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Thursday 15 February 2018
Tampa Real Estate Agent Indicted for Bankruptcy FraudRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging David Lyle Morgan (53, Tampa) with two counts of bankruptcy fraud and one count of falsification of records in a bankruptcy proceeding. If convicted, he faces a maximum penalty of 30 years in federal prison.
According to the indictment, Morgan, a licensed realtor, entered into a contract with a homeowner to sell a property in foreclosure. In order to prevent the Federal National Mortgage Association (“Fannie Mae”) from lawfully foreclosing on the homeowner’s property, Morgan engaged in a bankruptcy fraud scheme whereby he filed fraudulent bankruptcy petitions in the homeowner’s name, without the homeowner’s knowledge or consent, just prior to the scheduled foreclosure sale dates. These fraudulent bankruptcies invoked the automatic stay provision of the bankruptcy code and prevented Fannie Mae from conducting the sale and obtaining title to the property. They also allowed Morgan to continue his efforts to sell the property to obtain illegal real estate commissions.
The indictment further alleges that Morgan made false declarations on a fraudulent bankruptcy petition that he had filed in the name of the homeowner, impeding the proper administration of a bankruptcy proceeding.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida (Tampa Division) also provided substantial assistance. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
Tampa Man Caught in Undercover Sting Sentenced to 18 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Javis D. Wilson (39, Tampa) to 18 years and 4 months in federal prison for possessing a firearm as a convicted felon.
Wilson pleaded guilty on November 8, 2017.
According to court documents, for well over one year, Wilson sold undercover agents cocaine, ammunition, and several firearms, including a Mossberg 30-06 caliber rifle, a Lorcin Engineering .25 caliber handgun, and a Taurus International .40 caliber handgun. In total, Wilson was held responsible for the sale of 9 firearms. Wilson had reason to believe that the firearms would be trafficked to and resold in the New York area.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Sun Valley Resident Sentenced to 54 Months Imprisonment for Role in International Money Laundering and Identity Theft Scheme Involving $14 Million in Fraudulent Tax RefundsRead the Press Release
SANTA ANA – A Sun Valley man was sentenced late Monday afternoon to 54 months imprisonment for his participation in a large-scale international identity theft scheme that fraudulently obtained tax refunds by using bogus Republic of Armenia passports and then engaged in money laundering of over $14 million of these criminal proceeds.
Karen Pogosian, 47, was sentenced by United States District Judge Andrew J. Guilford. In addition to the prison term, Judge Guilford ordered Pogosian to pay restitution of $277,617 to the Internal Revenue Service.
Pogosian pled guilty in September of last year to one count of bank fraud and one count of aggravated identity theft.
According to documents filed with the court, the scheme involved over 7,000 false tax returns that together claimed approximately $38 million in refunds. Approximately $14 million obtained through the fraud scheme was then deposited into bank accounts to conceal its illegal source. The tax returns were filed using identity information stolen from thousands of victims.
From August 2012 through March 2014, Pogosian opened mailbox and bank accounts using fraudulent identification with the names and personal information of identity theft victims. Pogosian also used the identification documents to create other IDs. For example, Pogosian used a foreign passport in the name of another person to obtain a Costco membership card also in that same person’s name, but with Pogosian’s photograph.
Pogosian’s use of stolen identities resulted in approximately $277,617 in loses. According to court records, defendant was present illegally in the U.S. at the time he committed the crimes and had been receiving public benefits.
The case against Pogosian is part of a larger investigation in which 14 defendants have been charged, nine defendants have pled guilty (eight have been sentenced), two are fugitives, two are pending trial and one is awaiting extradition.
The ongoing investigation into money laundering involving fraudulently obtained tax refunds and related frauds is being conducted by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Charles Pell of the Santa Ana Branch Office. Assistant United States Attorney Frank Kortum represents the United States in the civil forfeiture action.
Stockton Man Pleads Guilty to Sex Trafficking of A ChildRead the Press Release
SACRAMENTO, Calif. —Ricky Lee Richardson, Jr., 41, of Stockton, pleaded guilty today to sex trafficking of a child, United States Attorney McGregor W. Scott announced.
According to court documents, in November 2011, Richardson recruited a minor victim to engage in prostitution. Between December 2011 and March 2012, Richardson caused the then 16-year-old victim to engage in prostitution in Stockton and elsewhere in Northern California. Richardson arranged for photos to be taken of the victim and he posted prostitution advertisements on the internet that contained nude photos of the victim. Richardson drove the victim to motels and gave her false identification cards that she used to rent rooms for the prostitution activity. Richardson took the money that the victim obtained from that activity.
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the Stockton Police Department. Assistant United States Attorneys Brian A. Fogerty and Jill M. Thomas are prosecuting the case.
Richardson has been in custody since his arrest in April 2016.
Richardson is scheduled to be sentenced by Judge Troy L. Nunley on May 17, 2018. Richardson faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Statement by Attorney General Sessions on the Confirmation of Assistant Attorney General for National Security John C. DemersRead the Press Release
Attorney General Jeff Sessions issued the following statement on the Senate’s confirmation of John C. Demers as Assistant Attorney General for the National Security Division:
“Among his outstanding accomplishments in a distinguished legal career, John Demers was on the leadership team at the creation of the National Security Division, which today plays a crucial role in protecting Americans from the threat of terrorism, and protecting our national security from compromise by state-sponsored espionage, cyber intruders and the unauthorized disclosure of classified information,” said Attorney General Sessions. “I am grateful to the Senate for confirming John and I look forward to his return to the department, where his significant experience in both the private sector and public service will most certainly benefit the American people. We look forward to the Senate quickly confirming our remaining nominees.”
The mission of the National Security Division is to carry out the Department’s highest priority: protect the United States from threats to our national security by pursuing justice through the law. The NSD's organizational structure is designed to ensure coordination and unity of purpose between prosecutors and law enforcement agencies, on the one hand, and intelligence attorneys and the Intelligence Community, on the other, thus strengthening the effectiveness of the federal government’s national security efforts.
Prior to his confirmation, Mr. Demers was Vice President and Assistant General Counsel at The Boeing Company. He has held several senior positions at the company including in Boeing Defense, Space, and Security and as lead lawyer and head of international government affairs for Boeing International.
From 2006 to 2009, Mr. Demers served on the first leadership team of the Justice Department’s National Security Division, first as Senior Counsel to the Assistant Attorney General and then as Deputy Assistant Attorney General for the Office of Law & Policy. Before that, he served in the Office of Legal Counsel. For the past eight years, he has taught national security law as an adjunct professor at the Georgetown University Law Center.
Mr. Demers worked in private practice in Boston and clerked for Associate Justice Antonin Scalia of the U.S. Supreme Court and Judge Diarmuid O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. He graduated from Harvard Law School and the College of the Holy Cross.St. Petersburg Man Convicted of Federal Firearms OffenseRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Devin Fabian Collins (25, St. Petersburg) guilty of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing is scheduled for May 15, 2018.
Collins was indicted on May 18, 2017.
According to evidence presented at trial, Collins drove recklessly through St. Petersburg as he was being followed by a police helicopter. After he pulled into an apartment complex, officers arrived at scene. Collins fled on foot, while tossing drugs and a gun. At the time of the incident, Collins had a prior felony conviction and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pinellas County Violence Crimes Task Force. The Violent Crimes Task Force is comprised of officers from the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorneys James Preston and Callan Albritton.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Sentencings for February 9 - February 12, 2018Read the Press Release
SAVON GERMAIN CARTER, 43, of Midvale, Utah, was sentenced by Federal District Court Judge Alan B. Johnson on February 12, 2018, for conspiracy to distribute methamphetamine. Carter received 135 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $900.00 in restitution. This case was investigated by the Sweetwater County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
CHRISTINE MARIE EICHLER, 42, of Midvale, Utah, was sentenced by Federal District Court Judge Alan B. Johnson on February 12, 2018, for conspiracy to distribute methamphetamine. Eichler was arrested in Rock Springs, Wyoming. She received 121 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Sweetwater County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
LEON ANTHONY DANIELS, 45, transient, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 9, 2018, for possession with intent to distribute heroin and for being a felon and unlawful user of a controlled substance in possession of a firearm and ammunition. Daniels was arrested in Cheyenne, Wyoming. He received 108 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case was investigated by the Laramie County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Drug Enforcement Administration.
Sallisaw Man Sentenced to 65 Months for Oxycodone DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kevin Wayne Sanders Jr., age 29, of Sallisaw, Oklahoma, was sentenced to 65 months imprisonment and 6 years supervised release for Distribution Of Oxycodone, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The Indictment alleged that on or about January 14, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally distribute Oxycodone, a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Bureau of Narcotics, the Sallisaw Police Department, and the Drug Enforcement Administration.
United States Attorney Brian J. Kuester said, “The misuse of Oxycodone and other prescription pain medications is wreaking havoc on our communities. Those people that unlawfully distribute those drugs do so for their own profit without regard for the lives that will be devastated, and they must be stopped. The investigation and prosecution of the defendant has stopped him from further distribution and hopefully will deter others from getting involved in the drug trade business. The law enforcement agencies that contributed to this investigation should be commended for their efforts.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Timothy Hammer represented the United States.Pasco County Assistant Principal Indicted for Production of Child PornographyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Kyle Dale Ritsema (35, Land O’ Lakes) with production, possession, and distribution of child pornography. If convicted on all counts, he faces a maximum penalty of 30 years and a mandatory minimum penalty of 15 years in federal prison for production of child pornography, 20 years in federal prison for each of two counts for distributing child pornography, and 10 years in federal prison for possessing child pornography.
According to the indictment, in or about March 2015, Ritsema employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. The indictment also states that he distributed two visual depictions of child pornography on or about March 21, 2015.
Government records indicate that Ritsema is an Assistant Principal at Cypress Creek Middle High School, in Pasco County, Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Frank Murray.
Owner of New Jersey Hedge Fund Guilty of Wire Fraud and Securities Fraud for Defrauding Investors of $4 MillionRead the Press Release
NEWARK, N.J. – The owner and manager of a New Jersey hedge fund was convicted by a federal jury today for defrauding two investors of $4 million, U.S. Attorney Craig Carpenito announced.
Nicholas Lattanzio, 61, of Montclair, New Jersey, was convicted on all counts of an indictment charging him with two counts of wire fraud and two counts of securities fraud following a three-week trial before the Honorable Kevin McNulty in Newark federal court.
According to documents filed in this case and the evidence at trial:
From June 2013 through November 2014, Lattanzio orchestrated a large-scale scheme through which he, his hedge fund, the Black Diamond Capital Appreciation Fund L.P. (BD Fund), and several other related entities collected millions of dollars in upfront fees from two unsuspecting corporate investors in exchange for the promise of future loans or investment opportunities that did not materialize. Instead of investing the victims’ money as promised, Lattanzio stole the majority of the funds and used them to pay himself more than $500,000 in salary and for numerous personal expenses, including the purchase of a $1 million home in Montclair, New Jersey, a new Range Rover, a diamond ring that cost $100,000, and the payment of half a million dollars in credit card debt that he incurred for other personal expenses. Lattanzio lied to the victims about the status of their funds to conceal the scheme and mislead them into believing that their investments were safe.
The wire and securities fraud counts with which Lattanzio was convicted each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The Government also forfeited a 2013 BMW 650 and various pieces of jewelry, and is seeking forfeiture of the home Lattanzio purchased in Montclair, New Jersey.
U.S. Attorney Carpenito credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s conviction. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, and the N.J. Bureau of Securities, within the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Gurbir S. Grewal.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and Daniel V. Shapiro of the Economic Crimes Unit, and Assistant U.S. Attorney Peter Gaeta of the Office’s Asset Recovery and Money Laundering Unit.
Defense Counsel: John D. Arseneault, Esq. and John J. Roberts, Esq., Chatham, New Jersey
Owensboro, Kentucky Man Faces Additional Charges for Possessing Unregistered Machine Guns and FirearmsRead the Press Release
BOWLING GREEN, Ky. – An Owensboro, Kentucky man was charged in a superseding indictment this week, by a grand jury meeting in Bowling Green, Kentucky, with possessing unregistered machine guns announced United States Attorney Russell M. Coleman.
Glen Allan Aley, 45, was charged with 19 counts of possessing multiple types of firearms, including machine guns, short-barreled shotguns, short-barreled rifles, and silencers, that were not registered in the National Firearms Registration and Transfer Record.
Specifically, Aley was in possession of several .223 Wylde caliber, M-16-type firearms (machineguns); Fabrique Nationale Herstal, Model PS90 5.7x28mm caliber firearms (machineguns); Eds Tactical Armory, Model 2A, 7.62x39mm caliber AR-type firearm (short-barreled rifle); 7.62x51mm caliber AR-type firearm (machine gun); 7.62x51mm caliber AR-type firearm, (machine gun); AR-type firearm (short-barreled rifle); New England Firearms, Model SB2, 10-gague shotgun (short-barreled shotgun); and black cylindrical devices, (firearm silencers).
According to the superseding indictment, Aley possessed the firearms between February 16, 2017, and March 28, 2017.
Aley remains free on an unsecured $25,000 bond.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
* * *
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Orlando Man Convicted of Two Counts of CarjackingRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Eugene Willis (24, Orlando) guilty of carjacking and brandishing a firearm in relation to a carjacking. He faces a minimum mandatory penalty of seven years, up to life, in federal prison. His sentencing hearing has not yet been set.
Willis was indicted on October 26, 2016, along with two co-conspirators, Sedrick Hamilton and Justin Crumpton.
According to testimony presented at trial, on October 8, 2016, Willis, Hamilton, and Crumpton traveled from Orlando to the Tampa Bay area to commit commercial burglaries. They decided to carjack a victim of his Dodge Charger, after getting the idea from a rap song. After a high-speed chase with law enforcement, they crashed the stolen car and carjacked a second victim of her Kia Optima. The individuals crashed that vehicle as well and fled to a nearby fast food restaurant, where two employees were taken as hostages. Law enforcement ultimately took all three men into custody.
Hamilton and Crumpton previously pleaded guilty for their roles in this case and are currently awaiting sentencing.
This case was investigated by Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Oregon Man Pleads Guilty to Forced Labor and Related Crimes in Connection with Scheme to Coerce Thai Nationals to WorkRead the Press Release
Paul Jumroon, also known as Veraphon Phatanakitjumroon, 54, of Depoe Bay, Oregon, and a naturalized citizen originally from Thailand, pleaded guilty yesterday in a U.S. District Court in Portland, Oregon, to forced labor, visa fraud conspiracy, and filing a false federal income tax return, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Special Agent in Charge Renn Cannon of the FBI in Oregon, and Special Agent in Charge Darrell Waldon of IRS Criminal Investigation’s Seattle Field Office. Jumroon waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office and the Civil Rights Division.
According to the defendant’s plea agreement and admissions in court, between 2011 and 2014, the defendant and his associates fraudulently obtained E-2 visas to bring Thai nationals into the United States to provide cheap labor at his restaurants, Curry in a Hurry in Lake Oswego, Oregon and Teriyaki Thai in Ridgefield, Washington. E-2 visas are granted to foreign nationals who invest substantial money in a U.S. business and direct its operations, and to employees who have special qualifications that make their services essential to that business.
Jumroon used the fraudulently obtained visas to entice four forced labor victims to come to the United States by making false promises to them. According to court documents, the first victim arrived in the United States in June 2012, and the second victim arrived in April 2013. Jumroon used inflated travel expenses, debt manipulation, threats of deportation, serious financial and reputational harm, verbal abuse, and control over identification documents, among other means, to compel the victims to work 12 hours a day, six to seven days a week, for minimal pay, until they managed to leave in October 2013 and 2014, respectively.
As part of the defendant’s guilty plea, Jumroon agreed to pay all four victims a combined $131,391.95 in restitution for their unpaid labor in connection with his forced labor scheme.
The defendant further admitted to filing multiple false tax returns with the Internal Revenue Service, failing to report cash income earned from his restaurants between 2012 and 2015. As part of the plea agreement, Jumroon agreed to pay tax due and owing in the amount of $120,384 to the IRS.
“Combatting human trafficking is a priority for Attorney General Sessions and the Justice Department,” said Acting Assistant Attorney General Gore of the Civil Rights Division. “Securing a guilty plea today is just another example of this commitment and the work of the Civil Rights Division, in coordination with the U.S. Attorney’s Office, to hold those who choose to exploit vulnerable individuals accountable for their actions.”
“Human trafficking is a degrading crime that undermines our nation’s most basic promise of liberty. This defendant preyed on the hopes of vulnerable workers, using fear to compel them to work long hours for little pay. He turned a promise of employment and a better life into a human tragedy for his own financial gain,” said U.S. Attorney Billy J. Williams for the District of Oregon. “This case demonstrates our firm commitment to holding traffickers accountable and restoring the rights, freedom and dignity of victims. It should also serve as a reminder that these types of crimes happen all around us and often in plain sight. We encourage all Oregonians to remain watchful for signs of human trafficking and to notify law enforcement immediately when something seems amiss.”
“The American dream is built on the belief that hard work can bring about a better life. For the victims in this case, that dream turned into a nightmare of false promises, forced labor and abuse,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “These cases are very difficult to identify and work, so we are thankful the courageous victims in this case were able to reach out for help through trusted community contacts.”
“Forced labor schemes, such as the one employed by Paul Jumroon, are deplorable crimes that have no place in today’s society,” said Darrell Waldon, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Falsely reporting income and expenses associated with such schemes will continue to be vigorously investigated by IRS-CI Special Agents.”
Jumroon faces a maximum of 20 years in prison for forced labor, five years in prison for visa fraud conspiracy, and three years in prison for filing a false tax return. His sentencing is scheduled for May 24 before United States District Judge Anna J. Brown.
Attorney General Sessions recently issued a proclamation commemorating January as National Slavery and Human Trafficking Prevention Month, and the Justice Department recently hosted a Human Trafficking Summit where both the Attorney General and Associate Attorney General Rachel Brand gave remarks.
The District of Oregon is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This prosecution is the result of the joint investigation by the Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service Criminal Investigation and Department of State’s Diplomatic Security Service, with assistance from the Department of Labor’s Wage and Hour Division and Portland Police Bureau. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley and Scott Bradford of the District of Oregon, and Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Update: Defendant Paul Jumroon no longer owns either of the two restaurants mentioned in this release.
Operator of Massachusetts Temp Agency Pleads Guilty to Employment Tax Fraud and Obstructing the IRSRead the Press Release
A Massachusetts temporary employment agency operator pleaded guilty today in Boston federal district court to an indictment charging him with conspiring to defraud the government, failing to pay over employment taxes and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment and statements provided in Court, Tien Chau ran an employment agency that provided temporary labor to businesses in Massachusetts and New Hampshire. The agency operated under at least four different names: Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc. Chau and others used nominees to conceal their ownership of the business.
From 2006 through 2011, Chau and others conspired to conceal the agency’s total number of employees from the Internal Revenue Service (IRS) to lower the staffing agencies’ employment tax liabilities. Chau attempted to hide the size of their workforce from the IRS by paying most of the employees cash under the table and filing false employment tax returns that both underreported the number of employees and omitted wages paid in cash. Chau and others in the conspiracy allegedly cashed over $11 million in client checks at a check cashing facility in Worcester and used the staffing agency’s site supervisors, office manager and drivers to pay the employees in cash.
The conspirators sought to obstruct an investigation by, among other things, directing an employee, after learning of her interview with special agents, to assist with shredding the agency’s records. Chau also allegedly destroyed and removed computers and computers equipment from the business’s office.
A sentencing date has been set for May 17, 2018. Chau faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each employment tax count, and three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Brittney Campbell and Shawn Noud of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Olney, Illinois Woman Sentenced on Methamphetamine Related ChargesRead the Press Release
Kylee D. Black, 34, of Olney, IL, was sentenced on February 14, 2018, to federal prison on methamphetamine related charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Black was sentenced to 168 months’ imprisonment and four years’ supervised release following her imprisonment. Black previously pled guilty to six counts of a federal indictment brought against her.
Count 1 charged that from around 2015, until on or about April 21, 2017, in Richland County, Vickie Sanders, 57, of Olney, Illinois, and Black conspired with others known and unknown to the Grand Jury to knowingly and intentionally manufacture fifty (50) grams or more of methamphetamine.
Counts 3-6 charged that Sanders and Black knowingly and intentionally possessed Pseudoephedrine knowing that the Pseudoephedrine would be used to manufacture methamphetamine. The dates involved were December 21, 2016 (Count 3), December 15, 2015 (Count 4), September 30, 2015 (Count 5), and April 3, 2015 (Count 6).
Count 7 charged that on May 14, 2017, in Richland County, Black knowingly and intentionally distributed methamphetamine.
Sanders has also pleaded guilty to charges against her and is scheduled for sentencing on March 13, 2018, in the United States District Court in Benton, Illinois.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
New Indictment Charges Columbus MS-13 Gang Members with Conspiracy to Commit Racketeering, Including Five Central Ohio MurdersRead the Press Release
COLUMBUS, Ohio – A second superseding indictment returned here today charges 23 individuals alleged to be members and associates of the Columbus clique of MS-13 in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The most recent indictment also includes three counts of murder in aid of racketeering and one count of murder through the use of a firearm during and in relation to a crime of violence, crimes that could make some of the defendants eligible for the death penalty.
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, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the new charges.
Those named in today’s indictment include:
Name
Also Known As
Age
City
Martin Neftali Aguilar-Rivera
Momia, Pelon
32
Columbus, Ohio / Indianapolis
Jose Bonilla-Mejia
Espia
29
California
Juan Jose Jiminez-Montufar
Chele Trece
34
Columbus, Ohio
Pedro Alfonso Osorio-Flores
Smokey
38
Columbus, Ohio
Isaias Alvarado
Cabo
45
Columbus, Ohio
Cruz Alberto-Arbarngas
Cruzito
30
Columbus, Ohio
Jose Manuel Romero-Parada
Russo
23
Indianapolis
Juan Jose Alvarenga-Alberto
Sailen
27
Columbus, Ohio
Juan Pablo Flores-Castro
Duende
29
Columbus, Ohio
Jose Daniel Gonzalez-Campos
Flaco
29
Virginia
Jose Salvador Gonzalez-Campos
Danger
27
Indianapolis/ Virginia
Jose Mendez-Peraza
Shadow
36
Columbus, Ohio
Erasmo Humberto Lima-Martinez
Tun Tun, Azul, Chino
31
Columbus, Ohio
Nehemias Joel Martinez-Hernandez
Mysterio
21
Columbus, Ohio
Jose Carlos Mercado-Crespin
Payaso
32
Ohio
Denis Donaldo Fuentes-Avila
18
Columbus, Ohio
Daniel Alexander Diaz-Romero
Manchas
24
Deported
Gerardo Davila-Colindres
Cuervo, Enano
39
Columbus, Ohio
Marvin Otero-Serrano
Vaca, Bandallero, Yankee
31
Columbus, Ohio
Jorge Alberto Landaverde
Grenas
34
Columbus, Ohio
Jose Salinas-Enriquez
Martillo
32
Dayton, Ohio
*Nelson Alexander Flores
Mula
46
Fugitive
Carolina Garcia-Miranda
Mamayema
30
Columbus, Ohio
*Fugitive
Charged with murder
Since the beginning of this investigation, additional defendants have been arrested and charged in criminal complaints with federal immigration-related crimes.
MS-13
- MS-13, formally La Mara Salvatrucha, is a multi-national criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, Guatemala and Honduras. The organization’s leadership is based in El Salvador, where many of the gang’s high-ranking members are imprisoned.
- In 2012, the United States government designated MS-13 as a “transnational criminal organization.” It is the first and only street gang to receive that designation. MS-13 has become one of the largest and most violent criminal organizations in the United States, with more than 10,000 members and associates operating in at least 40 states, including Ohio.
- In Ohio and elsewhere in the United States, MS-13 is organized into “cliques,” which are smaller groups of MS-13 members and associates acting under the larger mantle of the organization and operating in a specific region, city or part of a city. Cliques are grouped into larger “programs,” and the Columbus, Ohio clique of MS-13 is part of the East Coast Program.
- Cliques raise money through various forms of criminal activity, including extortion and narcotics trafficking, in addition to paying regular dues at clique meetings, and a portion of that money is wired to leadership in El Salvador. Gang leaders use this money to purchase weapons and cell phones and to provide clothing, legal assistance and other forms of aid to MS-13 members who are incarcerated and to support the families of MS-13 members who have been killed.
- Violence is a central tenet of MS-13. The organization’s motto, “mata, viola, controla,” means kill, rape, control. Historically, MS-13 members and associates have committed murders and other violent acts using machetes, knives and similar bladed weapons in order to intimidate and instill fear in others.
This Case
In July 2017, a federal grand jury charged 10 individuals with conspiracy to commit extortion, conspiracy to commit money laundering and use of a firearm during and in relation to a crime of violence.
In December 2017, a superseding indictment charged four additional defendants and added charges of cocaine and marijuana distribution, illegal possession of firearms and ammunition, obstruction of justice and illegal re-entry into the United States. Today’s second superseding indictment alleges the defendants have engaged in a racketeering conspiracy since approximately 2006 in the Southern District of Ohio and elsewhere.
The racketeering activity involves multiple acts of murder, extortion, drug trafficking, money laundering, obstruction of justice and witness intimidation.
The second superseding indictment alleges that defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
Other criminal activity detailed in the newest indictment includes burning a victim’s car when the victim refused to be extorted for money, conspiring to murder at least one potential witness, threatening the lives of a Transnational Anti-Gang Unit officer and the officer’s family in El Salvador, threatening to kill an individual’s family if he cooperated with law enforcement, possessing multiple firearms and ammunition, possessing and distributing cocaine and marijuana and destroying evidence.
The crimes charged in this case and each crime’s potential maximum sentence include:
Crime
Potential Maximum Sentence
Conspiracy to commit racketeering
Life in prison (for defendants who committed murder)
20 years in prison (for all other defendants)
Murder in aid of racketeering
Life in prison or death
Murder through use of a firearm during and in relation to a crime of violence
Life in prison or death
Brandishing a firearm during and in relation to a crime of violence
At least 7 years in prison, consecutive to any other sentence imposed
Using a firearm during and in relation to a crime of violence
At least 5 years in prison, consecutive to any other sentence imposed
Possession with intent to distribute controlled substances
20 years in prison
Alien in possession of firearm or ammunition
10 years in prison
Obstruction of justice
20 years in prison
Destruction or removal of property to prevent seizure
5 years in prison
Illegal re-entry of a removed alien
2 years in prison
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case. The Organized Crime and Gang Section of the Criminal Division of the Department of Justice assisted in reviewing the racketeering charges.
An indictment, superseding indictment or criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you are a victim of the alleged crimes, or have additional information about MS-13, please call the FBI hotline at 614-849-1765. Callers can remain anonymous.
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- MS-13, formally La Mara Salvatrucha, is a multi-national criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, Guatemala and Honduras. The organization’s leadership is based in El Salvador, where many of the gang’s high-ranking members are imprisoned.
New Boston Man Sentenced to 37 Months in Prison for Bank RobberyRead the Press Release
CONCORD, N.H. - Robert A. Ruggiero, 24, of New Boston, was sentenced to serve 37 months in federal prison for bank robbery, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 8, 2017, Ruggiero walked into a Citizens Bank branch in Goffstown, New Hampshire, and handed the teller a note demanding money. The teller gave Ruggiero a quantity of United States currency. Surveillance cameras captured images of the robbery, which were broadcast on local news outlets and distributed via social media. Numerous individuals identified Ruggiero from the photographs and he was apprehended later that day.
Ruggiero pleaded guilty to the offense on November 9, 2017. After serving his sentence, he will be on supervised release for three years.
“Bank robbery is a violent crime that endangers both bank employees and members of the public,” said Acting U.S. Attorney Farley. “We will continue to work with our law enforcement partners to identify and prosecute those who commit bank robberies and other violent offenses so that we can improve the safety of our community.”
“Mr. Ruggiero's unlawful behavior brought fear and concern to bank employees," said Harold H. Shaw, Special Agent in Charge, Federal Bureau of Investigation (FBI) Boston Division. "The FBI is grateful for the public's assistance in helping us identify him, and we are fully committed to working with all of our law enforcement partners to combat violent crime and improve the safety of our communities."
This matter was investigated by the Federal Bureau of Investigation and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Nebraska Man Sentenced for Conversion of Mortgaged PropertyRead the Press Release
United States Attorney Ron Parsons announced that a Harrison, Nebraska, man convicted of Conversion of Mortgaged Property was sentenced on February 7, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Paxton Carrier, age 24, was sentenced to 12 months of imprisonment and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $275,403.52 in restitution to the Farm Service Agency.
Carrier was charged on April 18, 2017, and pleaded guilty on November 3, 2017. The charge related to Carrier obtaining a loan from the Farm Services Agency (FSA), and then selling a large portion of the collateral mortgaged by the loan. Rather than paying the FSA loan as required after the sale of collateral, Carrier used the proceeds to pay other debts and purchase personal items. Carrier never made a payment on the FSA loan.
This case was investigated by the Office of Inspector General, United States Department of Agriculture. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Nebraska Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Nebraska man pleaded guilty today to producing child pornography between 2015 and 2016, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Nicholas Alford, 26, of Bellevue, Nebraska, pleaded guilty to one count of production of child pornography before Chief U.S. District Court Judge Laurie Smith Camp of the District of Nebraska. Sentencing is set for May 14.
According to admissions made in connection with his guilty plea, in July 2015, Alford provided a 13-year-old minor with the username for a Kik Messenger account user who Alford claimed would pay the minor money in exchange for sexually explicit images. Alford was actually the user of the Kik Messenger account, and, in that capacity, he persuaded the minor to send dozens of sexually explicit images to his Kik Messenger account. A search warrant executed on Alford’s Bellevue residence resulted in the discovery of dozens of images and videos depicting the minor engaged in sexually explicit conduct.
The FBI is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a 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.
Mt. Pleasant Man Sentenced to 15 Years in Prison for Child PornographyRead the Press Release
DAVENPORT, Iowa - On February 14, 2018, United States District Court Chief Judge John A. Jarvey sentenced Joel Allen Corder, age 45, of Mount Pleasant, Iowa, to 180 months in prison for receiving and possessing child pornography, announced United States Attorney Marc Krickbaum. Corder was ordered to serve five years of supervised release following his imprisonment, to pay $200 to the Crime Victims’ Fund, and to comply with the sex offender registry requirements upon release.
On August 18, 2017, Corder pleaded guilty to the charges. The investigation began in October 2016, when an internet company notified the National Center for Missing and Exploited Children (NCMEC) that “twistedmind31,” a name used by Corder, attempted to send four images child pornography to another person.
On December 20, 2016, officers met with Corder to discuss the child pornography investigation. Corder’s cellular phone was seized and subsequently examined. The examiner recovered 638 images containing child pornography. In addition to the child pornography, the examiner found a series of KIK chats containing sexual content between Corder and an 11-year- old female who lived in Texas. In an interview, Corder admitted in 2016 he began receiving and possessing child pornography. Corder admitted he communicated with an 11-year-old female through KIK messenger and asked her to send nude photographs of herself on more than one occasion. The victim sent pictures of her exposed genitalia as requested, which he then stored on his cellular phone.
This matter was investigated by the Federal Bureau of Investigation and NCMEC. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Child” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Mississippi Real Estate Investors Plead Guilty to Conspiracy to Rig Bids at Public Foreclosure AuctionsRead the Press Release
Two real estate investors pleaded guilty today for their roles in a conspiracy to rig bids at public real estate foreclosure auctions in Mississippi, the Department of Justice announced.
“Shannon and Jason Boykin are the first two defendants to plead guilty in the Antitrust Division’s active, ongoing investigation into anticompetitive behavior at real estate foreclosure auctions in Mississippi,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “In the past few years, the Division has secured convictions of over 100 individuals around the country. The Division remains committed to rooting out anticompetitive conduct at foreclosure auctions.”
Felony charges against Shannon Boykin and Jason Boykin were filed on February 1, 2018, in the U.S. District Court for the Southern District of Mississippi. According to court documents, from at least as early May 22, 2012, through at least as late as March 22, 2017, Jason and Shannon Boykin conspired with others to rig bids, designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in the Southern District of Mississippi. Co-conspirators made and received payoffs in exchange for their agreement not to bid.
“Rigging, cheating and swindling foreclosure auctions undermines confidence in the marketplace, defrauds companies, and hurts owners of foreclosed homes. These criminal actions harm us all, and I commend the Antitrust Division and the FBI for their investigation and prosecution of these crimes throughout the country. This office will continue to work with our law enforcement partners to combat illegal, anticompetitive behavior and protect victims,” said United States Attorney D. Michael Hurst, Jr. for the Southern District of Mississippi.
“The criminal actions of the defendants in this case provide a clear example of why enforcement of the Sherman Act remains necessary in maintaining a competitive field of commerce,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying such financial schemes that attempt to take advantage of the competitive process, including schemes targeting foreclosure auctions.”
The Department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.
Mexican Woman Sentenced to Prison for Using a Fraudulent Social Security Card to Get a JobRead the Press Release
A Mexican woman who aided and abetted her husband in absconding from justice in Nebraska and assumed a new identity in Iowa was sentenced on February 14, 2018, to three months in federal prison.
Rosa Nevarez-Fallad, age 60, a citizen of Mexico and lawful permanent resident of the United States residing in Fremont, Nebraska, received the prison term after a September 28, 2017, guilty plea to one count of unlawful use of an identification document.
At the guilty plea, Nevarez-Fallad admitted she used a Social Security card knowing that the card was forged or unlawfully obtained. In 2016, Nevarez-Fallad’s husband, Fernando Nevarez-Carreon, faked a heart attack and fled Nebraska to avoid sentencing in federal court for conspiracy to distribute counterfeit documents and aggravated identity theft. In July 2016, Nevarez-Fallad and Nevarez-Carreon both completed employment paperwork in Farley, Iowa, to obtain jobs under false names and used identification cards bearing the names and Social Security Numbers of United States citizens. Nevarez-Carreon avoided apprehension by law enforcement until March 2017, when he was arrested at his place of employment in Farley. Nevarez-Carreon was sentenced to more than six years in prison in the United States District Court for the District of Nebraska in June 2017 and is awaiting sentencing in the Northern District of Iowa for one count of unlawful use of an identification document.
Nevarez-Fallad was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Nevarez-Fallad was sentenced to three months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Nevarez-Fallad is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Social Security Administration, Office of Inspector General, and the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1026-LRR.
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Mexican National Pleads Guilty to Cocaine Trafficking and Immigration ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS PALACIOS ORTIZ, 44, a citizen of Mexico, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to cocaine trafficking and immigration offenses.
According to court documents and statements made in court, on February 13, 2017, the Connecticut State Police stopped a car that PALACIOS ORTIZ was driving on I-84 East near Waterbury. A subsequent search of the vehicle revealed approximately 4.5 kilograms of cocaine.
PALACIOS ORTIZ, who did not possess a valid driver’s license, had been previously deported from the U.S.
PALACIOS ORTIZ pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, an offense that carries a maximum term of imprisonment of 40 years, and one count of reentry of a removed alien, an offense that carries a maximum term of imprisonment of 10 years.
Under the terms of a binding plea agreement, if accepted by the court, the parties have agreed that a term of imprisonment of 60 months is an appropriate sentence in this case.
Judge Shea scheduled sentencing for May 14, 2018.
PALACIOS ORTIZ has been detained since February 13, 2017.
This investigation is being conducted by the Drug Enforcement Administration and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Massachusetts Man Sentenced for Mailing Threatening CommunicationsRead the Press Release
CONCORD, N.H. - Michael Dube, 48, of Tewksbury, Massachusetts, was sentenced to five years of probation and a $16,500 fine for mailing threatening communications, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between March 2, 2016 and June 2, 2016, Dube sent three letters to victims located in New Hampshire, which contained threats to break the addressee’s legs, sexually assault his daughter, and to kill his son. The letters were postmarked in Boston and delivered to a residence in Sandown, New Hampshire.
Dube previously pleaded guilty to three counts of mailing threatening communications.
“By sending these threatening communications to the victim, the defendant attempted to create a climate of fear and intimidation,” said Acting U.S. Attorney Farley. “Such conduct cannot be tolerated. I commend the law enforcement officers whose work led to the successful identification and prosecution of this defendant.”
“Mr. Dube was blinded by his obsession and oblivious to the impact of his crimes. He carried out a relentless stalking campaign whereby he violated his victim’s privacy and threatened those around him,” said Harold H. Shaw, Special Agent in Charge, Federal Bureau of Investigation Boston Division. (FBI) “Violence through words or actions cannot be tolerated and the FBI will continue to do everything it can to identify, arrest, and bring those to justice who engage in similar criminal conduct.”
This Sandown Police Department initiated the investigation of the case. The Federal Bureau of Investigation, the Derry Police Department, the Salem Police Department, the Raymond Police Department, and the Tewksbury Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Helen Fitzgibbon and Donald Feith.
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Mansfield man charged with stalkingRead the Press Release
A Mansfield man was charged with stalking, said U.S. Attorney Justin E. Herdman.
Gary L. Fisher, 44, used the mail in August 2017, in an attempt to cause emotional distress to the victim, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the 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 is being prosecuted by Assistant United States Attorneys Michael A. Sullivan and Danielle Angeli following an investigation by the United States Marshal’s Service, the Mansfield office of the Federal Bureau of Investigation and the Mansfield Police Department.
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.
Manhattan U.S. Attorney Announces Criminal Charges Against U.S. Bancorp for Violations of the Bank Secrecy ActRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced criminal charges against U.S. Bancorp (“USB”) consisting of two felony violations of the Bank Secrecy Act (“BSA”) by its subsidiary, U.S. Bank National Association (the “Bank”), the fifth largest bank in the United States, for willfully failing to have an adequate anti-money laundering program (“AML”) and willfully failing to file a suspicious activity report (“SAR”). The case is assigned to United States District Judge Lewis A. Kaplan.
Mr. Berman also announced an agreement (the “Agreement”) under which USB agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay a $528 million penalty, and continue reforms of its BSA/AML compliance program. Assuming USB’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of two years, after which time the Government will seek to dismiss the charges. The Agreement is pending review by the Court. The penalty shall be collected through the Bank’s forfeiture to the United States of $453 million in a civil forfeiture action also filed today, with the remaining $75 million satisfied by the Bank’s payment of a civil money penalty assessed by the Office of the Comptroller of the Currency (the “OCC”).
U.S. Attorney Geoffrey S. Berman stated: “U.S. Bank’s AML program was highly inadequate. The Bank operated the program ‘on the cheap’ by restricting headcount and other compliance resources, and then imposed hard caps on the number of transactions subject to AML review in order to create the appearance that the program was operating properly. The Bank also concealed its wrongful approach from the OCC. As a result, U.S Bank failed to detect and investigate large numbers of suspicious transactions. With today’s resolution, the Bank has accepted responsibility for its criminal conduct and committed to completing the reform of its AML program.”
The OCC, the Financial Crimes Enforcement Network (“FinCEN”), and the Board of Governors of the Federal Reserve System (”FRB”) have also reached agreements with the Bank to resolve related regulatory actions. For purposes of its action, which was also filed today, FinCEN is represented by this Office’s Civil Division. FinCEN’s agreement with the Bank requires the Bank to pay an additional $70 million for civil violations of the BSA, and it includes further admissions by the Bank, including that the Bank filed more than 5,000 currency transaction reports with incomplete and inaccurate information, which impeded law enforcement’s ability to identify and track potentially unlawful behavior. FinCEN’s agreement with the Bank is pending review by the Court.
According to the documents filed today in Manhattan federal court:
USB’s Failure to Maintain an Adequate AML Program
From 2009 and continuing until 2014, USB willfully failed to establish, implement, and maintain an adequate AML program. Among other things, USB capped the number of alerts generated by its transaction monitoring systems, basing the number of such alerts on staffing levels and resources, rather than setting thresholds for such alerts that corresponded to a transaction’s level of risk. The Bank deliberately concealed this from the OCC, the Bank’s primary regulator.
USB was well aware that these practices were improper, were resulting in the Bank missing substantial numbers of suspicious transactions, and were placing the Bank at risk of regulatory action. Bank documentation from as early as 2005 acknowledged that alert limits were based on staffing levels and, as a result, a risk item for the bank. For example, in a December 1, 2009,F memo from the Bank’s then AML Officer (the “AMLO”) to the then Chief Compliance Officer (the “CCO), the AMLO explained that while the Bank was experiencing significant increases in SAR volumes, the Bank’s staff was “stretched dangerously thin” and warned that a “regulator could very easily argue that this testing should lead to an increase in the number of queries worked.” The Bank conducted below-threshold testing (“BTT”), which consisted of investigating a limited number of transactions that fell outside alert limits to see if thresholds should be adjusted so that more alerts would be investigated. The Bank’s BTT regularly found that SARs should have been filed on more than 25 percent, and as much as 80 percent, of the tested transactions. Rather than increase resources and lower thresholds to detect such suspicious activity, as repeatedly requested by the responsible AML employees, the Bank instead decided to stop conducting BTT altogether.
An OCC examiner assigned to the Bank repeatedly warned USB officials, including the AMLO, of the impropriety of managing the Bank’s monitoring programs based on the size of its staff and other resources. Knowing that the OCC would find USB’s resource-driven alert limits to be improper, Bank officials, including the CCO, deliberately concealed these practices from the OCC. For example, a Bank employee deliberately excluded references to resource limitations from the minutes of an internal Bank meeting for fear that the OCC would disapprove of the Bank’s practices, and in order to protect himself and his supervisor from adverse consequences. Indeed, the AMLO described USB’s AML program to another senior manager as an effort to use “smoke and mirrors” to “pull the wool over the eyes” of the OCC.
USB also failed to monitor Western Union (“WU”) transactions involving non-customers of the Bank that took place at Bank branches. The Bank processed WU transactions involving non-customers even though they would not be subject to the Bank’s transaction monitoring systems. Even when Bank employees flagged specific non-customer transactions raising AML-related concerns, the transactions went uninvestigated. It was not until July 1, 2014, that the Bank implemented a new policy that prohibited WU transactions by non-customers.
In the course of this investigation, the Bank analyzed the impact of its deficient monitoring practices. For just the six months prior to taking steps to remedy the practices, the Bank’s analysis resulted in the generation of an additional 24,179 alerts and the filing of 2,121 SARs.
USB’s Failure to Timely File Suspicious Activity Reports Relating to Scott Tucker
From October 2011 through November 2013, the Bank willfully failed to timely report suspicious banking activities of Scott Tucker, its longtime customer, despite being on notice that Tucker had been using the Bank to launder proceeds from an illegal and fraudulent payday lending scheme using a series of sham bank accounts opened under the name of companies nominally owned by various Native American tribes (the “Tribal Companies”). From 2008 through 2012, Tucker’s companies extended approximately five million loans to customers across the country, while generating more than $2 billion in revenues and hundreds of millions of dollars in profits. Most of this money flowed through accounts that Tucker maintained at the Bank.
USB employees responsible for servicing Tucker’s ongoing account activity disregarded numerous red flags that Tucker was using the tribes to conceal his ownership of the accounts. For example, Tucker spent large sums of monies from accounts in the names of Tribal Companies on personal items, including tens of millions of dollars on a vacation home in Aspen and on Tucker’s professional Ferrari racing team. USB also received subpoenas from regulators investigating Tucker’s businesses. In September 2011, after news organizations published reports examining Tucker’s history and questionable business practices, the Bank reviewed Tucker’s accounts, and an AML investigator reported to supervisors, among other things, that “it looks as though Mr. Tucker is quite the slippery individual” who “really does hide behind a bunch of shell companies.” Based on its findings, the Bank closed the accounts in the names of the Tribal Companies but failed to file a SAR.
The Bank also left open Tucker’s non-tribal accounts and opened new ones, allowing over $176 million more from his illegal payday business to flow into the Bank. Despite also learning of an April 2012 Federal Trade Commission lawsuit against Tucker and the Tribal Companies, the Bank did not file a SAR regarding Tucker until served with a subpoena by this Office in November 2013.
On October 13, 2017, Tucker was convicted in the United States District Court for the Southern District of New York of various offenses arising from his payday lending scheme. The Government intends to recommend that the amounts forfeited by USB be distributed to victims of Tucker’s scheme, consistent with the applicable Department of Justice regulations, through the ongoing remission process.
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Mr. Berman praised the outstanding investigative work of the Special Agents at the United States Attorney’s Office and thanked the OCC for its assistance with the investigation. Mr. Berman also thanked FinCEN for its partnership with this Office.
The prosecution is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Niketh Velamoor and Jonathan Cohen are in charge of the prosecution. The Office’s Civil Frauds Unit is handling the regulatory action on behalf of FinCEN. Assistant U.S. Attorneys Christopher Harwood and Caleb Hayes-Deats are in charge of the matter.
Manchester Woman Pleads Guilty to Federal Firearms ChargesRead the Press Release
CONCORD, N.H. - Sara Johnson, 35, of Manchester, pleaded guilty in federal court to federal firearms charges, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Johnson purchased a rifle in a private sale from an individual in New Hampshire sometime in 2015. Johnson subsequently provided the rifle to an individual Johnson knew to be a convicted felon who was prohibited from possessing a firearm.
Johnson also purchased a pistol in 2015 in a private sale in Bow, New Hampshire. At the time of the purchase, the pistol’s serial number was intact. On June 9, 2016, law enforcement officers executed a search warrant at Johnson’s residence. A pistol with an obliterated serial number was found underneath a mattress. Testing later confirmed it to be the same pistol Johnson had purchased in 2015. Possessing a firearm with an obliterated serial number is a violation of federal law.
Johnson is scheduled to be sentenced on May 24, 2018.
“Protecting the community from violent crime is a high priority of the United States Department of Justice,” said Acting U.S. Attorney Farley. “Those who purchase guns for criminals are contributing to the violent crime problem. Along with our law enforcement partners, we will continue to use the Project Safe Neighborhoods initiative to take guns out of the hands of criminals and to protect the safety of our communities.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Manchester Man Pleads Guilty to Fentanyl Trafficking ChargesRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Derrick Jennings, 48, formerly of Manchester, pleaded guilty to fentanyl trafficking charges.
Court documents and statements in court showed that while on supervised release for a prior drug trafficking crime, Jennings sold fentanyl on three separate occasions in January and February 2016, to an individual who was cooperating with the Rochester Police Department. On April 6, 2016, two individuals were arrested by the Manchester Police Department during a traffic stop after a search of the vehicle resulted in the seizure of 244.45 grams of fentanyl that had been packaged for sale. Investigators determined that the individuals were drug “runners” for Jennings. On July 18, 2016, 57.7 grams of fentanyl, a digital scale, multiple cellphones, and $6,100 in cash were recovered when a search warrant was executed at Jennings’ apartment in Manchester. Jennings became a fugitive, but was arrested in November of 2016. The cash was forfeited to the United States.
Jennings pleaded guilty to three counts of distribution of fentanyl, one count of possession of fentanyl with intent to distribute, and one count of conspiracy to distribute fentanyl. He will be sentenced on May 31, 2018.
“The aggressive investigation and prosecution of fentanyl trafficking is a top priority of the United States Attorney’s Office and our law enforcement partners,” said Acting U.S. Attorney Farley. “Individuals like this defendant who seek to profit from the sale of this deadly drug are causing grave damage to our community. We will work tirelessly to stop fentanyl trafficking and to protect the citizens of the Granite State from its deadly effects.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said Drug Enforcement Administration Special Agent in Charge Michael J. Ferguson. “But those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA’s top priority is combatting the opioid epidemic by working with our local, county and state law enforcement partners to bring to justice those that distribute this poison.”
This investigation was conducted by the DEA, the Strafford County Drug Task Force, and the Manchester and Rochester, New Hampshire Police Departments. The United States Marshals-led New Hampshire Joint Fugitive Task Force also provided valuable assistance. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Man Sentenced to over 11 Years in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
Mark Day, 31, of St. Louis, Missouri will serve 138 months in federal prison for possession with intent to deliver heroin and possession of a firearm in furtherance of a drug trafficking crime, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Following his prison sentence, Day will be on federal supervised release for 4 years. Day has been in custody since January 4, 2017.
Documents filed in the U.S. District Court establish that on February 26, 2015, Day and a juvenile accomplice were observed by MEGSI officers making hand-to-hand drug deliveries in Washington Park, Illinois. When officers attempted to stop the car driven by the juvenile accomplice, he fled at a high rate of speed and eventually crashed the car into a ditch. Day and the juvenile were arrested. Inside the car and on Day’s person officers found 2,626 capsules of heroin and three loaded firearms which included a Century Arms AK-47 rifle, a Taurus 9 mm semiautomatic handgun that had been stolen, and a Taurus .45 caliber handgun.
The case was investigated by theMetropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case was prosecuted by Assistant United States Attorney Ali Summers.
Man Sentenced to Nearly 22 Years in Federal Prison for KidnappingRead the Press Release
James M. Elbert, III, of Flint was sentenced to 260 months (21⅔ years) in federal prison for kidnapping and being a felon in possession of ammunition, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Jeffery E. Peterson, Acting Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation (FBI), and George N. Sippert, Chief of Police of the Flint Township Police Department.
U.S. District Court Judge Matthew F. Leitman imposed sentence on James M. Elbert, III, 29, following his guilty plea to kidnapping and felon in possession of ammunition. Because of his prior record, Elbert was designated as an armed career criminal and a career offender, which subjected him to a mandatory minimum sentence of at least 15 years in prison. Judge Leitman also sentenced Elbert to three years of federal supervised release following his term of incarceration.
According to court documents, Elbert, a drug dealer, traveled from Arkansas to Michigan to collect a drug debt from the victim. Elbert and his co-defendant Steven J. Bridges, who were both armed with firearms, kidnapped the victim from a Flint Township apartment complex. Elbert and Bridges then tied the victim up, placed a plastic bag over his head, and transported him to a vacant house in Flint. Once at the vacant house, Elbert and Bridges took the victim to the basement where they tied him to a chair and placed a gag in his mouth, which they secured by wrapping tape around the victim’s head and neck. During the kidnapping, Elbert made telephone calls to the victim’s family threatening to kill to the victim if his debt was not paid. Officers with the Flint Township Police Department ultimately learned of the victim’s location and rescued him before he was subjected to further harm. The victim was transported to a local hospital for treatment and was later released in good condition.“We are focusing on the most violent offenders in the Flint area in order to protect our citizens from violent criminal predators,” Schneider said. “Armed kidnapping is one of the most serious violations of public safety, making people vulnerable in their own neighborhoods. We will bring strong federal penalties against those who prey on citizens all across the Eastern District of Michigan.”
“The FBI is pleased to have assisted the Flint Township Police Department in bringing Mr. Elbert to justice,” said Peterson, Acting Special Agent in Charge, Detroit Division of the FBI. “This incident once again underscores the dangers we face from illegal drugs and the violent crimes that often accompany drug trafficking activities. While dangers remain so long as illegal drugs are on our streets, the public should know that these criminals will not escape the reach of law enforcement, even when they come from hundreds of miles away.”
“This case once again demonstrates the commitment to cooperation between local police agencies and their Federal partners. Law enforcement is most often successful when combining resources. We are grateful for the support of the FBI and the commitment and dedication to our community’s safety exhibited by the efforts of the United States Attorney’s Office,” Chief Sippert said.
The case was investigated by the Flint Township Police Department with assistance from special agents of the FBI. The case was prosecuted by Assistant United States Attorney Anthony P. Vance.
Man Admits Role in Identity Theft and Wire Fraud ConspiracyRead the Press Release
NEWARK N.J. – A Georgia man today admitted using a fake driver’s license in order to obtain a check issued in response to false statements and representations, U.S. Attorney Craig Carpenito announced.
Temilade Adekunle, 30, of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of aggravated identity theft and one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Adekunle was a member of a conspiracy to fraudulently obtain money, including by committing identity theft, impersonating account holders and obtaining money from their accounts. On Aug. 8, 2017, a member of the conspiracy contacted an entity where an individual (Victim 2) had an account. The caller impersonated Victim 2 and asked to withdraw approximately $85,000 from the account. In response, the entity sent a check through a mail carrier to the account holder’s address.
A member of the conspiracy caused the mail carrier to hold the package containing the check for Victim 2 at one of its branch locations. On Aug. 14, 2017, Adekunle entered the branch and, using a driver’s license with Adekunle’s picture and Victim 2’s name and address, obtained the package containing the check. Sentencing is scheduled for May 30, 2018.
The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison, and a fine of $250,000, or twice the gross gain to the defendant or twice the gross loss to others, whichever is greater. The aggravated identity theft charge carries a sentence of two years in prison, which must be served consecutively to any prison sentence ordered for the conspiracy to commit wire fraud charge, and a fine of $250,000, or twice the gross gain to the defendant or twice the gross loss to others, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s guilty plea. He also thanked the Unified Police Department of Greater Salt Lake, Utah, under the direction of Sheriff Rosie Rivera, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jean Barrett Esq., Montclair, New Jersey
Long Island Home-School Tutor Charged with EnticementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and the filing of federal charges yesterday against JEFFREY WEBER. The Complaint charges that WEBER communicated with an individual he believed to be a 13-year-old girl via email and text messages, and made plans to meet the girl at a diner in Manhattan and then go to her apartment to engage in sexual activity. WEBER was arrested yesterday when he arrived at the designated meeting place to meet the girl, and was presented before United States Magistrate Judge Debra Freeman in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Jeffrey Weber, a home-school tutor who has constant interaction with children, made arrangements through text messaging and emails to meet with what he thought was a 13-year-old girl to engage in sexual activity. Thankfully he was corresponding with an undercover law enforcement officer and not a young girl, but his alleged intentions are no less insidious. This Office, along with our partners at the NYPD, remain committed to keeping child predators off the streets.”
NYPD Commissioner James P. O’Neill said: “The suspect in this case—a 59-year-old Long Island man—is accused of sending sexually-explicit texts and emails to an investigator posing as a 13-year-old girl. But this crime wasn't confined to cyberspace. The man was arrested yesterday at a diner in Manhattan, where his plan was to meet the underage girl and take her elsewhere for sex. I want to thank the members of the Internet Crimes Against Children Task Force, whose expertise identified and put an end to this predator’s activities.”
According to the allegations in the Complaint filed in Manhattan federal court:[1]
Between January 30, 2018, and February 14, 2018, WEBER, using email and text messages, engaged in sexually explicit communications with a law enforcement agent who was acting in an undercover capacity and posing as a 13-year-old girl. During these communications, WEBER discussed various sexual acts he wished to perform on the girl and made a plan to meet the girl at a diner in Manhattan and to then go to the girl’s nearby apartment for the purpose of engaging in sexual activity. On February 14, 2018, Weber was arrested at the diner where he planned to meet the girl. In an email with who he thought was the 13-year-old girl, WEBER said that he was employed as a tutor, working in the homes of at-risk youth.
* * *
WEBER, 59, of the Seaford, New York, is charged with one count of attempted enticement, which carries a maximum sentence of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge
Mr. Berman praised the NYPD’s Computer Crime Squad, which is part of the Internet Crimes Against Children (ICAC) Task Force, for their outstanding investigative work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel Loss is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Law Enforcement to Announce New Charges in MS-13 Case, Including Five Central Ohio MurdersRead the Press Release
COLUMBUS, Ohio – A second superseding indictment returned here today charges 23 individuals alleged to be members and associates of the Columbus clique of MS-13 in a racketeering conspiracy. The most recent indictment includes crimes that could make some of the defendants eligible for the death penalty.
The briefing will be held:
TODAY: THURSDAY, FEBRUARY 15, 2018
WHEN: 2:30 P.M.
WHERE: U.S. Attorney’s Office
Main Conference Room
303 Marconi Blvd. Suite 200
Columbus, Ohio 43215
WHO: U.S. Attorney Benjamin C. Glassman
Angela L. Byers, Special Agent in Charge, FBI
Franklin County Sheriff Dallas Baldwin
Caleb Lowe, Assistant Field Office Director, ICE Enforcement & Removal Operations
Tim Becker, Deputy Chief, Columbus Division of Police
Room available beginning at 2:15 P.M. No TV lighting or multbox will be available. ID will be required for entrance at Security.
# # #
Las Cruces Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Kenneth Matthew Adame, 25, of Las Cruces, N.M., was sentenced yesterday in federal court to 60 months in prison for his methamphetamine trafficking conviction. Adame will be on supervised release for four years after completing his prison sentence.
Adame and co-defendants Ricky Joe Garcia, 53, and Christopher Michael Sanchez, 25, both of Las Cruces, were arrested in April 2017, and were charged by criminal complaint with participating in a methamphetamine trafficking conspiracy on April 10, 2017, in Dona Ana County, N.M. According to the complaint, on that day, Adame, Garcia and Sanchez sold approximately 497.22 grams of methamphetamine to undercover law enforcement agents.
On June 21, 2017, Adame pled guilty to a felony information charging him with conspiracy to distribute methamphetamine, and admitted that on April 10, 2017, he conspired with his co-defendants to distribute 497 grams of methamphetamine.
Sanchez pled guilty to methamphetamine trafficking charges on July 19, 2017, and was sentenced on Nov. 27, 2017, to 60 months in federal prison followed by four years of supervised release. Garcia pled guilty to methamphetamine trafficking charges on Aug. 2, 2017, and is pending sentencing, which has yet to be scheduled. At sentencing, Garcia faces a mandatory minimum penalty of five years and a maximum of 40 years of imprisonment.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations and the HIDTA Region VII Drug Task Force, a multi-agency task force that conducts long term investigations targeting regional, national and international drug trafficking organizations that operate in Luna, Hidalgo and Grant counties and follow-up on cases resulting from U.S. Border Patrol and New Mexico State Police interdiction efforts. The case is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.
The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Largo Man Sentenced to Four Years in Federal Prison for Viewing Child Sexual Abuse Videos and Images Using the “Dark Web”Read the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Benjamin McKenzie (42, Largo) to four years in federal prison for possessing child sexual abuse videos and images. He was also sentenced to a 20-year term of supervision and ordered to register as a sex offender upon his release from prison.
McKenzie pleaded guilty on November 28, 2017.
According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular anonymizing website on the “dark web” to access and download images and videos depicting child pornography. Further investigation revealed that McKenzie had accessed child pornography on this website between September 2014 and March 2015. FBI agents executed a search warrant at McKenzie’s residence and a forensic examination of his computer revealed that it contained at least 400 videos and 100 images depicting children being sexually abused, as well as evidence that McKenzie had downloaded child pornography over the Internet.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lafayette, New York Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Donald J. Gardner, Jr., 42, of Lafayette, NY, pleaded guilty, before U.S. District Chief Judge Frank P. Geraci, Jr., to possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten who is handling the case, stated that in late January, 2014 to early February, 2014, Gardner, pretending to be a 10 to 12 year old boy, used his Facebook account to solicit child pornography images from three ten year old girls in the Town of Niagara, New York. Knowing that the girls were 10 years old, Gardner directed them to create and send him child pornography images. One of the 10 year old girls did send Gardner child pornography images via Facebook. Gardner possessed the child pornography images from early February, 2014 through May 7, 2014.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the Direction of Acting Special Agent in Charge Kevin P. Lyons and the Niagara County Sheriff’s Department, under the direction of Sheriff James R. Voutour.
Sentencing is scheduled for May 3, 2018, at 11:30 a.m. in Buffalo before Judge Geraci.
Kanawha County man pleads guilty to gun and drug chargesRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pled guilty today to federal gun and drug crimes, announced United States Attorney Mike Stuart. Fashawn Cannon, 27, of Hernshaw, entered his guilty plea to distribution of oxycodone and carrying a firearm during a drug trafficking crime. U.S. Attorney Stuart commended the investigative efforts of the U.S. Route 119 Drug and Violent Crime Task Force and the Kanawha County Sheriff’s Office.
“Violent drug dealers are going to have to learn that there’s a prison cell waiting for them if they push pain pills in our communities,” said U.S. Attorney Stuart. “My office’s aggressive prosecution of dangerous drug criminals will continue until we take back our streets from this epidemic.”
Cannon admitted that on November 17, 2017, he sold oxycodone at a residence on Carnation Lane in Hernshaw to a confidential informant working with law enforcement. Cannon further admitted that during the drug deal, he carried a Hi-Point, Model C9, 9mm pistol. That same day, officers seized the gun during a search, along with dealer quantities of heroin, fentanyl, and additional oxycodone.
Cannon faces at least five years and up to life in federal prison for the gun charge. He also faces up to 20 years in prison for the drug charge. The sentences will be served consecutively. Cannon is scheduled to be sentenced on May 16, 2018.
Assistant United States Attorney Matt Davis is responsible for the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case is also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Justice Department Reaches Settlement with the City and County of Honolulu and All Island Automotive Towing for Illegally Auctioning Servicemembers’ CarsRead the Press Release
The Justice Department today announced it has reached an agreement with the City and County of Honolulu, Hawaii (Honolulu or the City) and its contracted towing company, All Island Automotive Towing (All Island Towing), to remedy alleged violations of the Servicemembers Civil Relief Act (SCRA). The Department’s lawsuit, filed Feb. 15, 2018, alleges that Honolulu and All Island Towing violated the SCRA by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining the required court orders.
Under the agreement, Honolulu must adopt new SCRA-compliant procedures, compensate three servicemembers who complained to military legal assistance attorneys that the City had unlawfully auctioned off their cars while they were at sea aboard Navy ships, and establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated.
The Department launched its investigation after receiving a referral from military legal assistance officer Geoffrey Irving, now a Captain in the United States Marines, alleging that Honolulu had auctioned a marine’s vehicle while he was deployed. Two Navy legal assistance attorneys, Ms. Sarah Courageous and Lieutenant Commander (LCDR) Lena Whitehead, also requested that the Department investigate Honolulu on behalf of servicemembers whose vehicles had been auctioned while they were deployed. For more than five years, Ms. Courageous and LCDR Whitehead sent letters to Honolulu’s Corporation Counsel explaining that auctioning active-duty servicemembers’ cars without court orders violated the SCRA, but Honolulu continued the practice.
Marine Staff Sergeant (SSgt.) Orrin Sanford’s car was auctioned while he was aboard a U.S. Navy ship en route to Camp Foster in Okinawa, Japan. The vehicle, which was towed from the street in front of his home, had decals in the front windshield that are distributed only to Department of Defense employees for base access. Honolulu mailed a notice to SSgt. Sanford’s base address that it had taken his car into custody, but by the time the notice reached the ship, the City had already auctioned off the car. SSgt. Sanford’s military legal assistance attorney notified Honolulu that it had violated the SCRA and requested reimbursement for the vehicle, but Honolulu refused. As a result of Honolulu’s actions, SSgt. Sanford has had to continue making payments on a car that he no longer owns.
Navy Chief Petty Officer (CPO) Timothy Hartzog was also aboard a U.S. Navy ship when he learned that his car had been towed by Pinky Tows, a subcontractor of All Island Towing. CPO Hartzog executed a Power of Attorney aboard the ship designating a fellow chief petty officer as his agent. Pinky Tows refused to release the vehicle to that officer or to allow him to retrieve valuable tools and personal items from the trunk. All Island Towing then disposed of the vehicle and its contents. In addition to losing valuable tools and irreplaceable personal items, CPO Hartzog had to continue making payments on a car he no longer owned.
Navy Petty Officer Second Class (PO2) Cheri Tarbet was at the end of a six month deployment to the South Pacific when her roommate told her that her car was no longer parked on the street in front of their home. When PO2 Tarbet returned to Honolulu the following month, she attempted to report the car as stolen and learned from the police department that the car had been auctioned by Honolulu. PO2 Tarbet never received a notice from Honolulu that it had taken her vehicle into custody. A military legal assistance officer sent a letter to Honolulu indicating that PO2 Tarbet was an active-duty servicemember and requested restitution, but Honolulu refused to provide any reimbursement.
The Department’s investigation revealed that between 2011 and 2016, Honolulu auctioned 1,440 cars registered to individuals who had identified themselves as servicemembers on City forms during the motor vehicle registration process. Honolulu’s new procedures will ensure that servicemembers receive notice that their car has been taken into custody by Honolulu, even if they are deployed off island, and requires the City to obtain a court order or a valid SCRA waiver prior to auctioning a car owned by an active-duty servicemember.
“The Justice Department is committed to working tirelessly to protect the rights of the servicemembers who make great personal sacrifices in service to our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division “We appreciate that Honolulu and All Island Towing have been working cooperatively with the Department to reach a settlement that compensates servicemembers who lost their cars and personal possessions and that provides ongoing protections for the thousands of servicemembers stationed in Honolulu.”
“My office will continue to work with the Civil Rights Division to ensure that servicemembers who dedicate their lives to preserving our security and freedom do not forfeit their rights in doing so,” said U.S. Attorney Kenji M. Price of the District of Hawaii.
The SCRA protects servicemembers from certain civil proceedings that could affect their legal rights while they are in military service. One of those protections is the requirement that a person holding a lien on the property or effects of an active-duty servicemember obtain a court order prior to enforcing the lien. By failing to secure court orders before auctioning or disposing of cars owned by protected servicemembers, Honolulu and All Island Towing prevented servicemembers from obtaining a court’s review of whether the auction should be delayed or adjusted to account for their military service.
The SCRA also provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact their nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Justice Department Reaches Settlement with the City and County of Honolulu and All Island Automotive Towing for Illegally Auctioning Servicemembers’ CarsRead the Press Release
WASHINGTON – The Justice Department today announced it has reached an agreement with the City and County of Honolulu, Hawaii (Honolulu or the City) and its contracted towing company, All Island Automotive Towing (All Island Towing), to remedy alleged violations of the Servicemembers Civil Relief Act (SCRA). The Department’s lawsuit, filed Feb. 15, 2018, alleges that Honolulu and All Island Towing violated the SCRA by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining the required court orders.
Under the agreement, Honolulu must adopt new SCRA-compliant procedures, compensate three servicemembers who complained to military legal assistance attorneys that the City had unlawfully auctioned off their cars while they were at sea aboard Navy ships, and establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated.
The Department launched its investigation after receiving a referral from military legal assistance officer Geoffrey Irving, now a Captain in the United States Marines, alleging that Honolulu had auctioned a marine’s vehicle while he was deployed. Two Navy legal assistance attorneys, Ms. Sarah Courageous and Lieutenant Commander (LCDR) Lena Whitehead, also requested that the Department investigate Honolulu on behalf of servicemembers whose vehicles had been auctioned while they were deployed. For more than five years, Ms. Courageous and LCDR Whitehead sent letters to Honolulu’s Corporation Counsel explaining that auctioning active-duty servicemembers’ cars without court orders violated the SCRA, but Honolulu continued the practice.
Marine Staff Sergeant (SSgt.) Orrin Sanford’s car was auctioned while he was aboard a U.S. Navy ship en route to Camp Foster in Okinawa, Japan. The vehicle, which was towed from the street in front of his home, had decals in the front windshield that are distributed only to Department of Defense employees for base access. Honolulu mailed a notice to SSgt. Sanford’s base address that it had taken his car into custody, but by the time the notice reached the ship, the City had already auctioned off the car. SSgt. Sanford’s military legal assistance attorney notified Honolulu that it had violated the SCRA and requested reimbursement for the vehicle, but Honolulu refused. As a result of Honolulu’s actions, SSgt. Sanford has had to continue making payments on a car that he no longer owns.
Navy Chief Petty Officer (CPO) Timothy Hartzog was also aboard a U.S. Navy ship when he learned that his car had been towed by Pinky Tows, a subcontractor of All Island Towing. CPO Hartzog executed a Power of Attorney aboard the ship designating a fellow chief petty officer as his agent. Pinky Tows refused to release the vehicle to that officer or to allow him to retrieve valuable tools and personal items from the trunk. All Island Towing then disposed of the vehicle and its contents. In addition to losing valuable tools and irreplaceable personal items, CPO Hartzog had to continue making payments on a car he no longer owned.
Navy Petty Officer Second Class (PO2) Cheri Tarbet was at the end of a six month deployment to the South Pacific when her roommate told her that her car was no longer parked on the street in front of their home. When PO2 Tarbet returned to Honolulu the following month, she attempted to report the car as stolen and learned from the police department that the car had been auctioned by Honolulu. PO2 Tarbet never received a notice from Honolulu that it had taken her vehicle into custody. A military legal assistance officer sent a letter to Honolulu indicating that PO2 Tarbet was an active-duty servicemember and requested restitution, but Honolulu refused to provide any reimbursement.
The Department’s investigation revealed that between 2011 and 2016, Honolulu auctioned 1,440 cars registered to individuals who had identified themselves as servicemembers on City forms during the motor vehicle registration process. Honolulu’s new procedures will ensure that servicemembers receive notice that their car has been taken into custody by Honolulu, even if they are deployed off island, and requires the City to obtain a court order or a valid SCRA waiver prior to auctioning a car owned by an active-duty servicemember.
“The Justice Department is committed to working tirelessly to protect the rights of the servicemembers who make great personal sacrifices in service to our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We appreciate that Honolulu and All Island Towing have been working cooperatively with the Department to reach a settlement that compensates servicemembers who lost their cars and personal possessions and that provides ongoing protections for the thousands of servicemembers stationed in Honolulu.”
“My office will continue to work with the Civil Rights Division to ensure that servicemembers who dedicate their lives to preserving our security and freedom do not forfeit their rights in doing so,” said U.S. Attorney Kenji M. Price of the District of Hawaii.
The SCRA protects servicemembers from certain civil proceedings that could affect their legal rights while they are in military service. One of those protections is the requirement that a person holding a lien on the property or effects of an active-duty servicemember obtain a court order prior to enforcing the lien. By failing to secure court orders before auctioning or disposing of cars owned by protected servicemembers, Honolulu and All Island Towing prevented servicemembers from obtaining a court’s review of whether the auction should be delayed or adjusted to account for their military service.
The SCRA also provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact their nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Judge Sentences Penn Hills Man to 11 Years in Prison for Stealing Delivery Truck and Attempted Robbery of Delivery VanRead the Press Release
PITTSBURGH - An Allegheny County resident has been sentenced in federal court to 11 years imprisonment, five years supervised release, and ordered to pay restitution in the amount of $15,030, on his convictions for attempted robbery and theft from interstate shipment, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Anthony Bailey, 39, of Penn Hills, Pennsylvania.
According to information presented to the court, on April 13, 2016, Bailey stole a Sears delivery truck which was parked at a convenience store in Lawrenceville. The truck contained $15,030 worth of washers, dryers, refrigerators and other appliances, which he later sold in Homewood.
Two weeks later, on April 27, 2016, Bailey and his codefendants, Raymond Denson and David Lipinski, attempted to rob a van making a delivery of pharmaceutical drugs to the Giant Eagle in Northtowne Center in Gibsonia. Lipinski brandished a firearm while he and Bailey tried unsuccessfully to force the driver back into the van. Bailey and the others then aborted the robbery attempt. Bailey has previous felony convictions from California for robbery and firearms offenses.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Firearms, Tobacco ahd Explosives and the Northern Regional Police Department for the investigation leading to the conviction of Bailey. The case is 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 a 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. The efforts of PSN led to the successful prosecution of Bailey.
Houma Man Sentenced for Drug ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that BLAIR ANDERSON, age 42, a resident of Houma, Louisiana, was sentenced today after previously pleading guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846.
U.S. District Judge Ivan L.R. Lemelle sentenced ANDERSON to a term of imprisonment of 70 months, four years of supervised release, and a $100 mandatory special assessment.
According to court documents, ANDERSON conspired with others to distribute or possess with intent to distribute between 50 and 200 grams of a mixture or substance containing a detectable amount of methamphetamine.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, and the Terrebonne Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys James S.C. Baehr and J. Ryan McLaren were in charge of the prosecution.
Holmes County Man Who Stole Guns from Firearms Dealer Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Jackson, Miss. – Corey Hughes, 36, of Holmes County, pled guilty on Tuesday, February 13, 2018, before U.S. District Judge Carlton Reeves, to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Around 2:30 a.m. on July 28, 2014, Corey Hughes and co-defendant Estelle Cook tore a hole in the side of Central Mississippi Firearms, a gun store in Kosciusko, Mississippi, and stole 41 guns. Hughes, Cook, co-defendant Darnell Branch, and others sold at least a dozen of the stolen firearms in Durant and Lexington, Mississippi. Hughes sold at least one of the stolen guns to Jermaine Griffin for $100.
On October 3, 2017, a federal grand jury indicted Corey Hughes, Estelle Cook, Darnell Branch, and Frederick Russell for their unlawful conspiracy to possess and sell stolen firearms. That same day, a federal grand jury indicted Jermaine Griffin for receiving and possessing a stolen firearm.
At his hearing today, Hughes became the fourth defendant to plead guilty.
On January 10, 2018, co-defendant Frederick Russell pled guilty to conspiracy to possess and sell stolen firearms. He will be sentenced in Jackson by Judge Carlton Reeves on March 29, 2018. He faces a maximum penalty of 5 years in prison and a $250,000 fine.
On January 18, 2018, Jermaine Griffin pled guilty to possession of a stolen firearm. He will be sentenced in Jackson by Judge Tom S. Lee on April 19, 2018. Griffin faces a maximum penalty of 10 years in prison and a $250,000 fine.
Last week, co-defendant Estelle Cook pled guilty to being a felon in possession of a firearm. He will be sentenced in Jackson by Judge Carlton Reeves on May 15, 2018. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
Hughes will be sentenced in Jackson by Judge Carlton Reeves on June 11, 2018. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Jennifer Case.
Hammonton Man Pleads Guilty to Conspiracy to Distribute Crystal MethamphetamineRead the Press Release
CAMDEN, N.J. - A Hammonton, N.J., man admitted today to engaging in a conspiracy to distribute 50 grams or more of crystal methamphetamine to customers in the Hammonton area of Atlantic County, New Jersey.
Ignacio Cuesta, 41, of Atlantic City, N.J., pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an Information charging him with one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
Cuesta was arrested on June 24, 2016, in Hammonton, New Jersey after agreeing to sell two pounds of crystal methamphetamine to an undercover narcotics detective. The two pounds of crystal methamphetamine were seized from Cuesta’s Ford Expedition, along with approximately $9,000 in cash. Several additional pounds of crystal methamphetamine possessed by Cuesta were found hidden in vehicles and buried in a bucket in the ground in a parking lot for a local business in Hammonton. Law enforcement officers also recovered additional cash inside the trunk of a vehicle owned and used by Cuesta, which was parked in the same parking lot in Hammonton. The total seized from Cuesta and this property was over $100,000. As part of the plea agreement, Cuesta agreed to forfeit all of the cash and two vehicles that were seized on the day of the arrest.
The drug conspiracy charge carries a minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a maximum potential fine of up to $10,000,000. Sentencing is scheduled for May 18, 2018.
U.S. Attorney Carpenito credited special agents with the Drug Enforcement Agency, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation. He also thanked the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, for its assistance.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Patrick Duffy, Esquire
Hammond Woman Sentenced to 70 Months ImprisonmentRead the Press Release
HAMMOND - Alexis T. Young, age 35, of Hammond, Indiana was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen for conspiracy to commit identity theft and aggravated identity theft, announced United States Attorney Thomas L. Kirsch II.
Young was sentenced to 70 months imprisonment, 2 years supervised release, and ordered to pay over $64,000 in restitution to various financial institutions and retailers.
According to documents in this case, Alexis T. Young pled guilty to Count 1 of the Indictment that charged her with conspiracy to commit identity theft. Later, a jury found Young guilty on the remaining three (3) counts of aggravated identity theft. The fraud scheme involved the theft of medical forms, photostatic copies of driver’s licenses and state identification cards, Medicare cards, and other documents from a medical facility located in Illinois. The documents contained the names, dates of birth, social security numbers, checking accounts, credit card accounts, and Medicare card numbers of the victims including children. The fraud scheme involved opening fraudulent credit card, bank, and retail accounts on-line as well as utilities in the names of the victims. As part of the scheme, Young added herself as an authorized user on existing accounts of the victims. Young opened the accounts without the knowledge, authority, or permission of the victims.
The case was the result of an investigation by the U.S. Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
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Grand Jury Returns Indictment Against Former Executive Director of the Calhoun Conservation DistrictRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Tracy Lynn Bronson, a resident of Marshall, Michigan, has been indicted by a grand jury and charged with five counts of theft concerning programs receiving federal funds.
The indictment alleges that Bronson, who was the Executive Director of the Calhoun Conservation District, embezzled more than $5,000 each year between 2014 and 2017 from that organization. The indictment states that in calendar years 2014, 2016, and 2017, the Calhoun Conservation District received benefits in excess of $10,000 from a federal program from the U.S. Environmental Protection Agency and/or the U.S. Fish & Wildlife Service. The indictment further alleges that, in each of those years, and during certain periods in 2015, Bronson issued a series of unauthorized checks to herself that were drawn on the Calhoun Conservation District’s credit union account. In total, Bronson allegedly withdrew, and attempted to withdraw, more than $500,000 between January 2014 and August 2017.
If convicted, Bronson faces up to 10 years in federal prison and a fine of $250,000 on each count.
This matter was investigated by the U.S. Environmental Protection Agency, Office of Inspector General; the U.S. Department of the Interior, Office of Inspector General; and the Michigan State Police. The case is being prosecuted by Assistant U.S. Attorney Christopher O’Connor.
The charges in an Indictment are merely accusations, and the defendant is presumed innocent until proven guilty in court.
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Grand Island Man Sentenced for Drug and Money Laundering ChargesRead 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 Eric Marshall, 42, of Grand Island, NY, who was convicted of conspiracy to distribute 5 kilograms or more of cocaine and money laundering, was sentenced to 65 months imprisonment by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2007 and 2009, Eric Marshall supplied kilogram quantities of cocaine to Glance Ross and others, who were distributing cocaine, in the City of Buffalo. During that time, Marshall stored the cocaine in suitcases at a home in Buffalo, New York. In order to disguise his narcotics proceeds, Marshall gave some proceeds to Montique Shelton and had Shelton purchase defendant a home at 341 Hinman Avenue, in Buffalo, New York. As part of his sentencing, the defendant forfeited 341 Hinman Avenue, other property located in Buffalo, a Toyota Avalon, and a BMW.
The sentencing is a result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Kevin P. Lyons, and the New York State Police, under the direction of Major Edward Kennedy.
Gettysburg Man Charged with Robbing PharmacyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Zachary Edward Kuhn, age 26, of Gettysburg, Pennsylvania, was charged in a criminal information on February 6, 2018, with the robbery of a pharmacy.
According to United States Attorney David J. Freed, the criminal information alleges that on June 20, 2016, the defendant attempted to rob a pharmacy located in Waynesboro, Pennsylvania.
The federal investigation was conducted by the Waynesboro Police Department and the Drug Enforcement Administration. Assistant United States Attorney Joseph J. Terz is prosecuting 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 25 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Founder, Former Employee of the Now Defunct Bluegrass Training and Therapy Center, and Former State of Kentucky Employee Face Multiple Charges Including Wire Fraud and BriberyRead the Press Release
Schemed to defraud the Kentucky Department of Juvenile Justice and the federal government,
allegedly falsified attendance records and submitted over $400,000 in false claims for payment
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced the Grand Jury Indictment, unsealed today, charging the founder and former employee of Bluegrass Training and Therapy Center, with devising a scheme to defraud the Kentucky Department of Juvenile Justice and the federal government, and associated bribery charges.
According to the indictment, beginning no later than 2012 and continuing to September of 2015, Clifford Frank Wilkinson, a/k/a Jay Wilkinson, 61, of Louisville, and Erica Beth Bowen, 39, of Louisville, devised a scheme to defraud the Kentucky Department of Juvenile Justice and the federal government to obtain money and property by means of materially false and fraudulent pretenses.
Wilkinson, who was a founder, board member, and President of Bluegrass Training and Therapy Center (BTTC), and Bowen, who was an original employee of BTTC and held many positions including Program Director and secretary, falsified attendance records by inflating the number of daily participants submitted for payment to the Department of Juvenile Justice (DJJ). This was achieved by forging the signatures of youths in the program on monthly sign-in sheets and instructing youths to falsely sign in as present at BTTC programs, when in fact they were not in attendance. The investigation uncovered over 8,000 instances when youth were not actually in attendance in programs at BTTC. In addition, BTTC by way of the scheme, fraudulently obtained over $400,000 in payments on the contracts for youth that did not attend programs at BTTC.
Further, Bowen diverted some of the funds paid from DJJ to BTTC, into personal bank accounts, and converted some of the funds to cash, for personal use by her and Wilkinson and concealed this diversion of funds through false and misleading entries in BTTC’s business and accounting records.
Defendants Wilkinson, Bowen and Shannon L. Anson, 51, of Louisville, are charged with one count each of bribery concerning programs receiving federal funds. Wilkinson and Bowen are charged with knowingly and corruptly paying co-defendant Anson, a Social Service Specialist with DJJ, payments totaling approximately $50,500 in order to influence and reward Anson with business contracts that BTTC has with DJJ. Anson is charged with corruptly agreeing to accept those payments during the same time period in order to be influenced and rewarded. The alleged criminal activity took place between from about August of 2013, and continued until July of 2015.
Bluegrass Training and Therapy Center, Inc. was a non-profit corporation organized under Section 501(c)(3) of the Internal Revenue Code, located on approximately twenty acres at 10214 Plaudit Way in Louisville, that operated as an “equine employment training center,” offering equine therapy, employment training, and transitional housing to assist committed youth to re-enter their community. BTTC was awarded grant funds from the U.S. Department of Justice Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention, which were awarded to and dispersed from the DJJ. DJJ is one of five state departments under the Kentucky Justice and Public Safety Cabinet responsible for providing prevention programs for at-risk youth; residential placement/treatment services; and community aftercare and reintegration programs.
If convicted at trial, defendants Wilkerson and Bowen could be sentenced to no more than 20 years in prison, fined, and serve a period of supervised release. Defendant Anson could be sentenced to no more than ten years, fined, and serve a period of supervised release. All are subject to the payment of restitution. All defendants are scheduled for initial appearances, in Louisville, before Magistrate Judge Dave Whalin, on February 22, 2018, at 9:30 AM.
This case is being prosecuted by Assistant United States Attorneys for the Western District of Kentucky Stephanie Zimdahl and Marisa Ford. The investigation is being led by the U.S. Department of Justice Office of the Inspector General (DOJ-OIG), the Kentucky Office of the Attorney General, and the Kentucky Justice and Public Safety Cabinet.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Fort Berthold Man Sentenced on Arson ChargeRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on February 15, 2018, Chief United States District Judge Daniel L. Hovland sentenced Charles Valarian Smith, Sr., 24, of New Town, ND, on a charge of arson. Chief Judge Hovland sentenced Smith to serve three years and eight months in prison, to be followed by three years supervised release.
During the early morning hours of June 25, 2017, Smith, Sr., set fire to a New Town, ND, residence using gasoline. Located within the residence at the time of the fire were several individuals, including children. An individual passing by the location noticed flames coming from the residence and was able to extinguish the blaze with a fire extinguisher. There were no injuries sustained by anyone as a result of the fire, however the residence was damaged.
Smith, Sr., informed law enforcement that he and the owner of the residence had gotten into a physical altercation the day prior to the fire and that, while intoxicated and agitated from the altercation, Smith, Sr., had set fire to some garbage located near the side of the residence.
This case was investigated by the Three Affiliated Tribes Police Department.
Assistant United States Attorney Jonathan O’Konek prosecuted the case.
Former Treasurer of Labor Union Sentenced for EmbezzlementRead the Press Release
NORFOLK, Va. – A Portsmouth woman was sentenced today to 14 months in prison for an embezzlement scheme that nearly wiped out an account used to assist sick or distressed members of a local labor union.
According to court documents, Tamika Bullock, 39, was appointed in September 2015 to serve as the Secretary-Treasurer of International Brotherhood of Boilermakers Local 684. The union maintains a “sick and distressed” account, which is funded entirely by voluntary contributions and is solely used to assist union members who are sick or otherwise out of work. Between January 2016 and October 2016, Bullock embezzled $24,600 from the union, with over $21,400 being stolen from the “sick and distressed” account. As Secretary-Treasurer, Bullock provided financial reports at the monthly meeting of the union membership and made false statements about the balance in the account in order to conceal her embezzlement, reporting balances up to $15,000 higher than the actual balance. She used the $24,600 she embezzled for her own personal benefit, including paying for a cruise.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Mark Wheeler, District Director of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Alan M. Salsbury 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. 2:17-cr-97.