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5 April 2018
Three People Charged in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – Three people were arrested today for their alleged roles in an extensive scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced.
Jorge Gutierrez, 39, of Merchantville, New Jersey; Alberto Sanchez, 34, of Camden; and Roque Bisono, 29, of Maple Shade, New Jersey, were indicted by a grand jury for conspiring to defraud the United States, theft of government funds, and aggravated identity theft. Sanchez was additionally indicted on witness tampering charges, and Bisono was indicted for making false statements to federal law enforcement officials in connection with the investigation. They appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court.
A fourth defendant, Awilda Henriquez, 32, of Camden, remains at large.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
For the 2013 tax year, in excess of 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico, where the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.
Gutierrez, Bisono, Sanchez, and their conspirators allegedly obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking refunds to which they were not entitled. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden, New Jersey. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
The counts of conspiracy to steal government funds are punishable by up to five years in prison. The counts of theft of government funds are punishable by a maximum potential penalty of 10 years in prison. The count of false statements is punishable by imprisonment of up to five years. The witness tampering count is punishable by up to 20 years in prison. The count of aggravated identity theft is punishable a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of any other count. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark and Special Agent in Charge Vicki S. Duane in Philadelphia, and special agents of the U.S. Postal Service Office of Inspector General, with assistance from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, Philadelphia Division, with the investigation leading to today’s charges and arrests.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Christina O. Hud of the Criminal Division, Camden.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three O.C. Men Face Federal Narcotics Charges that Allege Distribution of Counterfeit Opioid Pills Containing FentanylRead the Press Release
SANTA ANA, California – Three Orange County men have been charged in a scheme to use the synthetic opioid fentanyl and a similar drug to manufacture and distribute counterfeit pharmaceutical pills designed to look like brand-name oxycodone pills.
A criminal complaint filed Wednesday in United States District Court alleges that the men obtained fentanyl and an analogue called cyclopropyl fentanyl through internet suppliers, used a pill press to make counterfeit pills, and distributed the narcotics through the mails, often arranging sales through a darknet marketplace.
The complaint alleges one count of conspiracy to distribute controlled substances. The three defendants named in the complaint are:
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Wyatt Pasek, 21, of Santa Ana;
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Isaiah Suarez, 22, of Newport Beach; and
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Duc Cao, 20, of Orange.
All three men were taken into custody Tuesday afternoon in conjunction with the execution of federal search warrants across Orange County. They were charged in federal court on Wednesday and made their initial court appearances on Wednesday afternoon. All three defendants remain in custody at this time.
When the defendants were arrested, authorities seized a pill press lab in Suarez’s apartment, along with bags that contained nearly 3 kilograms of what appear to be counterfeit oxycodone and Xanax pills, and bags that contained approximately 4.5 kilograms of white and blue powders that are currently being tested. A search of Pasek’s residence revealed approximately 13,000 pills that appeared to be counterfeit oxycodone and bundles of United States currency.
“Fentanyl is an extremely powerful drug that is further complicating the severe problems we are seeing in relation to this nation’s opioid epidemic,” said United States Attorney Nicola T. Hanna. “Using fentanyl in a counterfeit pill that appears to look like a less-lethal opioid dramatically increases the possibility of overdoses – and deaths that we see far too often.”
“Our country is facing a multifaceted threat: dangerous opioids such as fentanyl and its analogues are inundating our mail system and are being pressed into counterfeit pharmaceutical pills that are flooding our streets,” said DEA Special Agent in Charge David J. Downing. “These are alarming trends, and multi-agency coordination is paramount to combating this epidemic.”
“We recognize that the opioid epidemic transcends the boundaries of our Costa Mesa community and this case is a prime example of that. Fentanyl is a highly dangerous opioid that contributes heavily to the epidemic,” said Costa Mesa Police Chief Rob Sharpnack. “We want to thank the agencies involved for partnering with us on the investigation that got these three individuals off the streets.”
During a six-month investigation led by the DEA and the Costa Mesa Police Department, authorities recovered blue pills stamped “A 215” that resemble 30 mg. pills of the opioid oxycodone. The pills, which were linked to Pasek, were later tested and determined to contain fentanyl or cyclopropyl fentanyl, according to the affidavit in support of the complaint.
On March 5, Cao was observed depositing seven packages into a Postal Service collection box. When those packages were searched pursuant to a court order, authorities discovered approximately 1,400 blue pills with “A 215” markings that were being shipped to addresses across the United States, according to the affidavit, which noted that pills from all seven parcels tested positive for fentanyl.
On April 2, Cao visited Pasek’s residence, then travelled to the pill press lab in Newport Beach, and then drove to a Post Office in Santa Ana, where authorities later recovered 13 boxes that were similar to those seized on March 5. The 13 boxes contained over 4,000 “A 215” pills.
The affidavit describes intelligence obtained during the investigation that “indicated that Pasek only sells narcotics through the internet and ships his products through the mail.” Authorities believe that Pasek’s drug trafficking activities are done through “darknet marketplaces where the primary currency of doing business is bitcoin.”
During his court appearance on Wednesday, Cao was ordered detained as he is a citizen of Vietnam and his student visa has expired. A preliminary hearing was scheduled for April 18, and an arraignment was set for April 23.
Suarez’s detention hearing was continued until this afternoon, and Pasek is due back in court Friday afternoon.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If they were to be convicted of the charge of conspiracy to distribute controlled substances, each defendant would face a statutory maximum sentence of 20 years in federal prison.
This matter is being investigated by the Drug Enforcement Administration, the Costa Mesa Police Department, the United States Postal Inspection Service, IRS Criminal Investigation, the Food and Drug Administration - Office of Criminal Investigations, and the United States Marshals Service.
This case is being prosecuted by Assistant United States Attorney Brett Sagel of the Santa Ana Branch Office.
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Three Gang Members Agree to Plead Guilty to Federal Hate Crime Charges Related to Firebombing of African-American ResidencesRead the Press Release
The Justice Department today announced that three East Los Angeles men have agreed to plead guilty to federal civil rights and racketeering charges for participating in the 2014 firebombing of African-American residences inside the Ramona Gardens Housing Development.
On the night of May 11, 2014, eight members of the Big Hazard street gang, which claims Ramona Gardens as its territory, assembled, prepared Molotov cocktails, drove outside of Ramona Gardens, then reentered the housing development on foot to avoid its security cameras. Once the gang members located their pre-selected targets, they smashed the windows of four apartments and threw lit Molotov cocktails into the residences, according to the plea agreements. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
In plea agreements filed today in the Central District of California, the three defendants – Jose Saucedo, aka “Lil’ Moe,” 24, Edwin Felix, aka “Boogie,” 26, and Jonathan Portillo, aka “Pelon,” 23, all members of the Big Hazard street gang – admitted that they targeted the apartments because of the occupants’ race and color, and with the intent to force the victims to move away from the federally funded housing complex in the Boyle Heights section of Los Angeles.
“The defendants’ racially motivated and unprovoked attack on families sleeping peacefully in their homes caused fear and destruction,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute violent acts of hate.”
“It was a miracle that no one was injured in these racially motivated attacks,” said United States Attorney Nicola T. Hanna. “These defendants have admitted their goal was to drive African Americans out of this housing facility. This simply will not be tolerated, and we will take any and all steps necessary to protect the civil rights of every person who lives in the United States.”
"The innocent victims of this cold-blooded attack were targeted based on the color of their skin," said Paul D. Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "I'm proud of the agents, detectives and prosecutors who identified the defendants and continue to investigate this very challenging case. These plea agreements are the first step in delivering justice to the victims, as well as delivering the universal message that there is no place for racially motivated hatred or violence in the United States."
All three defendants have agreed to plead guilty to conspiring to violate the civil rights of the African-American families, specifically the constitutional right to live in a residence free from “injury, intimidation and interference based on race.”
The three defendants have also agreed to plead guilty to using force – a dangerous weapon, namely, explosives, and fire – to injure, intimidate and interfere with the African-American residents because of their race and because they were living in the Ramona Gardens Housing Development. They also agreed to plead guilty to committing a violent crime in aid of racketeering on behalf of the Hazard gang.
In addition, Portillo has agreed to plead guilty to a charge of using fire to commit another federal felony. Saucedo and Felix have agreed to plead guilty to a charge of attempted malicious damage of federal property through the use of fire. Once they enter their guilty pleas, all three defendants will face potential sentences of over 30 years in federal prison.
Three other members of the Big Hazard gang who were charged in this case – Francisco Farias, aka “Bones,” 27, Joel Matthew Monarrez, aka “Gallo,” 23; and Jose Zamora, aka “Fresco,” 28 – previously pleaded guilty to federal hate crimes and related offenses. These defendants are pending sentencing.
The final two defendants charged in this case, Carlos Hernandez, aka “Rider,” 33, and Josue Garibay, aka “Malo,” 24, are scheduled for trial before United States District Judge Christina A. Snyder on July 31.
According to an indictment unsealed in the summer of 2016, Hernandez instructed the other defendants to meet at a location in Hazard gang territory on Mother’s Day in 2014, to prepare for the attack. At the meeting, Hernandez allegedly distributed materials to be used during the firebombing, including disguises, gloves, and other materials. Hernandez explained that the order for the racially motivated attack had come from the Mexican Mafia, a prison gang that controls the majority of Hispanic gangs in Southern California.
Furthermore, according to the indictment, Hernandez instructed the other defendants to break the victims’ windows, allowing the Molotov cocktails to make a clean entry, ignite the firebombs, and throw them into the victims’ residences in order to maximize damage. One of the victims, a mother sleeping on her couch with her infant child in her arms, narrowly missed being struck by one of the defendants’ firebombs.
The investigation into the firebombing is being conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, and Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Three Gang Members Agree to Plead Guilty to Federal Hate Crime Charges Related to Firebombing of African-American ResidencesRead the Press Release
LOS ANGELES – Three East Los Angeles men have agreed to plead guilty to federal civil rights and racketeering charges for participating in the 2014 firebombing of African-American residences inside the Ramona Gardens Housing Development.
On the night of May 11, 2014, eight members of the Big Hazard street gang, which claims Ramona Gardens as its territory, assembled, prepared Molotov cocktails, drove outside of Ramona Gardens, then reentered the housing development on foot to avoid its security cameras. Once the gang members located their pre-selected targets, they smashed the windows of four apartments and threw lit Molotov cocktails into the residences, according to the plea agreements. Three of the four targeted apartments were occupied by African-American families, including women and children, who were sleeping at the time of the unprovoked attack.
In plea agreements filed today in United States District Court, the three defendants – Jose Saucedo, aka “Lil’ Moe,” 24, Edwin Felix, aka “Boogie,” 26, and Jonathan Portillo, aka “Pelon,” 23, all members of the Big Hazard street gang – admitted that they targeted the apartments because of the occupants’ race and color, and with the intent to force the victims to move away from the federally funded housing complex in the Boyle Heights section of Los Angeles.
“It was a miracle that no one was injured in these racially motivated attacks,” said United States Attorney Nicola T. Hanna. “These defendants have admitted their goal was to drive African Americans out of this housing facility. This simply will not be tolerated, and we will take any and all steps necessary to protect the civil rights of every person who lives in the United States.”
“The innocent victims of this cold-blooded attack were targeted based on the color of their skin,” said Paul D. Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I’m proud of the agents, detectives and prosecutors who identified the defendants and continue to investigate this very challenging case. These plea agreements are the first step in delivering justice to the victims, as well as delivering the universal message that there is no place for racially motivated hatred or violence in the United States.”
“The defendants’ racially motivated and unprovoked attack on families sleeping peacefully in their homes caused fear and destruction,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute violent acts of hate.”
All three defendants have agreed to plead guilty to conspiring to violate the civil rights of the African-American families, specifically the constitutional right to live in a residence free from “injury, intimidation and interference based on race.”
The three defendants have also agreed to plead guilty to using force – a dangerous weapon, namely, explosives and fire – to injure, intimidate and interfere with the African-American residents because of their race and because they were living in the Ramona Gardens Housing Development. They also agreed to plead guilty to committing a violent crime in aid of racketeering on behalf of the Hazard gang.
In addition, Portillo has agreed to plead guilty to a charge of using fire to commit another federal felony. Saucedo and Felix have agreed to plead guilty to a charge of attempted malicious damage of federal property through the use of fire.
Once they enter their guilty pleas, all three defendants will face potential sentences of over 30 years in federal prison.
Three other members of the Big Hazard gang who were charged in this case – Francisco Farias, aka “Bones,” 27, Joel Matthew Monarrez, aka “Gallo,” 23; and Jose Zamora, aka “Fresco,” 28 – previously pleaded guilty to federal hate crimes and related offenses. These defendants are pending sentencing.
The final two defendants charged in this case, Carlos Hernandez, aka “Rider,” 33, and Josue Garibay, aka “Malo,” 24, are scheduled for trial before United States District Judge Christina A. Snyder on July 31.
According to an indictment unsealed in the summer of 2016, Hernandez instructed the other defendants to meet at a location in Hazard gang territory on Mother’s Day in 2014, to prepare for the attack. At the meeting, Hernandez allegedly distributed materials to be used during the firebombing, including disguises, gloves and other materials. Hernandez explained that the order for the racially motivated attack had come from the Mexican Mafia, a prison gang that controls the majority of Hispanic gangs in Southern California.
Furthermore, according to the indictment, Hernandez instructed the other defendants to break the victims’ windows, allowing the Molotov cocktails to make a clean entry, ignite the firebombs, and throw them into the victims’ residences in order to maximize damage. One of the victims, a mother sleeping on her couch with her infant child in her arms, narrowly missed being struck by one of the defendants’ firebombs.
The investigation into the firebombing is being conducted by agents and detectives with the Federal Bureau of Investigation; the Los Angeles Police Department; the Los Angeles Fire Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, Justice Department Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section, and Assistant United States Attorney MiRi Song of the General Crimes Section.
The Estate of A Scranton Physician Agrees to Pay $625,000 to Settle False Claims Act ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Estate of Dr. Leroy Pelicci has agreed to pay the United States $625,000 to settle False Claims Act allegations.
According to United States Attorney David J. Freed, Leroy J. Pelicci was a physician and owner of the Pelicci Pain Relief Center in Scranton, Pennsylvania until his death in March 2014. The United States alleged that Dr. Pelicci submitted numerous improper claims for payment to the Department of Labor Office of Workers’ Compensation Programs under the Federal Employees Compensation Act and the Federal Employees Health Benefits Program for trigger point injections, which were upcoded to receive a higher reimbursement amount than permitted, between June 11, 2003 and March 4, 2014. The settlement reflects the amount of loss to the Government as a result of these allegations, as well as the costs of the investigation.
The United States Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth G. Cleevely, Pittsburgh, stated, “The U.S. Postal Service pays about $3 billion per year in workers compensation costs. USPS OIG special agents, along with our law enforcement partners, conduct investigations of those individuals who choose to take advantage of the system. I want to thank the U.S. Attorney’s Office for their diligence in pursuit of this civil settlement, and for recovering what the government is due.”
Scott Rezendes, Special Agent in Charge, Office of Personnel Management Office of Inspector General (OPM OIG) said, “Today’s settlement should serve as a warning to those who would attempt to defraud the Government. The OPM OIG is committed to protecting the integrity of the Federal Employees Health Benefits Program, and we will continue to investigate and prosecute illegal billing practices that waste taxpayer dollars and increase the cost of medical care.”
This case was investigated by the Office of Personnel Management Office of Inspector General, the United States Postal Service Office of Inspector General and the United States Department of Labor Office of Inspector General. The civil settlement was handled by Assistant United States Attorney Melissa Swauger.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Texas Man Pleads Guilty to Making Interstate ThreatsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Shae Ryan Estes, 41, previously of McKinney, Texas, pleaded guilty today in U.S. District Court to transmitting threats in interstate commerce.
According to court records, in the summer of 2017, the defendant, while living in Texas, made two threatening telephone calls to his ex-girlfriend, who was then in Maine. The calls were recorded on her answering machine. In the calls, the defendant threatened that he would “hunt” her down, that she was “next,” that she would “suffer,” and that if he ever got back to Maine he would kill her current boyfriend, various members of her family, and “anyone that gets in my [expletive] way.”
The defendant faces up to 5 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the FBI and the Cumberland County Sheriff’s Office.
Takoma Park Man Sentenced to 14 and a Half Years in Prison for Drug and Firearm OffensesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Stanley Eugene Green, Jr., age 42, of Takoma Park, Maryland, to fourteen and a half years in prison, followed by five years of supervised release for Distribution of Heroin and Possession of Firearms in Furtherance of a Drug Trafficking Crime.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Baltimore Field Division; and Police Chief Antonio DeVaul of the Takoma Park Police Department.
According to his plea agreement, between in or about February 2015, and continuing through April 27, 2017, Green distributed, conspired to distribute, and possessed with intent to distribute heroin and fentanyl. During the conspiracy, Green obtained distribution quantities of heroin (that contained fentanyl), and redistributed those drugs to users in Montgomery County, Maryland, and elsewhere.
In August 2016, law enforcement officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Takoma Park Police Department received information from a confidential informant about narcotics distribution in Takoma Park, Maryland. Between August 2016 and April 2017, ATF and local law enforcement identified and investigated someone named “Rico” who was selling heroin (later found to contain fentanyl). Law enforcement identified “Rico” as Green.
In late January 2017, a victim who obtained heroin from Green suffered an overdose and required emergency medical attention. The victim fell into a coma and thereafter required hospitalization and physical rehabilitation, and was hospitalized for approximately 2 and a half months.
As part of his plea agreement, Green will be required to forfeit the firearms, ammunition, and $37,592.00 seized during the search of his residence.
Acting United States Attorney Stephen M. Schenning praised the ATF Baltimore Field Division, Takoma Park Police Department, and Montgomery County Police Department for their work in the investigation. He also recognized the assistance Harford County Sheriff’s Office and the Drug Enforcement Administration provided to the lead investigating agencies. Mr. Schenning thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Tad Cummins Pleads Guilty to Transporting A Minor Across State Lines and Obstruction of JusticeRead the Press Release
NASHVILLE, Tenn. – April 5, 2018 – Tad Cummins, 51, of Columbia, Tennessee, pleaded guilty today in U.S. District Court to charges of transporting a minor across state lines for the purpose of engaging in criminal sexual conduct and obstruction of justice, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“The Government has been ready and eager to try Mr. Cummins on the charges brought by the grand jury,” said U.S. Attorney Don Cochran. “In view of today’s development and Mr. Cummins’ decision to plead guilty, we are pleased that the victim no longer faces the possibility of enduring a lengthy trial. We applaud the efforts of the FBI, the Tennessee Bureau of Investigation, the Maury County Sheriff’s Department and the many law enforcement agencies across the country that contributed to the search and ultimate rescue of the victim and the arrest of Mr. Cummins. We now look forward to the sentencing of Mr. Cummins and bringing closure to this case.”
Cummins was initially charged in a criminal complaint on April 20, 2017, after being located in Cecilville, California with the 15-year-old female victim. Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tennessee area on March 13, 2017. Cummins was returned to the Middle District of Tennessee on May 9, 2017, and was indicted by a federal grand jury in Nashville on May 18, 2017. He has been in federal custody while awaiting trial.
Cummins faces a mandatory minimum of 10 years in prison when he is sentenced by U.S. District Judge Aleta Trauger on September 24, 2018.
Assistant U.S. Attorneys Sara Beth Myers and Philip Wehby are prosecuting the case.
Spencer Woman Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced, April 3, 2018, to ten years in federal prison.
Alauna Gaye Morris, 58, from Spencer, Iowa, received the prison term after a September 8, 2017, guilty plea to one count of conspiracy to distribute methamphetamine.
During prior court proceedings, the government presented evidence that on September 8, 2016, law enforcement arrested Morris on a statewide warrant for an unrelated matter. After executing search warrants on her residence and vehicle, officers seized close to 200 grams of actual (pure) methamphetamine, $10,108.82 in cash, a digital scale, and multiple electronic devices.
At sentencing, the government presented evidence that, during the course of the conspiracy, two co-conspirators reached an agreement with Morris in which they would pay $50,000 for ten pounds of methamphetamine. Morris intended to recruit family members out of Utah to manufacture the ten-pound quantity.
Morris was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Morris was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Morris is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay J. Alexander and investigated by the Iowa Great Lakes Drug Task Force, including the Clay County Sheriff’s Office, O’Brien County Sheriff’s Office, and the Department of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4096-LTS.
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South Florida Doctor Indicted for Tax Evasion and Disability FraudRead the Press Release
A federal grand jury sitting in Fort Pierce, Florida, has returned an indictment, which was unsealed today, charging a Hobe Sound, Florida, resident with tax evasion, mail fraud, wire fraud, theft of government funds, and Social Security disability fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Arthur John Kranz, was a doctor specializing in psychiatry. Beginning in 2002, Kranz allegedly made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. The indictment further alleges that in December 2003 Kranz submitted an application to the Social Security Administration (SSA) for disability benefits, which was approved. As part of his application, Kranz agreed to notify the SSA if he returned to work.
The indictment charges that between 2006 and 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income, but did not report this fact to the SSA or the insurance company. Moreover, Kranz is alleged to have taken steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS) by directing that his income be paid to two nominee corporations, and by not reporting the income from his work as a psychiatrist on his personal tax returns.
The indictment further alleges that during the time Kranz was working, he submitted documents to the insurance company on which he falsely stated that he was not working in order to continue to receive disability payments. The indictment alleges that in total, Kranz received over $700,000 in fraudulent disability payments from SSA and the insurance company.
If convicted, Kranz faces a statutory maximum sentence of five years in prison for each count of tax evasion, 20 years in prison for each count of mail and wire fraud, 10 years in prison for theft of public money, and five years in prison for Social Security fraud. Kranz also faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and SSA Office of Inspector General, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr., Michael C. Boteler, and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Seven Kings County and Tennessee Residents Indicted for Firearms Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging seven Tennessee and California residents with various firearms offenses, including conspiracy to traffic in firearms by an unlicensed person, illegal transportation of firearms, and being a felon in possession of firearms, U.S. Attorney McGregor W. Scott announced. None of the defendants is licensed to deal or import firearms.
Rafael Sanchez Jr., 38, of Kettleman City, Califorinia, is charged with one count of conspiracy to traffic in firearms by an unlicensed person, three counts of illegal transportation of firearms and three counts of being a felon in possession of a firearm.
Alexis Sanchez, 19, of Kettleman City; and Tennessee residents Juan Daniel Gonzalez-Vazquez, 24; Victor Luna, 23; Ashley Sanchez, 22; and Elvia Sanchez, 40, are all charged with one count of conspiracy to traffic in firearms by an unlicensed person and three counts of illegal transportation of firearms
Veronica Ramirez, 38, of Lemoore, California, was charged with one count of conspiracy to traffic in firearms by an unlicensed person.
According to court documents, between April 2016 and March 2018, Rafael Sanchez conspired to have firearms purchased in Tennessee and shipped to him in California. Rafael Sanchez and Alexis Sanchez then transferred money to the Tennessee co-conspirators. With the assistance of Ramirez, Rafael Sanchez identified California-based purchasers and offered to sell them the firearms he received from Tennessee.
According to the indictment, the Tennessee co-conspirators shipped numerous firearms to California, including .45, .40 and 9 mm caliber handguns, as well as ammunition and firearms accessories, including extended magazines. In November 2017, Rafael Sanchez offered to sell to an associate in California an AR-15-style rifle with two 30-round magazines for $1,000.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case in the Eastern District of California.
If convicted, the defendants face a maximum statutory penalty of five years in prison and $250,000 fine for each of the conspiracy and firearms offenses. Rafael Sanchez faces an a maximum statutory penalty of 10 years in prison and $250,000 fine if convicted of the separate felon in possession of firearms counts. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for April 2 & April 4, 2018Read the Press Release
JOSEPH EDWARD MILLER, 41, of Arapahoe, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 4, 2018, for conspiracy to distribute methamphetamine. Miller was arrested in Arapahoe, Wyoming. He received 36 months of probation and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Fremont County Sheriff’s Office, the Wyoming Division of Criminal Investigation, the Tribal Fish and Game, the Bureau of Indian Affairs, the Federal Bureau of Investigation and the U.S. Drug Enforcement Administration.
WOLF ELKINS DURAN, 25, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 2, 2018, for possession of child pornography. Duran was arrested in Casper, Wyoming. He received 57 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $8,500.00 in restitution and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Seminole County Man Sentenced to 17 Years for Possessing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Joseph Charles Desorbo, Jr. (58, Seminole County) to 17 years in federal prison for possessing child pornography. The court also ordered him to serve a life term of supervision, made a recommendation for a reevaluation prior to his release, and required him to register as a sex offender. In addition, he was ordered to forfeit the cellphone he had used to facilitate the offense.
Desorbo pleaded guilty on January 11, 2018.
According to court documents, on September 8, 2017, deputies from the Seminole County Sheriff’s Office arrived at Desorbo’s residence in response to a shooting incident. Desorbo was interviewed as a witness to the shooting and voluntarily provided written consent to search his cellphone as part of the investigation. During a forensic analysis of the phone, agents found 118 videos and 18 images of child pornography on the phone’s SD card. The videos included sadistic depictions of infants and young children being sexually assaulted by adult men. The phone also contained Desorbo’s communications with others regarding the rape of children. Desorbo admitted that he had used a social media application to obtain the child pornography and had participated in sex group chats about “little boys.” He also described himself as a sex addict.
The investigation further revealed that Desorbo was convicted in 1998 in St. Johns County, Florida for possessing child pornography and for using the internet to solicit a child for sex.
This case was investigated by the Seminole County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Roundtable Commemorates 50th Anniversary of Fair Housing ActRead the Press Release
PROVIDENCE, RI – United States Attorney Stephen G. Dambruch hosted a roundtable discussion in his office on Wednesday with nearly two-dozen local housing activists to commemorate the 50th anniversary of the Fair Housing Act. The Fair Housing Act was signed into law on April 11, 1968 by President Lyndon B. Johnson.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.
The roundtable opened with welcoming remarks from U.S. Attorney Dambruch and featured an overview of the Justice Department’s work combatting housing discrimination, and a commitment of resources from the Department of Justice Civil Rights Division and the U.S. Attorney’s Office to hold accountable landlords who violate the Fair Housing Act.
During the event, participants from legal services, fair housing organizations, shelters, housing policy organizations, disability rights advocates, and state and local housing offices had the opportunity to voice their views and identify the most pressing housing discrimination issues facing their clients in Rhode Island. Attendees concluded the meeting by sharing goals that aim to advance enforcement efforts and ensure equal protections under the law.
"On this, the 50th anniversary of the death of Dr. Martin Luther King, Jr., and the enactment of the Fair Housing Act, it is important that we clearly restate our commitment to work together to ensure that discrimination in Rhode Island not be tolerated," said U.S. Attorney Stephen G. Dambruch. “Discrimination in housing situations is often underreported and may be less visible than discrimination in the workplace, but it is an egregious violation of a person’s right to fair housing. My office is committed to uncovering patterns and practice of housing discrimination where they exist in Rhode Island and vigorously enforcing the law.”
Individuals or agencies wishing to report alleged cases of housing discrimination may do so by contacting Assistant U.S. Attorney Amy R. Romero at [email protected]
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Resident of Grapevine, Texas Pleads Guilty to Fraud and Weapons ChargesRead the Press Release
CONCORD - Steven Orr, 53, of Grapevine, Texas, pleaded guilty to defrauding victims in New Hampshire and Illinois and unlawfully possessing a firearm, United States Attorney Scott W. Murray announced today.
According to court documents, in June of 2017, Orr offered to sell four loaders to a company in Windham, New Hampshire for $120,000. Unaware that Orr did not own or have authority to sell the loaders, the New Hampshire company arranged for a third party to inspect the loaders and had $120,000 electronically transferred from its bank account in New Hampshire to Orr’s personal bank account in Grapevine, Texas. After the deposit was made, Orr used the money for his personal benefit.
In August of 2017, Orr agreed to sell 21 cranes owned by a company in Joliet, Illinois to a different company in Lemont, Illinois for $2.2 million. Orr did not own the cranes or have the authority to sell them. At Orr’s direction, the company in Lemont wire transferred a $550,000 deposit for the transaction from its bank account in Chicago, Illinois, to Orr’s personal bank account in Texas. After that deposit was made, Orr used the money for his personal benefit.
According to other court documents, it was unlawful for Orr to possess a firearm because he was a convicted felon. Nevertheless, when Special Agents from the FBI arrested Orr in Texas last September, they found a Sig Sauer .40 caliber pistol and a Taurus .380 caliber pistol in a safe that was inside a recreational vehicle that Orr was renting.
Orr pleaded guilty to two counts of wire fraud and one count of possession of a firearm by a convicted felon. He is scheduled to be sentenced on July 17, 2018.
“This prosecution will put an end to this defendant’s fraud schemes,” said U.S. Attorney Murray. “I commend the FBI for its hard work in tracking down this fraudster and bringing him to justice. This case also demonstrates our ongoing commitment to prosecuting those who possess firearms unlawfully.”
“Mr. Orr is finally accepting responsibility for stealing hundreds of thousands of dollars from hard-working businesses that trusted him. He conned them into purchasing equipment he did not own for his own personal benefit,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Financial fraud is not a victimless crime, and the FBI will continue to do everything it can to root out individuals like Mr. Orr whose behavior threatens the financial security of others.”
The cases were investigated by the Federal Bureau of Investigation and are being prosecuted by Assistant United States Attorney Robert M. Kinsella.
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Plattsburgh Man Admits Role in FraudRead the Press Release
ALBANY, NEW YORK – Thomas J. Howe, age 38, of Plattsburgh, New York, pled guilty yesterday to fraud and identity theft charges.
The announcement was made by United States Attorney Grant C. Jaquith; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and Plattsburgh Police Lieutenant Levi Ritter.
As part of his plea, Howe admitted that he and Jared R. Hudson devised a scheme to defraud banks, merchants and individual consumers by purchasing information including credit card numbers, bank account numbers, expiration dates, security codes, answers to security questions, and other personal identification information, and to using that information to electronically purchase goods, and to fraudulently transfer and attempt to transfer funds electronically, between October 2009 and December 2014.
Initially, Howe used stolen credit card numbers belonging to others to order merchandise online and had the merchandise shipped to him. Howe then used other people’s personal identification information to sign up for credit cards. He then opened investment accounts in his name, which were funded with money taken from other people’s bank accounts using stolen account numbers, routing numbers, identification, and bank security information. Howe admitted that his conduct caused at least $508,053.33 in losses.
Howe has been detained on the charges since January 18, 2018. He faces at least 2 years and up to 20 years in prison, and a fine of up to $250,000, when he is sentenced on July 25, 2018 by Senior United States District Judge Lawrence E. Kahn. A sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
Hudson, a former Plattsburgh resident who has also resided in Florida and Texas, pled guilty to his role in the scheme and was sentenced on January 10, 2018 to 79 months in prison.
This case was investigated by the FBI and the Plattsburgh Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pittsburgh Man Indicted in Armed Robbery Spree of Allegheny and Beaver County BanksRead the Press Release
PITTSBURGH – Bryan Campbell, age 27, of Pittsburgh, Pennsylvania, has been charged with conspiring to rob three area banks, armed bank robbery, and brandishing a firearm during and in relation to a crime of violence, United States Attorney Scott W. Brady announced today.
According to the April 4 indictment, Campbell conspired to rob the S&T Bank in Verona, PA, on March 7, 2017; the First National Bank in Verona, PA, on May 1, 2017; and the Huntington Bank in Baden, PA, on July 22, 2017. Additionally, Campbell is charged with the March 7, 2017 armed bank robbery of the S&T Bank in Verona, PA, on March 7, 2017; the armed bank robbery of the First National Bank in Verona, PA, on May 1, 2017; and the attempted armed bank robbery of the Huntington Bank in Baden, PA, on July 22, 2017. Campbell is also charged with brandishing a firearm during and in relation to a crime of violence for using a silver revolver during the March 7, 2017 robbery.
The law provides for a maximum total sentence of not less than seven years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the Government.
The FBI Pittsburgh’s Violent Crimes Task Force, with assistance from the Plum Police Department, Verona Police Department, Economy Borough Police, Allegheny County Sherriff’s Department, and Shaler Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Admits He Illegally Possessed and Sold Firearms to Undercover Law Enforcement AgentsRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Dalton Douglas Duschl, 22, of Pittsburgh, Pennsylvania, pleaded guilty to all six counts in the indictment against him before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that between January 3, 2017, and February 13, 2017, Duschl knowingly possessed and sold four firearms (a .45 caliber Kahr Arms pistol, a 9mm Taurus pistol, a 20-gauge shotgun, and a .380 caliber Bryco Arms pistol) to undercover law enforcement agents. Federal law prohibits Duschl from possessing a firearm due to his 2015 convictions in Allegheny County for the crimes of receiving stolen property and criminal conspiracy. The court was further advised that on two of those occasions, Duschl knowingly possessed and sold the .45 caliber Kahr Arms pistol and the 9mm Taurus pistol, both of which he knew or had reasonable cause to believe were stolen.
Judge Hornak scheduled sentencing for August 3, 2018, at 1:30 p.m. The law provides for a maximum total sentence of 60 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant. Indicate relevant bond/detention information if known
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and detectives from the Allegheny County Police Department conducted the investigation that led to the Indictment in this case.
Orlando Men Sentenced to Federal Prison for Scheme Involving Impersonating Homeland Security AgentsRead the Press Release
Orlando, Florida –U.S. District Judge Carlos E. Mendoza has sentenced John Pierre Mack, III (26, Kissimmee) and David Augusta Jones, III (27, Orlando) to four years and nine years in federal prison, respectively, for conspiracy to commit wire fraud and wire fraud. They pleaded guilty in January 2018.
According to court documents, from at least August 2015 through July 6, 2017, the conspirators demanded money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by the schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cybercrimes center” in their correspondence. The victims were directed to retail locations to wire money to pay these “fines” or “fees,” and the conspirators then took turns picking up the payments. The defendants also traded victims with each other to continue the scheme and to get more money. The victims, many of whom were members of the military or elderly, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing they would otherwise be arrested.
Mack was a supervisor/manager in this scheme and received at least 61 extortion payments from victims totaling $79,847. Jones received at least 30 payments from victims totaling $66,684. Law enforcement agents estimate that the scheme generated more than $340,000 in profits.
Four others previously pleaded guilty for their roles in this scheme. Last month, Ronnie Rolland Montgomery (28, Orlando) was sentenced to 7 years in federal prison and Ashley Ferrell (26, Orlando) was sentenced to 10 months’ imprisonment. Dillon McDowell (26, Orlando) will be sentenced on April 26, 2018, and Amaryllis Pagan (20, Kissimmee) will be sentenced on May 29, 2018.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Office of Professional Responsibility and Homeland Security Investigations (San Diego), with assistance from the Naval Criminal Investigative Service (San Diego) and the Osceola County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, on assignment from the Office of the Principal Legal Advisor, ICE.
Okmulgee Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenneth Delano Fultz, Jr., age 46, of Okmulgee, Oklahoma pled guilty to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about January 16, 2018, within the Eastern District of Oklahoma, the defendant, Kenneth Delano Fultz, Jr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, to-wit: One (1) Sig Sauer, Model SP, 9mm semi-automatic pistol, serial number 24B215081; and Eleven (11) rounds Tulammo, 7.62 x 39 caliber ammunition, which had been shipped and transported in interstate commerce.The charges arose from an investigation by the Okmulgee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 Dean Burris represented the United States.
Ohio County men indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Quavonte Pugh and Caveizz Cunningham, both of Wheeling, West Virginia, were arrested today and appeared in federal court to face drug charges after being indicted by a federal grand jury on April 3, 2018, United States Attorney Bill Powell announced.
Pugh, also known as “Q,” age 22, was indicted on one count of “Conspiracy to Distribute Heroin and Cocaine Base,” one count of “Distribution of Heroin,” and two counts of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Pugh is accused of conspiring to distribute heroin and cocaine base, selling heroin, and selling cocaine base near Bloch Playground in January 2018 in Ohio County
Cunningham, age 23, was indicted on one count of “Conspiracy to Distribute Heroin and Cocaine Base” and one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Cunningham is accused of conspiring to distribute heroin and cocaine base and selling cocaine base near Bloch Playground in January 2018 in Ohio County.
Pugh and Cunningham each face up to 20 years incarceration and a fine of up to $1,000,000 for the conspiracy count and each face up 40 years incarceration and a fine of up to $2,000,000 for the distribution near a protected location count. Pugh also faces up to 20 years incarceration and a fine of up to $1,000,000 for the distribution of heroin count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating. The United States Marshals Service made the arrest.
U.S. Magistrate Judge James E. Seibert presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio County man indicted on heroin and cocaine chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Pugh, of Wheeling, West Virginia, was arrested today and appeared in federal court to face drug charges after being indicted by a federal grand jury on April 3, 2018, United States Attorney Bill Powell announced.
Pugh, age 38, was indicted on one count of “Distribution of Heroin within 1,000 Feet of a Protected Location,” one count of “Distribution of Cocaine within 1,000 Feet of a Protected Location,” and one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Pugh is accused of selling heroin and cocaine near Bloch Playground in September and October 2017 in Ohio County.
Pugh faces up 40 years incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating. The United States Marshals Service made the arrest.
U.S. Magistrate Judge James E. Seibert presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Oahu Tax Preparer Pleads Guilty to Filing Fraudulent ReturnsRead the Press Release
HONOLULU – Guillermo Dahilig, of Waialua, Hawaii, pled guilty today in federal court to one count of aiding and assisting in the preparation and filing of false tax returns in violation of Title 26, United States Code, Section 7206(2).
According to court documents and information presented in court, from 2009 to 2016, Dahilig was the owner and operator of Speedy Gill Services, an Oahu tax preparation business. He prepared between 750 and 1,000 tax returns per year for clients, and charged between $100 and $200 per return. Dahilig falsified his clients’ tax returns by claiming deductions for items such as medical expenses, personal property tax, job expenses, and charitable contributions that he knew were greater than the figures provided by his clients. He then filed the returns, knowing that they would generate refunds larger than his clients deserved. In addition, from at least 2010 through 2013, Dahilig underreported the income of Speedy Gill Services on the income tax returns he prepared and filed for himself and his wife.
“During tax season, it’s especially important to remember that filing false tax returns is a crime,” said U.S. Attorney Kenji Price. “Our office is committed to prosecuting tax preparers who make a living by stealing from the government’s coffers.”
IRS-CI Acting Special Agent in Charge Troy Burrus stated, “This plea comes at a time when most Americans are filing their tax returns. Law abiding citizens deserve to know that IRSCI will investigate and prosecute those return preparers who use specialized knowledge of the tax laws for their own personal gains. Bad return preparers like Guillermo Dahilig, can cause problems for clients when they file fraudulent returns. It pays to be cautious when entrusting your tax affairs to others.”
Dahilig’s sentencing is scheduled for July 16, 2018 before U.S. District Judge Susan Oki Mollway. He faces up to three years in prison, a fine of up to $250,000, and a period of supervised release of up to one year. He agreed to pay restitution to the IRS in an amount determined by the Court for the taxes due from fraudulent tax returns filed between tax years 2010 and 2015 for himself and his clients.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Amalia Fenton.
New Orleans resident sentenced to 30 months for possessing 282 counterfeit credit/debit cardsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a New Orleans man was sentenced Tuesday to two and a half years in prison for possessing 282 counterfeited credit/debit cards.
Bruce Daliet, 34, of New Orleans, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of 15 or more counterfeit or unauthorized access devices. He was also sentenced to three years of supervised release and ordered to pay $14,010 in restitution.
According to the guilty pleas of Bruce Daliet and co-defendant Brittany Sanders, 35, also of New Orleans, a Louisiana State Police trooper pulled over a rental car on January 9, 2015 in St. Martin Parish that Daliet and Sanders were traveling in. The trooper searched the vehicle and found a pink suitcase that contained 282 counterfeit credit/debit cards and $4,000 worth of gift cards. Law enforcement agents discovered that 156 of the credit/debit cards were embossed with Sanders’ name, and 126 were embossed with Daliet’s name.
Sanders was sentenced on February 22, 2018, to 30 months in prison and three years of supervised release. She was also ordered to pay $14,010 restitution.
The U.S. Secret Service and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
New Orleans Man Pleads Guilty to Bank RobberyRead the Press Release
U.S. Attorney Duane A. Evans announced that EDDIE JAMES, age 40, of New Orleans, pled guilty yesterday before United States District Judge Sarah Vance to a one-count Bill of Information charging him with bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to court documents, JAMES robbed the Fidelity Homestead Bank at 1201 S. Carrollton Avenue in New Orleans on November 2, 2017. JAMES faces a sentence of up to twenty years in prison, a period of up to three years of supervised release, and a fine of $250,000. Sentencing is scheduled for August 8, 2018 at 9:30 a.m.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney David Haller is in charge of the prosecution.
New Orleans Man Charged with Failure to Register as a Sex OffenderRead the Press Release
U.S. Attorney Duane A. Evans announced that NATHANIEL RAINEY, a/k/a “Nathan Lee,” a/k/a “Nathaniel Rainie,” a/k/a “Nathaniel Palmore,” age 59, of New Orleans, was indicted by a federal grand jury today with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
If convicted, RAINEY faces a maximum term of 10 years in prison and a $250,000.00 fine. He also would have to be sentenced to a term of supervised release of between 5 years and life.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Marshal’s Service and the Louisiana State Police in this matter. He extended his thanks to the New Orleans Police Department and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew Payne is in charge of prosecution.
New Haven Man Pleads Guilty to Federal Gun and Robbery ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that THOMAS JOHNSON, 27, of New Haven, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to federal robbery and firearm charges.
According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report of person who had been shot. At the scene, officers found two victims. One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose.
The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that JOHNSON and Shaquille Richardson attacked the two victims after they exited a convenience store in an attempt to steal marijuana and money from the victims. JOHNSON shot one of the victims in his elbow, and Richardson struck the other victim in the face with a gun.
Officers apprehended Richardson near the scene of the robbery. When Richardson was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense. JOHNSON was arrested on July 28, 2016, during a motor vehicle stop. At the time of his arrest, JOHNSON possessed the firearm he used during the robbery.
JOHNSON pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years; one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of discharging a firearm in furtherance of a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of 10 years. Judge Shea scheduled sentencing for July 9, 2018.
Richardson, who pleaded guilty to related charges on January 31, 2018, also awaits sentencing.
JOHNSON and Richardson have been detained since their arrests.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
Navajo Man Pleads Guilty to Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Alton Jay Cowboy, 48, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Cowboy was charged by indictment on Feb. 27, 2018, with violating SORNA by failing to update his sex offender registration from April 4, 2017 through Dec. 27, 2017, in Bernalillo County, N.M.
During today’s proceedings, Cowboy pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Cowboy faces a maximum penalty of ten years in federal prison. He will be required to register as a sex offender when he completes his prison sentence pursuant to his previous conviction. Cowboy remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
National Crime Victims’ Rights Week ObservancesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., and the Interagency Council of North Carolina announce the National Crime Victims’ Rights Week Observances, April 8 - April 14, 2018. This year’s theme-“Expand the Circle: Reach All Victims.”- emphasizes the importance of inclusion in victim services. This year’s theme addresses how the crime victim field can better ensure that every crime victim has access to services and support; and how professionals, organizations, and communities can work in tandem to reach all victims.
Each April since 1981, when President Ronald Reagan proclaimed the first Victims' Rights Week, communities across the nation have held public rallies, candlelight observances, and commemorative activities to promote awareness of victims' rights and needs. This year, The U.S. Attorney’s Office for the Eastern District of North Carolina is joining forces with victim service providers, criminal justice agencies, and concerned citizens throughout North Carolina and America to raise awareness of victims’ rights and observe National Crime Victims’ Rights Week.
In honoring National Crime Victims’ Rights Week we reaffirm a commitment to respect and enforce victims’ rights and address victims’ needs during Crime Victims’ Rights Week and throughout the year; and express our appreciation for those victims and crime survivors who have turned personal tragedy into a motivating force to improve our response to victims of crime and to continue to advance the cause of justice for crime victims throughout North Carolina.
This year the ceremony will take place on Tuesday, April 10, 2018 from 1:00 – 3:00 p.m. at the North Carolina Museum of History located at 5 East Edenton Street in Raleigh.
Montana Men Receive Prison Sentences for Meth OffensesRead the Press Release
MISSOULA - Hugh Shawgo, a 45-year-old resident of Libby, and Michael Norton, a 42-year-old resident of Kalispell were sentenced today to 156 and 78 months in prison respectively to be followed by 5 years of supervised release. Both pleaded guilty to possession with the intent to distribute methamphetamine and Shawgo pleaded guilty to the additional charge of possessing a firearm in furtherance of drug trafficking. United States District Judge Donald W. Molloy handed down the sentences.
Beginning in August of 2017 and continuing through September 13, 2017, Shawgo and Norton would fly via Norton’s private plane to Spokane, Washington to pick up methamphetamine, which was later to be redistributed in Northwestern Montana. Members of law enforcement recovered 426 grams of methamphetamine and a .40 caliber handgun from Shawgo’s bag on Norton’s plane. The methamphetamine recovered from Shawgo was more than 98% pure and contained 3408 doses which were headed for users in Montana.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Minnesota Man Sentenced to 110 Months for CarjackingRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Dilworth, Minnesota man convicted of Carjacking on April 2, 2018.
Michael Jaime, age 28, was sentenced to 110 months custody, followed by 3 years of supervised release, and was ordered to pay $100 to the Federal Crime Victims Fund. A restitution hearing will be held at a later date.
Jaime was indicted for Carjacking by a federal grand jury on December 6, 2016. He pled guilty on December 27, 2017.
On July 23, 2016, Michael Chase Jaime pointed a handgun at the driver of a Mercedes car in the parking lot of Denny’s Restaurant at the Flying J Truck Stop in Sioux Falls, South Dakota. While inserting a magazine into the handgun, Jaime told the 18 year-old driver and the four teenage passengers that he was taking the car. Jaime and an adult female got into the vehicle and sped away from the scene. Later the same day, officers in Moorhead, Minnesota saw Jaime in the stolen vehicle and attempted to stop him. Jaime, however, failed to stop and the officers discontinued their pursuit after speeds reached 140 miles per hour. The car was found abandoned the next day in Dilworth, Minnesota.
This case was investigated by the Sioux Falls Police Department, the Moorhead, Minnesota, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Jaime was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced to Three Years for Illegal Reentry, Identity Theft, and Other CrimesRead the Press Release
U.S. Attorney Duane A. Evans announced that LUIS ALBERTO TEJEDA-QUIROZ, age 33, a Mexican national, was sentenced today to three years’ imprisonment for Illegal Use of a Social Security Number, False Claim to United States Citizenship, Illegal Reentry of Removed Alien, and Identity Theft.
Prior to November 2014, TEJEDA-QUIROZ had been deported from United States three times and had reentered the United States after each deportation. In November 2014, TEJEDA-QUIROZ obtained a Louisiana state identification card using the personal identifying information of another person. In March 2015, TEJEDA-QUIROZ used the identification card and other identifying information of this other person to apply for employment with a local business. As part of the application, TEJEDA-QUIROZ falsely claimed in an Employment Eligibility Verification Form that he was a United States citizen and that the other person’s Social Security number was assigned to him.
In August 2017, a Louisiana State Police trooper encountered TEJEDA-QUIROZ while conducting a traffic stop. TEJEDA-QUIROZ falsely claimed to be the other person and presented a Kentucky State driver’s license issued in the other person’s name.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement - Homeland Security Investigations and the assistance of the Louisiana State Police in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Mexican National Sentenced for Conviction on Federal Heroin and Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Lorenzo A. Ruiz-Gonzalez, 26, entered a guilty plea to heroin and methamphetamine trafficking charges today in federal court in Las Cruces, N.M. Immediately thereafter, Ruiz-Gonzales was sentenced to 70 months of imprisonment. He will be deported after completing his prison sentence.
Ruiz-Gonzalez , a Mexican national who had been residing in El Paso, Texas, was arrested in July 2017, after New Mexico State Police (NMSP) officers found approximately 1,061.1 grams of methamphetamine and 612 grams of heroin inside Ruiz-Gonzalez’s vehicle during a routine traffic stop on Interstate 10 in Dona Ana County, N.M.
Today, Ruiz-Gonzalez pled guilty to a felony information charging him with possession of methamphetamine and heroin with intent to distribute. In entering the guilty plea, Ruiz-Gonzalez admitted that on July 13, 2017, he drove a vehicle containing approximately 856.8 grams of methamphetamine and 493 grams of heroin. Ruiz-Gonzalez admitted that he was in the process of delivering the drugs to another when he was pulled over by law enforcement for a traffic violation.
This case was investigated by the Las Cruces office of the FBI and the NMSP. The case was prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Memphis Man Guilty of Child ExploitationRead the Press Release
Memphis, TN – A federal jury has found a Memphis man guilty on two counts of distribution of child pornography and one count of possession of child pornography. Attorney D. Michael Dunavant for the Western District of Tennessee announced the verdicts today.
According to information presented in court, from February through October 2016, Marcus Williams, 28, used the chat application Kik, as well as several email accounts, to distribute images of minors engaging in sexually explicit conduct. When members of the Memphis Child Exploitation Task Force searched Williams’ Memphis residence, they seized three smart phones and one laptop, all containing child pornography. The laptop alone contained more than 3,000 videos that depicted sexual assault of children, many of whom were prepubescent.
U.S. Attorney D. Michael Dunavant said, "With new and ever-changing technology, criminals are using more creative and disturbing ways to commit cyber-crimes against vulnerable victims, including the sexual exploitation of children by distribution of child pornography. This office will always aggressively prosecute and seek significant and mandatory sentences for such predatory behavior in order to protect children and hold offenders accountable."
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visits http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Sentencing is set for July 25, 2018 at 9:30 a.m., before U.S. Senior District Judge Samuel H. Mays. Williams faces a maximum sentence of up to 60 years imprisonment.
This case was investigated by Homeland Security Investigations and FBI. Assistant U.S. Attorney Deb Ireland is prosecuting this case on the government’s behalf.
Married Couple Indicted for String of ATM Burglaries and A RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Matthew Dale Bush, age 38, and Crystal French, a/k/a “Crystal Lynn Bush,” age 34, both of Graysonville, Maryland, on charges of Bank Robbery, Interstate Transportation of Stolen Vehicle and Conspiracy to Commit Offenses against the United States.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI;) and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the nine-count indictment, beginning in September 2017 and continuing through October 23, 2017, Bush and French stole ATMs and used stolen vehicles to travel to and from the scenes of the crimes. The burglaries took place within the District of Maryland, the Northern District of Virginia, the District of Delaware, the Eastern District of Pennsylvania, and elsewhere. Bush and French spent the proceeds of the crimes they committed on personal items including heroin and other illegal narcotics.
In September and October 2017, the couple allegedly stole or attempted to steal ATMs in the following locations; Stevensville, Maryland; Chester, Maryland; Kent County, Delaware; Sterling, Virginia; Broadlands, Virginia; Dover, Delaware; Stevensville, Maryland; and Cambridge, Maryland.
According to the indictment, in addition to the ATM burglaries, on October 23, 2017, Bush allegedly burglarized a High’s Store in Harford County, and robbed a bank in Perry Hall, Maryland.
Bush has also been indicted on charges of Bank Larceny, Interstate Transportation of Stolen Property, Felon in Possession of a Firearm and Ammunition, and four counts of Interstate Transportation of Stolen Vehicle.
Bush and French face a maximum sentence of 5 years in prison for conspiracy, 10 years in prison for each count of Interstate Transportation of Stolen Vehicle and 20 years in prison for bank robbery.
Bush also faces a maximum penalty of 10 years for each additional count of Bank Larceny, Interstate Transportation of Stolen Property, and Felon in Possession of a Firearm and ammunition.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the HSI, Maryland State Police, Delaware State Police, Queen Anne’s County Office of the Sheriff, Harford County Sheriff’s Office, Baltimore County Police Department, and Loudon County, Virginia Sheriff’s Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Budlow and Sandra Wilkinson, who are prosecuting the case.
Man and Woman Sentenced for Sex Trafficking of a MinorRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Judge Louise W. Flanagan sentenced BOBBY RAY WILLIAMS, JR., 41, of Stantonsburg, North Carolina, and TEMEEKA NESHAUNE HONEY, 40, of Wilson, North Carolina, in a sex trafficking case. Williams was sentenced after pleading guilty to sex trafficking of a minor, and Honey was sentenced after pleading guilty to conspiracy to commit sex trafficking of a minor. WILLIAMS was sentenced to 180 months imprisonment followed by 10 years of supervised release. HONEY was sentenced to 61 months imprisonment followed by 5 years of supervised release. Both defendants are also required to register as a sex offender upon their release from prison.
In December 2015, the Federal Bureau of Investigation (FBI) and the Raleigh Police Department (RPD) investigated the sex trafficking of a minor. Agents identified a minor female (Victim) who was reportedly being sexually exploited by several individuals. The investigation revealed that William Maurice Saddler, previously convicted by a federal jury on November 30, 2017, began an illicit dating relationship with the Victim while she was thirteen or fourteen years old. Around 2015, when the Victim was fifteen years old, Saddler forced her to prostitute at migrant camps around Wilson, North Carolina. Among other tactics, Saddler used violence, fear, and manipulation to force the victim to continue prostituting to support Saddler’s crack cocaine habit.
WILLIAMS and HONEY were Saddler’s coconspirators. HONEY was Saddler’s girlfriend and assisted Saddler by transporting the Victim to various migrant camps for prostitution. WILIAMS is Saddler’s brother, and he assisted Saddler in prostituting the Victim by accompanying them on multiple occasions to the migrant camps. WILLIAMS also prostituted the Victim himself and also coerced the fifteen-year-old Victim to have a sexual relationship with him.
At sentencing, tentatively set for June 5, 2018, Saddler faces a maximum sentence of not less than 15 years in prison up to life imprisonment and a fine of up to $500,000.
Mr. Higdon commented: “The sentences imposed by the Court send a clear message that we will not tolerate the trafficking of humans - here a 15 year young girl – in the Eastern District of North Carolina. This horrible victimization of this young woman is beyond despicable and really is among the worst offenses our law addresses. Human trafficking – on an individual level – or on a larger scale plagues our country and debases us as a people. We will aggressively move to prosecute and convict those who traffic in human beings and end their victimization. I commend our law enforcement partners for their thorough and successful investigation.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Raleigh Police Department, the N.C. State Bureau of Investigation, the Wilson Police Department and the Wilson County Sheriff’s Office. Assistant United States Attorneys Erin C. Blondel and Eleanor Morales represented the United States.
Luchese Crime Family Soldier and Organized Crime Associate Plead Guilty to Conspiring to Illegally Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Anthony Grado, a member of the Luchese organized crime family, and Lawrence Tranese, an organized crime associate, pleaded guilty to conspiracy to distribute oxycodone. The proceeding was before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“Luchese family member Grado imperiled our community, threatening a doctor to force him to write prescriptions for oxycodone and then trafficking in the addictive drugs,” stated United States Attorney Donoghue. “Violent threats to a doctor by Mafia defendants, combined with their trafficking of oxycodone pills, posed an especially serious danger to our community. As demonstrated by today’s guilty pleas, this Office together with our law enforcement partners will be relentless in the prosecution of organized crime and those who contribute to the opioid epidemic.”
“Organized crime groups and other criminal entities are seizing on the outbreak of addiction plaguing our country to make money,” stated FBI Assistant Director-in-Charge Sweeney. “It shouldn’t be a shock that members of the Luchese crime family used violence to force a member of the medical community to further their criminal enterprise. The FBI Joint Organized Crime Task Force is committed to aggressively pursuing these groups to stop them from further contributing to the deadly opioid epidemic affecting our country.”
According to court documents and statements at the plea proceedings, Grado and Tranese conspired with others to distribute oxycodone that they obtained through fraudulent prescriptions written on a Brooklyn-based doctor’s prescription pad. Grado, a Luchese family member, together with Tranese and their coconspirators provided the doctor with the names of people for whom the doctor should write prescriptions. The doctor then wrote prescriptions in those names for medications containing oxycodone, usually without conducting any examination. Grado, Tranese and their coconspirators filled the prescriptions and sold the pills. At other times, Grado held the doctor’s prescription pads himself and either had the doctor write the fraudulent prescriptions at his direction, or completed the prescriptions and later advised the doctor of the details.
Members of the conspiracy used violence and threats of violence to seize control of the doctor’s prescription pads. For example, in one recorded conversation, Grado told the doctor that he would make the doctor write “a thousand scripts a day and [expletive] feed you to the [expletive] lions” if the doctor wrote prescriptions without Grado’s approval. In the same conversation, Grado also told the doctor that if the doctor’s newly ordered prescription pads “go in anybody’s hands,” besides Grado’s, “I’ll put a bullet right in your head.” During the course of the conspiracy, Grado also ordered one of his associates to stab the doctor, and the associate carried out the order. Finally, Grado called upon a higher-ranking member of the Luchese crime family to attend a “sit down,” or meeting, to resolve issues related to the pill distribution scheme.
When sentenced, the defendants each face up to 20 years in prison, as well as forfeiture and a fine of up to $1 million.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Mathew S. Miller and Matthew J. Jacobs are in charge of the prosecution.
The Defendants:
ANTHONY GRADO
Age: 54
Monroe Township, New JerseyLAWRENCE TRANESE
Age: 55
Brooklyn, New YorkE.D.N.Y. Docket No. 17-559 (S-1)
Lower Brule Woman Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Candace Byington, age 36, was indicted on August 16, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 3, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 27, 2017, Byington forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a correctional officer of the Bureau of Indian Affairs, while said officer was engaged in the performance of his official duties, and said conduct involved physical contact with the correctional officer.
The charge is merely an accusation and Byington is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Byington was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lexington Man Pleads to Federal Drug and Firearm ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bryshun Genard Furlow, age 34, of Lexington, plead guilty in federal court to possession with intent to distribute cocaine, methamphetamine, and a substance containing both methamphetamine and cocaine, as well as to being a felon in possession of firearms and ammunition, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 851 and Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Judge Cameron McGowan Currie, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on November 3, 2016, the Lexington County Sheriff’s Department executed a state search warrant at Furlow’s Wessinger Street apartment after having made three separate controlled purchases of crack cocaine in September and October 2016 from Furlow at the apartment. During the search of the apartment, deputies recovered baggies of cocaine, methamphetamine, and tablets consisting of cocaine and methamphetamine. Deputies also recovered two digital scales, $5,422, a pyrex dish with cocaine residue, a .40 caliber handgun, a .38 caliber revolver, and various rounds of .40 caliber and .38 caliber ammunition. Furlow, his girlfriend, and two children were at the apartment at the time of the search. After being advised of his rights, Furlow admitted to the drugs in the apartment.
Furlow is prohibited under federal law from possessing firearms and ammunition based upon his prior Georgia state convictions for possession with intent to distribute cocaine (2003), possession with intent to distribute marijuana (2003), possession of cocaine (2008), aggravated stalking (2008), arson 1st degree (2 counts)(2008), terroristic threats (2008) and his prior South Carolina state conviction for distribution of crack cocaine (April 2016).
Furlow faces a maximum of 30 years imprisonment, a fine of $2,000,000, and at least 6 years of supervised release on the drug charge. Additionally, Furlow faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of firearms and ammunition charge. However, if he is deemed an armed career criminal in light of his prior convictions, he would face a statutory mandatory minimum term of imprisonment of 15 years with a maximum of life, a fine of $250,000, and 5 years of supervised release on the firearms charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Lexington Man Charged with Insider TradingRead the Press Release
BOSTON – A Lexington man was arrested today and charged in federal court in Boston in connection with trading on non-public information thus profiting more than $800,000.
Charlie Jinan Chen, 48, was indicted on three counts of securities fraud and one count of making a material false statement. Chen is scheduled to appear before U.S. District Court Magistrate Judge David H. Hennessy this afternoon.
The indictment alleges that Chen had a close personal relationship with a Lexington couple, one of whom was a VistaPrint employee in the Financial Planning and Analysis department, preparing and reviewing earnings data for the company’s quarterly earnings reports before the information was made public. Between July 2012 and July 2014, Chen obtained material non-public information from the Lexington couple and, on the basis of that information, engaged in risky “put and call” option trading in which Chen correctly anticipated the direction of the change in VistaPrint stock price following the earnings announcements. Specifically, in the final two quarters of 2014, Chen profited more than $800,000 by correctly predicting the direction of the change in the company’s share price following the company’s earnings announcements.
The indictment also alleges that Chen falsely told federal agents that he could not specifically recall his option trading in VistaPrint, even though it was the largest position he had taken in any stock and had generated more than $800,000 in three months. Chen allegedly used a portion of the proceeds of the insider trading scheme to purchase a condominium in Stoneham. Finally, the indictment alleges that Chen falsely claimed that the spouse of the VistaPrint employee was more of an acquaintance than a friend, when in fact Chen and his family socialized together and even vacationed together, including trips to Hawaii and Europe with the former VistaPrint employee, spouse and their family.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making a materially false statement provides for a sentence of no greater than five years in prison, one year of supervised release and fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission during the investigation. Assistant U.S. Attorney Neil J. Gallagher Jr. of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that CARLOS ARGUETA-MANCIA, age 24, a citizen of Honduras, was sentenced today after pleading guilty on February 22, 2017 to a one-count Bill of Information charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. § 1326(a). U.S. District Judge Mary Ann Vial Lemmon sentenced ARGUETA-MANCIA to four months in the custody of the Bureau of Prisons.
According to the court documents, ARGUETA-MANCIA was found in the United States on or about December 30, 2017, after having been previously removed on September 25, 2015.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
Hattiesburg Man Plead Guilty to Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Cory Demond Ward, 31, of Hattiesburg, entered a guilty plea today before U.S. District Judge Keith Starrett to possession of a firearm by a previously convicted felon, U.S. Attorney Mike Hurst announced.
Ward admitted he sold a .38 caliber Colt revolver to a confidential informant for $125 on October 21, 2017. Ward had previously been convicted of burglary of a dwelling in the Circuit Court of Lamar County.
Ward faces a potential sentence of 10 years, a $250,000 and 3 years of supervised release. U.S. District Judge Keith Starrett has set sentencing for August 21, 2018, at 10:45 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is prosecuted by Assistant United States Attorney Annette Williams.
Hartford Man Sentenced to 54 Months in Federal Prison for Planning Robbery of Drug DealerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIE DEAS, also known as “Debo” and “Flee,” 22, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 54 months of imprisonment, followed by three years of supervised release, for planning to rob a drug dealer.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
On October 8, 2016, investigators intercepted calls on which Ruben Torres and other OSK members discussed firearms and the planning of a potentially violent act. Investigators immediately notified Hartford Police that violence might be imminent in the Orange and Cherry Street area, but before police could respond, at approximately 10:12 p.m., a man was chased and shot multiple times in front of 7-9 Cherry Street. The victim was located in the backyard of 51 Orange Street. He was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. Minutes after the shooting, DEAS called Torres and referenced both the shooting and hiding a firearm.
On October 10 and 11, 2016, an individual working with law enforcement purchased crack from DEAS. The individual also told DEAS that he planned to rob his drug supplier and asked DEAS if he had a gun to sell. DEAS indicated that he had a gun but declined to sell it. Instead, he offered to bring the gun and help in the robbery. DEAS was arrested on October 26, 2016, on his way to the “robbery.” At the time of his arrest, he possessed a .40 caliber handgun, which had been reported stolen, loaded with 10 rounds of ammunition.
DEAS has been detained since his arrest. On November 6, 2017, he pleaded guilty to one count of interference with commerce by attempted robbery.
Sixteen individuals were charged as a result of the investigation.
Torres pleaded guilty and, on March 30, 2018, was sentenced to 78 months of imprisonment.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hartford Man Pleads Guilty to Drug Charge Stemming from Norwich Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FELIX LOPEZ, also known as “Pablo,” 23, of Hartford, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of possession with intent to distribute, and distribution of, heroin, cocaine base (“crack cocaine”) and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on September 13, 2017, Norwich Police and emergency medical personnel responded to a report of an untimely death at a residence in Norwich. Responding officers were informed that the decedent, a 20-year-old woman, had an addiction to heroin. At the scene, officers seized drug and non-drug evidence, including the victim’s cell phone.
The State of Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died from acute fentanyl and heroin intoxication.
The investigation revealed that LOPEZ supplied the heroin and fentanyl consumed by the victim shortly before she died.
LOPEZ was arrested on a federal criminal complaint on November 13, 2017. At the time of his arrest, he possessed a quantity of crack cocaine.
Chief Judge Hall scheduled sentencing for June 28, 2018, at which time LOPEZ faces a maximum term of imprisonment of 20 years. LOPEZ has been detained since his arrest.
This matter has been investigated by the Drug Enforcement Administration and Norwich, Hartford and Manchester Police Departments. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Gilberto Ramirez-Ramirez, 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 21 months in prison. Ramirez-Ramirez will be subject to deportation proceedings. In January 2018, Ramirez-Ramirez pleaded guilty to one count of unlawful reentry of a deported alien.
In October 2015, Ramirez-Ramirez was arrested by federal immigration officers after he was convicted in state court of a domestic violence-related offense. Officers determined Ramirez-Ramirez was in the country illegally, and he was then deported on March 3, 2016. In April 2017, law enforcement in Lynn arrested Ramirez-Ramirez on two separate state cases involving domestic violence. While in custody on state charges, law enforcement determined Ramirez-Ramirez to be again illegally present in the United States. Ramirez-Ramirez was convicted on both state charges in June 27, 2017, and received a two-year sentence.
United States Attorney Andrew E. Lelling and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Geauga County man sentenced to more than 11 years in prison for sharing videos of children being raped and sexually assaultedRead the Press Release
A Geauga County man was sentenced to more than 11 years in prison for possessing videos of children being raped and sexually assaulted.
John S. Mobasseri, 40, of Novelty, was sentenced to 136 months in prison after previously being found guilty of distribution of images of minors engaged in sexually explicit conduct and possession of child pornography.
“These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them,” U.S. Attorney Justin Herdman said. “We will continue to work to prosecute those who re-victimize these children by sharing and downloading these images.”
Mobasseri last year had two USB storage devices, 14 computer disks and a computer that contained images of real minors engaged in sexually explicit conduct. Mobasseri received and distributed images of minors engaged in sexually explicit conduct between 2009 and 2017, according to court documents.
The files include titles such as “10Yo Preteen Raped (Incest).mpeg” and images such as children being blindfolded and sexually assaulted, as well as children being bound and masked while being sexually assaulted, according to court documents.
This case is being prosecuted by Assistant U.S Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security – Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
Fresno Escapee Charged Again with Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned two one-count indictments today against Samuel Delacruz, 40, of Fresno, charging him with escaping from custody and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Delacruz was transferred from the Federal Correction Institute in Phoenix, Arizona to Turning Point Fresno Residential Reentry Center to serve the remainder of his federal sentence. He escaped on October 15, 2017, by leaving without permission, and his whereabouts remained unknown until he was apprehended in Fresno on March 22, 2018, after fleeing from police and tossing a gun into an area where children were playing. His underlying conviction was for being a felon in possession of a firearm.
This case is the product of an investigation by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, Delacruz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the felon in possession charge and five years in prison and a $250,000 fine for the escape charge. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Frank Mercedes Sentenced to Life in Prison Plus 10 Years for Hiring Contract Killers in 1999 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRANK MERCEDES was sentenced today to life in prison plus 10 years for murder in connection with a drug conspiracy, murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, in connection with his role in the murder of Richard Diaz, 28, in Manhattan in 1999. MERCEDES was convicted after a one-week jury trial before U.S. District Judge Richard J. Sullivan, who imposed today’s sentence.
U.S. Geoffrey S. Berman said: “Frank Mercedes callously ordered the murder of someone who had stolen from his drug business. As a result of that order, 28-year-old Richard Diaz—an innocent man who had nothing to do with Mercedes’ drug trafficking—was brutally killed in the summer of 1999. Today’s proceeding is a reminder that this Office will never stop working to obtain justice on behalf of those affected by this type of senseless violence. We hope that today’s sentence, almost 20 years after Mr. Diaz’s death, brings some small measure of peace to Mr. Diaz’s family.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
FRANK MERCEDES, a/k/a “Jabao,” ran a significant drug enterprise in Upper Manhattan in the late 1990s. In the summer of 1999, MERCEDES hired three men, including Jose Luis Gracesqui, a/k/a “Muffler,” to kill one of his drug customers (the “Intended Victim”) after the Intended Victim and a number of his associates stole heroin and money from MERCEDES.
On the night of July 19, 1999, after tracking the Intended Victim for days, Gracesqui and another member of the crew saw the Intended Victim in a car and followed the car through Manhattan. When the car with the Intended Victim stopped at a red light, Gracesqui approached the passenger’s side window and began shooting. The shots hit both the Intended Victim and Richard Diaz, who was driving the car. Mr. Diaz was able to drive a short distance to the Henry Hudson Parkway, until he lost consciousness and died. The Intended Victim sustained serious injuries, although he survived. Shortly thereafter, MERCEDES met with Gracesqui and the other members of the hit team to pay them tens of thousands of dollars for committing the murder.
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MERCEDES, 51, from the Dominican Republic, was sentenced to three concurrent life sentences, to be followed by a consecutive term of ten years.
Gracesqui was previously convicted in January 2016 of charges relating to his role in the murder of Richard Diaz, and also is currently serving a life sentence.
Mr. Berman praised the investigative work of the U.S. Drug Enforcement Administration (DEA) New York Drug Enforcement Task Force, which comprises agents, detectives, and investigators from the DEA, the New York City Police Department, and the New York State Police. Mr. Berman also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rebekah Donaleski, Jessica K. Fender, and Laurie A. Korenbaum are in charge of the prosecution.
Former Vessel Captain Convicted of Discharging Oily Waste into the OceanRead the Press Release
Randall Fox, one-time captain of the fishing vessel Native Sun, was found guilty today in U.S. District Court in Seattle of discharging oily waste directly into the ocean, a felony violation of the Act to Prevent Pollution from Ships. The jury deliberated 5 hours following a three-day trial before U.S. District Judge John C. Coughenour. Randall Fox faces a maximum of six years in prison and a criminal fine of up to $250,000.
“Today’s conviction shows that illegal dumping in our oceans will not be tolerated,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Department of Justice will continue to work with our partners like the U.S. Coast Guard to aggressively prosecute criminals that pollute the oceans.”
The Act to Prevent Pollution from Ships specifically prohibits the discharge of bilge slops and other oily mixtures, unless they have been properly treated using approved pollution prevention equipment and meet rigorous standards. The act implements America’s obligations under an international treaty to control pollution by ocean-going vessels.
The government alleged and proved that Randall Fox discharged bilge slops from the Native Sun directly overboard into the ocean using unapproved pumps and hoses. One of these discharges was video-recorded by a crewmember, who reported the crime to authorities. Other evidence at trial established that the Native Sun had repeatedly pumped its bilges in the same manner depicted in the video. Bingham Fox, the defendant’s father and the owner of the Native Sun, was convicted at trial of related crimes a year ago.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.
Former UAW Official Pleads Guilty to Accepting Illegal Payments from Fiat Chrysler AutomobilesRead the Press Release
Another former UAW official entered a guilty plea to accepting illegal payments from Fiat Chrysler Automobiles (FCA), announced United States Attorney Matthew Schneider.
Joining in the announcement was James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Ian Berg, District Director, U.S. Department of Labor – Office of Labor-Management Standards, and Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations.
Keith Mickens, 64, of Clarkston, Michigan pleaded guilty before the Honorable Paul D. Borman in United States District Court in Detroit, Michigan. The plea marked the fifth conviction in the ongoing federal investigation into corruption at the UAW and FCA.
Keith Mickens admitted to helping transfer hundreds of thousands of dollars from FCA to former UAW Vice President General Holiefield using two companies that Holiefield controlled with his girlfriend and later wife, Monica Morgan. FCA executives concealed the illegal payments using the bank account of the UAW-Chrysler National Training Center. According to court documents, Morgan and Holiefield used the payments for expenses such as installing a swimming pool at their residence in Harrision Township, Michigan. In January 2018, Monica Morgan was convicted of criminal tax fraud. Morgan is awaiting sentencing.
Separate from the illegal activities involving UAW Vice President Holiefield, Keith Mickens admitted that he and other senior UAW officials also accepted thousands of dollars worth of clothing, electronics, golf equipment, and other personal items that were paid for by FCA.
Between 2010 and 2014, Keith Mickens was one of the senior UAW officials responsible for administering the collective bargaining agreements on behalf of tens of thousands of UAW members employed by FCA. Mickens served as a member of the UAW’s National Negotiating Committee in 2011 and was one of the UAW officials responsible for negotiating the collective bargaining agreements between the UAW and FCA.
“Today’s conviction is the latest in a string of senior UAW officials who took secret and prohibited payments from the company they were supposed to be negotiating against,” said U.S. Attorney Matthew Schneider. “The hard working rank and file members of the UAW deserve better from those who represent their interests.”
“Today’s guilty plea demonstrates a continued importance for the UAW’s leadership to provide active assistance in the ongoing investigation to root out anyone who has participated in this “pay to play” scheme”, said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI.
“Mickens is another former UAW employee who abused his position by conspiring with UAW officers and employees to accept illegal payments and other things of value from FCA while he was responsible for collective bargaining on behalf of UAW members. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to safeguard the assets of union members,” said James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
A sentencing date will be set by the court.
U.S. Attorney Schneider commended the outstanding work of the U.S. Department of Labor, the Internal Revenue Service and the Federal Bureau of Investigation, in conducting a comprehensive criminal investigation into labor corruption and tax fraud activities involving a vital sector of the local and national economy.