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Friday 16 February 2018
Hammond Man Sentenced to 70 Months ImprisonmentRead the Press Release
HAMMOND - Javier Castillo, 21, of Hammond, Indiana, was sentenced before District Court Judge Philip P. Simon for his role in a racketeering conspiracy as a member of the Latin Kings street gang, announced U.S. Attorney Thomas L. Kirsch II.
Castillo was sentenced to 70 months imprisonment and 2 years supervised release.
According to documents in this case, Castillo admitted his involvement in the June 2015, aggravated assault of a victim sustaining serious bodily injury in Hammond, Indiana, and admitted his responsibility for distributing between 500 grams and 2 kilograms of cocaine as relevant conduct for his role in the Latin Kings.
The Latin King case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chicago Police Department, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Northern District of Illinois United States Attorney’s Office and the Lake County Prosecutor’s Office also has provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana.
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Grand Jury Indicts Thirteen Russian Individuals and Three Russian Companies for Scheme to Interfere in the United States Political SystemRead the Press Release
The Department of Justice announced that a grand jury in the District of Columbia today returned an indictment presented by the Special Counsel’s Office. The indictment charges thirteen Russian nationals and three Russian companies for committing federal crimes while seeking to interfere in the United States political system, including the 2016 Presidential election. The defendants allegedly conducted what they called “information warfare against the United States,” with the stated goal of “spread[ing] distrust towards the candidates and the political system in general.”
“This indictment serves as a reminder that people are not always who they appear to be on the Internet,” said Deputy Attorney General Rod J. Rosenstein. “The indictment alleges that the Russian conspirators want to promote discord in the United States and undermine public confidence in democracy. We must not allow them to succeed. The Department of Justice will continue to work cooperatively with other law enforcement and intelligence agencies, and with the Congress, to defend our nation against similar current and future schemes. I want to thank the federal agents and prosecutors working on this case for their exceptional service. And we received exceptional cooperation from private sector companies like Facebook, Oath, PayPal, and Twitter.”
According to the allegations in the indictment, twelve of the individual defendants worked at various times for Internet Research Agency LLC, a Russian company based in St. Petersburg, Russia. The other individual defendant, Yevgeniy Viktorovich Prigozhin, funded the conspiracy through companies known as Concord Management and Consulting LLC, Concord Catering, and many subsidiaries and affiliates. The conspiracy was part of a larger operation called “Project Lakhta.” Project Lakhta included multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in multiple countries.
Internet Research Agency allegedly operated through Russian shell companies. It employed hundreds of persons for its online operations, ranging from creators of fictitious personas to technical and administrative support, with an annual budget of millions of dollars. Internet Research Agency was a structured organization headed by a management group and arranged in departments, including graphics, search-engine optimization, information technology, and finance departments. In 2014, the agency established a “translator project” to focus on the U.S. population. In July 2016, more than 80 employees were assigned to the translator project.
Two of the defendants allegedly traveled to the United States in 2014 to collect intelligence for their American political influence operations.
To hide the Russian origin of their activities, the defendants allegedly purchased space on computer servers located within the United States in order to set up a virtual private network. The defendants allegedly used that infrastructure to establish hundreds of accounts on social media networks such as Facebook, Instagram, and Twitter, making it appear that the accounts were controlled by persons within the United States. They used stolen or fictitious American identities, fraudulent bank accounts, and false identification documents. The defendants posed as politically and socially active Americans, advocating for and against particular political candidates. They established social media pages and groups to communicate with unwitting Americans. They also purchased political advertisements on social media.
The Russians also recruited and paid real Americans to engage in political activities, promote political campaigns, and stage political rallies. The defendants and their co-conspirators pretended to be grassroots activists. According to the indictment, the Americans did not know that they were communicating with Russians.
After the election, the defendants allegedly staged rallies to support the President-elect while simultaneously staging rallies to protest his election. For example, the defendants organized one rally to support the President-elect and another rally to oppose him—both in New York, on the same day.
On September 13, 2017, soon after the news media reported that the Special Counsel’s Office was investigating evidence that Russian operatives had used social media to interfere in the 2016 election, one defendant allegedly wrote, “We had a slight crisis here at work: the FBI busted our activity.... So, I got preoccupied with covering tracks together with my colleagues.”
The indictment includes eight criminal counts. Count One alleges a criminal conspiracy to defraud the United States, by all of the defendants. The defendants allegedly conspired to defraud the United States by impairing the lawful functions of the Federal Election Commission, the U.S. Department of Justice, and the U.S. Department of State in administering federal requirements for disclosure of foreign involvement in certain domestic activities.
Count Two charges conspiracy to commit wire fraud and bank fraud by Internet Research Agency and two individual defendants.
Counts Three through Eight charge aggravated identity theft by Internet Research Agency and four individuals.
There is no allegation in the indictment that any American was a knowing participant in the alleged unlawful activity. There is no allegation in the indictment that the charged conduct altered the outcome of the 2016 election.
Everyone charged with a crime is presumed innocent unless proven guilty in court. At trial, prosecutors must introduce credible evidence that is sufficient to prove each defendant guilty beyond a reasonable doubt, to the unanimous satisfaction of a jury of twelve citizens.
The Special Counsel's investigation is ongoing. There will be no comments from the Special Counsel at this time.Grand Island Man Sentenced on Marijuana and Money Laundering ConvictionsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Bass, 23, of Grand Island, NY, who was convicted of possession with intent to distribute and distribution of marijuana, and money laundering, was sentenced to 7 months imprisonment and 2 years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that Bass sold marijuana locally, then used the proceeds of the drug sales to buy bitcoins, with which he then bought more bulk quantities of marijuana from dark net vendors for further distribution. He cycled through over $100,000 in bitcoins and between 20 and 40 kilograms of marijuana in this manner. Law enforcement agents intercepted two packages destined for Bass in Buffalo. Each was mailed from California and contained approximately one pound of high-grade marijuana.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly, and the United States Postal Inspection Service, under the direction of Boston Division Acting Inspector in Charge Raymond Moss.
Ghana Citizen Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jason Osei Bonsu, 35, of Ghana, pled guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years imprisonment and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that between December 2015 and May 2017, Bonsu and his co-conspirators devised an internet romance scheme to defraud victims and obtain money.
In furtherance of the scheme, Bonsu’s co-conspirators utilized a dating website, MillionaireMatch.com, to engage victims in communications online and over the phone to develop a rapport with victims and convince victims that they were developing romantic relationships via the internet. Victims received alleged pictures of the co-conspirators that were actually photographs of others downloaded from the internet. For example, Victim 1, who resides in the Western District of New York, received images of a person known to her as “Marvin Roecker,” but the image actually depicted a real estate agent from Texas, whose name is not “Marvin Roecker.”
After successfully building rapport, victims were asked to wire money to assist with fictitious business ventures, family emergencies, or inheritances. Victims did so, wiring funds to accounts in Ghana, the United Kingdom, and to accounts in the United States controlled by Ghanaian nationals, including Bonsu.
On March 2, 2016, Victim 1 wired $65,000 to Amen’s TD Bank account. Text messages between the defendant and co-defendant Adams Amen demonstrate that both were participants in the scheme to defraud Victim 1. For instance, Amen and Bonsu discussed quickly withdrawing Victim 1’s money to prevent the bank from becoming suspicious. Subsequently, on March 21, 2017, following a request by “Marvin Roecker,” Victim 1 wired another $180,000 to a bank account located in the United Kingdom, controlled by a co-conspirator.
Victims lost over $211,000 as a result of Bonsu’s participation in the scheme.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Kevin P. Lyons.
Sentencing is scheduled for June 4, 2018, at 12:30 p.m. before Judge Arcara.
Frankfort Man Sentenced for Trafficking Crack CocaineRead the Press Release
FRANKFORT, Ky.— Myron B. Moore, age 31, of Frankfort, Ky., was sentenced today to 18 years, 10 months (226 months) in prison, by United States District Court Judge Gregory F. Van Tatenhove, for possession with intent to distribute over 28 grams of crack cocaine.
Moore previously admitted that on April 20, 2017, Frankfort Police officers performed a traffic stop of his vehicle and found him in possession of 15 grams of crack cocaine. Later the same day, law enforcement officers obtained a search warrant for Moore’s residence and discovered an additional 90 grams of crack cocaine and $51,780 in cash. Moore admitted that he possessed the crack cocaine with intent to distribute it, and that the money discovered at his residence was proceeds from drug sales. Moore also admitted that he had previously been convicted in the Franklin Circuit Court of drug trafficking. Moore pleaded guilty to the charges in October of 2017.
Under federal law, Moore must serve 85 percent of his prison sentence: and upon release, he will be under the supervision of the United States Probation Office for 8 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Chris Evans, Special Agent in Charge, Drug Enforcement Administration; and Travis Ellis, Chief of the Frankfort Police Department, jointly announced the sentence today.
The investigation was conducted by the DEA and the Frankfort Police Department.
Fort Worth Man Sentenced to 25 Years in Federal Prison for Breaking into Pharmacies and Stealing Controlled SubstancesRead the Press Release
FORT WORTH, Texas — Dion Clark, 36, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge John McBryde to 25 years in federal prison, following his guilty plea in August 2017 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Co-defendant’s Darrien Jefferson, aka “Smoke,” Nicholas Evans, aka “Nico,” and Kenneth Sauls, aka “Smurf,” were charged separately and previously sentenced by U.S. District judge Reed O’Connor.
According to the factual resumes filed in the case, on April 9, 2016, Clark, Evans, Jefferson, and Sauls entered into an agreement to commit a robbery at the Walgreens Pharmacy located at 833 South Wilshire Blvd., Burleson, Texas. Clark waited in the vehicle as the get-a-way driver while Evans, Jefferson and Sauls entered the Walgreens, brandished firearms and “zip” tied the victims’ hands and feet. Collectively the group stole narcotics, cash, cigarettes, and approximately 150 booklets of stamps.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Fahey prosecuted.
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Former Massage Therapist Sentenced to Five Years in Prison for Series of Sex Offenses Involving ClientsRead the Press Release
WASHINGTON – Habtamu Gebreslassie, 24, a former massage therapist, was sentenced today to five years in prison for a series of sex offenses involving clients at two massage establishments in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Gebreslassie, of Silver Spring, Md., pled guilty in December 2017, in the Superior Court of the District of Columbia, to first-degree sexual abuse of a patient or client, attempted first-degree sexual abuse of a patient or client, and misdemeanor sexual abuse. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence of 19 to 60 months, to be followed by three years of supervised release. Additionally, upon completion of his prison term, Gebreslassie will be required to register as a sex offender for the rest of his life. The Honorable Lynn Leibovitz accepted the plea and sentenced the defendant accordingly.
According to a proffer of facts submitted at the plea hearing, all three victims were women who were getting massages from the defendant, who was licensed to practice massage therapy in the District of Columbia.
The first incident took place on June 21, 2017, at a massage establishment in the Dupont Circle area. That day, Gebreslassie engageed in unwanted sexual contact with a client. The second incident happened on Aug. 28, 2017, at another establishment in the Tenleytown area; there, Gebreslassie attempted to engage in a sexual act with a client. Finally, on Sept. 17, 2017, also at the Tenleytown location, Gebreslassie sexually abused a client.
Following the Sept. 17 incident, the victim contacted the Metropolitan Police Department. Gebreslassie was arrested later that day and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department’s Second District and Sexual Assault Unit. They acknowledged the efforts of the Forensic Biology Unit of the District of Columbia Department of Forensic Sciences, which provided assistance. They expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Tracy Hawkins, Paralegal Specialist Tiffany Jones, and Assistant U.S. Attorneys Jocelyn Bond and J. Matt Williams, who investigated and prosecuted the case.
Former Ellis County Sherriff’s Office Employee Sentenced to 40 Months in Federal PrisonRead the Press Release
DALLAS — Thomas Glen Smith, 50, of Hamilton, Texas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 40 months in federal prison, following his guilty plea in August 2017 to one count of possession or sale of stolen firearms, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Philip Gary Slaughter, 42, was charged in a separate but related case and also pleaded guilty to his role. Slaughter was sentenced to 15 months in federal prison by U.S. District Judge Sidney A. Fitzwater.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff’s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey, Joseph Magliolo, and Errin Martin prosecuted.
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Former CEO and Executive Management of Defense Contractor, Wellco Enterprises, Inc., Pleads Guilty to $8.1 Million "Made in the USA" Marketing Scheme and Government Contract FraudRead the Press Release
GREENEVILLE, Tenn. – On February 15, 2018, the former President and Chief Executive Officer of Wellco Enterprises, Inc. (Wellco) and Tactical Holdings Operations, Inc. (Tactical Holdings), Vincent Lee Ferguson, 66, of Knoxville, Tennessee, pleaded guilty to conspiracy to commit wire fraud. Wellco’s former Senior Vice President of Sales, Matthew Lee Ferguson, 41, of Geneva, Illinois, and former Director of Marketing and Communications, Kerry Joseph Ferguson, 36, of Houston, Texas, also pleaded guilty to conspiracy to commit wire fraud.
Wellco’s former Vice President of Government Contracting, Neil Streeter, 55, of Warren, Massachusetts, and former Operations Manager, Stephanie Lynn (Ferguson) Kaemmerer, 45, of Knoxville, Tennessee, pleaded guilty to smuggling goods into the United States.
Sentencing has been set for Vincent Lee Ferguson, Matthew Lee Ferguson, and Kerry Joseph Ferguson for June 6, 2018, before the Honorable J. Ronnie Greer, U.S. District Judge. Sentencing for Neil Streeter and Stephanie Lynn Kaemmerer is set for June 11, 2018, also before Judge Greer. Conspiracy to commit wire fraud and smuggling goods into the United States both carry a maximum penalty of 20 years in prison and a fine of up to $250,000. Each defendant was released pending sentencing.
According to information on file with the U.S. District Court, Wellco was a leading manufacturer and supplier of military footwear to the U.S. Department of Defense (DoD) and to civilian (commercial) customers for over 70 years. From 2006 through 2012, DoD alone paid in excess of $138 million to Wellco for the supply of combat boots. Wellco pioneered and patented the first practical method for molding and attaching a rubber sole to a shoe upper in a single operation. During the Vietnam War, the U.S. Army adopted Wellco technology for the manufacture of its hot-weather boots for the jungles of Vietnam, a boot that became known as the “Vietnam Boot” or the “jungle boot.” In May, 2007, in a deal involving approximately $22 million, Wellco was acquired by two investment firms, Golden Gate Private Equity, Inc. and Integrity Brands, Inc. Wellco became a wholly owned subsidiary of Golden Gate’s portfolio company, Tactical Holdings.
In March 2006, Vincent Lee Ferguson was made President and CEO of Wellco. At that time, he discussed with Wellco’s Board of Directors, his turnaround plan for the company to increase commercial sales and “aggressively pursue” sales to the U.S. government. From December 2008 through August 2012, he conspired with his executive team to import military-style boots that were made in China into the United States and then deceptively market and sell those boots to DoD (and other federal departments and agencies), government contractors, and the general public as “Made in the USA” and as compliant with the Berry Amendment and the Trade Agreements Act (TAA). The Berry Amendment prohibits DoD from buying clothing that is not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of America’s textile and clothing production base. The TAA provides that the government may acquire only “U.S.-made or designated country end products” and requires government contractors to certify that each “end product” meets applicable requirements.
By December 2008, Wellco was manufacturing certain military boot model uppers and insoles in China. In order to conceal this fact, the conspirators required the Chinese manufacturing facility to include the American flag and “USA” on labels of certain boot uppers. After two shipments of these deceptively marked boots were detained and seized by the U.S. Department of Homeland Security’s Customs and Border Protection, the conspirators ordered the Chinese facility to stitch tear-away “Made in China” labels in Wellco boot uppers. After importation, the conspirators instructed Wellco factory workers in Morristown, Tennessee to tear out the “Made in China” tags prior to shipping the boots to government and commercial purchasers.
The defendants marketed and sold these Chinese-made Wellco boots as “Made in the USA.” They also submitted false certifications to DoD and other federal agencies, and to government contractors that these boots complied with the Berry Amendment and TAA and met certain safety standards, including electrical hazard and blood-borne pathogen protections for U.S. troops. For example, on August 15, 2012, the defendants submitted a signed “Certificate of Conformance” to a government contractor, representing that Wellco’s boot model S161 was “100% Berry Compliant” and “fully protective against Electrical Hazard,” even though the model was imported from China and not safety tested. The boots were then supplied to troops stationed at Sheppard Air Force Base in Wichita Falls, Texas. In total, Wellco sold at least $8.1 million of fraudulent boots.
This case was investigated by Homeland Security Investigations, Defense Criminal Investigative Service, Air Force Office of Special Investigations, General Services Administration Office of Inspector General, and Defense Contract Audit Agency. Assistant U.S. Attorneys David L. Gunn and Timothy C. Harker represented the United States.
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Five Cincinnati Individuals Plead Guilty to Roles in Armed Bank RobberiesRead the Press Release
CINCINNATI – Five individuals pleaded guilty in U.S. District Court for their roles in three armed bank robberies in the Cincinnati area in May and June 2017.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Cincinnati Police Chief Eliot K. Isaac announced the pleas.
Malcolm Lorenzo Jones, 21, pleaded guilty to armed bank robbery and discharge of a firearm during and in relation to a crime of violence.
According to statements of facts, Malcolm Lorenzo Jones brandished a black revolver while ordering bank employees and customers to the ground at the Key Bank on Springdale Road in Cincinnati on May 22, 2017. Jones then went to the front door and opened it for co-defendant Nelson Jones, 26 to enter.
When Nelson Jones entered the bank, an off-duty police officer entered immediately behind him. The off-duty officer pulled his firearm and demanded that both defendants get on the ground, but as Malcolm Lorenzo Jones moved to the ground, he raised his firearm and fired a shot at the officer. A gunfight ensued, and Malcolm Lorenzo Jones jumped over the bank counter in an attempt to dodge the shots from the officer while exchanging return fire.
Malcolm Jones was struck with at least one bullet, yet both defendants managed to flee the bank on foot, stealing approximately $3,480.
Nelson Jones also brandished a firearm while robbing North Side Bank and Trust on St. Gregory St. in Cincinnati on May 13, 2017. Co-defendant Hope Tolbert, 21, assisted in the robbery by collecting nearly $6,000 from the bank’s cash drawers.
Nelson Jones pleaded guilty to two counts related to the using and discharging a firearm during a crime of violence. Tolbert pleaded guilty to one count of armed bank robbery.
On June 20, 2017, Nelson Jones and Marquez Peterson, 22, – who was armed with a pistol – robbed the Wes Banco Bank on Vine Street in Cincinnati. Joy Favors, 23, rode in the car with Jones and Peterson to the bank. Favors exited the car and went inside to case the bank minutes before the robbery. Favors returned to the car and informed Jones and Peterson of what to expect upon entering the bank. Nearly $10,700 was stolen. Peterson pleaded guilty to one count of armed bank robbery and one count of using a firearm during a crime of violence. Favors also pleaded guilty to one count of conspiracy to use a firearm during and in relation to a crime of violence.
Armed bank robbery is a federal crime punishable by up to 25 years in prison. Conspiracy to use a firearm during and in relation to a crime of violence is a federal crime punishable by up to 20 years in prison.
Discharging a firearm during and in relation to a crime of violence carries a potential sentence of 10 years to life in prison, to be served consecutive to any other sentence. If charged with a second subsequent count of this crime, a defendant faces a sentence range of 25 years to life in prison to be imposed consecutive to all other sentences imposed.
U.S. Attorney Glassman commended the investigation of these cases by the FBI and Cincinnati Police Department, as well as Assistant United States Attorney Anthony Springer who is prosecuting the case.
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Etna Man Pleads Guilty to Marijuana ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that James Mansfield, 33, of Etna, pleaded guilty yesterday in U.S. District Court to conspiring to manufacture, distribute, and possess with intent to distribute marijuana.
According to court records, during a period between October 2010 and August 2016, the defendant conspired with others to illegally manufacture and distribute marijuana. The defendant grew marijuana at a large, sophisticated indoor growing facility in Frankfort, Maine. In May 2016, law enforcement officers executed a federal search warrant at the facility and recovered about 400 marijuana plants, 295 marijuana root balls, and paraphernalia used to manufacture and process marijuana. According to the search warrant affidavit, the defendant and his co-conspirators were not registered as medical marijuana caregivers with the Maine Department of Health and Human Services (DHHS), and the location of the facility was not reported to DHHS.
The defendant faces up to 20 years in prison, between three years and life of supervised release, and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Ellsworth AFB Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that an Ellsworth AFB, South Dakota, man convicted of Possession of Child Pornography was sentenced on February 12, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ryan Davies, age 28, was sentenced to 18 months of imprisonment and 5 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Davies was charged on June 14, 2016, after law enforcement received a CyberTipline Report from the National Center of Missing and Exploited Children that an individual was uploading naked images of juveniles to a cloud account. Law enforcement traced the account to Davies, who was found to have child pornography images on several electronic devices.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Davies was immediately remanded to the custody of the United States Marshals Service.
D’iberville Man Sentenced to More Than 7 Years in Federal Prison for Possession of Oxycodone with Intent to DistributeRead the Press Release
Gulfport, Miss. – Travis Lee Fulgham, 24, of D’Iberville, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr. to 87 months in federal prison followed by three years of supervised release for possession with intent to distribute oxycodone, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Stephen G. Azzam. Fulgham was also ordered to pay $20,000 in restitution.
Fulgham pled guilty on September 12, 2017, for his role in a scheme with his mother, Carla Fulgham, in which she was stealing pharmaceutical pills from Back Bay Pharmacy, where she worked as a pharmacy technician, and Travis Fulgham was distributing them.
The case was investigated by the Drug Enforcement Administration Tactical Diversion Squad and prosecuted by Assistant U.S. Attorney John Meynardie.
Drug Addict from Grant County, N.M., Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – This afternoon, a U.S. Magistrate Judge sitting in Las Cruces, N.M, ordered a resident of Grant County, N.M., who is charged with being a drug addict in possession of firearms and ammunition, detained pending trial based on findings that he poses a danger to the community.
Richard G. Dinwiddie, 57, of Cliff, N.M., was arrested on Feb. 6, 2018, and was charged with being an unlawful user of controlled substances in possession of firearms and ammunition in a criminal complaint filed on Feb. 7, 2018. According to the complaint, federal and local law enforcement officers executed a federal search warrant at Dinwiddie’s residence on Feb. 5, 2018, and allegedly found approximately 6.2 grams of methamphetamine, 64.6 grams of marijuana, drug paraphernalia, six firearms, and approximately 1,000 rounds of assorted ammunition. The complaint further alleges that Dinwiddie has been a methamphetamine user for approximately two years.
Dinwiddie made his initial appearance in federal court on Feb. 12, 2018. During this afternoon’s proceedings, Dinwiddie waived his right to a preliminary hearing on whether there was probable cause to support the charge in the criminal complaint.
If convicted of the charge in the criminal complaint, Dinwiddie faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI, the New Mexico State Police, the Catron County Sheriff’s Office, the Grant County Sheriff's Office and the Silver City Police Department. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Dinwiddie ComplaintDover Man Pleads Guilty to Conspiring to Straw Purchase Gun While on Probation for Same OffenseRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that on February 7, 2018, Jon Henry, age 24, of Dover, Delaware, pled guilty to the following three criminal offenses: conspiracy to make false statements to a gun store during the purchase of a 9 mm handgun, possession of that 9 mm handgun after having been convicted of a felony, and possession of marijuana with intent to distribute. The defendant faces up to five years imprisonment and a $250,000 fine on the conspiracy charge, up to 10 years imprisonment and a $250,000 fine on the firearm possession charge, and up to five years imprisonment and a $250,000 fine on the marijuana charge.
This marks the second time Mr. Henry has been convicted of the same firearms conspiracy offense. On each occasion he orchestrated the straw purchase of a gun, meaning that he had a person with a clean criminal history buy him a gun that he could not have legally purchased himself. Mr. Henry’s first conviction occurred in 2015. At sentencing in that case, the government argued that Mr. Henry was a member of a Dover gang called the West Side Gang, that he had someone straw purchase a gun for him, that he gave the gun to another gang member, and that the gun was likely used in a shooting. Mr. Henry received a 21-month sentence for the 2015 conviction.
While on supervised release for his 2015 conviction, Mr. Henry again solicited someone to straw purchase the 9 mm handgun. The gun store’s video surveillance shows the straw purchaser and Mr. Henry in the store together. Mr. Henry waved the gun around on SnapChat videos, and had it with him during a vehicular traffic stop performed by Dover Police in July 2017.
Acting U.S. Attorney David C. Weiss said, “We are determined to keep guns out of the hands of criminals. Too many violent crimes result from straw purchasers buying guns for people who should not have them. We will aggressively pursue charges against all those involved in the acquisition of these firearms.”
This case is the result of an investigation conducted by the Dover Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant U.S. Attorney Jennifer K. Welsh
Dominican National Pleads Guilty to Role in National Conspiracy to Sell Identity Documents to Illegal AliensRead the Press Release
A Dominican national pleaded guilty today for his role in a scheme to sell the identities of Puerto Rican U.S. citizens and corresponding identity documents to individuals illegally residing in the United States. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) and Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service Chicago Division made the announcement.
Reynaldo Rodriguez-Canario, aka Reinaldo Rodriguez, Reynaldo Rodriguez, Reinaldo Canario, Jose Almonte, Jose Martinez, Matatan and Ciego, 47, a citizen of the Dominican Republic residing in Puerto Rico, pleaded guilty before U.S. Magistrate Judge Marcos O. Lopez of the District of Puerto Rico to one count of conspiracy to possess and transfer identification documents, one count of conspiracy to encourage an alien to reside in the United States for financial gain, and one count of aggravated identity theft.
“The illegal sale of identity documents to individuals illegally residing in the United States undermines the integrity of our lawful immigration system and threatens our nation’s public safety and national security,” said Acting Assistant Attorney General Cronan. “Participants in the black market for identity documents should be on notice: the Justice Department and our law enforcement partners will not allow this kind of illegal activity to continue.”
“The U.S. Attorney’s Office for the District of Puerto Rico takes identity theft very seriously,” said U.S. Attorney Rodríguez-Vélez. “The protection of the integrity of vital identity documents such as social security numbers and birth certificates, is a crucial preemptive measure in our fight against terrorism, immigration offenses, and fraud. We commend the hard work of ICE, the U.S. Postal Inspection Service agents and Criminal Division Trial Attorneys in the investigation and prosecution of this scheme. Those who engage in large-scale identity theft schemes should be on notice that they will be prosecuted and punished to the fullest extent of the law.”
“Criminals who conspire to exploit our nation’s citizenship and immigration services for financial gain not only pose as a severe security threat but also undermine our laws,” said ICE Deputy Director Homan. “This case is another excellent example of ICE’s document and benefit fraud task force engaging other federal and international agencies to combat this criminal enterprise.”
“This defendant utilized the U.S. mail to further his scheme of trafficking stolen and fictitious identities,” said Inspector in Charge Goldberg. “Even though this case spanned multiple countries and 38 states across our great nation, it did not deter the U.S. Postal Inspection Service from aggressively investigating and bringing the defendant to justice. We want to thank the Department of Homeland Security, Internal Revenue Service, and the Department of Justice for partnering with the Postal Inspection Service to end Mr. Rodriguez-Canario’s criminal enterprise. Identity theft is a serious crime affecting countless people; devastating their finances, personal credit ratings, and families. The U.S. Postal Inspection Service will continue to ensure confidence and integrity in the U.S. mail system.”
According to admissions made in connection with his guilty plea, Rodriguez-Canario obtained identity documents of Puerto Rican U.S. citizens, usually consisting of birth certificates, social security cards and driver’s licenses, and shipped them to co-conspirators in the United States. According to Rodriguez-Canario, his conspirators sold social security cards and corresponding Puerto Rican birth certificates to individuals illegally residing on the mainland United States for prices ranging from $500 to $1,300 per set. The defendant admitted that the conspirators used money transfer services and the U.S. mail to complete their illicit transactions. Rodriguez-Canario also admitted that he knew that the customers who purchased the identity documents intended to commit social security fraud and other criminal offenses.
Pursuant to his plea agreement, Rodriguez-Canario agreed to be removed to the Dominican Republic upon the completion of any sentence of incarceration and supervision imposed by the Court. Sentencing has been scheduled for June 22 before District Judge Juan M. Pérez-Giménez.
ICE’s Homeland Security Investigations (HSI) Chicago and the U.S. Postal Inspection Service led the investigation with assistance from the HSI San Juan, Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support, with assistance from ICE and U.S. Postal Inspection Service offices around the country.
Trial Attorneys Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at: www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at: www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
District Man Sentenced to 48 Years in Prison for 2014 Slaying at Southeast Washington Barber ShopRead the Press Release
WASHINGTON – Antwon D. Green, 29, of Washington, D.C., was sentenced today to 48 years in prison for killing a man in 2014 at a Southeast Washington barber shop, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Green was found guilty by a jury in December 2017, following a trial in the Superior Court of the District of Columbia, of first-degree premeditated murder, attempted armed robbery, assault with a dangerous weapon, being a felon in possession of a firearm, and related charges. He was sentenced by the Honorable Judith Bartnoff. This prison term is in addition to a six-year sentence that Green must serve for an armed robbery he committed just weeks after the murder.
According to the government’s evidence, on Friday, Oct. 10, 2014, at about 11 a.m., Green walked by the front of the Kutt n’ Up barber shop in the 1400 block of Good Hope Road SE, and pointed at Breond Keys, a customer who was getting his hair cut inside.
Roughly 16 minutes later, Green, now wearing different clothing including a dark-colored hooded sweatshirt and a mask, ran into the barber shop, holding a pistol in his hand. Green immediately raised the pistol with both hands, pointed it at Mr. Keys as he sat in the barber chair getting his haircut, and opened fire, hitting Mr. Keys several times. Other patrons and barbers scrambled to keep from being struck by Green’s bullets. Once Mr. Keys fell to the floor, Green continued to fire at him, striking him several additional times. As Mr. Keys lay dying on the barber shop floor, Green dug his ungloved-hand into Mr. Keys’ right, front pants pocket, stealing the contents therefrom. Green then fled the barber shop.
Mr. Keys, 38, was taken to a hospital, but pronounced dead a short time after the shooting.
Several surveillance cameras mounted inside the barber shop caught the murder on video. However, because Green successfully disguised his appearance with his hoodie and mask, none of the eyewitnesses were able to identify the gunman. Upon examining the surveillance footage, the detectives saw that the gunman had reached into Mr. Keys’s pocket during the incident. Accordingly, they submitted Mr. Keys’s pants for DNA examination and analysis. DNA testing revealed that Green’s DNA (i.e., his skin cells) were found inside Mr. Keys’s right front pants pocket.
Following an investigation by MPD, Green was charged in the murder in July 2015. He has been in custody ever since.
The armed robbery case stemmed from a crime carried out by Green on Oct. 28, 2014, at a liquor store about a block away from where he earlier had committed the murder. That day, at approximately 4:15 p.m., Green ran past a man with a sleeping infant strapped to his chest and robbed a store owner who was restocking an ATM machine. He fled with $12,000 in cash. Green pled guilty in 2015 to a charge of armed robbery for this offense.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the FBI. They also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner, the Glendale Verdugo Regional Crime Laboratory, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocate James Brennan; Paralegal Specialists Kelly Blakeney and Meridith McGarrity; Criminal Investigators John Marsh, William Hamann, and Zachary McMenamin, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorneys Richard DiZinno, Glenn Kirschner and Allessandra Stewart, who investigated and prosecuted the case.
Department of Justice Takes Action in Response to Broward County School ShootingRead the Press Release
Attorney General Jeff Sessions offered his condolences and support for the people of Broward County, Florida yesterday. He also ordered the Department of Justice to assist the victims of the tragic shooting at Marjory Stoneman Douglas High School as well as the state and local agencies that are leading the investigation.
The Attorney General offered the following statement:
“It is now clear that the warning signs were there and tips to the FBI were missed. We see the tragic consequences of those failures.
“The FBI in conjunction with our state and local partners must act flawlessly to prevent all attacks. This is imperative, and we must do better. I have ordered the Deputy Attorney General to conduct an immediate review of our process here at the Department of Justice and FBI to ensure that we reach the highest level of prompt and effective response to indications of potential violence that come to us. This includes more than just an error review but also a review of how we respond. This will include possible consultation with family members, mental health officials, school officials, and local law enforcement.
“We will make this a top priority. It has never been more important to encourage every person in every community to spot the warning signs and alert law enforcement. Do not assume someone else will step up--all of us must be vigilant. Our children's lives depend on it.”
***
Following are some of the resources already deployed by the Department and available to assist with the state and local response:- The FBI has approximately 250 personnel working on this matter, including personnel in Miami and at FBI headquarters in Washington, D.C.
- The FBI’s Evidence Response Team is assisting in evidence collection and analysis and providing technical assistance with phone and social media investigation.
- The ATF dispatched 17 special agents from the Miami Field Division to assist at the scene, and these agents continue to support the Broward County Sheriff’s Office in follow-up investigation.
- 14 ATF agents from ATF’s West Palm Beach and Fort Pierce Field Offices were on stand-by to assist during the scene response, and are now supporting the follow-up investigation.
- ATF completed an urgent trace of a recovered firearm through its National Tracing Center.
- ATF assisted in ballistics analysis through its National Integrated Ballistics Information Network, conducted witness interviews, and canvassed area federal firearms licensees for information that may assist the investigation.
- Numerous components of the Department have made their victim-witness coordinators available for victim and witness assistance as needed.
- The U.S. Marshals Service has deployed eight personnel—four from the Florida/Caribbean Fugitive Task Force and four from the Southern District of Florida office. Additional personnel were staged and remain ready to respond if needed.
- U.S. Attorney Benjamin Greenberg remains in contact with the state prosecutor and Broward County Sheriff’s Office leadership and has made all federal resources available as needed.
- Three Assistant U.S. Attorneys are currently assisting with the investigation, and one is staffing the FBI Command Post.
- Through the Antiterrorism and Emergency Assistance Program, the Office for Victims of Crime has funding available to support victim-assistance activities, such as crisis intervention and grief trauma counseling, and to reimburse victims for certain expenses related to the shooting.
- The Office for Victims of Crime and the Bureau of Justice Assistance stand ready to assist the state and local authorities.
This list should not be considered exhaustive. The Department of Justice will continue to do whatever it can to help the people of Florida at this difficult time.Dallas Attorney Admits to Running Marriage Fraud SchemeRead the Press Release
DALLAS — Bilal Ahmed Khaleeq, 47, a Dallas attorney, appeared before U.S. Magistrate Judge David L. Horan yesterday and pleaded guilty to one count of conspiracy to commit marriage fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Khaleeq will remain on supervised release pending sentencing, which is set for June 4, 2018. Co-defendant Amna Cheema, 37, a Pakistani national, previously pleaded guilty to her role in the scheme and was sentenced to time served.
According to the plea agreement and factual resume: in June 2015, Khaleeq and others knowingly and unlawfully conspired and agreed together and with each other to unlawfully facilitate and enter into a marriage between co-defendant, Amna Cheema and a United States citizen, Person A, for the purpose of evading immigration laws. Cheema and Person A were married in Dallas County, Texas and subsequently filed permanent residence applications with USCIS in July 2015. In exchange for agreeing to marry Cheema, Person A was paid $745. Co-defendant Cheema also admitted engaging in discussions with Khaleeq and Person A at Khaleeq’s law office on more than one occasion to discuss preparation for the USCIS interview and required documentary evidence including joint bank accounts, tax returns, and bills concerning their joint residence. According to co-defendant Cheema, Khaleeq also represented the couple at the USCIS interview in April 2016 and advised them on additional evidence to make the marriage appear legitimate.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Special Assistant U.S. Attorney Lynn Javier prosecuted.
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Brooklyn Man Pleads Guilty to Attempting to Join ISIS in YemenRead the Press Release
Earlier today in federal court in Brooklyn, Mohamed Rafik Naji pleaded guilty before United States District Judge Frederic Block to one count of attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.
United States Attorney Richard P. Donoghue, Acting Assistant Attorney General for National Security Edward O’Callaghan, Assistant Director-in-Charge William F. Sweeney, Jr., of the New York Field Office of the Federal Bureau of Investigation (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
Mr. Donoghue extended his grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.
As detailed in publicly filed court documents, Naji viewed and distributed ISIS propaganda before traveling from New York to Yemen in March 2015 in an effort to join ISIS. While in Yemen, Naji repeatedly tried to travel to areas controlled by ISIS, explaining in emails with an associate in the United States that he was on his fifth attempt to reach ISIS. Naji described traveling through militarized zones and claimed that he and his group had almost been “killed . . . by army.” In addition, he explained that “we have trouble getting in the party” because there were “to[o] many security [g]uards all ova the place” that would “kill us if they find us.” Naji also sent his associate videos that he made in Yemen. In one of the videos that was attached to an email with the subject line “First day on the job,” Naji’s voice can be heard over the sound of automatic weapons saying “I think we’re taking fire.” Naji also sent his associate ISIS propaganda videos. In addition, in an online conversation, Naji proclaimed his allegiance to ISIS stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad. For example, he explained ways to travel to ISIS-controlled territory in Syria by crossing the Turkish border, and how to employ strategies to avoid arrest in Turkey. In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, Naji discussed how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.” Naji further explained “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them…Times Square day.” He was arrested by members of the New York JTTF in the autumn of 2016. At sentencing, Naji faces a statutory maximum term of 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Melody Wells were in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-653 (FB)
Broken Arrow Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
United States Attorney Trent Shores announced today that Noel McFadden, 71, of Broken Arrow, pleaded guilty before Chief United States District Judge Gregory K. Frizzell to one count of sexual exploitation of a child. Sentencing is set for May 16, 2018.
According to admissions made in connection with the plea agreement, in April 2017, McFadden knowingly coerced a minor under the age of 12 to take pictures of her genitals with a cellphone he had given her. McFadden faces a mandatory minimum prison sentence of 15 years up to 30 years, and a fine of $250,000.
United States Attorney Shores stated, “This prosecution is another example of law enforcement dedicating their professional lives to protecting those who cannot protect themselves. Predators will be prosecuted, and most importantly, held accountable by my office.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The charges are the result of an investigation by the Federal Bureau of Investigation and the Broken Arrow Police Department. Assistant United States Attorney Jeffrey A. Gallant handled the prosecution of this case.
Brent M. Lee Convicted by Federal Jury of Bank Fraud and Related CrimesRead the Press Release
PIKEVILLE, Ky. – Brent M. Lee, 41, of Pike County, Ky., was convicted by a federal jury yesterday, of conspiracy to commit bank fraud, two counts of aiding and abetting bank fraud, two counts of misapplication of bank moneys by a bank employee, and four counts of making unauthorized obligations by a bank employee.
The jury returned its verdict after a 3-day trial. The evidence established that Lee, while a Market President for BB&T, conspired with Paul D. Fannin, 49, a residential developer from Van Lear, and Chelsea Stone, 25, Fannin’s daughter residing in Georgetown, to commit bank fraud. Fannin, who was one of Lee’s major clients, had an outstanding loan with BB&T for $950,000, for developing an 8-unit townhome project called Stone Crest Properties. When BB&T officials became concerned with the pace of progress on the project, compared with the amount of loan funds dispersed, BB&T downgraded the loan and required that Lee and Fannin follow certain protocols and procedures designed to keep a closer watch on the project before releasing more money to Fannin. Rather than follow BB&T’s protocols, Brent Lee suggested to Fannin that they use Chelsea Stone to get a new loan from BB&T, the proceeds of which would go directly to Fannin.
Additionally, in October 2014, Lee had Stone sign numerous documents to obtain a commercial loan from BB&T, in the amount of $100,000. Lee misrepresented to BB&T that the loan was intended to expand Stone’s embroidery business; however, Stone owned no such business. The BB&T check issued for the loan was deposited into Paul Fannin’s bank account. In November 2014, Lee had more documents prepared, which he also had Chelsea Stone sign, to get a new loan to pay off Stone’s outstanding $100,000 obligation. Then, in January 2015, Lee had documents prepared, which he again had Chelsea Stone sign, to get a new loan that would pay off the November 2014 loan and pay out an additional $149,212.50. Almost all of this money actually went to Fannin. Lee then had this loan again extended, in July 2015, just two months before he resigned from BB&T. Of the $250,000 gained through this scheme, Fannin spent at least $120,000 at casinos in the area. BB&T lost more than $248,000 as a result of Lee’s fraudulent conduct.
Prior to trial, Fannin had pleaded guilty to conspiracy to commit bank fraud.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Joseph Moriarty, Federal Deposit Insurance Corporation, Office of Inspector General; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the verdict. The United States was represented at trial by Assistant United States Attorneys Kathryn Anderson and Paul McCaffrey.
Lee is currently scheduled to appear for sentencing before Chief Judge Karen K. Caldwell, in Pikeville, on May 31, 2018 at 12:30. Lee faces a maximum penalty of 30 years in prison. However, his sentence will be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Bookkeeper charged with defrauding small businessRead the Press Release
Alleged $300,000 fraud nearly bankrupted employer
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced that Erica Howard, 30, of Indianapolis, was charged with wire fraud for a two-year scheme to siphon funds from her employer, a family-owned construction company in Franklin, Indiana. Howard, who has prior convictions for fraud, forgery, and theft, has agreed to plead guilty to the federal felony charge.
“Fraud on a small business often impacts much more than the bottom line,” Minkler said. “It can costs people good jobs, as it did here. It also breeds distrust, especially when the fraud is perpetrated by a trusted employee. People who exploit a position of trust for purely personal gain will be held accountable to the fullest extent of the law.”
Just months after starting as bookkeeper, Howard allegedly began diverting company money to herself. According to the federal charges, she abused her access to company accounts online to pay over a dozen personal credit cards and buy electronics and other items on Amazon.
Howard allegedly concealed her fraud for over two years. Entrusted with keeping the company books, she never noted her personal uses of company funds. Then, each year, she delivered the false books to the company’s accountant, along with a set of phony bank statements that she had manipulated to make the numbers match.
Howard’s fraud was finally discovered when a company check bounced. By then, she had allegedly funneled over $315,000 in company money to herself. The company’s owners were forced to lay off workers and liquidate retirement savings to keep the business afloat.
Following an investigation by the Federal Bureau of Investigation and Franklin Police Department, Howard agreed to plead guilty to the federal wire fraud charge. According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Howard faces up to 20 years in federal prison and an order to pay restitution for the full amount she stole.
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously," said Robert Middleton, Acting Special Agent in Charge of the FBI’s Indianapolis Division. “We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in complex fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1.
Biloxi Woman Pleads Guilty to Heroin Possession with Intent to DistributeRead the Press Release
Gulfport, Miss. – Robyn Paige Kisling, 45, of Biloxi, pled guilty yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute heroin, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On April 19, 2016, Robyn Paige Kisling, sold an ounce of heroin to a confidential source in the parking lot of the Ocean Springs Walmart.
Kisling will be sentenced on May 17, 2018, by Judge Ozerden, and faces a maximum penalty of twenty years in prison and a $1 million fine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Barberton man sentenced to more than 10 years in prison for methamphetamine and firearms crimesRead the Press Release
A Barberton man was sentenced to more than 10 years in prison for methamphetamine trafficking and firearms crimes.
Matthew R. Golech, 38, was sentenced to 123 months in prison after being found guilty of possession with the intent to distribute methamphetamine and using a firearm in furtherance of drug trafficking.
Golech had approximately a 50 grams of methamphetamines in 2016. He also had a Bersa Firestorm .22 caliber pistol which he used in furtherance of drug trafficking, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Attorney General Sessions' Statement on Immigration ReformRead the Press Release
Attorney General Sessions' statement on immigration reform:
“President Trump put forth reasonable, fair, and effective policy pillars for immigration reform that serves the national interest and would close loopholes in law and court decisions that frustrate the ability of the men and women of the Departments of Justice and Homeland Security to do the jobs that Congress and the American people expect them to do. President Trump’s proposal would go a long way toward solving those problems by: (1) enhancing border security, including a wall and the elimination of legal loopholes that facilitate illegal immigration; (2) ending the illogical visa lottery system; (3) ending extended family chain migration; and, (4) solving the DACA problem. Nearly all of the proposals advanced in the Senate this week failed to address these issues.
“One proposal in particular would have eviscerated the authority of the Department of Homeland Security to arrest, detain, and remove the vast majority of illegal aliens in the country by limiting enforcement through mandated “prioritization” to criminal aliens, national security threats and—perhaps most surprisingly—future illegal immigrants. It failed to secure the border and left in place loopholes in our laws that allow the near unfettered entry of unaccompanied minors and family units. These loopholes create inexplicable and reckless incentives for new illegal immigration and perpetuate the catastrophic “catch and release” policy that has facilitated the presence of hundreds of thousands of illegal aliens in the United States. It also failed to close loopholes that make it difficult to remove criminal aliens, did nothing to combat sanctuary jurisdictions, failed to end unchecked extended family chain migration, and failed to address the outdated and dangerous visa lottery program.
“From a law enforcement perspective, these failures undermine the work of our Department of Justice prosecutors and investigators.
“We can work together to pass meaningful legislation. H.R. 4670, the Securing America’s Future Act, which has been sponsored in the House of Representatives by House Judiciary Committee Chairman Bob Goodlatte, is a reasonable and fair bill that closes loopholes, establishes good policies, fulfills the President’s four pillars, and advances America’s legitimate national interest.”Assistant Scout Master Sentenced for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Huzinec, 26, of Buffalo, NY, who was convicted of receipt of child pornography, was sentenced to 168 months imprisonment and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the investigation began in December 2014, when the defendant shared photographs of male children engaged in sexually explicit conduct on a peer-to-peer website.
On January 27, 2015, agents from Homeland Security Investigations (HSI) Buffalo, executed a search warrant at the defendant’s residence in South Buffalo. Numerous items were seized from the residence including a laptop computer. During the execution of the warrant, the defendant, an Assistant Scout Master, waived his Miranda rights and admitted that in January 2015, while chaperoning a Boy Scout camping trip, he took several sexually explicit pictures of a sleeping 16-year-old boy with his cell phone.
A subsequent forensic evaluation of the electronic evidence seized from the defendant’s residence determined that such evidence contained images and videos of child pornography, including the sexually explicit pictures of the sleeping child that the defendant had admitted to taking. Law enforcement officers also discovered that Huzinec produced child pornography of another boy. Specifically, in November 2014, Huzinec enticed a 15-year-old boy, a former member of the defendant’s Boy Scout troop, to send him sexually explicit pictures by creating a fake email account and posing as a teenage girl. Those pictures were also found on the defendant’s computer.
“The Boy Scouts are an organization which promotes values such as duty and honor,” noted United States Attorney Kennedy. “There is nothing honorable about sexually exploiting children, and today’s sentence should send a message to any child predator out there—if you do anything to hurt our youth, ‘be prepared’ to spend a long time in jail.”
“This individual violated his position of trust with the Boy Scouts to exploit and take advantage of young boys under his supervision," said Kevin Kelly, Special Agent-in- Charge of HSI Buffalo. "The exploitation of children is reprehensible, and HSI has teams dedicated to these types of investigations to ensure that we locate and arrest child predators and bring them to justice."
The sentencing is a result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Armed Robber Pleads Guilty to MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DWAINE COLLYMORE, a/k/a “Twin,” pled guilty yesterday to murdering Carlos Vargas, and shooting at a second man, during an attempted robbery on April 28, 2016, inside 2466 Marion Avenue in the Bronx, New York. COLLYMORE faces a maximum term of life in prison, and will be sentenced before Chief United States District Judge Colleen McMahon.
U.S. Attorney Geoffrey S. Berman said: “Dwaine Collymore has admitted to murdering Carlos Vargas during a botched robbery. We will continue to work with our law enforcement partners to ensure that murderers are held to account for their crimes.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceeding, on April 28, 2016, COLLYMORE and another man attempted to rob the occupants of an apartment located at 2466 Marion Avenue in the Bronx, where Carlos Vargas and others were engaged in selling small quantities of marijuana. The victims resisted, and in the ensuing struggle COLLYMORE stunned Vargas and knocked him to the ground. COLLYMORE then fired a shot at a second victim (“Victim-2”). Victim-2 was not struck, but fell to the ground and played dead. Believing he had already killed Victim-2, COLLYMORE then leaned over Vargas and fired a single shot into Vargas’s head at close range, killing him.
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Mr. Berman praised the outstanding work of the investigators of the United States Attorney’s Office for the Southern District of New York, the New York City Police Department’s 46th Precinct Detective Squad, and the United States Marshals Service.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jared Lenow and Hagan Scotten are in charge of the prosecution.
Alexandria Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 10 years in prison for conspiring to distribute five kilograms or more of cocaine.
According to court documents, Nigel Anthony Forde, 33, received 15 multi-pound shipments containing cocaine from December 2016 until his arrest on Aug. 28, 2017. Upon his arrest, law enforcement seized a package addressed to his residence and seized approximately three kilograms of cocaine. During a subsequent search of Forde’s Alexandria residence, law enforcement seized a loaded firearm, approximately a quarter of kilogram of cocaine, drug paraphernalia, and $290,975 in cash.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-287.
Albuquerque Felon Sentenced to 200 Months for Conviction on Federal Armed Robbery, Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Virgal Malott, 23, of Albuquerque, N.M., was sentenced late yesterday afternoon in federal court to 200 months (16.6 years) of imprisonment for his conviction on armed robbery of a commercial business, carjacking and firearms charges. Malott will be on supervised release for three years after completing his prison sentence. The sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge John J. Durastanti, Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief of Police Michael Geier of the Albuquerque Police Department (APD).
Malott was prosecuted under a federal anti-violence initiative that targets the “worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Through this initiative, the federal law enforcement community is working with the Albuquerque Police Department to make Albuquerque a safer place to live, work and raise families by protecting them from violent, repeat offenders like Virgal Malott,” said Acting U.S. Attorney Tierney.
“Our goal is simple, to put violent criminals such as Malott behind bars and off our streets,” said ATF Special Agent in Charge Durastanti. “I wish to commend our law enforcement partners and the leadership of the U.S. Attorney’s Office for their prosecution of this violent felon.”
“It’s important that we use all available resources to target the most violent, repeat offenders, and put an end to their criminal activity,” APD Chief Geier said. “Albuquerque’s businesses and neighborhoods are safer with these offenders behind bars.”
On Feb. 14, 2015, APD officers arrested Malott on outstanding state felony warrants. Following Malott’s arrest, APD executed a state search warrant at Malott’s residence as part of its ongoing investigation into a series of armed robberies of Albuquerque-area businesses. During the search, APD found a loaded firearm, which provided the basis for a federal criminal complaint charging Malott with being a felon in possession of a firearm and ammunition that was filed by ATF on Feb. 18, 2015. In June 2015, Malott was charged in an 11-count indictment with violating the Hobbs Act by robbing seven businesses engaged in interstate commerce, carjacking, using and brandishing a firearm during crimes of violence, and being a felon in possession of a firearm. The indictment alleged that Malott committed the crimes in Bernalillo County, N.M., from Dec. 2014 to Jan. 2015.
The indictment was superseded in Aug. 2015, to add two additional defendants, Gabriel Sanchez, 28, and Paul Lujan, 22, both of Albuquerque, and two more charges. The superseding indictment charged the three men with conspiring to violate the Hobbs Act by robbing businesses engaged in interstate commerce in Jan. 2015, the armed robbery of five Albuquerque-area businesses, and with using and brandishing firearms during crimes of violence. It also charged Malott alone with the armed robbery of two additional Albuquerque-area businesses, carjacking, and with being a felon in possession of a firearm. The superseding indictment alleged that the three men committed the crimes charged in Bernalillo County between Dec. 2014 and Jan. 2015.
Aug. 17, 2017, Malott entered a guilty plea to three counts of the superseding indictment charging him with the armed robbery of a business engaged in interstate commerce, carjacking, and using and brandishing a firearm during a crime of violence. In entering the guilty plea, Malott admitted robbing a title loan business located in Albuquerque on Dec. 22, 2014. Malott acknowledged that he was armed when he committed the robbery. He also admitted pointing the firearm at the business’s three employees and that he threatened to kill the employees. Malott admitted committing a carjacking on Jan. 19, 2015, by pointing a firearm at an individual who was at an Albuquerque convenience store and demanding the individual’s wallet and keys. Malott fled from the scene in the individual’s vehicle.
Lujan was arrested on Dec. 3, 2015, after he was transferred from state custody into federal custody. On Aug. 15, 2017, Lujan pled guilty to a felony information charging him with using and carrying a firearm during a crime of violence. In entering the guilty plea, Lujan admitted that on June 30, 2015, he acted as the getaway driver during the armed robbery of the Loan Max Title Loan in Albuquerque. Lujan further admitted that he discarded a firearm while running from the police following the armed robbery. Under the terms of his plea agreement, Lujan will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court. Lujan remains in federal custody pending his sentencing hearing, which is scheduled for Feb. 22, 2018.
Sanchez was arrested on Dec. 31, 2015. On Oct. 26, 2017, Sanchez entered a guilty plea to Count 12 of the superseding indictment, charging him with using and carrying a firearm during and in relation to a crime of violence. In entering the guilty plea, Sanchez admitted that on Jan. 30, 2015, he carried and brandished a firearm during the armed robbery of the Title Max Loans at 3900 San Mateo Blvd. NE in Albuquerque. Under the terms of his plea agreement, Sanchez will be sentenced to seven years of imprisonment followed by a term of supervised release to be determined by the court. Sanchez remains in federal custody pending his sentencing hearing, which his scheduled for March 29, 2018.
This case was investigated by the Albuquerque office of ATF and by APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Rumaldo A. Armijo and David M. Walsh are prosecuting the case.
Al-Qaeda Operative Sentenced to Life in Prison for Terrorism Offenses Targeting Americans OverseasRead the Press Release
Earlier today, Al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun, aka Spin Ghul, 47, was sentenced to life in prison following his March 16, 2017 trial conviction of multiple terrorism offenses, including conspiracy to murder American military personnel in Afghanistan, conspiracy to bomb the U.S. Embassy in Nigeria, and providing material support to al-Qaeda.
Acting Assistant Attorney General for National Security Edward O’Callaghan, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. The sentence was issued by U.S. District Judge Brian M. Cogan.
“With the sentence handed down today, our justice system has once again held accountable an al-Qaeda operative for his terrorist activities, ensuring that he will spend the rest of his life in prison,” said Acting Assistant Attorney General O’Callaghan. “The evidence presented at trial established that the defendant and other jihadists attacked a U.S. military patrol in Afghanistan, resulting in the death of two American soldiers and the serious injury of others. Working with our partners in the law enforcement and intelligence communities, the National Security Division will continue to vigorously pursue and disrupt terrorists who target Americans and American facilities around the world. Thank you to the many agents, analysts and prosecutors whose hard work and dedication made this result possible.”
“This case demonstrates our commitment to bringing to justice those who target American citizens serving their country abroad. We will be relentless in our efforts to hold terrorists like the defendant accountable for their crimes,” said U.S. Attorney Donoghue.
“Justice has been served on behalf of the victims of Spin Ghul's grisly attack on U.S. military patrol members in 2003,” said Assistant Director in Charge Sweeney. “This al-Qaeda operative will no longer pose a threat to society. The FBI's Joint Terrorism Task Force in New York is committed to working with our partners here and abroad to bring terrorists to justice.”
“Harun was a dedicated and early soldier in Bin Laden’s al Qaeda, joining just weeks before the September 11th attacks,” said Commissioner O’Neill. “He launched attacks against U.S. service members in Afghanistan in 2003, killing two and injuring many others . After, he attempted to bomb the U.S. Embassy in Nigeria, among other western targets. Harun will rightfully spend the rest of his life behind bars. This department — with our partners in law enforcement — remains deeply committed to combating terrorism from New York to Nigeria — and everywhere in between.”
As proven at trial, Harun traveled from Saudi Arabia to Afghanistan weeks before Sept. 11, 2001, where he joined al-Qaeda, trained at al-Qaeda training camps, and eventually swore allegiance to Usama bin Laden. Harun, also known by the nom de guerre “Spin Ghul,” a Pashto name meaning “White Rose,” then traveled with other al-Qaeda jihadists to the Federally Administered Tribal Areas of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies and a senior al-Qaeda military commander.
On April 25, 2003, Harun and fellow al-Qaeda jihadists ambushed a U.S. military patrol near the Afghan-Pakistan border. Harun fired machinegun rounds and threw grenades at American soldiers and allied Afghan Militia Forces while shouting “Allahu Akhbar” or “God is Great.” Two U.S. servicemen were killed in the attack — Private First Class Jerod Dennis, 19, of Oklahoma, and Airman First Class Raymond Losano, 24, of Texas — and several other soldiers were seriously wounded.
After the ambush, Harun met with senior al-Qaeda officials — including Abu Faraj al-Libi, then al-Qaeda’s external operations chief — to express his desire to commit acts of terror against U.S. interests outside Afghanistan. He specifically sought to carry out attacks similar to the 1998 al-Qaeda bombings of the U.S. Embassies in Kenya and Tanzania, which resulted in more than 200 deaths and 4,000 injuries.
In the summer of 2003, senior al-Qaeda leaders dispatched Harun from Pakistan to Nigeria to bomb the U.S. Embassy in Abuja. Harun’s al-Qaeda handler directed him to obtain one ton of explosives for the bombing operation and to target Americans — whom he described as “the head of the snake” — at embassies, hotels and other “places where they gather for fun.” Upon arriving in Nigeria, Harun recruited accomplices, scouted the Embassy and other potential Western targets, and sent an accomplice to find explosives. He also met with local terrorist leaders to expand al-Qaeda’s terrorist network in West Africa.
In 2004, Harun directed a coconspirator to courier information and materials from Nigeria to al-Qaeda leaders in Pakistan. After learning that the coconspirator had been arrested in Pakistan, Harun fled Nigeria to Libya, from where he planned to enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, Harun was arrested by Libyan authorities and held in custody until his release in June 2011. Harun was arrested in June 2011 by Italian authorities. He was indicted on terrorism changes in the United States in February 2012 and extradited from Italy to the United States later that year.
Mr. O’Callaghan and Mr. Donoghue expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force, the Department of Justice’s Office of International Affairs, the Department of Defense Army investigators, the Office of Military Commissions, the Italian Ministry of Justice, the Prosecutor’s Office in Palermo, Italy, the Italian National Police, Guardia di Finanza and Carabinieri authorities for their support and assistance.
Assistant U.S. Attorneys Shreve Ariail and Matthew J. Jacobs of the Eastern District of New York, and Trial Attorney Joseph N. Kaster of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
Thursday 15 February 2018
Woman Ordered to Pay $86,000 Restitution for Defrauding the GovernmentRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Christie Morgan a/k/a Christie Hutto, age 41, of Columbus, Georgia, was sentenced on February 14, 2018, by the Honorable Clay D. Land, Chief United States District Judge for the Middle District of Georgia, to pay restitution of $86,000 and to serve three years on probation for defrauding the United States government in a medical equipment billing scheme.
Ms. Morgan and her former husband operated a durable medical equipment company for several years in LaGrange, Georgia, known as Hutto Limb and Brace, LLC (“HLB”). HLB specialized in fabricating custom orthotic and prosthetic limbs and joints, as well as custom fitted shoes and inserts. Many of the patients of HLB were recipients of Medicare and Georgia Medicaid and the services of HLB were billed to those entities. In order to qualify for Medicare and Georgia Medicaid payments, the services must have been performed by or under the direct supervision of a licensed orthotist/prosthetist. Ms. Morgan’s husband was the only licensed orthotist/prosthetist at HLB.
On April 6, 2012, Ms. Morgan’s husband left the business, however, Ms. Morgan continued operating HLB into November, 2012, without a licensed orthotist/prosthetist on board, all the while submitting bills from her home in Columbus, Georgia, to Medicare and Georgia Medicaid claiming otherwise. Through this scheme she wrongfully claimed approximately $172,000 from these benefit programs, but only actually received half that amount.
“One of the two top priorities of this United States Attorney’s Office is the reduction of waste and fraud against the government. It doesn’t matter whether the defendant is a multi-national corporation embezzling millions or a one person shop falsely billing for much smaller sums, such as in this case, all will be prosecuted fully in the Middle District of Georgia,” said United States Attorney Peeler.
Georgia Attorney General Chris Carr stated that “Our Medicaid Fraud Control Unit is committed to protecting the integrity of the Georgia Medicaid program, its members and the taxpayer dollars used to provide this service. We will remain vigilant in our efforts to identify and detect fraud, abuse or waste and aggressively recover all funds spent inappropriately, and we are grateful to work with our partners at the U.S. Attorney’s Office for the Middle District of Georgia and law enforcement to protect Georgians.”
This case was investigated by the U.S. Department of Health and Human Resources/Office of Inspector General and the Office of the Attorney General of Georgia/Medicaid Fraud Control Unit. Assistant United States Attorney Melvin E. Hyde handled the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Windsor Man Charged with Theft of Government Property and Aggravated Identity Theft in Connection with VA Grant FraudRead the Press Release
OAKLAND – William Michael Andrews made an initial appearance in federal court this morning after a federal grand jury indicted him with theft of government property and aggravated identity theft, announced Acting United States Attorney Alex G. Tse and Department of Veterans Affairs (VA) Office of Inspector General Special Agent in Charge James Wahleithner.
According to the indictment, Andrews, 50, of Windsor, California, is alleged to have used his position as a case-worker at an East Bay non-profit agency to acquire the personal information of homeless veterans to pay his personal expenses. The indictment alleges Andrews used the veterans’ personal information, including their social security numbers, to illegally direct VA grant money to his landlord to pay his own rent, rather than its intended purpose of paying for short-term rental apartments for homeless veterans. In total, Andrews allegedly stole more than $26,000 in VA grant funds. Andrews was charged in the indictment with one count of theft of government property, in violation of 18 U.S.C. § 641, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Andrews was arrested in San Francisco and made his initial appearance this morning in federal court before Kandis A. Westmore, U.S. Magistrate Judge, in Oakland. Andrews was released on an unsecured $50,000 bond. Andrews’ next scheduled appearance is at 10:30 AM on March 14, 2018, for an appearance before the Honorable James Donato, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory sentence of ten years in prison, plus a fine and restitution for the violation of 18 U.S.C. § 641. In addition, the defendant faces a mandatory minimum of two years in prison to be served consecutive to any other prison term imposed as well as a maximum $250,000 if convicted of the 18 U.S.C. § 1028A violation. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ross Weingarten is prosecuting the case. The prosecution is the result of an investigation by the VA Office of Inspector General, Criminal Investigations Division.
Wilkes-Barre Man Sentenced to Twelve Years in Prison for Possession with Intent to Distribute CocaineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jahkel Lamar, age 37, of Wilkes-Barre, Pennsylvania, was sentenced on February 14, 2018, by U.S. District Court Judge Malachy E. Mannion to serve 12 years’ imprisonment and four years of supervised release for possession with intent to distribute crack cocaine.
According to United States Attorney David J. Freed, Lamar was indicted in September 2016, and previously pleaded guilty before Judge Mannion in April 2017. On September 1, 2016, Lamar was arrested at a bus terminal on Lackawanna Avenue in Scranton, and found in possession of approximately 127 grams of crack cocaine which Lamar intended to distribute. At the time of his arrest, Lamar had just returned to Scranton by bus from New York City.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Scranton Police Department, Special Investigations Division. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
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.
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West Virginia Man Pleads Guilty to Fraud ChargesRead the Press Release
BOSTON – A Beckley, W.Va., man pleaded guilty today in federal court in Boston in connection with a scheme where he purported to sell paintings stolen from the Isabella Stewart Gardner Museum in 1990, on Craigslist.
Todd Andrew Desper, a/k/a “Mordokwan,” 48, pleaded guilty to four counts of wire fraud and attempted wire fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for May 15, 2018. In May 2017, Desper was arrested in West Virginia and charged in a criminal complaint.
Desper, acting under the pseudonym “Mordokwan,” solicited foreign buyers for both the Storm on the Sea of Galilee and Vermeer’s The Concert on Craigslist in a number of foreign cities including Venice and London. Desper directed interested buyers to create an encrypted email account to communicate with him. Authorities were notified of the foreign Craigslist notices by individuals seeking to assist in the recovery of the artwork, as well as those seeking the multi-million dollar reward offered by the Museum.
At the direction of federal authorities, the security director for the Gardner Museum engaged in encrypted communications with Desper in an attempt to determine whether Desper had access to the stolen masterpieces. Desper instructed the security director to send a cashier’s check for $5 million to a location in West Virginia and that the Storm on the Sea of Galilee would then be sent in return, concealed behind another painting. The investigation ultimately revealed that Desper had no access to, nor information about, the stolen paintings, but was instead engaged in a multi-million dollar fraud scheme targeting foreign art buyers.
On March 18, 1990, 13 pieces of artwork were stolen from the Isabella Stewart Gardner Museum in the early morning hours. According to security guards, two white males dressed in Boston Police uniforms gained entrance to the Gardner Museum by stating that they were responding to a report of a disturbance within the museum compound. Upon entry, the thieves subdued and secured the guards and went on to commit the largest art theft in history, taking 13 works of art including Rembrandt’s Storm on the Sea of Galilee and Vermeer’s The Concert. The combined value of the art stolen during the Gardner theft is estimated at $500 million, although several of the works are considered priceless within the art community.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided the Isabella Stewart Gardner Museum, the U.S. Attorney’s Office for the Southern District of West Virginia, the FBI Pittsburgh Field Division, and the Beckley Police Department. The case is being prosecuted by Assistant U.S. Attorney Sara Miron Bloom of the U.S. Attorney’s Office Criminal Division.
Utah Resident Pleads Guilty to Devising Scheme to Obtain Construction Contracts Set Aside for Service-Disabled Veteran-Owned BusinessesRead the Press Release
SALT LAKE CITY – A Utah man pleaded guilty to wire fraud and money laundering in federal court Tuesday afternoon for his role in a fraud scheme he devised to obtain government construction contracts set aside for Service-Disabled Veteran-Owned Businesses.
Stanley Raass, age 44, of Lehi, Utah, was charged in a Felony Information filed Jan. 27, 2018. U.S. Magistrate Judge Dustin Pead accepted the guilty pleas to the two charges and set sentencing for May 23, 2018, before U.S. District Judge Tena Campbell. The plea agreement includes a stipulated sentence of 24 months which is subject to the approval of the court. He also agreed to a money judgment of $640,000.
The United States government sets aside contract benefits for qualifying individuals and companies considered Service-Disabled Veteran-Owned Small Businesses (SDVOSB). Eligibility requirements include qualification as a small business, more than 50 percent owned by a service-disabled veteran, and daily operations of the business must be managed and controlled by the service-disabled veteran.
Contractors obtaining a SDVOSB contract must self-certify annually that the contractor meets the requirements of the status-based business classification.
As a part of his plea agreement, Raass admitted that in August 2013 he devised a scheme to obtain a construction contract set aside for Service-Disabled Veteran-Owned Businesses. He falsely certified under oath that the firm that would perform the work on the contract met the requirements of the status-based classification, when in fact, he knew it did not.
According to the Felony Information, Raass owned and operated a construction company called Raass Brothers, Inc. During its existence, the company provided general construction for the federal government on construction contracts. The defendant controlled the daily operations of the business.
Raass formed another company called RWT, LLC in 2009. The business name corresponded to the initials of the defendant’s father-in-law. The defendant listed his father-in-law as the president and 51 percent owner. The defendant listed himself as the vice president and 49 percent owner.
At the time the defendant formed RWT, his father-in-law was a veteran with a 100 percent disability rating from the Department of Veterans Affairs. According to the Felony Information, the veteran was physically incapable of managing RWT. In actuality, Raass controlled the managerial and daily business operations of RWT. The defendant never served in the United States military.
Raass registered the company as an SDVOSB. Between Sept. 19, 2009 and Aug. 26, 2013, Raass, through RWT, obtained 11 contracts set aside for service-disabled veteran-owned small businesses totaling $16,517,912 in payments from the government. On multiple occasions, according to the Felony Information, the defendant certified RWT as meeting the requirements of the contracts, when he knew the business did not meet those requirements.
The defendant’s other business (RBI) primarily performed the work on the contracts, and the defendant instructed employees to withhold information about the veteran from the government, according to the charging document.
The case is being investigated by the Defense Criminal Investigative Service, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. General Services Administration Office of Inspector General, the FBI, the Naval Criminal Investigative Service, the Small Business Administration Office of Inspector General, the U.S. Army Criminal Investigation Command, and IRS Criminal Investigation.
"Service-disabled veterans are recognized for their sacrifices and are afforded some special consideration when conducting business with the U.S. Government" said Special Agent in Charge Michael Mentavlos, Defense Criminal Investigative Service Southwest Field Office. "The resolution of this case shows that those who fraudulently claim affiliation with service-disabled veterans, for their personal gain, undermine the program, and will be pursued by the Defense Criminal Investigative Service and our partner agencies."
"Fraudsters like Raass who falsely claim set-aside status steal taxpayer dollars meant for service-disabled veteran-owned small businesses. We will continue to work with our law enforcement partners to identify and prosecute such scams," said Carol F. Ochoa, Inspector General for U.S. General Services Administration
"The Service-Disabled Veteran-Owned Small Business procurement program is to help and honor our veterans, not steal from them," said Las Vegas Field Office Special Agent in Charge Tara Sullivan. "Stanley Raass created an elaborate scheme with no purpose other than defrauding the government and other disabled veterans for his own personal gain. IRS Criminal Investigation is proud to assist its other law enforcement partners with our unique skills in following the money."
“Our nation’s veterans are the ultimate victims when individuals scheme to fraudulently obtain access to federal contracting opportunities set-aside for deserving small businesses owned and operated by service-disabled veterans,” said Special Agent in Charge Kari A. Overson, U.S. Small Business Administration, Office of Inspector General.
"Individuals who devise schemes and use businesses to defraud VA of funds will be aggressively pursued by the VA Office of Inspector General, Criminal Investigations Division and held accountable to the full extent of law," said A.E. Pleasant, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General.
U.S. Attorney’s Office collects nearly $15 million in civil, criminal, asset forfeiture actions in FY2017Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Alexander C. Van Hook announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected $14,869,623 through civil, criminal and asset forfeiture actions in fiscal year 2017. Generally, the money collected is used to restore funds to crime victims and to recover money owed to the United States.
The District collected more than $13 million in criminal actions and $1.2 million in civil actions. The U.S. Attorney’s Office also worked with its law enforcement partners to collect almost $60,000 in asset forfeiture actions in fiscal year 2017.
Included in the FY2017 criminal collections is $9.5 million collected from Wood Group PSN Inc. and $1.2 million collected from Omega Protein Inc. Wood Group previously pleaded guilty to violations of the Clean Water Act, as well as one count of falsifying documents, and was sentenced to pay more than $9 million in criminal fines and restitution. Omega Protein also pleaded guilty to Clean Water Act violations and was sentenced to pay a criminal fine of $1 million plus $200,000 restitution.
The total amount collected by the District in FY2017 included almost $1 million collected in garnishment proceedings commenced by the District’s Financial Litigation Unit (FLU). The money collected is attributable to aggressive asset investigations and garnishment of various financial interests of debtors including retirement and other investment accounts, pensions and annuities, life insurance policies, bank accounts and wages. The FLU also placed an emphasis on increasing its garnishment of assets held in the name of nominee business entities.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Overall, the Justice Department collected more than $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.
“It takes long hours and great effort from our attorneys and support staff to track down and collect these funds,” stated U.S. Attorney Alexander C. Van Hook. “The money is often owed by defendants who resist repaying victims of crime. I am thankful for our dedicated employees who, for another year, brought in a record amount in collections on behalf of crime victims and taxpayers.”
U.S. Attorney for the Eastern District of Pennsylvania Announces Opioid Law Enforcement Task ForceRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Pennsylvania has formed an Opioid Law Enforcement Task Force to combat the serious opioid, heroin, and fentanyl crisis. The Task Force includes federal, state, and local, law enforcement officers and prosecutors, and will be managed by the Eastern District’s Opioid Coordinator. It will be responsible for developing, implementing, and coordinating a robust prosecution response to this crisis. The office has already assembled committees of experienced federal and state prosecutors to assist law enforcement with the prosecution of transnational criminal organizations that smuggle heroin and opioids into the United States, medical professionals who unlawfully prescribe or divert highly addictive opioids, cyber criminals who distribute heroin and illicit opioids through the dark net, and drug traffickers or persons who are criminally responsible for opioid overdose deaths.
“This isn’t a crisis any one of us can tackle alone,” said United States Attorney Louis D. Lappen. “We have already been collaborating on these issues, but it is so critical we continue to work together in even more effective ways. This is the crisis of our time, and we need all hands on deck in an unprecedented way. As this crisis continues, it evolves and adapts. We also need to continue to evolve and adapt.”
The USAO’s Opioid Law Enforcement Task Force was created in response to the designation of the opioid epidemic as a “national health emergency” and to directives from Attorney General Jefferson B. Sessions, who has made combating the opioid epidemic a top priority for the Department of Justice. The Eastern District of Pennsylvania has had a successful record of identifying and prosecuting pill mill doctors with distribution causing death, among numerous other charges. Last year, Attorney General Sessions formed an Opioid Fraud and Abuse Detection Unit to focus on identifying and prosecuting health care fraud related to prescription opioids.
Two Russian Nationals Sentenced to Prison for Massive Data Breach ConspiracyRead the Press Release
Two Russian nationals were sentenced yesterday to federal prison terms for their respective roles in a worldwide hacking and data breach scheme that targeted major corporate networks, compromised 160 million credit card numbers and resulted in hundreds of millions of dollars in losses – one of the largest such schemes ever prosecuted in the United States.
The sentences were announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Director Randolph D. Alles of the U.S. Secret Service.
Vladimir Drinkman, 37, of Syktyvkar and Moscow, Russia, was sentenced to 144 months in prison. Drinkman previously pleaded guilty before U.S. District Judge Jerome B. Simandle of the District of New Jersey to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud in a manner affecting a financial institution. Dmitriy Smilianets, 34, of Moscow, previously pleaded guilty to conspiracy to commit wire fraud in a manner affecting a financial institution and was sentenced to 51 months and 21 days in prison. Both men pleaded guilty in September 2015 before Judge Simandle, who imposed the sentences yesterday in Camden, New Jersey federal court. In addition to the prison terms, Judge Simandle sentenced Drinkman to three years of supervised release and Smilianets to five years of supervised release.
Drinkman and Smilianets were arrested in the Netherlands on June 28, 2012. Drinkman was extradited to the District of New Jersey on Feb. 17, 2015, and Smilianets was extradited on Sept. 7, 2012.
“Drinkman and Smilianets not only stole over 160 million credit card numbers from credit card processors, banks, retailers, and other corporate victims, they also used their bounty to fuel a robust underground market for hacked information,” said Acting Assistant Attorney General Cronan. “While mega breaches like these continue to affect millions of individuals around the world, hackers and would-be hackers should know that the Department of Justice will use all available tools to identify, arrest, and prosecute anyone who attacks the networks on which businesses and their customers rely.”
“These defendants operated at the highest levels of illegal hacking and trafficking of stolen identities,” First Assistant U.S. Attorney Fitzpatrick. “They used their sophisticated computer skills to infiltrate computer networks, steal information and sell it for a profit. Perpetrators of some of the largest data breaches in history, these defendants posed a real threat to our economy, privacy and national security, and cannot be tolerated.”
“This case demonstrates the investigative capabilities of the U.S. Secret Service and the collaborative efforts of our law enforcement partners, specifically the U.S. Attorney’s Office for the District of New Jersey, and the Dutch Ministry of Security and Justice,” Special Agent in Charge McKevitt said. “The Secret Service will continue to develop innovative ways to protect the financial infrastructure of the United States and bring to justice cyber criminals who use emerging technologies to conduct business.”
According to documents filed in this case and statements made in court:
Drinkman and Smilianets admitted to their roles in a conspiracy with three co-defendants to hack into the networks of corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information that the conspirators could exploit for profit, including the computer networks of NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard.
According to the indictment in this case and statements made in court, the five defendants each played specific roles in the scheme. Drinkman and Alexandr Kalinin, 31, of St. Petersburg, Russia, allegedly specialized in penetrating network security and gaining access to the corporate victims’ systems. Drinkman and Roman Kotov, 36, of Moscow, allegedly specialized in mining the networks to steal valuable data. The hackers hid their activities using anonymous web-hosting services allegedly provided by Mikhail Rytikov, 30, of Odessa, Ukraine. Smilianets sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Drinkman and Kalinin were previously charged in New Jersey as “Hacker 2” and “Hacker 1” in a 2009 indictment charging Albert Gonzalez, 34, of Miami, Florida, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. Kalinin is also charged in two federal indictments in the Southern District of New York: the first charges Kalinin in connection with hacking certain computer servers used by NASDAQ and the second charges him and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information from U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme.
Kalinin, Kotov and Rytikov remain at large.
The Attacks
According to documents filed in this case and statements made in court, the five defendants allegedly penetrated the computer networks of corporate victims and stole user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders, acquiring more than 160 million card numbers through hacking.
The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers allegedly identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants allegedly placed malicious code, or malware, in the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were allegedly able to regain access through persistent attacks.
Instant message chats obtained by law enforcement revealed the defendants allegedly often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.
The defendants allegedly used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then allegedly used an array of computers located around the world to store the stolen data and ultimately sell it to others.Selling the Data
According to documents filed in the case and statements made in court, after acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, selling the data only to trusted identity theft wholesalers. He charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
According to documents filed in the case and statements made in court, the defendants allegedly used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants allegedly communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.
To protect against detection by the victim companies, the defendants allegedly altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.
As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges. The charges and allegations contained in indictments against the remaining defendants are merely accusations and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by special agents of the U.S. Secret Service, Newark Field Office and Criminal Investigative Division. The case is being prosecuted by by Trial Attorneys Andrew S. Pak and Richard Green and Deputy Chief of Litigation James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Justin Herring of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit and the Justice Department’s Office of International Affairs. The Criminal Division’s Office of International Affairs also provided substantial assistance in this case.
Acting Assistant Attorney General John P. Cronan and U.S. Attorney Carpenito thanked public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police. They also credited the special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, and the Criminal Investigative Division, under the direction of Special Agent in Charge Michael D’Ambrosio, for the ongoing investigation leading to yesterday’s sentencings.
Two Northern California Women Plead Guilty to Conspiracy to Fraudulently Obtain Tax RefundsRead the Press Release
SACRAMENTO, Calif. —Denna Chambers, aka Denna Rice, 35, of Fairfield, pleaded guilty today to one count of conspiring to defraud the United States, United States Attorney McGregor Scott announced. Co-defendant, Starsheka Mixon, 34, of Pinole, previously pleaded guilty to the same charge on February 8, 2018.
“The harm caused by these defendants goes beyond simply cheating the government,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims whose identities they stole to perpetrate this crime. CI will continue to investigate these crimes and hold those responsible fully accountable.”
According to court documents, between approximately January 2011 and June 2013, Chambers and Mixon conspired together and with others to fraudulently obtain tax refunds by filing false tax returns in the names of other people with the Internal Revenue Service. The tax returns included false statements about the taxpayers’ income, dependents, and occupations in order to obtain refunds and tax credits to which the taxpayers were not entitled, including the Earned Income Credit and the Additional Child Tax Credit. Some of the fraudulent tax returns used the name and personal information of individuals without their knowledge or consent. The fraudulently obtained refunds were typically placed on prepaid debit cards controlled by Chambers, Mixon, or their associates. In their respective plea agreements, Chambers and Mixon both admitted that in all, approximately 174 false federal income tax returns were filed seeking over $880,000 in tax refunds, of which approximately $477,348 were paid out by the IRS.
This case was the product of an investigation by IRS Criminal Investigation. Assistant United States Attorney Shelley D. Weger is prosecuting the case.
Chambers and Mixon are scheduled to be sentenced by Judge Morrison C. England, Jr. on May 24, 2018. Both Chambers and Mixon face a maximum statutory penalty of 10 years in prison, restitution, and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The continued effort by the IRS to combat identity theft and refund fraud has led to steep declines in tax-related identity theft. The IRS, state tax agencies, and the tax industry have started their third filing season working as the Security Summit, a private-public sector partnership formed in 2015 to combat identity theft. Summit partners have put in place multiple behind-the-scenes safeguards that are helping protect the nation’s taxpayers. Because the IRS and Summit partners have stepped up efforts to stop suspected fraudulent returns from entering tax processing systems, there continues to be a substantial decline in the number of taxpayers reporting that they are victims of identity theft. In 2017, the IRS received 242,000 reports from taxpayers compared to 401,000 in 2016 and 677,000 victim reports in 2015. Overall, the number of identity theft victims has fallen nearly 65 percent between 2015 and 2017.
These efforts go hand-in-hand with the work done by IRS Criminal Investigation, where special agents continue working to bring identity thieves to justice across the nation.
Two Men Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
Two men have been sentenced to federal prison for their roles in a methamphetamine distribution conspiracy.
Matthew Vance Query, age 34, of Mason City, Iowa, received his prison term after an August 10, 2017, guilty plea; and Ronald William Frank, age 31, of Mason City, Iowa, received his prison term after an August 28, 2017, guilty plea. Query and Frank each pled guilty to conspiracy to distribute methamphetamine.
Query and Frank admitted their involvement in a conspiracy to distribute methamphetamine in northern Iowa and Colorado between 2012 and April 7, 2017. On April 3, 2017, search warrants were executed as part of the investigation into Frank and Query, including a traffic stop, search of Query’s residence, a storage unit and a 2005 Chevrolet Malibu driven by Frank. Located in the vehicle was marijuana, and a container containing 378.9 grams of ice methamphetamine. During the search of Query’s residence, marijuana, scales, packaging materials and cash was located. Stolen property was located at Query’s residence and storage unit. Query was responsible for the distribution of more than 500 grams of actual (pure) methamphetamine. Frank was responsible for the distribution of more than 150 grams of actual (pure) methamphetamine.
Query and Frank were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Query was sentenced to 151 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. Frank was sentenced to 96 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Both Query and Frank are being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force and the Cerro Gordo County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3026. Follow us on Twitter @USAO_NDIA.
Two Arrested on Child Pornography ChargesRead the Press Release
SAN JUAN, Puerto Rico – On February 14, 2018, federal authorities arrested Ricardo Barrios-Calderon and Alfredo Santiago-Rosario charging them with child pornography related offenses, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Federal Bureau of Investigation (FBI) conducted the investigation that led to the arrests.
On February 14, 2018, a criminal complaint charged Ricardo Barrios-Calderon with production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e) and with possession of child pornography involving prepubescent minors, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and (b)(2).
In an unrelated case, on February 14, 2018, a federal grand jury returned a two-count-indictment charging Alfredo Santiago-Rosario with advertising child pornography, in violation of Title 18, United States Code, Sections 2251(d)(1)(A) and (e), and with possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B) and (b)(2).
If convicted, both defendants face a mandatory minimum term of imprisonment of 15 years and a possible maximum term of imprisonment of up to 30 years. Assistant United States Attorney Elba Gorbea is in charge of the prosecution of defendant Barrios-Calderon and Assistant United States Attorney Ginette Milanes is in charge of the prosecution of Santiago-Rosario.
The public is reminded that criminal complaints and indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Top Executives at Long Island Mortgage Lender Plead Guilty to $8.9 Million FraudRead the Press Release
Earlier today in federal court in Central Islip, New York, Edward J. Sypher, Jr., and Matthew T. Voss, senior executives at Long Island mortgage lender Vanguard Funding, LLC (Vanguard), pleaded guilty to conspiring to commit wire and bank fraud in connection with their diversion of more than $8.9 million of warehouse loans that Vanguard had obtained to fund mortgages. The guilty pleas were entered before United States District Judge Sandra J. Feuerstein. When sentenced, each defendant faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine.
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, and Maria T. Vullo, Superintendent, New York State Department of Financial Services, announced the guilty pleas.
According to court filings and the facts presented at the plea proceedings, between August 2016 and March 2017, Voss, Vanguard’s Chief Operating Officer, and Sypher, the Chief Financial Officer, engaged in a scheme in which they obtained warehouse loans, or short-term loans, for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or mortgage refinancing for Vanguard’s clients. Once Vanguard received the loans, however, the defendants diverted the monies to pay personal expenses and compensation, and to pay off loans they had previously obtained with fraudulent loan submissions for improper purposes.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.
The Defendants:
EDWARD J. SYPHER, JR.
Age: 41
Residence: Scarsdale, New York
E.D.N.Y. Docket No. 18-CR-028 (SJF)MATTHEW T. VOSS
Age: 42
Residence: Northport, New York
E.D.N.Y. Docket No. 18-CR-027 (SJF)Three people charged for their roles in conspiracy to recruit poor and homeless people and file fraudulent tax returns on their behalfRead the Press Release
Three people were charged in federal court for their roles in a conspiracy to recruit poor and homeless people to allow them to file fraudulent tax returns on their behalf, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.
Muhammad Hague, 40, of Avon, and Richard A. Warren, 37, of Philadelphia, were each indicted on one count of conspiracy to make false claims.
Maryam Hague, 38, of Shaker Heights, was charged in a criminal information with one count of conspiracy to commit theft of public money and one count of theft of public money.
Maryam Hague operated Hague United Services, a tax preparation business she operated out of her residences in Cleveland and Shaker Heights. Her brother, Muhammad Hague, also operated a tax preparation business, Hague Financial Services, according to court documents.
Muhammad Hague recruited Natasha Johnson to work for Hague Financial in 2010, while both continued working for the Cleveland Water Department, according to the indictment.
In 2011, Maryam Hague recruited her brother to recruit people to provide their personal identification information, so Maryam Hague would prepare and file false tax returns on behalf of claimants. She eventually taught Muhammad Hague how to prepare and file the false tax returns on his own, according to court documents.
From 2011 through 2013, Muhammad Hague, Johnson and others operated Hague Financial, which held itself out as a tax preparation business. Muhammad Hague, Johnson and others sometimes conducted Hague Financial’s business out of the Cleveland Water Department during normal business hours, according to court documents.
Muhammad Hague oversaw the operation of Hague Financial Services. Hague, Johnson and others promoted Hague Financial Services through paper flyers, door-to-door solicitation, and other means. They focused their recruiting efforts on lower-income neighborhoods in Cleveland, including homeless shelters, according to court documents.
Maryam Hague recruited Warren and his wife to recruit people in the Philadelphia area who would provide their personal identification information to Maryam Hague, who would then then prepare and file false income tax returns in the claimants’ names. Maryam Hague agreed to pay a $1,000 “referral fee” for each claimant. Warren and his wife established and maintained business bank accounts for shell companies they established in order to receive their referral fees, which were paid out of claimants’ tax refunds, according to court documents.
The tax returns reported falsified occupations and amounts of income, typically through unverifiable “household help” occupations such as caregiver, lawn care and self-employed. Based on the falsified income, and sometimes based on falsified education expenses or dependents, the tax returns often fraudulently claimed a variety of tax credits, such as the Earned Income Credit, Making Work Pay Credit and American Opportunity Credit, among others, according to court documents.
Maryam Hague and her coconspirators filed approximately 786 false tax returns seeking more than $3.5 million in refunds from the IRS, according to court documents.
Prosecutors are seeking to seize Maryam Hague’s residence in Shaker Heights, according to court documents.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
An indictment or an information is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three from the Akron area indicted for their roles in a conspiracy in which they forged the signatures of medical professionals to obtain thousands of Oxycodone pills and other drugsRead the Press Release
Three people from the Akron area were indicted in federal court for their roles in a conspiracy in which they forged the signatures of medical professionals to illegally obtain thousands of Oxycodone pills and other drugs, law enforcement officials said.
Dennie Rowland, 46, of Hartville, Candi A. Webb, 34, of Akron, and Richard L. Overdorf, 37, of Akron, were each indicted on one count of conspiracy to possess with intent to distribute controlled substances.
Rowland and Webb worked together in a doctor’s office, where the physician and a nurse practitioner were permitted to prescribe medicine. Rowland and Webb were not, according to the indictment.
Rowland and Webb took the prescription pads from their employers and forged the signatures of the doctor and nurse practitioner. Rowland and Webb wrote the prescriptions in the names of friends, relatives and other acquaintances without their knowledge for Oxycodone, amphetamine salts and Alprazolam, according to the indictment.
Rowland, Webb and Overdorf then presented those prescriptions to be filled at pharmacies in Akron, North Canton and elsewhere. They used the drugs themselves and sold the drugs, according to the indictment.
The conspiracy took place from December 2015 through November 2016, according to the indictment.
“These defendants illegally put thousands of doses of Oxycodone on the streets of Akron and Canton at time when pills, heroin and fentanyl were killing so many people in our community,” U.S. Attorney Justin Herdman said. “We will continue to focus on reducing the supply of opioids, whether that’s prescription painkillers being illegally diverted or fentanyl being illegally shipped to our shores.”
“Rowland and Webb were trusted employees who stole from their employers and flooded the community with highly addictive prescription drugs at a time when the community is struggling with an opioid abuse crisis. The prosecution of all involved in this investigation was imperative in our fight against diverted drugs.”
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the
characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Akron Police Department, and the Summit County Sheriff’s Office. The matter is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Stockton Men Indicted for Trafficking in FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Stockton residents Arturo Napoles, 29; Raymond Morin, 31; and Raul Diaz, 23, charging them with unlawful dealing in firearms, U.S. Attorney McGregor W. Scott announced. Napoles was also charged with 19 counts of being a felon in possession of a firearm, five counts of possession of a machinegun, two counts of distribution of methamphetamine, and one count of distribution of cocaine.
U.S. Attorney McGregor W. Scott said, “The illegal manufacture and trafficking of firearms poses a serious threat to our communities. Because of this threat, the U.S. Attorney’s Office has prioritized the prosecution of these crimes, and through our partnership with the ATF and local law enforcement, we have managed to seize large amounts of contraband weapons and to bring those who inject them into the community to justice. We are committed to keeping our communities safe by continuing these partnerships and focusing on cases like the one indicted today.”
“At ATF we are committed to making all our communities a safe place,” said Special Agent in Charge Jill Snyder, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “Firearms trafficking is a dangerous activity. It results in guns ending up in the hands of criminals and gang members who engage in criminal activity regardless of whether that endangers lives. It only takes one round from one gun to end a life. Our efforts to combat gun related crime has spanned across the district. From 2016 to 2018, ATF agents seized 1,890 firearms within Stockton, Fresno and Sacramento areas. That is 1,890 that were involved in criminal activity and are now off the streets of our community.”
Stockton Police Chief Eric Jones stated: “The results of this investigation made Stockton a safer community. I’m committed to these types of operations and investigations with our Federal law enforcement partners because getting gang members, violent criminals, weapons, and narcotics off our streets is an on-going process to make Stockton the best it can be.”
According to court documents, between April 27, 2017, and February 1, 2018, Napoles allegedly sold approximately 50 firearms, including machine guns, stolen firearms, firearms with obliterated serial numbers, and assault rifles manufactured from unfinished lower receivers with no serial numbers. At the time of his arrest, he possessed one handgun, eight machineguns, and five machine gun-conversion devices. Napoles is prohibited from possessing firearms and is not licensed to deal in firearms.
Between April 27, 2017, and November 29, 2017, Diaz allegedly manufactured and sold approximately 15 assault rifles. He manufactured the firearms in his garage from unfinished lower receivers. Diaz is not licensed to manufacture and deal in firearms.
Between June 1, 2017, and January 4, 2018, Morin allegedly sold eight firearms, including five assault rifles manufactured from unfinished lower receivers with no serial numbers. Morin is not licensed to deal in firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stockton Police Department. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
If convicted, Napoles faces a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Morin and Diaz face a maximum statutory penalty of five years in prison and a $250,000 fine. 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.
The following are summaries of some of the recent cases brought by the U.S. Attorney’s Office involving the illegal sale of firearms:
On January 25, 2018, a grand jury indicted James Bowen with engaging in the business of dealing firearms without a license, possession of an unregistered firearm, and being a felon in possession of a firearm. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. 1:18-CR-0015-DAD
On December 12, 2017, Sharrod Gibbons was sentenced to over two years in prison for unlawful dealing in firearms. 2:15-CR-00158-JAM
On September 20, 2017, Jason Prom was sentenced to twelve years in prison for conspiring to deal firearms without a license, dealing firearms without a license, and being a felon in possession of a firearm. 2:16-CR-134-KJM
On September 8, 2017, Joseph Latu was sentenced to nine years in prison for unlawful dealing in firearms. 2:15-CR-00209-GEB
On September 7, 2017, Christopher Gonzales, Jake Phillip Jines, and Samuel Elijahsidney Scott were indicted for dealing firearms without a license. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. 2:17-CR-162-TLN.
On July 14, 2017, Charles Tucker was sentenced to five years in prison for unlawful dealing in firearms. 2:15-CR-00209-GEB
On May 25, 2017, a grand jury indicted Robert Guthrie, Prado Andres Corona, Marcos Hernandez, Joseph Quirarte and Orasio Fierro for conspiracy to engage in the business of dealing firearms without a license and other charges. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. 1:17-CR-00135-LJO
On March 28, 2017, Alphonso Harris was sentenced to ten months in prison for unlawful dealing in firearms. 2:16-CR-00011-JAM
On December 9, 2016, Emiliano Cortez-Garcia, was sentenced to six years in prison for unlawful dealing in firearms, possession of a machinegun, and possession of an unregistered firearm. 2:13-CR-00353-GEB
On August 24, 2016, Felix Saldivar was sentenced to over four years in prison for unlawful dealing in firearms. 2:16-CR-00109-KJM
On May 2, 2016, Gerardo Barraza was sentenced to almost two years in prison for unlawful dealing in firearms. 2:14-CR-00040-WBS
On March 10, 2016, James Malcolm was sentenced to five years in prison for unlawful possession of a toxin, unlawful dealing in firearms, possession of a machinegun. 2:14-CR-00158-TLN
On February 17, 2016, Daniel aka “Dr. Death” Crowninshield was sentenced to nearly three and a half years in prison for unlawful dealing in firearms and possession of an unregistered machinegun. 2:14-CR-00164-TLN
On February 17, 2016, Brandon Johnson was sentenced to ten years in prison for selling firearms without a license and distributing methamphetamine. 2:13-CR-036- KJM
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.
Three MS-13 Gang Members Sentenced to Lengthy Sentences in Brooklyn Federal Court for Murder of 19-Year Old ManRead the Press Release
Earlier today, in federal court in Brooklyn, defendants Milton Contreras, Oscar Welman Espinoza-Merino and Jose Osmin Rubio were each sentenced by United States District Judge Margo K. Brodie following their convictions for the murder of a 19-year-old victim on Long Island in 2014. Contreras was sentenced to 27 years’ imprisonment, while Espinoza-Merino and Osmin Rubio were each sentenced to more than 24 years’ imprisonment. After serving their sentences, all three defendants will face deportation from the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) New York; Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF); and James P. O’Neill, Commissioner, New York City Police Department, announced the sentencings. Mr. Donoghue also expressed his appreciation to the Suffolk County Police Department for their assistance during the investigation.
“Today’s sentence marks the final chapter in the pursuit of justice against these three MS-13 gang members who brutally murdered a teenager execution-style when they suspected him of cooperating with law enforcement,” stated United States Attorney Donoghue. “This prosecution is part of the ongoing mission of this Office to protect the residents of this district from the violence and lawlessness of MS-13, and we will not rest until the MS-13 criminal organization is entirely dismantled.”
“It is not a secret that MS-13 gang members are violent for the sake of being violent, and in this particular case exhibited their murderous ways by executing a teenager in Long Island,” stated HSI Special Agent-in-Charge Melendez. “As they use violence to seek power through instilling fear into the neighborhoods in which they live, we will be relentless working with our partners to dismantle this vicious gang and bring peace back to the communities.”
“The individuals that committed this heinous act of violence are rightfully where they belong. While in prison, they can reflect on the terror and pain they inflicted on their community. Gangs like MS-13 that seek to terrorize the community putting citizens at fear for their lives should know that law enforcement is committed to rooting this evil from our society and making the streets safe for everyone,” stated ATF Special Agent-in-Charge Benedict. “I would like to express my gratitude to the United States Attorney for prosecuting the case. I also would like to thank the Special Agents and Task Force Officers of the ATF’s Joint Firearms Task Force and our counterparts at HSI and the NYPD for diligently pursuing this case until justice was served.”
As detailed in the superseding indictment, the three defendants—along with a fourth defendant convicted of the murder, Byron Lopez, who has not yet been sentenced—are members of the Jamaica, Queens and/or Brentwood, Long Island chapters of the violent street gang La Mara Salvatrucha, also known as “MS-13.” On February 25, 2014, Lopez, Espinoza-Merino, Contreras and Rubio directed the victim, fellow gang member Sidney Valverde, to travel to Long Island under the false pretense that they needed him to assist in gang business there. In fact, the co-conspirators planned to kill Valverde because they believed that he was providing information about the gang’s activities to law enforcement. After Valverde arrived in Long Island, the co-conspirators shot him in the back of the head and left his body on Miller Place Beach in Suffolk County where it was discovered by a beachcomber approximately two weeks later.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 40 murders in the Eastern District of New York and has convicted dozens of MS-13 leaders and members in connection with those murders.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Alixandra Smith is in charge of the prosecution.
Defendants Sentenced Today:
OSCAR WELMAN ESPINOZA-MERINO (aka “Speedy” and “Petey”)
Age: 35
Brentwood, New YorkMILTON CONTRERAS (aka “Diabolico”)
Age: 22
Brentwood, New YorkJOSE OSMIN RUBIO (aka “Slow”)
Age: 30
Brentwood, New YorkDefendant Awaiting Sentencing:
BYRON LOPEZ
Age: 26
Queens, New YorkE.D.N.Y. Docket No. 14-463 (MKB) (RER)
Texas Woman Pleads Guilty to Federal Cocaine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Candy May Gonzales, 33, of Canutillo, Texas pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to cocaine trafficking charges arising from the seizure of 4.06 kilograms (8.95 pounds) of cocaine at the U.S. Border Patrol Checkpoint near Las Cruces.
The DEA arrested Gonzales and co-defendant Carlos Ivan Todd, 30, also of Canutillo, Texas, in Oct. 2017, on a criminal complaint charging them with possession of 4.0 kilograms of cocaine with intent to distribute in Dona Ana County, N.M. According to the complaint, U.S. Border Patrol agents arrested Todd and Gonzales at the U.S. Border Patrol Checkpoint on I-25 near Las Cruces after the agents seized three bundles of cocaine concealed in the vehicle in which Todd and Gonzales were traveling.
Gonzales subsequently was indicted and was charged with participating in a cocaine trafficking conspiracy from Aug. 2017 through Oct. 8, 2017, and possessing cocaine with intent to distribute on Oct. 8, 2017. According to the indictment, Gonzales committed the offenses in Dona Ana County.
During yesterday’s proceedings, Gonzales pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Gonzales faces a mandatory minimum penalty of five years and a maximum of 40 years of imprisonment. Gonzales remains in custody pending a sentencing hearing, which has yet to be scheduled.
On Jan. 4, 2018, Todd pled guilty to a felony information charging him with conspiracy and possession of cocaine with intent to distribute. In entering the guilty plea, Todd admitted that on Oct. 8, 2017, he drove a vehicle containing 4.06 kilograms of cocaine hidden in a compartment in the vehicle into the U.S. Border Patrol Checkpoint on I-25 north of Las Cruces. Todd admitted that he previously agreed with others to drive the cocaine from El Paso, Texas, to Albuquerque, N.M., where the drugs would be distributed further. At sentencing, Todd faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Texas Man Sentenced to Prison for His Role in Stealing Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today that United States District Court Judge Kristine G. Baker sentenced Waymon Weeams, 37, of Rockwall, Texas, to federal prison for his role in a widespread scheme to steal money intended for feeding children in low income areas in Arkansas.
Judge Baker sentenced Weeams, who pleaded guilty to conspiring to commit wire fraud on October 4, 2016, to 15 months’ imprisonment, to be followed by two years of supervised release. He was also ordered to pay $697,236.41 in restitution.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs and they are reimbursed for the eligible meals they serve.
Weeams was a sponsor for a feeding program through an organization called “SJ&B Outreach.” Weeams had three approved feeding site locations, which were located in Wynne, Forrest City, and Marianna. Between all three sites, he claimed as many as 872 children were fed each day. No children were ever actually fed at the Forrest City site, and Weeams now says that approximately 10 to 50 children were fed at the other two sites. Weeams was recruited to participate in the scheme by Anthony Waits. Waits’s wife, Gladys Waits, worked for DHS and approved Weeams’s application. Weeams paid Anthony Waits approximately 40% of the $697,236.41 Weeams received in the scheme.
Weeams is the 15th defendant sentenced who was charged in connection with a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants include: Kattie Jordan (63 months imprisonment on March 15, 2016); Reuben Nims (21 months imprisonment on November 2, 2016); Tonique Hatton (108 months’ imprisonment on January 4, 2017); James Franklin (24 months’ imprisonment on January 10, 2017); Maria Nelson, (30 months’ imprisonment on January 31, 2017); Michael Lee (30 months’ imprisonment on May 1, 2017); Christopher Nichols (3 years’ probation on May 16, 2017); Gladys Waits (108 months’ imprisonment on July 17, 2017); Alexis Young (18 months’ imprisonment on August 18, 2017); Erica Warren (18 months’ imprisonment on August 18, 2017); Francine Leon (34 months imprisonment on September 21, 2017); Anthony Waits (175 months’ imprisonment on October 20, 2017); Jacqueline Mills (150 months imprisonment on December 6, 2017); and Dorothy Harper (33 months imprisonment on January 9, 2018).
Debora Washington was indicted on conspiracy and fraud charges related to this scheme on February 1, 2018, and she is scheduled to be arraigned on these charges next week. Her case will be handled by United States District Judge J. Leon Holmes. Also, Elbert Harris pleaded guilty to wire fraud, and Nigel Hall has pleaded guilty to conspiracy to commit wire fraud in relation to the same feeding programs. Both are awaiting sentencing.
The investigation is still ongoing and continues to be conducted by the USDA–Office of Inspector General, IRS–Criminal Investigations, and the FBI. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Texas Man Pleads Guilty to Conspiracy Involving Cocaine, Marijuana, Heroin and MethamphetamineRead the Press Release
Gulfport, MS – Jose Luis Chavez a/k/a "Big Head," 47, of Edinburg, Texas, pled guilty today before U.S. District U.S. District Judge Sul Ozerden to conspiracy to possess with intent to distribute 500 grams or more of cocaine, 50 grams or more of actual methamphetamine, 100 kilograms or more of marijuana, and 100 grams or more of heroin, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Stephen G. Azzam.
During an arrest in Gulfport, Mississippi, in March 2016, agents with DEA began an investigation that led to the arrest of Chavez. Confidential sources met with law enforcement and stated that Chavez was a major source of supply for cocaine, marijuana, methamphetamine and heroin for the Mississippi Gulf Coast. The confidential sources stated Chavez conspired with at least three other individuals to traffic narcotics from Texas to Mississippi. Agents with DEA corroborated the information provided by the confidential sources and arrested Chavez in Texas and brought him to Mississippi for prosecution.
Chavez will be sentenced on May 17, 2018, by Judge Ozerden, and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the DEA and the FBI Safe Streets Task Force. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.