2306-GPC
Peggy L. Jennings Age: 72 Rancho Santa Fe, CA
SUMMARY OF CHARGES FOR PEGGY L. JENNINGS:
Bank Fraud – Title 18, U.S.C., Section 1344
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Putnam County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
Defendant faces at least five and up to 20 years in federal prison
HUNTINGTON, W.Va. – A Parkersburg man pled guilty today to a child pornography crime, announced United States Attorney Mike Stuart. Stephen Craig Sluss, 59, of Scott Depot, entered his guilty plea to receiving child pornography. U.S. Attorney Stuart praised the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and Department of Homeland Security - Homeland Security Investigations.
U.S. Attorney Stuart said, “I commend the law enforcement officers dedicated to investigating these disgusting crimes, as well as the members of my team who prosecute these cases. Protecting our children from predators is some of the most difficult and important work we do.”
Sluss admitted that on April 1, 2017, he received videos of prepubescent minors engaged in sex acts. The videos were received by Sluss via the Internet. The investigation revealed that Sluss was using a web-based chatting service to access and download child pornography. Sluss further admitted to possessing over 600 images and videos of minors engaged in sex acts, and that some of those images involved sadistic conduct.
Sluss faces at least five and up to 20 years in federal prison when he is sentenced on July 19, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald are in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Pittsburgh Man Pleads Guilty to Cocaine TraffickingRead the Press Release
PITTSBURGH – A former resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of trafficking cocaine, United States Attorney Scott W. Brady announced today.
Johnny Lee Jones, 46, of Pittsburgh, PA, pleaded guilty before United States District Judge Cathy Bissoon.
In connection with the guilty plea, on March 13, 2017, Jones knowingly, intentionally, and unlawfully possessed with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
Judge Bissoon scheduled sentencing for September 6, 2018, at 2:15 p.m. The law provides for a maximum total sentence of not less than 5 years and up to 40 years imprisonment, a maximum fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bethel Park Police Department conducted the investigation that led to the prosecution of Jones.
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.
Philadelphia Police Officer Sentenced for Drug DistributionRead the Press Release
PHILADELPHIA – Stanley Davis, 50, of Philadelphia was sentenced today to 18 months in prison by the Honorable R. Barclay Surrick for distribution of controlled substances.
Davis was a Philadelphia Police Officer assigned as a task force officer with the Federal Bureau of Investigation, working on narcotics investigations. In September or October of 2016, Davis was working in the Kensington section of Philadelphia, an area where illegal drugs were frequently bought and sold. Davis spotted two young woman who were in Kensington attempting to buy drugs. He approached the women, ostensibly to gain information on drug trafficking activity in the area. He exchanged phone numbers with the women and began sending them text messages, which soon turned sexual in nature. Davis entered into a sexual relationship with the first woman and later entered into a sexual relationship with the second woman. During the course of these relationships, Davis provided each woman with controlled substances, including heroin and crack.
“The conduct of former Philadelphia Police Officer Stan Davis is reprehensible” said United States Attorney William M. McSwain. “The Kensington area of Philadelphia has long been ravaged by the impact of the drug trade, and Davis served his own agenda by preying on the vulnerability of women struggling with drug use. Unlike Davis, the overwhelming majority of the men and women of the Philadelphia Police Department are dedicated servants to the community whose fine reputations should not be tarnished by the outrageous conduct of this one police officer.”
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of the Inspector General with assistance from the Pennsylvania State Police and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Robert J. Livermore
Philadelphia Man Charged with Passing Counterfeit CurrencyRead the Press Release
Abel Helb, 28, of Philadelphia, Pennsylvania was charged today by Information with one count of conspiring to possess and pass counterfeit currency and three counts of passing counterfeit currency announced United States Attorney William M. McSwain. According to the Information, Helb conspired with others to pass counterfeit one hundred dollar bills to purchase prepaid debit cards and other merchandise from pharmacy drug stores and dollar stores. Helb and his co-conspirators used counterfeit currency at stores in Pennsylvania, New Jersey, and Tennessee to commit the fraud.
The defendant faces a maximum possible sentence of five years’ imprisonment if convicted of conspiracy and 20 years’ imprisonment for each count charging him with passing counterfeit currency. He also faces a maximum fine of $1,000,000, a $400 assessment, and three years of supervised release.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney Tiwana Wright.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Passing of Assistant U.S. Attorney Michael Joseph FicaRead the Press Release
BOISE – It is with great sadness that we announce the passing of renowned federal prosecutor Michael Joseph Fica on Sunday April 8, 2018. Mike was admitted to the bar in 1997, and began his career with a two-year clerkship with the Honorable Chief Judge B. Lynn Winmill. He was hired by then-U.S. Attorney Betty H. Richardson in 1999. Over Mike’s nineteen-year career with the United States Attorney’s Office, working under four United States Attorneys, he filed more than 500 indictments and prosecuted more than 1,000 defendants. He prosecuted a broad range of cases, but focused on illegal drugs and organized crime, working closely with federal agencies and with the Idaho State Police in eastern Idaho and around the state. He became the head of the Organized Crime and Drug Enforcement Task Force in 2011.
In addition to Mike’s prosecutorial duties, he brought his tremendous energy and humor to teaching, working as an instructor for Trial Advocacy and other courses for the Department of Justice at the National Advocacy Center in Columbia, South Carolina. He played a key role in bringing the National High School Mock Trial Championship to Boise in 2016, and enjoyed working with high school students on mock trials for years. Mike also worked as a 5th District Official high school sports referee for eighteen years.
Mike’s absence will be felt particularly strongly in Pocatello, where he worked closely with five colleagues. He will also be missed by all 62-members of the office and by countless others with whom he worked over the years.
“Mike used his tremendous intelligence, his remarkable ability to juggle many things, his empathy, and his humor to tremendous effect. His devotion to public service, to his community, and to his family was profound,” said U.S. Attorney Bart Davis. “He will be missed, and his positive effect on the world around him will be missed as well.”
“Mike was a remarkable colleague. He had an inherent sense of justice and fair dealing. He had tremendous energy, smarts, and humor. And he brought all those things to his job every day. We will all miss him very, very much but we will work diligently to honor his memory,” said Pocatello Branch Manager, AUSA Jack Haycock.
Mike leaves behind him his wife, Ila Marie Fica, to whom he was married for 27 years; their five children, Zachary, Emily, David, Joseph and Benjamin; his brother, Thomas; his mother, Dorothy; his mother-in-law, Bette Woolsey; and his father-in-law, Ray Bingham. Mike was 49 years old.
Mike was preceded in death by his father, Thomas Cruz Fica.
Omaha Business Owner Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Joseph P. Kelly announced today that Becky Lynn Neeb, age 37 of Omaha, Nebraska, has pled guilty to the crime of Tax Evasion before the Honorable Chief District Court Judge Laurie Smith Camp. The maximum sentence that could be imposed is a period of incarceration of up to 5 years, a fine of up to $250,000, or both such fine and imprisonment, a term of supervised release of up to 3 years and a special assessment of $100.
During the tax years 2011, 2012 and 2013 the defendant evaded the assessment of her income tax liability on her Form 1040, U.S. Individual Tax Returns, by under reporting her business receipts and over reporting her business expenses for her business, Top Notch Charms. With penalties and interest, the total tax loss is approximately $137,000 which is due and owing to the Internal Revenue Service. Defendant has agreed to make full restitution. “With the April 17 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Andrew Thornton, Acting Special Agent in Charge of IRS Criminal Investigation. “Fulfilling individual tax obligations is a legal requirement and those who willfully evade that responsibility will be prosecuted.”
Sentencing is scheduled for July 2, 2018.
Ocean County, New Jersey, Man Charged with Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Toms River, New Jersey, man was arrested this morning on charges that he distributed images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.
David Nelson, 43, is charged by complaint with one count of distributing child pornography. Nelson appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained.
According to the complaint:
As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995.”
Law enforcement agents recovered more than two dozen images depicting child sexual abuse that “candicesloan1995” – later revealed to be Nelson – had disseminated over a Kik chat group between Oct. 24, 2017 and Oct. 26, 2017. Nelson allegedly used his personal cell phone to access Kik and disseminate images of child pornography to others over Kik chat groups.
The distribution charge carries a minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge David P. Gelios in Detroit, with the investigation. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Andrea D. Bergman, Assistant Federal Public Defender, Trenton
North Miami Resident Sentenced to Twelve Years in Prison for $1.8 Million Automobile Fraud SchemeRead the Press Release
Following his conviction at trial, a North Miami resident was sentenced today to 12 years in prison for his participation in an elaborate automobile fraud scheme that netted over $1.8 million.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Rick Maglione, Chief, Fort Lauderdale Police Department made the announcement.
Michael “Mickey” Munday, 72, of North Miami, was sentenced by U.S. District Judge Robert N. Scola, Jr. to 144 months in prison.
On January 17, 2018, Munday was convicted at trial of one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and five counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Nine other co-defendants were indicted and plead guilty in connection with the same scheme.
The evidence presented at trial established that Munday obtained vehicles from throughout the country using various fraudulent methods. These methods included, among other things, convincing people who were behind on their car payments to turn over their vehicles to him in exchange for cash, illegally repossessing vehicles, and covertly transporting stolen cars from other states to Florida. In order to evade detection by law enforcement, Munday and his co-conspirators used several towing and repossession companies as fronts for their illegal activity.
After Munday and his co-conspirators obtained the vehicles, the automobiles were then hidden from owners, banks and lienholders at a number of locations, including at Munday’s North Miami residence. While the vehicles were hidden, another co-conspirator prepared and sent, via U.S. mail, false and fraudulent lien notices claiming thousands of dollars in nonexistent tow services to the vehicle owners and true lienholders. Sham auctions were then held at a strip mall, some of which were facilitated by Munday. Of the more than 150 cars involved in the scheme, only one car appeared at an “auction,” and there were never any customers. After the sham auction was held, the conspirators then cleaned the respective car titles by falsely and fraudulently removing the legitimate owners and lienholders from the title. The cars were then sold to a co-conspirator in the automotive wholesale business at prices below market value and resold for a profit to local dealerships. Overall, banks suffered more than $1.7 million in loss as a result of the scheme.
During the trial, videos and social media postings were introduced showing Munday bragging about his past experience as a drug smuggler, explaining the effectiveness of tow companies as fronts for smuggling, proclaiming himself the “UPS of the smuggling industry,” and advertising himself as a master of evading law enforcement.
Mr. Greenberg commended the investigative efforts of the USSS and the Fort Lauderdale Police Department. This case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Anne P. McNamara.
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.
Norfolk Man Sentenced to more than 11 years in Prison for Conspiring to Distribute Methamphetamine and Possession of FirearmsRead the Press Release
United States Attorney Joseph P. Kelly announced that Chadwick Lynn Board, 31, of Norfolk, Nebraska, was sentenced on April 9, 2018, to 137 months in prison by United States District Judge Laurie Smith Camp. Board had previously pled guilty after Madison County Investigators executed a search warrant on his Norfolk residence on March 2, 2017. Inside the residence, investigators located 23 firearms including handguns, sawed-off shotguns, assault rifles, and drug paraphernalia indicative of methamphetamine distribution. At the time, Board was a convicted felon known to be distributing methamphetamine from the residence.
Because Board possessed a firearm in connection with drug trafficking, a consecutive five year prison term was added to his sentence. After serving his sentence Board will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Madison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Newton Man Charged with 24 Additional Offenses Associated with Cyberstalking Former HousemateRead the Press Release
Boston - A Newton man, who was arrested and charged in October 2017 for conducting an extensive cyberstalking campaign against his former housemate, was charged today in federal court in Boston with an additional 24 offenses.
Ryan S. Lin, 25, was charged with seven counts of cyberstalking; five counts of distribution of child pornography; nine counts of making hoax bomb threats; three counts of computer fraud and abuse; and one count of aggravated identity theft.
The conduct charged in October 2017 is incorporated into today’s charges. Specifically, from about May 2016 through Oct. 5, 2017, Lin engaged in an extensive cyberstalking campaign against a 24-year-old female victim, who was Lin’s former housemate. Lin allegedly hacked into the victim’s online accounts and devices and stole the victim’s private photographs, personally identifiable information, and private diary entries, which contained highly sensitive details about her medical, psychological and sexual history, and distributed the victim’s material to hundreds of people associated with her.
Lin also allegedly created and posted fraudulent online profiles in the victim’s name and solicited rape fantasies, including “gang bang” and other sexual activities, which in turn caused men to show up at the victim’s home. Lin engaged in a number of other activities targeting the female victim, including relentless anonymous text messaging and additional hoaxes, from shortly after he met her until October 2017.
In addition to his former housemate, Lin allegedly engaged in cyberstalking activity aimed at six other individuals, some of whom were associated with the former housemate, and others who were entirely unrelated. The additional victims include a female victim that was Lin’s housemate in Newton at the time of his arrest. It is also alleged that on multiple occasions, Lin sent unsolicited sexually explicit images of prepubescent children to the victim’s mother, the victim’s co-worker and housemate, a friend of the victim who resided in New Jersey, and two of Lin’s former classmates in New York.
It is further alleged that Lin falsely and repeatedly reported to law enforcement that there were bombs at the victim’s Waltham residence. Lin also allegedly created a false social media profile in the name of the victim’s housemate in Waltham, posting that he was going to “shoot up” a school in a nearby town. These threats expanded beyond Waltham and became part of an extensive and prolonged pattern of threats to local schools, private homes, businesses, and other institutions in the broader community.
Each count of cyberstalking provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $ 250,000. Each count of distribution of child pornography provides for a minimum sentence of five years and no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Each count of making hoax bomb threats provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Each count of computer fraud and abuse provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $ 250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John P. Cronan, of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Waltham Police Chief Keith MacPherson made the announcement today. The U.S. Attorney’s Office would also like to thank the Middlesex County District Attorney’s Office and Watertown, Newton and Wellesley Police Departments. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit, and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephan Cotterrell, of New York, New York, has admitted to using a firearm during a crime of violence, United States Attorney Bill Powell announced.
Cotterrell, age 21, pled guilty to one count of “Use of a Firearm During a Crime of Violence.” He admitted to brandishing a .22 caliber revolver during a robbery in January 2017 in Morgantown, West Virginia.
Cotterrell faces not less than seven years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A New York man who took part in drug conspiracy between 2016 and 2017 pled guilty today in federal court in Huntington, announced United States Attorney Mike Stuart. Karl Nesly Lamerique, 31, entered his guilty plea to conspiracy to distribute heroin and 50 grams or more of methamphetamine. United States Attorney Stuart commended the work of the Huntington FBI Drug Task Force and the United States Postal Inspection Service.
“Great teamwork between the Huntington FBI Drug Task Force and United States Postal Inspection Service means another out-of-state drug dealer is out of business and headed to the big house,” said United States Attorney Stuart. “We are building remarkable relationships among our federal, state and local partners and utilizing every tool at our disposal to prosecute anyone selling dangerous drugs in our communities.”
From at least February of 2016 to June of 2017, Lamerique obtained quantities of methamphetamine and heroin from California which were mailed to the Huntington and Cross Lanes areas. Lamerique and others would then distribute the drugs to customers in Cabell, Putnam, and Kanawha counties. Lamerique also utilized others to distribute drugs by providing large quantities of drugs on credit and receiving payment for the drugs after they were sold.
Lamerique admitted that during the conspiracy, he and others utilized a residence and a storage unit in Cross Lanes to store, prepare and distribute drugs. Lamerique provided drugs to individuals who stayed in the residence and distributed the drugs on behalf of Lamerique and another individual. On June 1, 2017, agents executed search warrants at the residence and storage unit. During the search, agents seized multiple firearms, ammunition, and over 3 kilograms of methamphetamine that was found to be 98% pure after testing by a forensic chemist. As part of his plea, Lamerique admitted that he was responsible for the distribution of up to 4.5 kilograms of methamphetamine during the conspiracy.
Lamerique faces a mandatory minimum 10 years and up to life in federal prison when he is sentenced on July 19, 2018.
Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The investigation was conducted by the Huntington FBI Drug Task Force and the United States Postal Inspection Service. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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New Town Woman Indicted for Embezzlement and TheftRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that Melissa Ann Mandan, aka: Melissa Fyten, age 33, was charged by an Indictment returned on April 4, 2018, for Federal Program Theft and Embezzlement and Theft from an Indian Tribal Organization.
The Indictment alleges that Mandan stole in excess of $40,000 worth of funds and amenities from the Mandan, Hidatsa, and Arikara Nation (Three Affiliated Tribes) Infant and Toddler Program while she was employed as an administrative assistant. The Infant and Toddler Program provides assistance to families whose children, between the ages 0 and 5, have not reached their physical or mental developmental milestones. The program provides tribal members resources for services to help the children with speech and physical therapy and other services intended to aid the children. The Indictment also alleges that in addition to stealing money from the Infant and Toddler Program, Mandan also fraudulently used the Infant and Toddler Program account to purchase thousands of dollars worth of goods and food. Mandan’s Initial Appearance and Arraignment was before Magistrate Judge Alice R. Senechal, at 2:30 p.m. today, April 9, 2018. The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.
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New Haven Man Sentenced to 77 Months in Prison for Role in Armed Robbery of Hamden Video Game StoreRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RASHON GRAY, also known as “Loke,” 24, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 77 months of imprisonment, followed by three years of supervised release, for participating in the armed robbery of a Hamden store in April 2016.
According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden. One of the men pulled out a gun and ordered the store’s three employees to get down on the ground. The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case. The employee complied and the four suspects took several items, including cell phones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830. The four ran out of the store to a waiting car.
Investigators subsequently identified GRAY as the individual who brandished the firearm and threatened the store employee.
GRAY was on state probation at the time of the offense. On May 6, 2016, police and probation officers found him in possession of a cell phone that had been taken during the robbery and his probation was revoked.
GRAY has been detained in federal custody since his arrest on July 21, 2017. On December 4, 2017, he pleaded guilty to one count of Hobbs Act Robbery.
Four other individuals have been charged and convicted as a result of this investigation.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
National Crime Victims’ Rights Week Event Set for April 13 in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – In commemoration of National Crime Victims’ Rights Week, the Jefferson Area Victim Assistance Coalition will host a Community Day on Friday, April 13 from 11:30 a.m. to 1:30 p.m., near the Sprint Pavilion on the downtown mall in Charlottesville. The event is designed to highlight recovery and other resources available to crime victims in the Greater Jefferson Area, provide the community with information about crime enforcement, emphasize prevention education, and foster the ties between law enforcement and the communities they serve.
“Ensuring that the voices of all victims of crime be heard is an integral part of the criminal justice system and something that I, as the United States Attorney, take extremely serious.” United States Attorney Thomas T. Cullen said today. “This Friday’s community event will allow service providers and law enforcement agencies to come together to meet the community in an informal setting to build trust and forge lasting relationships that will help us better serve victims in the future.”
Friday’s event is free and family friendly with interactive demonstrations and information available from more than a dozen federal, state, and local law enforcement agencies and service providers. There will be plenty for children to see and do, including police motorcycles, firetrucks, police cars, other law enforcement vehicles, K9 Officers, therapy dogs, activities, games, food and more.
In addition, there will be information available for adults about local community groups, service providers, drug prevention tips, exhibitions and more. A particular area of focus is crimes against the elderly. Information will be available from the United States Attorney’s Office that focuses on schemes directed at seniors, such as phone scams, healthcare scams, frauds involving grandchildren, and IRS imposter scams. Additional information will be available offering tips to keep seniors safe from falling victim to these frauds, as well as information about what to do if an elder person believes they have been a victim of a fraud.
The Office for Victims of Crime of the U.S. Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme, Expand the Circle: Reach All Victims, highlights how the investment of communities in serving crime victims expands the opportunity for all victims, including those who are sometimes overlooked or marginalized, to disclose their victimization, connect with services, and receive the support they need.
The Jefferson Area Victim Assistance Coalition consists of members form the Albemarle County Victim/Witness Program, Charlottesville Victim/Witness Program, Fluvanna County Victim/Witness Program, Greene County Victim/Witness Program, Homeland Security Victim Assistance Program, Louisa County Victim/Witness Program, Sexual Assault Resource Agency, University of Virginia Victim/Witness Program, the Federal Bureau of Investigation Victim Assistance Program, the Shelter for Help in Emergency and the United States Attorney’s Office Victim/Witness Program.
Nashville Man Indicted for Hate Crime and Lying to the FBIRead the Press Release
NASHVILLE MAN INDICTED FOR HATE CRIME AND LYING TO THE FBI
NASHVILLE, Tenn. – April 9, 2018 - The Department of Justice today announced that Christopher Beckham, 32, of Nashville, Tennessee, was indicted by a federal grand jury on charges of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act and lying to the FBI. U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John Gore of the Civil Rights Division made the announcement.
The indictment was unsealed today, following Beckham’s arrest on Friday night. He will appear before a U.S. Magistrate judge later today.
According to the indictment, on or about Oct. 24, 2017, in the Middle District of Tennessee, Beckham saw two teenage girls wearing hijabs and said “Allahu Akbar!” and “Go back to your country!” He then attacked the girls’ father by swinging a knife and punching at him, and shouted derogatory comments at the family. Also, according to the indictment, on or about March 12, 2018, Beckham falsely claimed to FBI special agents that he saw the girls trying to break into cars; that he never swung a knife at their father; and that, after he pulled out his knife, the girls yelled “Allahu Akbar!,” and then either one or both of them hit him on the back of the head.
If convicted on the hate crime charge, Beckham faces a maximum sentence of ten years in prison, three years of supervised release, and a fine of up to $250,000. The charge of making false statements to the FBI provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara Beth Myers of the Middle District of Tennessee and Trial Attorneys Christine M. Siscaretti and Rachel Kincaid of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Mountain Grove, Missouri, Man Pleads Guilty to Importation of Anabolic SteroidsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bobby E. McGraw, age 43, of Mountain Grove, Missouri pled guilty to Importation Of Anabolic Steroids, in violation of Title 21, United States Code, Sections 952(b), 960(a)(1) and 960(b)(5), punishable by not more than 10 years imprisonment, a fine up to $500,000.00 or both.
The Indictment alleged that on or about June 7, 2017, in the Eastern District of Oklahoma, the defendant, Bobby E. Mcgraw, did knowingly and intentionally import into the United States from the Kingdom of Thailand, anabolic steroids, a Schedule III controlled substance.
The charges arose from an investigation by the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Mexican Man Charged with Illegal ReentryRead the Press Release
United States Attorney Duane A. Evans announced that JOEL FLORES-GONZALES, age 41, a native of Mexico, was charged today in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the Indictment, FLORES-GONZALES was previously removed from the United States on June 20, 2016. He was later found in the Eastern District of Louisiana on March 12, 2018 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, FLORES-GONZALES faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mendocino County Resident Pleads Guilty to Illegally Importing Leopard Hunting Trophy from South AfricaRead the Press Release
OAKLAND – Adam Thatcher Lawrence pleaded guilty in federal court in Oakland today to mislabeling wildlife intended for importation, announced Acting United States Attorney Alex G. Tse and United States Fish and Wildlife Service Office of Law Enforcement Region 8 Assistant Special Agent in Charge Daniel Crum. The plea was accepted by the Honorable Haywood S. Gilliam, U.S. District Judge.
In pleading guilty, Lawrence, 38, of Willits, Calif., admitted that, in August 2011, he traveled to the Republic of South Africa and hunted, shot, and killed a leopard in that country. Lawrence did not personally possess a permit to kill a leopard in South Africa at that time, nor did he possess a permit allowing him to export the leopard from South Africa. Lawrence further admitted that in May 2012, he returned to South Africa with the primary purpose of bringing the leopard out of that country and into the United States. The leopard’s skin and skull were secretly transported into the Republic of Mozambique concealed inside a spare tire.
Leopards are a protected species under both the Endangered Species Act, 16 U.S.C. § 1531 et seq., and the Convention on International Trade in Endangered Species of Wild Fauna and Flora, an international treaty to which the United States, South Africa, and Mozambique are signatories. As a result, the import and export of leopards is strictly regulated.
Lawrence admitted that he falsely claimed he had killed the leopard in Mozambique. He acquired the permits required to export the leopard parts from Mozambique, import them into South Africa, re-export them from South Africa, and import them into the United States. In each of those documents, he falsely stated that he had killed the leopard in Mozambique in 2012, rather than South Africa in 2011. Further, in April 2013, he imported the leopard skin and skull into the United States. In connection with the importation, Lawrence knowingly submitted a United States Declaration for Importation or Exportation of Fish or Wildlife in which he falsely stated he killed the leopard in Mozambique in 2012.
A federal grand jury indicted Lawrence on January 11, 2018, charging him with one count of importing wildlife contrary to law, in violation of 18 U.S.C. § 545, and one count of mislabeling wildlife intended for importation, in violation of 16 U.S.C. §§ 3372(d) and 3373(d)(3). Under the plea agreement, Lawrence pleaded guilty to the mislabeling count and the importing count will be dismissed. Also as part of the plea agreement, Lawrence agreed to forfeit his interest in the leopard skin and skull that he imported, as well as the hunting rifle that he used to kill the leopard. He also has agreed to forfeit other contraband seized from his home in October 2016, including a mountain lion mount and skull, a carved hippopotamus tooth, whale bones, and a harbor seal skin.
Lawrence is released on bond. Judge Gilliam scheduled Lawrence’s sentencing hearing for June 25, 2018, at 2:00 p.m. The maximum statutory penalty for a violation of 16 U.S.C. §§ 3372(d) and 3373(d)(3) is five years’ imprisonment and a fine of $250,000 plus restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Katherine Lloyd-Lovett is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the United States Fish and Wildlife Service Office of Law Enforcement.
Massachusetts Man Charged with 24 Additional Offenses Associated with Cyberstalking Former HousemateRead the Press Release
A Newton, Massachusetts man, who was arrested and charged in October 2017 for conducting an extensive cyberstalking campaign against his former housemate, was charged today in federal court in Boston with an additional 24 offenses.
Ryan S. Lin, 25, was charged with seven counts of cyberstalking, five counts of distribution of child pornography, nine counts of making hoax bomb threats, three counts of computer fraud and abuse and one count of aggravated identity theft.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, Special Agent in Charge Harold H. Shaw of the FBI Boston Field Office and Waltham Police Chief Keith MacPherson made the announcement today.
The conduct charged in the October 2017 complaint is incorporated into today’s charges. Specifically, from about May 2016 through Oct. 5, 2017, Lin engaged in an extensive cyberstalking campaign against a 24-year-old female victim. Lin, the victim’s former housemate, allegedly hacked into the victim’s online accounts and devices and stole the victim’s private photographs, personally identifiable information, and private diary entries, which contained highly sensitive details about her medical, psychological and sexual history, and distributed the victim’s material to hundreds of people associated with her.
Lin also allegedly created and posted fraudulent online profiles in the victim’s name and solicited rape fantasies, including “gang bang” and other sexual activities, which in turn caused men to show up at the victim’s home. Lin engaged in a number of other activities targeting the female victim, including relentless anonymous text messaging and additional hoaxes, from shortly after he met her until October 2017.
The Information further charges that, in addition to his former housemate, Lin engaged in cyberstalking activity aimed at six additional individuals. Some were associated with the former housemate, and others were entirely unrelated. The additional victims include a female victim that was also Lin’s housemate in Newton at the time of his arrest. It is also alleged that on multiple occasions, Lin sent sexually explicit images of prepubescent children on an unsolicited basis to the victim’s mother, the victim’s co-worker and housemate, a friend of the victim who resided in New Jersey, and two of Lin’s former classmates in New York.
In addition to the cyberstalking activity, it is alleged that Lin falsely and repeatedly reported to law enforcement that there were bombs at the victim’s Waltham, Massachusetts residence. Lin also allegedly created a false social media profile in the name of the victim’s housemate in Waltham and posted that he was going to “shoot up” a school in a nearby town. These threats expanded beyond Waltham and became part of an extensive and prolonged pattern of threats to local schools, private homes, businesses, and other institutions in the broader community.
The investigation was conducted by the FBI’s Boston Field Office and the Waltham Police Department. The Middlesex County District Attorney’s Office and Watertown, Newton and Wellesley Police Departments assisted in the investigation. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Note: To view the information click here.
Maryland Man Sentenced to 12 Years in Prison for 2004 Sexual Assault of Woman in GeorgetownRead the Press Release
WASHINGTON - Benjamin Paz, 54, of Montgomery Village, Md., was sentenced today to 12 years in prison for sexually assaulting a 21-year-old woman after illegally entering her residence in Georgetown in February 2004, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Paz pled guilty in December 2017, in the Superior Court of the District of Columbia, to one count of first-degree sexual abuse and one count of first-degree burglary. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence within the range of eight to 15 years. The Honorable Hiram E. Puig-Lugo accepted the plea and sentenced the defendant accordingly. Following his prison term, Paz will be placed on lifetime supervised release. He also must register as a sex offender for the rest of his life.
“This prosecution is an example of our determination to ensure that violent crimes are not left unsolved,” said U.S. Attorney Liu. “By taking a fresh look at this case, we were pleased to join the Metropolitan Police Department and our other partners to get this dangerous predator off the street and achieve justice for the victim.”
According to the government’s evidence, on Feb. 22, 2004, at approximately 4:30 a.m., Paz broke into a residence in the 3300 block of Prospect Street NW, where the victim, then 21, was home alone, sleeping. Paz was a stranger to the victim. Paz removed the victim’s clothing and sexually assaulted her by force. During the assault, the victim was able to push Paz off her, after which he got up and ran out the back door into the alley. The victim ran out the front door to get help.
The victim made an immediate report to police, and was transported to an area hospital, where she received a Sexual Assault Nurse Examination. This examination included the collection of swabs from her intimate areas. The Physical Evidence Recovery Kit was later sent for forensic testing. That testing revealed an unknown male DNA profile developed from the victim’s swabs. That unknown male DNA profile was uploaded to the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. There were no hits.
Paz was developed as a suspect in these offenses by MPD in 2017. On Feb. 9, 2017, a D.C. Superior Court judge signed a search warrant authorizing the collection of buccal swabs from the defendant. The warrant was executed on Feb. 15, 2017, and the swabs were later sent for forensic testing. During the testing, Paz’s DNA profile was developed and compared to the unknown male DNA profile developed from the testing of the victim’s swabs in the 2004 offense. The results of this comparison revealed that the DNA profile of the defendant matched the DNA profile of the unknown male on the swabs.
Paz was arrested on March 22, 2017, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Cold Case Unit and Second Police District, as well as the Deputy Marshals from the U.S. Marshals Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Victim/Witness Specialists LaJune Thames and Katina Adams-Washington, and Executive Assistant Shelia Miller.
Finally, they expressed appreciation for the work of Assistant U.S. Attorney Amy Zubrensky, who investigated and prosecuted the case.
Man sentenced for obstructing justice in City of Atlanta corruption investigationRead the Press Release
ATLANTA - Shandarrick Barnes was sentenced to three years and one month in prison, with five-months credit for time served, for obstructing justice in the federal corruption investigation involving City of Atlanta government. Barnes threw a concrete block through the window of E.R. Mitchell’s home, and placed dead rodents on his porch and elsewhere hoping to stop his cooperation with federal law enforcement.
“Barnes thought he could thwart the City of Atlanta corruption investigation by throwing a concrete block through a federal witness’ window,’” said U. S. Attorney Byung J. “BJay” Pak. “Instead, investigators became even more resolute in their efforts to root out a pay-to-play system that undermines the public’s trust in government.”
“Barnes used the tactic of fear to try to stop Mitchell from cooperating with FBI agents,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “It is imperative that we send a strong message to anyone who would attempt to subvert law enforcement agents and officers in their search for the truth.”
“Witness intimidation is a serious crime and today’s sentence shows the consequences of obstructing a federal investigation,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “This investigation is ongoing and we encourage anyone with any information to come forward without fear of reprisal or intimidation.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In late July 2015, special agents with IRS and the FBI approached E.R. Mitchell, Jr. for an interview relating to an ongoing investigation into corruption at the City of Atlanta. During the meeting, agents discussed corruption allegations as well as potential tax improprieties. Shortly after the IRS and FBI agents approached and interviewed him, Mitchell informed others that federal law enforcement had spoken with him and was asking questions.
Mitchell was interviewed on September 2, 2015, by the U.S. Attorney’s Office and federal agents and confessed to regularly paying “up-front money” for City of Atlanta contracts. On September 8, 2015, Mitchell returned to the office and completed a second debriefing with prosecutors and agents.
On September 11, 2015, at approximately 5:45 a.m., Barnes threw a concrete block with the words “ER, keep your mouth shut!” written on the side, through a plate glass window in Mitchell’s home. When Mitchell emerged from the house to see who had thrown the block, he saw that dead rats had been placed on his porch, car and in his mailbox. The police and FBI were summoned to the scene and law enforcement obtained security footage from the subdivision. The video revealed a car that appeared to match Barnes’ vehicle left the area minutes after the block was thrown through the front window. Further investigation by agents suggested that Barnes was involved.
On July 13 and August 17, 2016, Barnes was interviewed by the FBI and IRS. During the interviews, he admitted that he threw the concrete block through Mitchell’s window. Barnes specifically acknowledged that he was aware of the investigation into Mitchell and others, and that agents had asked about Mitchell’s taxes as well as payments Mitchell made to businesses associated with Barnes’ employer. He was well aware that Mitchell was actively cooperating with agents. He said he was livid and his decision to throw the brick through Mitchell’s window was motived by his desire to hinder Mitchell’s communication with agents. He said he felt that Mitchell’s communications to federal law enforcement would negatively affect his employer’s businesses. Barnes was concerned that the communication with agents was detrimental to obtaining other business that he and others were actively seeking at that time.
This case was investigated by the FBI and Internal Revenue Service Criminal Investigation.
First Assistant U.S. Attorney Kurt R. Erskine and Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Sentenced to Prison for Illegal Firearm PossessionRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 78 months in prison for possession of a firearm by a convicted felon in the Mosby Court public housing community.
According to court documents, on July 29, 2017, Tiwan Parham, 29, was approached by several Richmond Police Department (RPD) Officers in the 1400 block of Coalter Street, Richmond, inside the Mosby Court public housing community. After a brief discussion, Parham consented to a pat down and officers discovered within his waistband a .40 caliber, Glock pistol, with an extended magazine containing 31 rounds of ammunition. RPD Officers later determined Parham was a convicted felon, related to a 2004 second-degree murder conviction. As part of his plea agreement, Parham further admitted to a March 2017 incident within Mosby Court in which he pistol whipped a victim and shot into an occupied vehicle.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Alfred Durham, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-122.
Man Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Manassas man pleaded guilty today to using the Internet to pay women to sexually abuse children as young as six years old in the Philippines while he produced numerous images of the abuse.
According to court documents, from at least October 2011 until February 2012, Dwayne Stinson, 53, used an electronic payment service to pay women in the Philippines he was chatting with to sexually abuse children while he directed the abuse. He admitted that some of the children were as young as six or seven years old. Stinson contemporaneously produced numerous screenshot images of the abuse and stored them on his computer.
Stinson pleaded guilty to production of child pornography and faces a mandatory minimum of 15 years in prison when sentenced on August 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Whitney Doherty Russell and Special Assistant U.S. Attorney James E. Burke IV are prosecuting the case.
The Prince William County Police Department and Northern Virginia/District of Columbia Internet Crimes Against Children Task Force (NOVA/DC ICAC) assisted in the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-211.
Man Pleads Guilty to Obstructing Counterterrorism InvestigationRead the Press Release
ALEXANDRIA, Va. – A Sterling man pleaded guilty today to obstructing a counterterrorism investigation and receipt of child pornography.
According to court documents, Sean Andrew Duncan, 22, altered, destroyed, mutilated, concealed, and covered up a thumb drive and memory chip with the intent to impede and obstruct an FBI terrorism investigation. He also knowingly and unlawfully received images of minors engaged in sexually explicit conduct, and possessed thousands of such images including images of infants being sexually abused.
Obstruction of Justice
In June 2017, the FBI learned that Duncan had been in contact with an individual who had been detained in a foreign country for actively planning to travel to join ISIS. In or around February 2015, Duncan told the individual that he wanted to make “hijrah” to Syria and that he wanted her to go with him. Later in February 2016, Duncan was denied entry into Turkey and returned to the United States.
Around this same time, the individual told Duncan she was upset at work due to non-Muslim women wearing shorts that exposed their bodies. Duncan replied with a link to a website, and a message saying she could “try this.” The link contained pictures and instructions on how to make weapons and bombs. The link was to an article titled, “How to build a bomb in the kitchen of your Mom” from Inspire magazine. In December 2016, Duncan contacted the individual and told her that he had come back from Turkey, where he and his wife were deported back to the United States. Duncan said he thought the FBI was monitoring him.
In or around October 2017, law enforcement authorities of a foreign government arrested one of their citizens (Recruiter 1) for inciting rebellion. Recruiter 1 is an ISIS recruiter who is suspected of drawing foreign fighters from around the world to Recruiter 1’s home country using social media. Recruiter 1 kept names and telephone numbers of individuals who had requested to join her social media and/or communication application groups. Recruiter 1’s notes included a handwritten name appearing to be “Sean Ibn Gary Duncan,” with Duncan’s known previous phone number and known previous mobile messaging account.
On or about Oct. 6, 2017, the Allegheny County Police Department (ACPD) provided a copy of Duncan’s phone to the FBI. ACPD had obtained this copy during an investigation surrounding the recent death of Duncan’s infant child (the cause of death in the autopsy was inconclusive). The FBI’s review of Duncan’s imaged phone revealed numerous internet searches for ISIS-related material, ISIS attacks, weapons, and body armor.
On Dec. 29, 2017, FBI agents executed the search warrant at Duncan’s residence. Upon execution of the warrant, the agents knocked on the door, identified themselves as FBI, and announced that they were there to execute a search warrant. Moments before the FBI agents entered the residence through the front door, Duncan ran out the back door, barefoot, and with something clenched in his fist. FBI agents guarding the back door yelled at Duncan to stop. Before stopping, Duncan threw a plastic baggie in the air and over the heads of the agents. FBI agents recovered the baggie thrown by Duncan. The baggie contained a memory chip from a thumb drive that had been snapped into pieces, and placed in a liquid substance that produced frothy white bubbles. Upon searching Duncan, agents recovered a broken casing for a thumb drive from Duncan’s pants pocket.
Receipt of Child Pornography
In December 2017, Duncan possessed a smartphone containing images of pre-pubescent minors that appeared to be engaged in sexually explicit conduct with adult males. Other images on the phone were of pre-pubescent minors posed to expose their genitalia in a sexual manner. Several of the images of child pornography were screen shots that Duncan had taken of websites containing child pornography that he had visited. The pre-pubescent minors in the photos were as young as infants, and the total number of images was in the thousands.
One image on his phone consisted of Duncan's hand exposing the genitalia of an infant in a sexual manner. Also found on several of Duncan’s phones and electronic devices were thousands of videos and images of children and women that Duncan took in a voyeuristic manner. Several of the videos and images are taken in public venues such as stores, metros, parks, and restaurants.
Duncan pleaded guilty to obstruction of justice and receipt of child pornography, and will be sentenced on July 6. By accepting the plea, the Court is bound to sentencing Duncan within 15-20 years in prison.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Gordon D. Kromberg, Colleen E. Garcia, Jay V. Prabhu, and Trial Attorneys B. Celeste Corlett and Rachel Hertz of the National Security Division’s Counterterrorism Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-19.
MS-13 Leader Sentenced to 19 Years in PrisonRead the Press Release
BOSTON – A leader of MS-13’s Enfermos Criminales Salvatrucha clique was sentenced today in federal court in Boston.
Rafael Leoner Aguirre, a/k/a “Tremendo,” 22, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 19 years in prison and three years of supervised release, which he will begin serving after completion of the state prison sentence for which he is currently incarcerated. Leoner Aguirre will also be subject to deportation upon the completion of his federal sentence. In November 2017, Leoner Aguirre was convicted by a federal jury after a multi-week trial of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Leoner Aguirre was the leader of MS-13’s Enfermos Criminales Salvatrucha clique. In 2013, Leoner Aguirre entered the United States illegally from El Salvador and initially moved to Michigan. From there, he began recruiting and planning MS-13 activities impacting Massachusetts. Among other things, Leoner Aguirre created recruitment videos for MS-13 and posted them on YouTube. This enabled younger gang members and associates to view these videos, including one witness who testified that he first saw these videos while at a local high school in Massachusetts.
In March 2014, Leoner Aguirre moved to the Chelsea area and immediately began activating, organizing, and supervising the Enfermos clique. As part of that activity, Leoner Aguirre encouraged members of the clique to attack and kill rival gang members, in addition to committing other racketeering acts such as robberies. Leoner Aguirre himself committed a number of racketeering acts, including an attempted murder in Chelsea where Leoner Aguirre struck a victim in the head with a machete. Leoner Aguirre also committed an attempted murder involving a shooting, which is the incident for which he is currently serving a four-to-five year state prison sentence. Leoner Aguirre committed both of these attempted murders in daylight on busy public streets in Chelsea.
The other members and associates of the Enfermos clique were Hector Ramires, a/k/a “Cuervo;” Bryan Galicia Barillas, a/k/a “Chucky;” David Lopez, a/k/a “Cilindro,” a/k/a “Villano;” Daniel Menjivar, a/k/a “Roca,” a/k/a “Sitiko;” Angel Pineda, a/k/a “Bravo;” and Kevin Ayala, a/k/a “Gallito.” Each of these defendants has pleaded guilty and will be subject to deportation upon the completion of their sentences.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Las Vegas Man Sentenced to over 24 Years in Prison for Receipt, Possession and Advertising of over 30,000 Child Pornography Images and VideosRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 293 months in prison to be followed by lifetime supervised release for receiving, possessing, and advertising more than 30,000 images and videos of child pornography, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
James Scott Alva, 45, was sentenced today by U.S. District Judge Robert C. Jones. In January, after a four-day trial, a jury convicted him of receipt of child pornography, possession of child pornography, and advertising of child pornography.
During an investigation into the online receipt and distribution of child pornography on a peer-to-peer network, a Las Vegas Metropolitan Police Department detective identified and downloaded child sexual exploitation files shared by Alva. The detective also obtained a “browse list” from Alva’s computer advertising 92 child pornography files available for sharing over the network. During the subsequent execution of a search warrant at Alva’s residence, law enforcement seized nine electronic devices from Alva’s bedroom, which contained a total of 28,403 images and 2,851 videos of child pornography. Of the child pornography images and videos, 167 depicted bondage, 1,136 depicted infants, and 20 depicted bestiality. In an interview with a detective, Alva admitted he searched for and received child pornography via peer-to-peer networks and the internet over the course of approximately 10 years. He also identified a laptop found in his room as containing child pornography and stated the child pornography on that laptop would be mostly videos and that some would depict “very young” children.
The investigation was conducted by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Christopher Burton and Elham Roohani prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Justice Department Leads Effort to Seize Backpage.Com, the Internet’s Leading Forum for Prostitution Ads, and Obtains 93-Count Federal IndictmentRead the Press Release
Note: To view the indictment click here.
The Justice Department today announced the seizure of Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children. Additionally, seven individuals have been charged in a 93-count federal indictment with the crimes of conspiracy to facilitate prostitution using a facility in interstate or foreign commerce, facilitating prostitution using a facility in interstate or foreign commerce, conspiracy to commit money laundering, concealment money laundering, international promotional money laundering, and transactional money laundering.|
The seven defendants charged in the indictment are Michael Lacey, 69, of Paradise Valley, Arizona; James Larkin, 68, of Paradise Valley, Arizona; Scott Spear, 67, of Scottsdale, Arizona; John E. “Jed” Brunst, 66, of Phoenix, Arizona; Daniel Hyer, 49, of Dallas, Texas; Andrew Padilla, 45, of Plano, Texas and Jaala Joye Vaught, 37, of Addison, Texas.
Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, U.S. Attorney Nicola T. Hanna of the Central District of California, FBI Director Christopher A. Wray, U.S. Postal Inspection Service Chief Postal Inspector Guy Cottrell and Chief Don Fort of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Sessions. “But this illegality stops right now. Last Friday, the Department of Justice seized Backpage, and it can no longer be used by criminals to promote and facilitate human trafficking. I want to thank everyone who made this important seizure possible: all of our dedicated and committed professionals in the Child Exploitation and Obscenity Section and our U.S. Attorney’s Office in the District of Arizona, the FBI, our partners with the IRS Criminal Investigation, our Postal Inspectors, and the Texas and California Attorney Generals’ offices. With their help, we have put an end to the violence, abuse, and heartache that has been perpetrated using this site, and we have taken a major step toward keeping women and children across America safe.”
“Backpage has earned hundreds of millions of dollars from facilitating prostitution and sex trafficking, placing profits over the well-being and safety of the many thousands of women and children who were victimized by its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange. “It is appropriate that Backpage is now facing criminal charges in Arizona, where the company was founded, and I applaud the tremendous efforts of the agents who contributed to last Friday’s enforcement action and who assisted in obtaining the indictment in this case. Some of the internal emails and company documents described in the indictment are shocking in their callousness.”
“This website will no longer serve as a platform for human traffickers to thrive, and those who were complicit in its use to exploit human beings for monetary gain will be held accountable for their heinous actions,” said FBI Director Wray. “Whether on the street or on the Internet, sex trafficking will not be tolerated. Together with our law enforcement partners, the FBI will continue to vigorously combat this activity and protect those who are victimized.”
“The events of last Friday and today are a big win, not only for the agents who investigated these crimes, but more importantly for the victims, including children, who were harmed as a consequence of the alleged actions of Backpage.com,” said Chief Postal Inspector Cottrell. “By laundering the illegal gains of an enterprise, Backpage perpetuated the exploitation of victims and continued to finance their business. The U.S. Postal Inspection Service is committed to protecting our customers by stopping the money laundering to ensure the cycle of victimization ends.”
“An indictment of this magnitude is particularly troubling when you look at the various layers of corruption and exploitation that are alleged to have occurred,” said IRS-CI Chief Fort. “The masterminds behind Backpage are not only alleged to have committed egregious amounts of financial crimes such as money laundering, they did so at the expense of innocent women and children. While these types of investigations can be made more challenging with the use of virtual currency, offshore banking, and the anonymity of the Internet, it should serve as an example to all criminals that there is not a place they can hide where we will not find them.”
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize Backpage was led by the Justice Department’s Child Exploitation and Obscenity Section and the U.S. Attorney’s Office for the District of Arizona, with significant support from the U.S. Attorney’s Office for the Central District of California, the office of the California Attorney General, and the office of the Texas Attorney General. The law enforcement agencies conducting the investigation and seizure include the FBI Phoenix Field Office, the U.S. Postal Inspection Service and IRS-CI. The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of the Central District of California is handling the asset forfeiture aspects of the case.Justice Department Leads Effort to Seize Backpage.Com, the Internet’s Leading Forum for Prostitution Ads, and Obtains 93-Count Federal IndictmentRead the Press Release
PHOENIX –The Justice Department announced the seizure of Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children. Additionally, seven individuals have been charged in a 93-count federal indictment with the crimes of conspiracy to facilitate prostitution using a facility in interstate or foreign commerce, facilitating prostitution using a facility in interstate or foreign commerce, conspiracy to commit money laundering, concealment money laundering, international promotional money laundering, and transactional money laundering.
The seven defendants charged in the indictment are Michael Lacey, 69, of Paradise Valley, Ariz., James Larkin, 68, of Paradise Valley, Ariz., Scott Spear, 67, of Scottsdale, Ariz., John E. “Jed” Brunst, 66, of Phoenix, Ariz., Daniel Hyer, 49, of Dallas, Tex., Andrew Padilla, 45, of Plano, Tex., and Jaala Joye Vaught, 37, of Addison, Tex.
Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, Special Agent in Charge of the FBI Phoenix Field Office Michael DeLeon, IRS Criminal Investigation Special Agent in Charge Ismael Nevarez Jr., and Inspector in Charge Nichole Cooper, Los Angeles Division of the U.S. Postal Inspection Service made the announcement.
“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Sessions. “But this illegality stops right now. Today, the Department of Justice seized Backpage, and it can no longer be used by criminals to promote and facilitate human trafficking. I want to thank everyone who made this important seizure possible: all of our dedicated and committed professionals in the Child Exploitation and Obscenity Section and our U.S. Attorney’s Office in the District of Arizona, the FBI, our partners with the IRS Criminal Investigation, our Postal Inspectors, and the Texas and California Attorney Generals’ offices. With their help, today we put an end to the violence, abuse, and heartache that has been perpetrated using this site, and we take a major step toward keeping women and children across America safe.”
“Backpage has earned hundreds of millions of dollars from facilitating prostitution and sex trafficking, placing profits over the well-being and safety of the many thousands of women and children who were victimized by its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange. “It is appropriate that Backpage is now facing criminal charges in Arizona, where the company was founded, and I applaud the tremendous efforts of the agents who contributed to last Friday’s enforcement action and who assisted in obtaining the indictment in this case. Some of the internal emails and company documents described in the indictment are shocking in their callousness.”
"The FBI will aggressively investigate those who exploit young children and women to facilitate sex trade activities and associated money laundering schemes. The FBI, along with our partners at the Department of Justice, United States Attorney's Office, Internal Revenue Service, and U.S. Postal Service are committed to combating this type of crime to protect victims and ensure the safety and wellbeing of our citizens and communities," stated Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office.
“Special Agents with IRS-CI are experts at investigating complex financial cases, including those involving the internet. IRS-CI is committed to assisting the U.S. Attorney’s Office in protecting the public from harm and delivering justice to those who are victimized by transnational internet crimes,” stated IRS Criminal Investigation Special Agent in Charge Ismael Nevarez Jr.
“The charges brought today reflect the dedication of law enforcement to stop the exploitation of victims, including children,” said Inspector in Charge Nichole Cooper of U.S. Postal Inspection Service Los Angeles Division. “Postal Inspectors have a history of investigating complex financial schemes used to maintain criminal enterprises, and we will continue our efforts to hold those engaged in such terrible crimes accountable for their actions.”
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize Backpage was led by the U.S. Attorney’s Office for the District of Arizona and the Justice Department’s Child Exploitation and Obscenity Section, with significant support from the U.S. Attorney’s Office for the Central District of California, the office of the California Attorney General, and the office of the Texas Attorney General. The law enforcement agencies supporting the seizure include the FBI, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation Division. The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of the Central District of California is handling the asset forfeiture aspects of the case.
backpage_0.pdf CASE NUMBER: CR-18-00422-PHX (BSB)RELEASE NUMBER: 2018-033_Backpage
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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.
Justice Department Leads Effort to Seize Backpage.com, the Internet’s Leading Forum for Prostitution Ads, and Obtains 93-Count Federal IndictmentRead the Press Release
WASHINGTON - The Justice Department today announced the seizure of Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children. Additionally, seven individuals have been charged in a 93-count federal indictment with the crimes of conspiracy to facilitate prostitution using a facility in interstate or foreign commerce, facilitating prostitution using a facility in interstate or foreign commerce, conspiracy to commit money laundering, concealment money laundering, international promotional money laundering, and transactional money laundering.
The seven defendants charged in the indictment are Michael Lacey, 69, of Paradise Valley, Arizona; James Larkin, 68, of Paradise Valley, Arizona; Scott Spear, 67, of Scottsdale, Arizona; John E. “Jed” Brunst, 66, of Phoenix, Arizona; Daniel Hyer, 49, of Dallas, Texas; Andrew Padilla, 45, of Plano, Texas and Jaala Joye Vaught, 37, of Addison, Texas.
Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, U.S. Attorney Nicola T. Hanna of the Central District of California, FBI Director Christopher A. Wray, U.S. Postal Inspection Service Chief Postal Inspector Guy Cottrell and Chief Don Fort of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Sessions. “But this illegality stops right now. Last Friday, the Department of Justice seized Backpage, and it can no longer be used by criminals to promote and facilitate human trafficking. I want to thank everyone who made this important seizure possible: all of our dedicated and committed professionals in the Child Exploitation and Obscenity Section and our U.S. Attorney’s Office in the District of Arizona, the FBI, our partners with the IRS Criminal Investigation, our Postal Inspectors, and the Texas and California Attorney Generals’ offices. With their help, we have put an end to the violence, abuse, and heartache that has been perpetrated using this site, and we have taken a major step toward keeping women and children across America safe.”
“Backpage has earned hundreds of millions of dollars from facilitating prostitution and sex trafficking, placing profits over the well-being and safety of the many thousands of women and children who were victimized by its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange. “It is appropriate that Backpage is now facing criminal charges in Arizona, where the company was founded, and I applaud the tremendous efforts of the agents who contributed to last Friday’s enforcement action and who assisted in obtaining the indictment in this case. Some of the internal emails and company documents described in the indictment are shocking in their callousness.”
“This website will no longer serve as a platform for human traffickers to thrive, and those who were complicit in its use to exploit human beings for monetary gain will be held accountable for their heinous actions,” said FBI Director Wray. “Whether on the street or on the Internet, sex trafficking will not be tolerated. Together with our law enforcement partners, the FBI will continue to vigorously combat this activity and protect those who are victimized.”
“The events of last Friday and today are a big win, not only for the agents who investigated these crimes, but more importantly for the victims, including children, who were harmed as a consequence of the alleged actions of Backpage.com,” said Chief Postal Inspector Cottrell. “By laundering the illegal gains of an enterprise, Backpage perpetuated the exploitation of victims and continued to finance their business. The U.S. Postal Inspection Service is committed to protecting our customers by stopping the money laundering to ensure the cycle of victimization ends.”
“An indictment of this magnitude is particularly troubling when you look at the various layers of corruption and exploitation that are alleged to have occurred,” said IRS-CI Chief Fort. “The masterminds behind Backpage are not only alleged to have committed egregious amounts of financial crimes such as money laundering, they did so at the expense of innocent women and children. While these types of investigations can be made more challenging with the use of virtual currency, offshore banking, and the anonymity of the Internet, it should serve as an example to all criminals that there is not a place they can hide where we will not find them.”
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize Backpage was led by the Justice Department’s Child Exploitation and Obscenity Section and the U.S. Attorney’s Office for the District of Arizona, with significant support from the U.S. Attorney’s Office for the Central District of California, the office of the California Attorney General, and the office of the Texas Attorney General. The law enforcement agencies conducting the investigation and seizure include the FBI Phoenix Field Office, the U.S. Postal Inspection Service and IRS-CI. The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of the Central District of California is handling the asset forfeiture aspects of the case
Iowa Inmate Charged with Threatening Federal JudgeRead the Press Release
DAVENPORT, Iowa – On April 5, 2018, a federal grand jury in the Northern District of Iowa charged Matthew James Howard with threats against a federal judge and mailing a threatening communication, announced United States Attorney Marc Krickbaum. This case is being prosecuted by Southern District of Iowa Assistant United States Attorney Melisa Zaehringer, who has been designated as a Special Assistant United States Attorney General, based on the recusal of the Northern District of Iowa United States Attorney’s Office.
While incarcerated at the Anamosa State Penitentiary, the Indictment alleges that on or about November 30, 2017, Howard wrote and mailed a letter through the United States Postal Service that threatened to kill Judge Linda R. Reade, a United States District Court Judge for the Northern District of Iowa. If convicted, Howard could face up to ten years imprisonment for each of the charged counts.
This matter is being investigated by the United States Marshals Service and the Federal Bureau of Investigations. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
The public is reminded that an Indictment is merely an accusation, and the defendant is presumed innocent unless he is proven guilty.
Houston Man Arrested on Federal Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas – A 40-year-old Houston man has been arrested for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
John D. Leontaritis, owner and operator of Vanderhall Exotics of Houston, and former owner operator of Global Motorcars of Houston, Houston car dealerships that specialize in luxury automobiles, has been charged in a two-count indictment returned by a federal grand jury on Apr. 4, 2018. Leontaritis was arrested on Apr.6, 2018 and will make an initial appearance before U.S. Magistrate Judge Keith Giblin tomorrow in Beaumont.
Leontaritis is charged with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and conspiracy to launder and conceal the proceeds of his drug trafficking organization. The indictment alleges that from 2013 until June, 2017, Leontaritis conspired with others to traffic methamphetamine for distribution in the Houston and Beaumont, Texas areas. A federal grand jury has already indicted seven other members of this drug trafficking organization, charging them with manufacturing and distributing thousands of pills containing a mixture of methamphetamine as part of the conspiracy.
Under federal statutes, if convicted, Leontaritis faces at least 10 years and up to life in federal prison.
If anyone has any information on this case or defendant, please call 713-693-3000. Callers information will be kept confidential.
This case is being investigated by the U.S. Drug Enforcement Administration, the Houston Police Department and the Internal Revenue Service-CI and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Houma Man Pleads Guilty to Conspiracy Distribution of HeroinRead the Press Release
U.S. Attorney Duane A. Evans announces the guilty plea by ROLAND CHAMBERS, age 49, of Houma, before U.S. District Judge Lance M. Africk.
CHAMBERS pleaded guilty to a bill of information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. He faces a mandatory minimum of five and a maximum of 40 years in prison, a maximum $5,000,000.00 fine, at least four years of supervised release, and a $100 mandatory special assessment. Sentencing is scheduled for June 28, 2018, before U.S. District Judge Lance M. Africk.
U.S. Attorney Evans praised the investigative efforts of the Drug Enforcement Administration and the Terrebonne Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorneys Shirin Hakimzadeh and Matthew Payne.
Henderson Man Sentenced to over 6 Years in Prison for Shooting at Las Vegas Boat Harbor Marina Security GuardsRead the Press Release
LAS VEGAS, Nev. - A man who fired multiple shots at security guards at the Las Vegas Boat Harbor Marina was sentenced today to 81 months in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada and Chief Ranger Adam Kelsey of Lake Mead National Recreational Area.
Jamie Joe Dulus, 29, of Henderson, Nevada, was sentenced today by U.S. District Judge Jennifer A. Dorsey. In January, Dulus pleaded guilty to assault with a dangerous weapon and use of a firearm during and in relation to a crime of violence.
On August 10, 2017, as the bar was closing at the Lake Mead National Park Las Vegas Boat Harbor, two security guards asked Dulus to leave the area because he was acting belligerent. Dulus argued with the guards as he walked along the walkway leading to the parking lot. The guards followed him to ensure he left the area. Dulus then set his beer bottle on the ground, lifted his shirt, and grabbed a .25 caliber Raven handgun from his waistband. Dulus aimed and fired once at each security guard, and then started running towards the guards firing one more shot. When Dulus reached the two guards, he pressed the barrel of the handgun to one guard's forehead. The second guard was able to pull Dulus's hand away as another shot was fired. The guards were able to wrestle Dulus to the ground, remove the gun from his hand, and hold him until National Park Service Rangers arrived on scene. No one was injured during the incident.
The case was investigated by the National Park Service and prosecuted by Assistant U.S. Attorney Elham Roohani.
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