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29 March 2018
Houston Physician and Pain Management Clinic Owner Convicted of Running “Pill Mill” That Provided Unlawful Prescriptions for Millions of Doses of Opioids and Other Controlled SubstancesRead the Press Release
A federal jury found a Houston physician and the owner of a pain management clinic guilty today for their roles in running a “pill mill” that provided tens of thousands of unlawful prescriptions for millions of doses of opioids and other controlled substances.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
After a nine-day trial, Gazelle Craig, D.O., 41, and Shane Faithful, 48, both of Houston, Texas, were convicted of one count of conspiracy to unlawfully distribute controlled substances and three counts of unlawfully distributing and dispensing controlled substances. A sentencing date has not yet been scheduled before U.S. District Judge David Hittner of the Southern District of Texas, who presided over the trial. Both defendants were remanded into the custody of the U.S. Marshal’s Service.
“Our great country is currently in the midst of the deadliest drug crisis in our history,” said Attorney General Sessions. “Sadly, even some trusted medical professionals like doctors, nurses and pharmacists have chosen to violate their oaths and exploit this crisis for cash. The consequences have been devastating. In this case, tens of thousands of pills flooded our streets because of the defendants’ actions. We will never know for certain the scale of the damage done. We do know that justice has been served, and so I want to thank everyone who helped secure this conviction, including the DEA and Department of Justice Trial Attorneys Scott Armstrong and Devon Helfmeyer. This conviction will not only help stop the diversion of prescription drugs, it will send a message to every would-be fraudster in America.”
According to evidence presented at trial, from March 2015 through July 2017, Craig, a licensed doctor, and Faithful, the clinic owner, ran Gulfton Community Health Center (Gulfton), which operated as an illegal pill mill. The evidence showed that Craig unlawfully wrote approximately 18,252 prescriptions for over 2.1 million dosage units of hydrocodone, a Schedule II controlled substance, and approximately 15,649 prescriptions for over 1.3 million dosage units of carisporodal, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
The trial evidence showed that Craig issued unlawful prescriptions for controlled substances to as many as 60 patients a day. “Crew leaders” ferried numerous patients to Gulfton so that Craig could provide them with unlawful prescriptions for controlled substances. Faithful and Craig charged approximately $300 for each prescription and required payment in cash. The evidence also revealed that the defendants divided each day’s cash proceeds, often in excess of $15,000, from the sale of the unlawful prescriptions.
Faithful and Craig made great efforts to prevent law enforcement from investigating Gulfton, the evidence showed. For example, they banned the use of any electronic devices in the clinic and prevented anyone from bringing bags into Gulfton. Approximately four armed security guards also patrolled Gulfton daily to control the crowds of people, who ranged from addicts to “crew leaders.”
This case was investigated by the DEA. Trial Attorneys Scott Armstrong and Devon Helfmeyer of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, – NAHUM VERDE-ORTIZ, age 39, a citizen of Honduras was sentenced today after previously pleading guilty to a one-count indictment for illegal use of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. District Judge Eldon E. Fallon sentenced VERDE-ORTIZ to time served.
According to the indictment, on August 20, 2014, VERDE-ORTIZ used a social security number that did not belong to him to register for a safety training course that his employer required him to take before he could begin working for the company as a construction worker.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Hartford Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DRESHAWN NEWTON, also known as “Dre,” 28, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, NEWTON’s associate, Joel Gonzalez, also known as “Tuti,” was the focus of an investigation into the distribution of heroin and other controlled substances in and around Hartford by members and associates of Los Solidos and the Latin Kings. In November and December 2015, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made a total of six controlled purchases of heroin from Gonzalez at 71 Warrenton Avenue and 30-32 Putnam Street in Hartford. NEWTON participated in one of the controlled purchases on December 4, 2015. On that date, NEWTON gave 1,000 bags of heroin to an undercover officer in exchange for $2,250.
NEWTON has been detained since his arrest on December 17, 2015. On September 6, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Gonzalez pleaded guilty to a related charge and, on January 31, 2018, was sentenced to 77 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Hartford Gang Member Sentenced to More Than 3 Years in Federal Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TAYRENCE WILLIS, a.k.a. “T” and “T-Franklin,” 26, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 37 months of imprisonment, followed by four years of supervised release, for his role in a narcotics trafficking ring.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members, including WILLIS, acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
On October 8, 2016, investigators intercepted OSK members calls discussing firearms and planning a potentially violent act. Investigators immediately notified Hartford Police that violence might be imminent in the Orange and Cherry Street area, but before police could respond, at approximately 10:12 p.m., a man was chased and shot multiple times in front of 7-9 Cherry Street. The victim was located in the backyard of 51 Orange Street. He was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. Minutes after the shooting, WILLIS referenced the shooting during a wiretapped call. Subsequent analysis of surveillance video revealed WILLIS was on Cherry Street at the time and was a witness to the shooting.
WILLIS has been detained since his arrest on February 10, 2017. On November 21, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).
WILLIS’s criminal history includes convictions related to selling drug, unlawful firearm possession, and leading police on an extended and dangerous vehicle pursuit during which a firearm was thrown from the vehicle he was driving. WILLIS also has been a victim of two separate shootings.
Sixteen individuals were charged as a result of the investigation.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hancock County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Dziatkowicz, of Weirton, West Virginia, admitted today to possessing child pornography, United States Attorney Bill Powell announced.
Dziatkowicz, age 36, pled guilty to one count of “Possession of Child Pornography.” Dziatkowicz admitted to having child pornography in February 2015 in Hancock County, West Virginia.
Dziatkowicz faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Hancock County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
German Citizen Indicted for Major Fraud in Connection with A State Department GrantRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Katrin Verclas, age 50, a native and citizen of Germany residing in Washington, D.C., on a charge related to a scheme to defraud the U.S. Department of State of $1.231 million. The indictment was returned on March 26, 2018, and was unsealed upon the arrest of Verclas.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Steve A. Linick, Inspector General for the U.S. Department of State.
According to the indictment, Verclas, as director of MobileActive Corp, obtained a grant from the U.S. Department of State intended to support and promote U.S. global internet freedom efforts. Verclas represented to the U.S. Department of State that MobileActive was a non-profit organization pursuant to 26 U.S.C. § 501(c)(3) with the legal authority to apply for a grant, and that MobileActive had the financial capability to ensure proper planning, management, and completion of the grant project.
MobileActive was not a 501(c)(3) non-profit organization, and thus, did not have the legal authority to apply for the grant. Verclas spent much of the money from the U.S. Department of State on personal expenses and expenses unrelated to the grant. Verclas caused the U.S. Department of State to transfer $1.222 million into her control.
Verclas faces a maximum sentence of 10 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Schenning thanked Special Assistant U.S. Attorney Dominique Juliet Park and Assistant U.S. Attorney Bryan E. Foreman, who are prosecuting the case. Assistant U.S. Attorney Katharine A. Wagner with the U.S. Attorney’s Office, District of Massachusetts, provided substantial assistance.
Georgia Man Charged in Lottery ScamRead the Press Release
BOSTON – A Georgia man was indicted in federal district court in Boston yesterday in connection with his role in a bogus advance fee lottery scheme.
Peter Anthony Chin Jr., 34, of Atlanta, Ga., was indicted on one count of conspiracy to commit mail and wire fraud. On Feb. 22, 2018, Chin was arrested in Atlanta on a criminal complaint and appeared later that month in federal court Boston. He has been released on conditions since that time.
According to the indictment, from 2012 to 2017, Chin was part of a scheme that targeted elderly individuals throughout the United States, including Massachusetts. The victims were informed via phone, email and mail that they had won millions of dollars in a lottery, but that they had to pay the taxes on their purported winnings before the funds could be released. Chin’s co-conspirators directed the victims to mail or wire funds to Chin or to his associates. Chin kept a portion of the funds for himself and then distributed the rest as directed by his co-conspirators, including sending significant amounts to Jamaica.
As alleged in court documents, the following are two examples of the way in which the scheme operated. On Oct. 7, 2015, a Pennsylvania resident mailed a $34,900 cashier’s check for purported lottery taxes and fees to Chin at his then-address in Fairburn, Ga. Two days later, the cashier’s check was deposited into Chin’s checking account. In another example of the scheme, on March 1, 2013, a Masachusetts resident mailed a treasurer’s check for $93,633 to a co-conspirator in New York for purported lottery taxes and fees. Later that month, the co-conspirator wired $25,000 to a bank account held by Chin’s wife.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.
Genovese Organized Crime Family Associate Convicted of Murder Conspiracy and Other Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of SALVATORE DELLIGATTI, a/k/a “Fat Sal,” a/k/a “Jay,” for racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, murder-for-hire conspiracy, participation in an illegal gambling operation, and a firearms offense. The jury convicted DELLIGATTI yesterday on all six counts of the Indictment following a three-week trial before U.S. District Judge Katherine B. Forrest.
U.S. Attorney Geoffrey S. Berman said: “Salvatore Delligatti, in order to increase his standing in the Genovese Family, recruited a group of hitmen to murder an individual. But Delligatti’s hitmen were caught red-handed by the Nassau County Police Department and the Nassau County District Attorney’s Office before they could carry out their hit. Delligatti now stands convicted of this foiled murder plot and other crimes he committed with the Genovese Family. We thank our partners in Nassau County and at the FBI.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court during the trial:
From at least in or about 2008 through in or about May 2016, DELLIGATTI was an associate of the Genovese Organized Crime Family of La Cosa Nostra. During this period, DELLIGATTI conspired with others to participate in and conduct the affairs of the Genovese Family through a pattern of racketeering activity that included a murder conspiracy, an extortion conspiracy, and the operation of an illegal sports betting business. For example, as part of DELLIGATTI’s participation in the Genovese Family, DELLIGATTI committed the following crimes:
From in or about May 2014 through in or about June 2014, DELLIGATTI conspired with Robert DeBello, a “made” soldier, and Ryan Ellis, an associate of the Genovese Family, to murder a neighborhood “tough guy” from the Whitestone section of Queens. DELLIGATTI sought and obtained permission from DeBello to murder the intended victim. However, instead of carrying out the murder himself, as DeBello had authorized him to do, DELLIGATTI hired a crew of hitmen from the Bronx to ambush and kill the intended victim at his residence. DELLIGATTI provided the hitmen with a loaded .38 revolver and a get-away vehicle, and offered to pay them several thousand dollars for the murder. As a result of wiretap surveillance of DELLIGATTI by the Nassau County Police Department and the Nassau County District Attorney’s Office, the crew of hitmen was apprehended in the get-away vehicle just a few blocks from the intended victim’s residence on June 8, 2014. In their vehicle, law enforcement recovered the loaded revolver, a spray bottle containing a bleach solution, and other materials.
From in or about April 2014 through in or about May 2014, DELLIGATTI and others in the Genovese Family, including DeBello and Ellis, participated in a conspiracy to use threats of violence and economic harm to extort the owners and promoter of a night club located on the rooftop of a hotel in Queens.
From at least in or about 2013 through in or about 2015, DELLIGATTI participated with others in the Genovese Family, including DeBello and Ellis, in a large-scale bookmaking and sports betting operation that took bets from bettors in Manhattan and Queens, among other locations, and made use of an offshore wireroom. During and in furtherance of this gambling operation, DELLIGATTI and Ellis brought envelopes filled with cash to DeBello, the “made” soldier with whom they were committing these crimes.
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DELLIGATTI, 40, was found guilty of conspiring to participate in the Genovese Family through a pattern of racketeering activity, conspiring to murder and attempting to murder Joseph Bonelli in aid of racketeering, conspiring to commit murder-for-hire, possessing a firearm in furtherance of those crimes of violence, and participation in an illegal gambling operation. DELLIGATTI faces a maximum potential sentence of life in prison. DELLIGATTI is scheduled to be sentenced by Judge Forrest on August 16, 2018.
DELLIGATTI’s co-defendants, Robert DeBello and Ryan Ellis, previously pled guilty before Judge Forrest to racketeering conspiracy offenses for their roles in the murder conspiracy, the extortion conspiracy, and the illegal gambling operation that are described above.
Mr. Berman praised the outstanding investigative work of the Nassau County Police Department and the Federal Bureau of Investigation. He also thanked the Nassau County District Attorney’s Office and the United States Department of State, Diplomatic Security Service, for their assistance with the prosecution.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Jordan Estes, and Jason Swergold are in charge of the prosecution.
Garfield Heights man indicted for using a firearm while dealing carfentanil and heroinRead the Press Release
A Garfield Heights man was indicted in federal court for using a firearm while dealing carfentanil and heroin, said U.S. Attorney Justin E. Herdman.
Delamar D. Williams, 36, was indicted on one count of possession with intent to distribute heroin and carfentanil, one count of using a firearm in relation to drug trafficking and one count of being a felon in possession of a firearm.
Williams had 55.2 grams of a mixture of carfentanil and heroin on Oct. 19, 2017, as well as a 9 mm SCCY CPX-2 pistol. Williams possessed the firearm in relation to his drug trafficking and was also forbidden from having it because of numerous prior convictions for drug trafficking, according to the indictment.
Prosecutors are seeking to forfeit the firearm as well as $81,587 in cash seized as part of the investigation.
This case was investigated by the Drug Enforcement Administration and the Southeast Area Law Enforcement Task Force, which is made up of officers from Bedford, Bedford Heights, Garfield Heights, Maple Heights, Solon, Oakwood and Walton Hills Police Departments. It is being prosecuted by Assistant U.S. Attorney Patrick Burke.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is 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.
Frederick Man Arrested for Human SmugglingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –A federal grand jury indicted Martir Jandres a/k/a “Tono”, age 42, of Frederick, Maryland, on a charge of conspiracy to commit human smuggling related to a years long operation to smuggle illegal aliens into the United States through Texas and then transport them throughout the country. The indictment was returned on March 16, 2018, and unsealed today upon the arrest of Jandres and the execution of a search warrant at his residence.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Andre R. Watson of Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Sheriff Charles A. Jenkins of the Frederick County Sheriff’s Office.
According to the one-count indictment, between October 2016 and February 2017, Jandres allegedly conspired with numerous people in Central America, Mexico and the United States to facilitate illegal aliens entry to the United States without inspection by bypassing United States Border Patrol checkpoints. Once in the country, the aliens were placed in stash houses until transportation could be arranged with local “load drivers” to enable the aliens to leave the border area and travel to their interior destinations. On two occasions, undercover HSI agents posed as “load drivers” to transport aliens smuggled by Jandres.
Jandres faces a maximum sentence of 10 years in prison for the conspiracy.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation along with the Frederick County Sheriff’s Office and the Internal Revenue Service. Mr. Schenning thanked Special Assistant U.S. Attorney Brian M. Fish and Assistant U.S. Attorney Judson T. Mihok, who are prosecuting the case.
Federal grand jury indicts Shreveport financial planner, Houston pastor for defrauding investors out of more than $1 millionRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced today that a federal grand jury returned a 13-count indictment charging a Shreveport financial planner and a pastor of a Houston church of bilking investors out more than $1 million.
Gregory Alan Smith, 55, of Shreveport, and Kirbyjon H. Caldwell, 64, of Houston, Texas, are charged with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Additionally, Smith and Caldwell are charged in two separate counts of money laundering. According to the indictment, Smith used his influence and status as the operator and manager of Smith Financial Group LLC in Shreveport, and Caldwell used his influence and status as pastor at a prominent Houston church to lure investors to pay more than $1 million to invest in Historical Chinese bonds. These bonds were issued by the former Republic of China prior to losing power to the communist government in 1949. They are not recognized by China’s current government and have no investment value. Smith and Caldwell promised high rates of return, sometimes three to 15 times the value of the investments. Instead of investing the funds, the defendants used them to pay personal loans, credit card balances, mortgages, vehicle purchases and other personal expenses.
The defendants each face 20 years in prison for the conspiracy to commit wire fraud count and for the wire fraud counts. They also face 10 years in prison for the conspiracy to commit money laundering count and the money laundering counts. They also face a $1 million fine, restitution, forfeiture and five years of supervised release.
The FBI investigated the case. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Federal Jury Convicts Greensboro Man for Extensive Bank Lien Theft Scheme, Money Laundering, and Aggravated Identity TheftRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, XAVIER MILTON EARQUHART, 30, a Greensboro, NC resident, was convicted following a three-day jury trial before Senior United States District Judge W. Earl Britt. The jury found EARQUHART guilty of ten counts of Bank Fraud, two counts of Engaging in Monetary Transactions Involving Criminally Derived Property and one count of Aggravated Identity Theft and Aiding and Abetting. Following the jury trial, the jury further found that the defendant was obligated to forfeit more than $1.3 Million in fraudulent proceeds, more than $100,000 in recording studio equipment, and $300,000 in gold bullion and coins.
The evidence at trial showed that, in one bank fraud scheme, the defendant forged a deed on a property owned by an out of state landowner, and then channeled the property ownership through fictitious individuals and a holding company before personally taking title to the property. The defendant then attempted to secure $495,000 in home equity loans using the property as collateral, becoming successful on three such attempts.
In a second scheme, the evidence showed that the defendant forged bank lien releases on 8 properties, in some instances, by stealing the identities of bank employees, and in other instances, using fictitious notaries. The defendant created Delaware holding companies to conceal his activities. The defendant then sold the properties off to unknowing third parties. At trial, the evidence showed that because of the defendant’s actions, some homeowners lost the funds that they had invested into the properties. Other victims were left uncertain as to the ability of their families to remain in the homes due to the cloud upon their title.
Lastly, the evidence at trial included evidence from law enforcement concerning the tracing of the defendant’s fraudulent gains. Law enforcement used a note and key found in the defendant’s Prius to uncover a hidden trove of $300,000 worth of gold, concealed in a storage unit in Spring, Texas. Law enforcement also seized various items of valuable recording studio equipment.
At sentencing tentatively set for July 2018, EARQUHART faces up to 30 years imprisonment.
The investigation of this case was conducted by the IRS Criminal Investigation, with the assistance of the Federal Deposit Insurance Corporation Office of the Inspector General, the Wake County Register of Deeds, Wake County Sheriff’s Office, United States Secret Service and the Bankruptcy Administrator for the Eastern District of North Carolina. Assistant United States Attorney William M. Gilmore represented the government in this case.
Federal Jury Convicts Former Montana Resident of Wire Fraud and Money LaunderingRead the Press Release
BUTTE – Following an eight-day trial with testimony from thirty-two government witnesses, Joseph Brent Loftis, 63, of Corona Del Mar, California, was convicted by a Montana jury of five counts of wire fraud and two counts of money laundering. Loftis faces a maximum of 20 years imprisonment for each count of wire fraud and ten years of imprisonment for each count of money laundering. He further faces a maximum $250,000 fine and up to three years of supervised release on each count. After trial, Loftis stipulated to a forfeiture order of $1,662,749.10. Chief U.S. District Judge Dana L. Christensen presided over the case.
Evidence presented at trial by Assistant United States Attorneys Chad Spraker and Adam Duerk showed that from 2009 through 2013 Loftis solicited approximately $3 million from investors based upon false representations that he owned leases on the Blackfeet Indian Reservation. Loftis also made misrepresentations regarding whether he had received a degree from the University of Oklahoma, amounts of oil being produced from wells, and whether he was using an independent accounting firm.
After receiving investor funds, Loftis typically provided investors with a few checks totaling about $1000 and then stopped payments altogether. Once investors complained, Loftis provided excuses regarding disputes about ownership or issues with drilling. In some instances, Loftis offered to return the investors’ money and entered a rescission agreement for the investment. Loftis, however, failed to return the investors’ money or issued a check cancelled through a stop payment. Loftis also falsely represented to investors that he owned oil and gas leases in Oklahoma and Texas though Loftis had defaulted on purchase agreements for the leases.
In 2011, Loftis took steps to complete a transaction known as reverse merger in which Prism would become a subsidiary of a publically traded company. Based upon Loftis’s representations that he needed capital to continue Prism’s operations until his company could receive equity in the public markets, Loftis obtained a $1.9 million bridge loan from investor funds. After Loftis received the loan proceeds, he failed to carry out the steps needed to complete the merger and kept the bridge loan proceeds while spending $190,000 of the funds on a luxury RV.
Also in 2011, Loftis relocated to Texas and began soliciting funds from investors in a newly formed company Great Northern Energy. Loftis continued to misrepresent his education and denied having a criminal record despite a 1995 felony conviction for bank fraud and false statements to a financial institution.
Sentencing is scheduled for July 20, 2018, at 9:00 a.m., in the Russell Smith Courthouse in Missoula, Montana. The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Federal Jury Convicts Drug Dealer Who Sold Deadly Heroin and Will Receive Life in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Steven Craig Whyte, 29, of Kalamazoo, was convicted by a federal jury yesterday of five crimes, including conspiring to distribute heroin, possession of a firearm in furtherance of drug trafficking, and distribution of heroin resulting in death. Because Whyte was previously convicted of a drug distribution offense, he faces a mandatory life term at sentencing.
The evidence at trial demonstrated that from late 2015 through October 2016, Whyte conspired with other individuals to sell heroin in Kalamazoo, and to obtain firearms to protect the drugs and money received from selling it. In February 2016, during the execution of a search warrant at one of the homes used by Whyte, officers found heroin, drug packaging materials, and a firearm. Images from Whyte’s phone indicated that he utilized multiple firearms in aid of his drug trafficking. On October 15, 2016, Whyte sold heroin, via an intermediary, to Adam Boomers, 29, a life-long Portage, Michigan resident, who used it and then died.
"The opioid crisis is ravaging communities around the country, and West Michigan is no different," Birge said. "We grieve Adam’s loss with his family and with his community. The serious sentence in this case will send a message that the federal government will pursue those who deal deadly drugs to the fullest extent permissible under law."
"The DEA targets individuals like Whyte, who distribute poison and cause death in our communities. This case is an example of DEA’s focus on the worst offenders in West Michigan and the nation," said Timothy J. Plancon, Special Agent in Charge, Detroit Field Division.
"This conviction was a direct result of law enforcement’s efforts to focus on heroin dealers in the local communities," said Captain Brad Misner, Kalamazoo Valley Enforcement Team. "The community is safer today because of the hard work by so many involved; from the initial onset of the case, to the arrest and search warrants, to the eventual prosecution by the federal government. Mr. Whyte will no longer be able to push his product on individuals who are struggling with addiction and have fallen victim to this senseless drug."
This case was investigated by the Drug Enforcement Administration, Kalamazoo Valley Enforcement Team, and Kalamazoo Department of Public Safety. It was prosecuted by Assistant U.S. Attorneys Justin M. Presant and Stephen P. Baker.
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned an Indictment against the following:
Loris Man Indicted on Federal Gun Charges and Hobbs Act Armed Robbery. Fuquan Thompson, age 50, of Loris, South Carolina, was charged in a three-count indictment with Hobbs Act Armed Robbery, a violation of Title 18, United States Code, Section 1951(a), possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1), and possession of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Thompson could face is imprisonment of 27 years and a fine of $250,000.00.
This case was investigated by the Horry County Sheriff’s Department, Horry County Police Department, and the Bureau of Alcohol, Tobacco, Explosives, and Firearms and is being prosecuted by Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office.
Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Cesar Omar Torres-Santiesteban of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Torres-Santiesteban could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by ICE-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Another Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Rafael Altamirano-Ruiz of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Altamirano-Ruiz could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by ICE - Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Florence Woman Indicted for Embezzling Money from Social Security Administration. Jacqueline Britt-Briggs of Florence, South Carolina, was charged in a single-count indictment with embezzling money from the Social Security Administration, a violation of Title 18, United States Code, Section 641. The maximum penalty Britt-Briggs could receive is ten years imprisonment and a fine of $250,000.00.
The case was investigated by the Office of Inspector General for the Social Security Administration. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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East Stroudsburg Man Sentenced to 27 Months’ Imprisonment for Assaulting and Fleeing from Federal Park RangersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge James Munley sentenced Damari Roulhac, age 26, of East Stroudsburg, Pennsylvania, to 27 months’ imprisonment and two years of supervised release, for one count assaulting a United States Park Ranger, and one count for fleeing from United States Park Rangers. Roulhac was convicted on September 26, 2017, following a two-day jury trial before United States District Court Judge James M. Munley.
According to United States Attorney David J. Freed, the evidence presented during the trial showed that on the evening of July 1, 2016, United States Park Rangers patrolling the Delaware Water Gap National Recreation Area encountered Roulhac and ordered him to stop his vehicle. Roulhac refused to obey the Rangers’ instructions and accelerated his vehicle towards one of the Rangers, causing him to jump out of the way. When the Ranger then attempted to detain Roulhac, he accelerated again, striking the Ranger with the vehicle while fleeing the scene of the incident.
Roulhac was able to evade apprehension on July 1, 2016. However, Rangers tracked him down days later, at the Pike County Courthouse, when Roulhac was sentenced for an unrelated DUI conviction.
The case was investigated by Rangers from the National Park Service. Assistant United States Attorneys Phillip Caraballo and Evan Gotlob prosecuted the case.
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Dow Chemical Company Settles False Claims Act Allegations for $479,000Read the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that the Dow Chemical Company has agreed to pay the United States $479,000 to settle allegations that Poly-Carb, Inc. – a former Dow subsidiary – violated the False Claims Act by submitting fraudulent materials certifications related to a federally-funded highway resurfacing project.
In 2012, Poly-Carb, Inc. (then a subsidiary of Dow) was awarded a subcontract on a federally-funded project to apply a skid-resistant adhesive to several highways throughout South Carolina. To ensure the materials conformed to contract specifications, the contract required Poly-Carb to collect samples, have them tested by an independent third party, and send certifications of the results to the South Carolina Department of Transportation (SCDOT). Between 2012 and 2013, Poly-Carb submitted certifications to SCDOT, claiming another company had performed this third-party testing. The settlement agreement resolves allegations made by the United States Department of Transportation (USDOT) and the United States Department of Justice that Poly-Carb falsified these certifications to make them appear to be from a third-party, in violation of the False Claims Act.
“This is another example of how rigorous enforcement of the False Claims Act helps protect the public’s interest and taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Beth Drake. “It also reflects our ongoing commitment to protect our state and federal transportation agencies and the vital infrastructure programs they provide.”
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.
“It is important to ensure that taxpayers get what they pay for so that the quality of products used in federally funded transportation projects is not compromised,” said Marlies T. Gonzalez, Regional Special Agent-in-Charge at the USDOT’s Office of Inspector General. “We will continue working with the USDOT, Federal Highway Administration, and our partners at the U.S. Department of Justice to promote the detection and prosecution of fraud schemes which erode public confidence in the integrity of our nation’s transportation system.”
This case was handled by Assistant United States Attorneys Brook Andrews and James Leventis. The case was investigated by Special Agent Sara Oliver of the USDOT Office of Inspector General.
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Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Dominican national pleaded guilty today and was sentenced in federal court in Boston for illegally reentering the United States after deportation.
Antonio Felipe-Vasquez, 40, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin immediately sentenced Felipe-Vasquez to time served and three years of supervised release. Felipe-Vasquez will be subject to deportation proceedings.
In 2001, Felipe-Vasquez was encountered by immigration officials while serving a sentence at the Norfolk county House of Corrections. Upon completion of that sentence, Felipe-Vasquez was placed into removal proceedings, and on Nov. 20, 2001, he was deported to the Dominican Republic.
In September 2017, Felipe-Vasquez was arrested in Lynn and charged with heroin trafficking. Upon his arrest, his fingerprints were taken, which revealed his prior deportation. Felipe-Vasquez is scheduled for trial in the state matter in April 2018.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Miguel Guillen Percel, 43, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge William G. Young scheduled sentencing for June 4, 2018.
On July 20, 2017, Percel, who, at the time, was using the alias “Carlos Colon,” was arrested for a motor vehicle violation. When law enforcement officers took “Colon’s” fingerprints, they found that they matched those of Miguel Guillen Percel, who had previously been deported in October 2009. During an interview with law enforcement, Percel admitted his true name and prior deportation.
Percel faces a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Percel will be subject to deportation hearings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
District Court Orders Long Island Company to Stop Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
The United States District Court for the Eastern District of New York entered a consent decree today barring Riddhi USA Inc., of Ronkonoma, New York, and its owner, Mohd M. Alam, from distributing adulterated and misbranded dietary supplements pending required remedial action.
The consent decree approved by the U.S. District Judge Leonard D. Wexler requires Riddhi and Alam to destroy, within 15 days, all dietary supplements in their possession, custody or control. The injunction also requires Riddhi and Alam to implement consumer safety measures before resuming the manufacturing or distributing of dietary supplements. This includes hiring an independent expert to perform a comprehensive inspection of Riddhi’s facility and requiring the expert to certify that defendants are complying with current good manufacturing practice.
The consent decree resolves a suit filed on October 23, 2017, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, Riddhi and Alam manufactured, prepared, labeled, packed, held and distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations.
“Today’s consent decree shows that we will make every effort to ensure that dietary supplement manufacturers comply with good manufacturing practices,” stated U.S. Attorney for the Eastern District of New York Richard Donoghue. “This Office is committed to safeguarding consumers from adulterated and misbranded dietary supplements.”
“The injunction entered today demonstrates the Department of Justice’s continuing efforts to protect consumers from adulterated and misbranded dietary supplements,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “The Department of Justice will continue to work with the FDA to ensure that dietary supplement manufacturers provide accurate information about what is in their products.”
According to the complaint, FDA documented numerous significant deviations from current Good Manufacturing Practice regulations during its 2017 inspection of Riddhi’s facilities, including failures to: establish product specifications for identity, purity, strength, and composition of their finished dietary supplements; conduct at least one appropriate test to verify the identity of a dietary ingredient; and establish and follow written procedures for quality control operations. The complaint alleged that an FDA inspection ending in early 2016 found similar violations.
In addition, the complaint alleged that Riddhi and Alam misbranded their dietary supplements by failing to comply with certain labeling requirements in the federal Food, Drug, and Cosmetic Act. For example, as noted in the complaint, the defendants’ products are fabricated from two or more ingredients but fail to list any ingredients on their product labels or labeling. The complaint also alleged that some of the defendants’ products, including Prenatal Formula, Osteo Gest, Neuroxygen, Inflam-Ease and All-Ease, are misbranded because the products’ label or labeling failed to declare the place of business of the manufacturer, packer or distributor.
Riddhi and Alam agreed to resolve the complaint and be bound by the consent decree permanent injunction.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Edwin Cortes of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate General Counsel for Enforcement Roselle Oberstein of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
The Defendants:
RIDDHI USA, INC.
Ronkonkoma, New YorkMOHD M. ALAM
District Court Orders Long Island Company to Stop Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
A federal court enjoined Riddhi USA Inc., of Ronkonoma, New York, and its owner, Mohd M. Alam, from distributing adulterated and misbranded dietary supplements pending required remedial action, the Department of Justice announced today.
The injunction ordered by the U.S. District Court for the Eastern District of New York requires Riddhi and Alam to destroy, within 15 days, all dietary supplements that are in their possession, custody, or control. The injunction also orders Riddhi and Alam to implement various consumer safety measures before resuming the manufacturing or distributing of dietary supplements. This includes hiring an independent expert to perform a comprehensive inspection of Riddhi’s facility and requires the expert to certify that all current good manufacturing practice deviations brought to defendants’ attention have been corrected.
The injunction stems from a complaint the Department filed on Oct. 23, 2017, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, Riddhi and Alam manufactured, prepared, labeled, packed, held, and distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations.
“The injunction entered today demonstrates the Department of Justice’s continuing efforts to protect consumers from adulterated and misbranded dietary supplements,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to ensure that dietary supplement manufacturers provide accurate information about what is in their products.”
“Today’s consent decree shows that we will make every effort to ensure that dietary supplement manufacturers comply with good manufacturing practices,” stated U.S. Attorney for the Eastern District of New York Richard Donoghue. “This Office is committed to safeguarding consumers from adulterated and misbranded dietary supplements.”
According to the filed complaint, FDA documented numerous significant deviations from current good manufacturing practice regulations during its 2017 inspection of Riddhi’s facilities, including failures to: establish product specifications for identity, purity, strength, and composition of their finished dietary supplements; conduct at least one appropriate test to verify the identity of a dietary ingredient; and establish and follow written procedures for quality control operations. The complaint alleged that an FDA inspection ending in early 2016 found deviations in current good manufacturing practice.
In addition, the complaint alleged that Riddhi and Alam misbranded their dietary supplements by failing to comply with certain labeling requirements in the federal Food, Drug, and Cosmetic Act. For example, as noted in the complaint, defendants’ products are fabricated from two or more ingredients but fail to declare any ingredients on their product labels or labeling. The complaint also alleged that some of the defendants’ products, including Prenatal Formula, Osteo Gest, Neuroxygen, Inflam-Ease, and All-Ease, are misbranded because the products’ label or labeling failed to declare the place of business of the manufacturer, packer, or distributor.
The defendants agreed to resolve the complaint and be bound by a consent decree of permanent injunction. The district court adopted the resolution and entered a permanent injunction against Riddhi and Alam.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Edwin Cortes of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate General Counsel for Enforcement Roselle Oberstein of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Credit Repair Business Owner Sentenced to 30 Months in Prison for Tax FraudRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of JOSEPH ARNOLD MCGLYNN, JR., 33, former owner, CEO and President of McGlynn Marketing, LLC, d/b/a United Credit Consulting (“UCC”), to 30 months in prison for failing to account for and pay over employment taxes to the Internal Revenue Service (“IRS”). MCGLYNN pleaded guilty on November 28, 2017, and was sentenced earlier today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, between approximately 2009 and 2016, MCGLYNN was the owner, CEO and President of UCC, a credit repair service company located in Burnsville, Minnesota. MCGLYNN was responsible for ensuring that UCC’s Employer’s Quarterly Federal Tax Returns were filed and that employment taxes were paid. However, although MCGLYNN caused employment taxes to be withheld from the wages of UCC employees, he failed to pay over such taxes to the IRS for multiple quarters between April 30, 2014 and April 30, 2017. Instead, MCGLYNN used the money to fund a lavish lifestyle, including luxury vacations, rentals of luxury vehicles, visits to strip clubs and purchases of luxury items such as jewelry, handbags and a boat. In total, MCGLYNN failed to pay to the IRS at least $159,157 in employment taxes.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorney Michelle E. Jones prosecuted the case.
Defendant Information:
JOSEPH ARNOLD MCGLYNN, JR., 33
Burnsville, Minn.
Convicted:
- Willful failure to account for and pay over employment taxes, 2 counts
Sentenced:
- 30 months in prison
- Two years of supervised release
- $ 159,157.26 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Counterfeit Cigarette Smuggler Sentenced to PrisonRead the Press Release
Pedro Ivan Flores, 43, a citizen of Peru, was sentenced by U.S. District Court Judge William P. Dimitrouleas to 16 months in prison for smuggling counterfeit cigarettes.
Benjamin G. Greenberg. United States Attorney for the Southern District of Florida and Justin D. Green, Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA OCI), Miami Field Office, made the announcement.
Flores previously pled guilty to participating in a conspiracy, which sought to sell and dispense and cause the sale and dispensing of a counterfeit tobacco product, to wit cigarettes, the containers and labeling of which, without authorization, bore the trade names of Marlboro Reds and Newport cigarettes, tobacco products listed with the FDA pursuant to Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), all in violation of Title 18, United States Code, Section 371.
According to the court record, including a jointly filed factual statement, the investigation began in January 28, 2013, when a FDA/OCI undercover agent met with Flores in Jamaica to discuss the sale of counterfeit Marlboro brand cigarettes. Thereafter, negotiating by email, a deal to sell and ship 1,100 “master cases” of counterfeit Marlboro Reds, for a total cost of $377,300.00 was reached. To pursue the deal, agents made an initial a wire transfer in the amount of $133,190 to an account located in Dubai, United Arab Emirates for the purchase of the counterfeit cigarettes.
In August 2013, undercover agents met with a previously sentenced co-defendant Gaurav Jayaseelan, who travelled to Miami to discuss the pending sale. During the recorded meeting, Jayaseelan told the agents that he and his father, were in the cigarette and alcohol business and claimed they owned their own tobacco manufacturing plant which could manufacture any tobacco brand. Jayaseelan later sent an email offering to provide counterfeit Newport cigarettes within four to five weeks. Subsequently, at Jayaseelan’s request, two cartons of Newport cigarettes to be used as samples for the manufacturing of the counterfeits were provided to an address in India.
In January 2014, Jayaseelan emailed that they would send 1,030 master cases of Newport cigarettes for a total wholesale price of $450,625. In May 2014, the shipment was seized at Port Everglades, in coordination with t. The counterfeit cigarettes had an estimated U.S. street value of more than $5.6 million. Throughout the conspiracy, Flores, by internet communications, served as a broker and a facilitator of the sales activity.
Flores was arrested in Peru in early 2017 and extradited to the United States.
Counterfeit cigarettes, which are sold without proper registration and testing may pose a greater health risk than consumers recognize, due to the presence of contaminants either not found in products originating from the lawful manufacturers, or which are present in greater concentrations.
Mr. Greenberg commended the investigative efforts of FDA-OCI and thanked the U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Peruvian Ministry of Justice and U.S. Marshals Service for their assistance in this matter. This matter was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Clayton man sentenced to 14 years in prison for trafficking methamphetamine, firearms chargesRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a Clayton man was sentenced last week to 168 months in prison for possessing methamphetamine with intent to distribute and firearms charges.
Robert L. Snyder, 41, of Clayton, La., was sentenced Thursday, March 22, 2018, by U.S. District Judge Dee D. Drell on one count of possession with intent to distribute methamphetamine, one count of possession of an unregistered firearm and two counts of possession of a firearm by a convicted felon. He was also sentenced to two years of supervised release. Evidence admitted at the three-day trial that ended November 29, 2017 revealed that law enforcement agents learned that illegal drugs were being sold out of a Clayton residence. After a search of Snyder’s home, police found more than 100 grams of methamphetamine along with numerous firearms, $1,600 in cash and $10,000 in money orders. Law enforcement revisited the property on March 4, 2014 and found more firearms in the home. In total, law enforcement found 15 weapons and ammunition. Among the firearms was a .22 caliber rifle with the serial number removed.
The U.S. Marshals Service, FBI, ATF and the Concordia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Mary J. Mudrick prosecuted the case.
Chamberlain Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, man has been indicted by a federal grand jury for two counts of Aggravated Sexual Abuse of a Child.
James Blue, Jr., a/k/a “BJ”, age 37, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $500,000 fine, up to life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between 2011 and 2015, Blue knowingly engaged in, and attempted to engage in, sexual acts with two separate victims who has not attained the age of 12.
The charges are merely accusations and Blue is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Blue was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Canton man sentenced to more than 10 years in prison for using firearms while trafficking crack cocaineRead the Press Release
A Canton man was sentenced to more than 10 years in federal prison for drug and firearms crimes, said U.S. Attorney Justin E. Herdman.
Jack D. Wise, 40, was sentenced to 130 months in prison. He was previously found guilty of possession with intent to distribute crack cocaine and using a firearm in furtherance of drug trafficking.
Wise had 28 grams of crack cocaine, a handgun, a shotgun and more than 170 rounds ammunition when he was arrested on March 9, 2017, despite a previous conviction in Stark County Common Pleas Court for trafficking in LSD, according to the court documents.
“People who use firearms as a tool of their drug trafficking doubly put the community at risk,” Herdman said. “The ATF, Canton Police Department and the Stark County Sheriff’s Office did a tremendous job and have made our community safer.”
This case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the ATF, Canton Police Department and the Stark County Sheriff’s Office.
California Woman Sentenced to Lengthy Prison Term for Fraud and Tax EvasionRead the Press Release
PHOENIX – On March 28, 2018, U.S. District Judge Diane J. Humetewa sentenced Farzaneh Akhavi, 59, to 84 months in prison and ordered her to pay $1.7 million in restitution. Akhavi had previously pleaded guilty to bank and wire fraud, transactional money laundering, and tax evasion. Akhavi was immediately taken into custody.
Evidence showed that Akhavi used her influence to systematically defraud victims out of $1.7 million. First, she convinced victims to move from Orange County, Cal. to the Phoenix metropolitan area, using one victim’s name and Social Security number to open credit accounts and take out loans. Akhavi further used the victims’ money to buy a car and a house for herself, two properties for her daughter, items at high end clothing stores, and on travel related expenses. She convinced the victims to give her additional money by falsely promising to form a business partnership that included operating a restaurant and museum in Mesa, Ariz. She also exaggerated her political connections in an effort to convince the victims that she would advance their political careers in Arizona. Last, she committed tax evasion by failing to file taxes and account for the money she stole from the victims. In 2017, Akhavi purported to enter into a plea agreement that would have resulted in a prison sentence of less than 84 months, but the Court rejected it after discovering Akhavi had included a notation on the plea agreement, handwritten in Farsi, that translated to “innocent.” The final plea agreement in this case did not include such a notation.
“Through lies and deceit, Akhavi financially and emotionally devastated the victims,” stated First Assistant United States Attorney Elizabeth A. Strange. “The seven-year sentence in this case appropriately reflects the magnitude and brazen nature of her crimes.”
The investigation in this case was conducted by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The prosecution was handled by Kevin M. Rapp and Mark K. Kokanovich, Assistant United States Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR14-01066-PHX-DJH (MHB)
RELEASE NUMBER: 2018-031_ Akhavi
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Buffalo Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Dell, 27, of Buffalo, NY, who was convicted of possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 72 months in prison by Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000.
Assistant U.S. Attorneys Timothy C. Lynch and Patricia Astorga, who handled the case, stated that the defendant was arrested on February 11, 2014, after he sold a quantity of cocaine to an individual working with the Drug Enforcement Administration. After the sake was complete, DEA agents followed Dell to his girlfriend’s residence on Newfield Street in Lackawanna.
During a search of the residence, agents and Lackawanna Police officers recovered 633 grams of cocaine; 24 grams of marijuana; approximately $22,225 in United States currency; two digital scales; a money counter; three firearms; ammunition; and two ballistic vests. In addition, agents seized gold and silver valued at approximately $12,000.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Lackawanna Police Department, under the direction of Chief James Michel.
Barclays Agrees to Pay $2 Billion in Civil Penalties to Resolve Claims for Fraud in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
BROOKLYN, NY – The United States has reached agreement with Barclays Capital, Inc. and several of its affiliates (together, Barclays) to settle a civil action filed in December 2016 in which the United States sought civil penalties for alleged conduct related to Barclays’ underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. Barclays will pay the United States two billion dollars ($2,000,000,000) in civil penalties in exchange for dismissal of the Amended Complaint.
Following a three-year investigation, the complaint in the action, United States v. Barclays Capital, Inc., alleged that Barclays caused billions of dollars in losses to investors by engaging in a fraudulent scheme to sell 36 RMBS deals, and that it misled investors about the quality of the mortgage loans backing those deals. It alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud, wire fraud, bank fraud, and other misconduct.
Agreement has also been reached with the two former Barclays executives who were named as defendants in the suit: Paul K. Menefee, of Austin, Texas, who served as Barclays’ head banker on its subprime RMBS securitizations, and John T. Carroll, of Port Washington, New York, who served as Barclays’ head trader for subprime loan acquisitions. In exchange for dismissal of the claims against them, Menefee and Carroll agree to pay the United States the combined sum of two million dollars ($2,000,000) in civil penalties.
The settlement was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Laura S. Wertheimer, Inspector General for the Federal Housing Finance Agency (FHFA-OIG).
“This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct,” stated United States Attorney Donoghue. “The substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS.”
“The actions of Barclays and the two individual defendants resulted in enormous losses to the investors who purchased the Residential Mortgage-Backed Securities backed by defective loans,” stated FHFA Inspector General Wertheimer. “Today’s settlement holds accountable those who waste, steal or abuse funds in connection with FHFA or any of the entities it regulates. We are proud to have partnered with the U.S. Department of Justice and the U.S Attorney’s Office for the Eastern District of New York on this matter.”
The scheme alleged in the complaint involved 36 RMBS deals in which over $31 billion worth of subprime and Alt-A mortgage loans were securitized, more than half of which loans defaulted. The complaint alleged that in publicly filed offering documents and in direct communications with investors and rating agencies, Barclays systematically and intentionally misrepresented key characteristics of the loans it included in these RMBS deals. In general, the borrowers whose loans backed these deals were significantly less creditworthy than Barclays represented, and these loans defaulted at exceptionally high rates early in the life of the deals. In addition, as alleged in the complaint, the mortgaged properties were systematically worth less than what Barclays represented to investors. These are allegations only, which the Defendants dispute, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The government’s case has been handled by this Office’s Civil Division. Senior Counsel F. Franklin Amanat, and Assistant United States Attorneys Matthew R. Belz, Charles S. Kleinberg, Evan P. Lestelle, Matthew J. Modafferi, Josephine M. Vella and Alex S. Weinberg have been in charge of the litigation. Mr. Donoghue thanks the FHFA-OIG for its assistance in conducting the investigation in this matter.
E.D.N.Y. Docket No. 16-CV-7057 (KAM/JO)
Link to the original press release announcing the filing of the suit: https://www.justice.gov/usao-edny/pr/united-states-sues-barclays-bank-recover-civil-penalties-fraud-sale-residential
Barclays Agrees to Pay $2 Billion in Civil Penalties to Resolve Claims for Fraud in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
The United States has reached agreement with Barclays Capital, Inc. and several of its affiliates (together, Barclays) to settle a civil action filed in December 2016 in which the United States sought civil penalties for alleged conduct related to Barclays’ underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. Barclays will pay the United States two billion dollars ($2,000,000,000) in civil penalties in exchange for dismissal of the Amended Complaint.
Following a three-year investigation, the complaint in the action, United States v. Barclays Capital, Inc., alleged that Barclays caused billions of dollars in losses to investors by engaging in a fraudulent scheme to sell 36 RMBS deals, and that it misled investors about the quality of the mortgage loans backing those deals. It alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud, wire fraud, bank fraud, and other misconduct.
Agreement has also been reached with the two former Barclays executives who were named as defendants in the suit: Paul K. Menefee, of Austin, Texas, who served as Barclays’ head banker on its subprime RMBS securitizations, and John T. Carroll, of Port Washington, New York, who served as Barclays’ head trader for subprime loan acquisitions. In exchange for dismissal of the claims against them, Menefee and Carroll agree to pay the United States the combined sum of two million dollars ($2,000,000) in civil penalties.
The settlement was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Laura S. Wertheimer, Inspector General, of the Federal Housing Finance Agency Office of the Inspector General (FHFA-OIG).
“This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct,” stated United States Attorney Donoghue. “The substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS.”
“The actions of Barclays and the two individual defendants resulted in enormous losses to the investors who purchased the Residential Mortgage-Backed Securities backed by defective loans,” stated FHFA-OIG Inspector General Wertheimer. “Today’s settlement holds accountable those who waste, steal or abuse funds in connection with FHFA or any of the entities it regulates. We are proud to have partnered with the U.S. Department of Justice and the U.S Attorney’s Office for the Eastern District of New York on this matter.”
The scheme alleged in the complaint involved 36 RMBS deals in which over $31 billion worth of subprime and Alt-A mortgage loans were securitized, more than half of which loans defaulted. The complaint alleged that in publicly filed offering documents and in direct communications with investors and rating agencies, Barclays systematically and intentionally misrepresented key characteristics of the loans it included in these RMBS deals. In general, the borrowers whose loans backed these deals were significantly less creditworthy than Barclays represented, and these loans defaulted at exceptionally high rates early in the life of the deals. In addition, as alleged in the complaint, the mortgaged properties were systematically worth less than what Barclays represented to investors. These are allegations only, which the Defendants dispute, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The government’s case has been handled by this Office’s Civil Division. Senior Counsel F. Franklin Amanat, and Assistant United States Attorneys Matthew R. Belz, Charles S. Kleinberg, Evan P. Lestelle, Matthew J. Modafferi, Josephine M. Vella and Alex S. Weinberg have been in charge of the litigation. Mr. Donoghue thanks the FHFA-OIG for its assistance in conducting the investigation in this matter.
E.D.N.Y. Docket No. 16-CV-7057 (KAM/JO)
The press release from the Eastern District of New York orignially announcing the filing of the suit can be found here.
Barbour County woman admits to her role in a firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carla Denise Jones, of Volga, West Virginia, admitted today to her role in a firearms theft and sale scheme, United States Attorney Bill Powell announced.
Jones, age 55, pled guilty to one count of “Unlawful Possession of Firearm.” Jones, being a person prohibited from possessing a firearm, admitted to possessing two pistols, two rifles, and a shotgun in Barbour County in February 2017.
Jones faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Man Sentenced to 11 Years in Prison for Bank RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Tyrone Kevin Gregg, age 49, of Baltimore, Maryland, to eleven years in prison, followed by three years of supervised release for bank robbery while on supervised release for a prior federal conviction. Gregg previously pleaded guilty to one count of bank robbery and specifically admitted to robbing or attempting to rob eight other banks in Maryland and Virginia from December 2016 through June 2017. Gregg will be required to pay restitution to the victim banks.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Chief Tim Altomare of the Anne Arundel County Police Department; Chief J. Thomas Manger of Montgomery County Police Department; and Chief Edwin C. Roessler Jr. of the Fairfax County Police Department.
According to his plea agreement, on February 2, 2017 at approximately 10:50 am, Gregg entered a bank in Olney, Maryland where he approached the teller and said, “Give me all the money or I’ll blow your head off.” The teller complied, handing over cash from the till, and Gregg fled.
Gregg was indicted for committing nine bank robberies in Maryland and Virginia. In pleading guilty to the February 2017 robbery, Gregg acknowledged he committed the other eight bank robberies listed in the indictment—several of which also involved threats of violence as well as Gregg’s statements that he had a gun.
At the time of the robberies, Gregg was under conditions of supervised release following a 54-month prison sentence imposed by the Honorable Catherine C. Blake in the U.S. District Court for the District of Maryland as a result of convictions for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft. The 11-year sentence imposed by the Court also reflects Gregg’s punishment for violating the condition of supervised release requiring him not to commit and federal, state, and local crimes.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore County Police Department, Anne Arundel County Police, Montgomery County Police and Fairfax County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Tamera Fine who are prosecuting the case.
Armed Robber Sentenced to 78 Months in Federal PrisonRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jaquan Latrel Samuel a/k/a “Trey,” a/k/a “Trap,” age 30, of Hartsville, SC, was sentenced in federal court in Florence, South Carolina, for Robbery of United States Government Property and Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence. United States District Judge Bryan Harwell, of Florence, sentenced Samuel to 78 months in federal prison with 5 years of supervised release to follow along with $400.00 in restitution to be paid to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The evidence presented at the guilty plea hearing established that on March 29, 2017, Jaquan Samuel robbed a person having lawful charge, custody, and control of $400.00 belonging to ATF by use of a firearm. During the hearing, Agents presented evidence that Samuel pointed a firearm at the victim in order to force the victim to give up the cash.
The case was investigated by agents of ATF, the Darlington County Sheriff’s Office, and the Hartsville Police Department. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell and William Lewis of the Columbia office handled the case.
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Arizona-Based Peer-To-Peer Bitcoin Trader Convicted of Money LaunderingRead the Press Release
PHOENIX – On March 28, 2018, Thomas Mario Costanzo, a.k.a. Morpheus Titania, of Mesa, Ariz., was found guilty of five counts of money laundering by a federal jury in Phoenix. The case was tried before U.S. District Judge G. Murray Snow. Sentencing is set before Judge Snow on June 11, 2018.
The evidence at trial showed that federal agents initiated an investigation of Costanzo in 2014, after identifying an advertisement he posted on a peer-to-peer bitcoin exchange website. In the advertisement, Costanzo advertised that he was willing to engage in cash transactions up to $50,000. When undercover federal agents approached Costanzo and told him that they were drug dealers, Costanzo provided them with bitcoin and told them it was a great way to limit their exposure to law enforcement. The jury found that over a two-year period, Costanzo took $164,700 in cash from the agents (whom he believed to be heroin and cocaine traffickers) and exchanged it for bitcoin in order to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds. The evidence at trial also showed that Costanzo used bitcoin to purchase drugs from others and that he provided bitcoin to individuals who were buying drugs via the internet.
The evidence at trial also showed how bitcoin operates. Bitcoin is a decentralized form of electronic currency. Bitcoin may be used for legitimate purposes, and anyone can obtain bitcoin from a commercial on-line exchange by paying about 1.5% as a commission and providing identity information to the exchange. In contrast, Costanzo charged between 7% and 10% in his peer-to-peer transactions and did not learn his customers’ identities.
Each of the five convictions for money laundering carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. The bitcoin involved in the final transaction is also subject to forfeiture by the United States.
The investigation in this case was jointly conducted by Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Scottsdale Police Department, with assistance from the Maricopa County Sheriff’s Office and the United States Postal Inspection Service. The prosecution was handled by Carolina Escalante, Gary Restaino, and Matthew Binford, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00585-PHX-GMS
RELEASE NUMBER: 2018-030_Costanzo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ansonia Man Admits Participation in Naugatuck Valley Crack Distribution RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARQUICE RUMLEY, 27, of Ansonia, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
According to court documents and statements made in court, RUMLEY was a member of a drug trafficking organization that trafficked large quantities of crack cocaine throughout the Naugatuck Valley. The investigation revealed that members of the organization shared the same cellphone to service drug customers in shifts over a 24-hour period. Members of the drug trafficking organization also shared vehicles and serviced customers together. Between May and September 2017, investigators made multiple controlled purchases of crack from RUMLEY and other members of the drug trafficking organization.
RUMLEY was arrested on November 17, 2017.
Judge Meyer scheduled sentencing for July 3, 2018, at which time RUMLEY faces a maximum term of imprisonment of 20 years. RUMLEY is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Ansonia and Derby Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Frank Lara, 45, of Albuquerque, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Lara and co-defendant Esmeralda Dominguez, 33, of Glendale, Ariz., were charged by criminal complaint in July 2017, with methamphetamine trafficking offenses. According to the complaint, Lara and Dominguez distributed approximately 56.09 grams of 99% pure methamphetamine to an individual working with law enforcement on July 15, 2016, in Dona Ana County, N.M.
Lara and Dominguez subsequently were charged in a two-count indictment filed on Oct. 19, 2017, with participating in a conspiracy to distribute methamphetamine from July 14, 2016 through July 15, 2016, and distributing methamphetamine on July 15, 2016. According to the indictment, the defendants committed the crimes in Dona Ana County.
During yesterday’s proceedings, Lara pled guilty to the indictment without the benefit of a plea agreement. Dominguez previously entered a similar guilty plea on Feb. 20, 2018. At sentencing, each of the defendants faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. Sentencing hearings have yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DEA and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez.
Alabama Woman Sentenced to 22 YearsRead the Press Release
OXFORD - An Alabama woman was sentenced to more than 22 years in federal prison for her role in the robbery of a North Mississippi Post Office and the shooting of the Postmaster during the robbery. Angela Roy, 36, of Wilmer, Alabama was sentenced to 270 months incarceration for her part in the September 23, 2016, armed robbery and discharge of a firearm at the Randolph, Mississippi Post Office. U.S. District Judge Michael P. Mills sentenced Roy to serve consecutive 150 month and 120-month terms for aiding and abetting in the armed robbery and discharge of a firearm during that robbery.
U.S. Postal Inspectors, Pontotoc Sheriff’s Deputies, and agents from the Mississippi Bureau of Investigation responded to 911 calls from a business neighboring the Randolph post office on September 23, 2016, when the Postmaster fled to the business after being shot during the robbery. Agents quickly converged on the Post Office and, with assistance from the U.S. Marshals Service, identified Roy and her codefendant Thomas Scott as suspects. Evidence showed that Roy contacted the post office to make sure that it was open just minutes before she and Scott went to the building. Scott then entered the post office, pulled a gun and shot the Postmaster while Roy waited outside at the vehicle. Roy and Scott were arrested in Lockport, Louisiana on September 27, 2016 as they attempted to flee to Texas.
A jury in the Northern District convicted Roy at trial in October 2017. Thomas Scott, who pled guilty for his role in the same case, was sentenced in February to serve 195 months for committing the robbery and discharging the firearm.
U.S. Attorney William C. Lamar thanked the Pontotoc Police Department and Sheriff’s Department, Lafourche Parish Sheriff’s Office, the United States Marshal’s Office, the Mississippi Bureau of Investigation and the Office of the Inspector General for the United States Post Office for their efforts in investigating the case and apprehending the perpetrators.
Following the sentencing, U.S. Attorney Lamar stated: “The prosecution of violent criminals is always a top priority in this office and for this Administration. We appreciate the investigative efforts of our local, state and federal partners that helped insure that the individuals responsible for this heinous crime have been held accountable for their actions. We will continue to devote all available resources to see that those who seek gain by harming others in this community will not flourish or escape punishment for their violent acts.”
"Today's sentencing of Angela Roy reinforces the message that criminals directly endangering the lives or safety of Postal Service employees will never be tolerated," stated Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division. "The cooperation among federal, state, and local law enforcement was second to none. The Postal Inspection Service is fortunate to have such determined law enforcement partners working to ensure that Mississippi's post offices remain safe places to conduct business."
The case is an example of the ongoing efforts of the Project Safe Neighborhoods Initiative, which seeks to reduce violence and increase community safety through the combined efforts of local, state and federal investigators, prosecutors and community partners. The case was prosecuted by AUSA Paul Roberts and Robert H. Norman, Criminal Chief for the U.S. Attorney’s Office in the Northern District of Mississippi.
28 March 2018
“Real Time”: Greenville Felon Sentenced to 70 Months for Drug and Gun ConvictionsRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake announced today that Nicolas LaShawn Finley, a/k/a “Shy,” a/k/a “Shy Money,” a/k/a “Shakim Karim,” age 45, of Mauldin, South Carolina, was sentenced in Greenville for two counts of possession of a firearm after having been convicted of a felony and a misdemeanor crime of domestic violence, in violation of Title 18, United States Code, § 922(g)(1) and (9), and possession with intent to distribute heroin, in violation of Title 21, United States Code, Section § 841. Senior United States District Judge Henry M. Herlong, Jr., of Greenville, South Carolina, sentenced the defendant to 70 months imprisonment, followed by a term of supervised release.
Evidence presented at the guilty plea demonstrated that on December 20, 2016, Finley was the passenger in a car that was pulled over by a Greenville County Sheriff’s Office deputy. When the deputy requested registration documents, Finley opened the glove compartment, revealing a .40 caliber Taurus handgun. Finley initially reached for the glove box containing the handgun, but eventually was removed from the car without incident. When deputies secured the firearm, they found it was missing its magazine. Deputies found the magazine, loaded with five bullets, and 2.06 grams of heroin on Finley’s person.
On May 10, 2017, deputies executed a search warrant at a motel where Finley was staying. Officers recovered 9mm ammunition among Finley’s belongings and a 9mm SCCY handgun hidden in the bathroom. Finley was searched and officers located a .22 caliber bullet in his sock. Finley is prohibited from possessing firearms or ammunition because of prior felony convictions and a prior misdemeanor domestic violence conviction.
Finley’s case was expedited for federal prosecution as part of Operation “Real Time” and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greenville County Sheriff’s Office. Assistant United States Attorney Jamie Schoen prosecuted the case.
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“135 Pirus” gang members indicted on murder in aid of racketeering and other chargesRead the Press Release
ROME, Ga. - Maurice Antonio Kent, Christopher Nwanjoku, Jamel Dupree Hughes, Cedric Sams, Jr., Jennifer Foutz, and Michael Kent, all members or associates of the street gang 135 Pirus, have been arrested on federal charges ranging from conspiracy to obstruct justice to murder in aid of racketeering. A federal grand jury returned the nine-count indictment on March 21, 2018, which was unsealed earlier today.
“Gangs, like the 135 Pirus drive violence in our communities and show no regard for human life,” said U.S. Attorney Byung J. “BJay” Pak. “The members and associates in this case were allegedly involved in a multitude of violent acts, including a murder, and are being prosecuted under our Project Safe Neighborhoods initiative aimed at stopping this very criminal activity.”
“It appears in this case that 135 Pirus gang members are willing to kill or violently assault someone for the smallest perceived sign of disrespect,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI led Safe Streets Gang Task Force, along with its local partners, will continue to devote significant resources to the task of dismantling violent gangs that do so much harm to our communities.”
“The residents of Bartow County benefit from this partnership which not only brings together local and federal resources to combat violent crime, but it also erases jurisdictional lines between agencies producing a maximum investigative effort. We are thankful to be a part of PSN and our community is safer because of this program,” said Bartow County Sheriff Clark Millsap
“The PSN strategy is proving itself once again to be effective in reducing gang violence and gun related crime,” said Chief Gary Yandura, Brookhaven Police Department. “The Brookhaven Police Department is proud to be the lead agency for this PSN grant aimed at strengthening our anti-gang strategy. Joining forces with Chamblee Police Department and the DeKalb County Police Department, as well as our federal partners and our research and prevention partners, has resulted in significant and strategic investigations such as this to ultimately reduce gang violence in our communities.”
“We are thankful for the communication and the relationships that are in place between our local and Federal partners. Gangs and criminal activity does not stop at jurisdictional lines. Criminals such as these will be identified and taken off the streets because of professional law enforcement agencies partnering together to combat gang activity,” said Acworth Police Chief Wayne Dennard.
According to U.S. Attorney Pak, the charges, and other information presented in court: The 135 Pirus gang originated in Compton, California, and expanded into the Northern District of Georgia, dividing itself into a Southside/Atlanta group, a Northside/North group, and a Northwest Georgia group. Leaders of the gang in Georgia maintain ties with the California gang leadership. The 135 Pirus are governed by a set of rules, codes, laws, and oaths, which, among other things, call for death of any gang member who cooperates with law enforcement.
To become a 135 Pirus member, a recruit, or a “550,” must be sponsored by an existing gang member. A potential new member is “jumped in” or physically beaten for 35 seconds by gang members. The gang also refers to this initiation as being “put on the hood.” All 135 Pirus members are required to “put in work,” meaning that they must engage in acts of criminal activity such as drug dealing and violence when ordered to do so by members of gang leadership. Members allegedly committed acts of violence, including murder, engaged in drug trafficking and other money making criminal conduct, to be promoted and maintain standing within the structure of the gang.
In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven, Georgia, nightclub. When a California-based high-ranking 135 Pirus gang member was supposedly disrespected, Maurice Antonio Kent allegedly fired multiple rounds into a crowd of people outside the club, wounding a gang member from another gang and a security guard. Maurice Antonio Kent was arrested by the Brookhaven Police Department at the scene. Soon thereafter, 135 Pirus gang members came to believe that the 17-year-old, a fellow 135 Pirus gang member, was talking to the police about the shooting.
On June 3, 2017, Christopher Nwanjoku , Jamel Dupree Hughes, Jennifer Foutz, and Cedric Sams Jr., allegedly devised a plan to lure the 17-year-old to Bartow County, Georgia, and then murder him. The 17-year-old’s body was later discovered lying on the side of a rural road in Bartow County.
On June 7, 2017, Hughes and Foutz encountered a member of another gang at a gas station in Acworth, Georgia. After words were exchanged, Hughes allegedly exited the passenger side of Foutz’s vehicle and shot the member of the other gang multiple times. Fortunately, undercover police officers were at the gas station on an unrelated case, and observed the shooting. During a short police pursuit, Hughes allegedly tossed the gun out of the car window. The gun was recovered and Hughes and Foutz were stopped and arrested.
The federal charges result from 135 Pirus gang-related crimes including the May 13, 2017 shooting, the June 4, 2017 murder, and the June 7, 2017 shooting. The defendants in this case are as follows:
- Maurice Antonio Kent, a.k.a. “Savage Duze,” 27, of Cartersville, Georgia, a leader of the 135 Pirus group based in Cartersville, is charged with two counts of Assault with a Dangerous Weapon in Aid of Racketeering, Discharge of a Firearm During a Crime of Violence, and Possession of a Firearm by a Convicted Felon, all related to the nightclub shooting.
- Christopher Nwanjoku, a.k.a. “Problem,” 25, of Lawrenceville, Georgia, a leader of the Northside 135 Pirus group based in Gwinnett County, is charged with Murder in Aid of Racketeering and Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, for his role in the 17-year-old’s murder.
- Jamel Dupree Hughes, a.k.a. “Savage,” 24, of Atlanta, Georgia, a 135 Pirus member, is charged with Murder in Aid of Racketeering, Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, Attempted Murder in Aid of Racketeering, and Discharge of a Firearm in Furtherance of a Crime of Violence, relating to the 17-year-old’s murder and the gas station shooting.
- Cedric Sams, Jr., a.k.a. “Awall,” 25, of Cartersville, Georgia, a member of Northwest Georgia 135 Pirus group, is charged with Murder in Aid of Racketeering and Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, for the 17-year-old’s murder.
- Jennifer Foutz, a.k.a. “Rose,” 25, of Acworth, Georgia, the “First Lady” of the Northwest Georgia 135 Pirus group, is charged with Murder in Aid of Racketeering, Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, Attempted Murder in Aid of Racketeering, and Discharge of a Firearm in Furtherance of a Crime of Violence, relating to the 17-year-old’s murder and the gas station shooting.
- Michael Kent, a.k.a. “Wikked,” 27, of Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, is charged with Conspiracy to Obstruct Justice.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI Safe Streets Gang Task Force with the assistance of the Bartow County Sheriff’s Office, Brookhaven Police Department, and Acworth Police Department.
Assistant U.S. Attorneys from the newly created Organized Crime and Gang Section of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case.
This case is brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Wilmington Man Sentenced for Threatening Mosque and Illegally Possessing Firearms and Child PornographyRead the Press Release
BOSTON – A Wilmington man was sentenced today for making threats over Facebook to burn a local mosque and for unlawfully possessing dozens of firearms, ammunition and child pornography.
Patrick Keogan, 46, was sentenced by U.S. District Court Judge Douglas P. Woodlock to five years in prison and five years of supervised release. Keogan will also be required to register as a sex offender. In February 2017, Keogan pleaded guilty to two counts of making a threat over Facebook to injure or intimidate another individual or to unlawfully damage or destroy a building by means of fire; one count of being a convicted felon in possession of firearms and ammunition; and one count of possessing child pornography. Keogan has been in custody since his arrest in July 2016.
Following the terrorist attacks in Paris, France, on Nov. 13, 2015, Keogan posted threatening images on the Facebook page of the Islamic Society of Boston Cultural Center (ISBCC), a Roxbury-based cultural center that offers a mosque and educational, spiritual, and social services to the New England Muslim community. Keogan posted an image depicting a mosque in flames with superimposed lettering that stated, “BURN YOUR LOCAL MOSQUE,” along with the statement, “Hello scumbags,” next to a smiley face emoji. Keogan also posted the same threatening image on the Facebook page of the Islamic Society of Northeastern University (ISNU).
Searches of Keogan’s Facebook account revealed multiple posts that approved of burning mosques as early as 2013. For example, in 2013 Keogan shared a post with the following summary: “On July 4th, Joplin, Missouri’s Islamic Center — the city’s only mosque — suffered roof damage after an unidentified man set it on fire by tossing a burning object onto the building.” Keogan wrote in response: “Somewhere out there is an unknown hero. The people’s champion. A true God amongst mortal men. May your days be many & troubles be few my good man.”
Keogan’s Facebook account also showed that he had been buying, selling, trading, building, modifying, possessing, and shooting firearms and ammunition, despite his prohibition from doing so as a convicted felon. On May 1, 2016, Keogan purchased two boxes of 8mm rifle ammunition and two bags of loose 8mm rifle ammunition at a gun store in New Hampshire. Upon Keogan’s arrest in July 2016, authorities searched his residence and found light machine guns, assault rifles, and sniper rifles, and thousands of rounds of ammunition. A search of Keogan’s iPhone and iPad revealed he was also in possession of child pornography.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Wilmington Police Chief Michael Begonis made the announcement today. Assistant U.S. Attorney Scott L. Garland of Lelling’s Civil Rights Enforcement Team prosecuted the case.
West Columbia Man Pleads to Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jwain Dennis Francis, a/k/a “Love,” age 28, of West Columbia, plead guilty in federal court to being a felon in possession of a firearm and ammunition and to possession with intent to crack cocaine and cocaine, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e) and Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Chief United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that in late 2016, the West Columbia Police Department received information that an individual nicknamed “Love” was selling crack cocaine in the area of Gentle Pine Apartments. A confidential informant was able to purchase crack cocaine from “Love” on two separate occasions in November 2016, and law enforcement determined through photo line-ups that “Love” was Francis. On December 1, 2016, officers arrested Francis on state drug charges and executed a search warrant at his residence. Inside the residence, officers recovered baggies of cocaine and crack cocaine, along with scales and $3,305. Officers also recovered a 9mm handgun and 9mm ammunition. Francis admitted that he bought and sold crack cocaine and cocaine.
Francis is prohibited under federal law from possessing firearms and ammunition based upon his prior separate South Carolina state convictions for strong arm robbery (2007), indecent exposure (2014), and strong arm robbery (2014).
On the firearm charge, Francis faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge. However, if he is deemed an armed career criminal in light of his prior convictions, he would face a statutory mandatory minimum term of imprisonment of 15 years with a maximum of life, a fine of $250,000, and 5 years of supervised release on the firearm charge. Francis faces a maximum of 20 years, a fine of $1,000,000 and at least 3 years of supervised release on the drug charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the West Columbia Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire 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 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. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Washington State Company Pleads Guilty to Making A False Statement Involving A Federal GrantRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that National Technology Development, L.L.C. (NTD) pleaded guilty, before U.S. District Judge Elizabeth A. Wolford, to making a false statement. The judge then sentenced NTD to forfeit $500,000.
Assistant U.S. Attorneys Tiffany H. Lee and Grace M. Carducci, who handled the case, stated that on May 12, 2008, National Technology Development (NTD) provided a letter of support to United Environmental & Energy, L.L.C. (UEE) which is located in the Western District of New York. The letter of support, which was part of a grant application UEE submitted to the National Science Foundation, committed that NTD would provide a total of $100,000 to UEE in cost matching funds, when in truth and in fact, NTD actually provided only $55,000. The letter of support was a factor in the National Science Foundation's consideration of the grant application submitted by UEE.
The plea and sentencing are the result of a joint investigation by Special Agents with the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner; the Department of Energy, Office of Inspector General, under the direction of Principal Deputy Inspector General April G. Stephenson; and the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office.
Waldo Man Sentenced to 12 Years for Firearms Charge and Supervised Release ViolationRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced Jesse Newton, 30, of Waldo, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to 10 years in prison and three years of supervised release for being a felon in possession of a firearm and two years in prison, consecutively, for violating conditions of his supervised release. The defendant pleaded guilty on July 7, 2017.
Court records reveal that on July 13, 2016, U.S. Probation Officers and investigators from the Office of the Maine State Fire Marshal searched Newton’s residence and seized a loaded 9mm semi-automatic pistol, 9mm casings, rifle stocks, 46 marijuana plants and a cell phone. Newton possessed the firearm in connection with his marijuana grow operation. At the time of the search, Newton was on supervised release for a 2013 felony firearms conviction that prohibited him from violating federal or state law. Investigators later learned that Newton possessed ten other firearms.
In imposing the maximum available sentence, Judge Woodcock noted the defendant’s threats to kill a police officer, his causing injury to a cooperating witness, his use of a firearm in connection with marijuana cultivation, his failure to accept responsibility for his crimes and his lengthy criminal history which included attacks on the homes of two police officers. Judge Woodcock said he found Newton’s behavior appalling and noted this was “the first time I’ve ever seen a defendant go after a police officer’s house.” Newton had convictions for four assaults, terrorizing, criminal use of explosives, criminal threatening, criminal mischief, harassment, disorderly conduct, refusing to submit to arrest and obstruction of reporting of a crime.
The investigation was conducted by the U.S. Probation Office; the Office of the Maine State Fire Marshal; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Waldo County Sheriff’s Office; the Belfast Police Department and the Maine Forest Service.
Wagoner Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carlos Peralta, age 28, of Wagoner, Oklahoma, pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about June 22, 2017, within the Eastern District of Oklahoma, the Defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.The charges arose from an investigation by the the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Christopher Wilson represented the United States.
Virginia man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Glenn Eugene Oden, of Stephens City, Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Oden, age 39, pled guilty to one count of “Unlawful Possession of a Firearm.” Oden, having a prior conviction, admitted to illegally possessing a .40 caliber pistol in May 2017 in Berkeley County.
Oden faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Upstate Pimp Sentenced to 210 months and Co-Defendant Girlfriend Sentenced to 57 months for Sex Trafficking MinorsRead the Press Release
Anderson, South Carolina---- United States Attorney Beth Drake announced today that Ashford James “AJ” Simmons, age 29, of Gray Court, South Carolina, and Brittany Nicole Smith, age 24, of Piedmont, South Carolina, were sentenced for conspiracy to commit sex trafficking of minors, in violation of Title 18, U.S.C. § 1594(c). Simmons was also sentenced for possession of a firearm by a convicted felon, in violation of Title 18, U.S.C. § 922(g)(1). United States District Judge Timothy M. Cain, of Anderson, sentenced Simmons to 210 months imprisonment, followed by a life term of supervised release, and sentenced Smith to 57 months imprisonment, followed by 5 years of supervised release. The defendants are also required to pay $14,480 each in restitution to the victims.
Evidence presented at the change of plea hearings and sentencings established that from May through June of 2015, Simmons and Smith recruited minor females to work as prostitutes for them, including one minor they recruited from a juvenile drug rehabilitation center. The defendants advertised commercial sex acts with the minors online and received proceeds from the sale of sex acts performed by the minors. Additionally, authorities determined that Simmons possessed a loaded Sig Sauer .40 caliber handgun while traveling in a car with one of the trafficked minors on May 30, 2015. As a previously convicted felon, Simmons was prohibited from carrying or possessing a firearm or ammunition. Arguing for leniency at his sentencing, Simmons compared selling the minors for sex to investing in the stock market. Smith, Simmons’ girlfriend, received comparably less time, in part, because she had no prior convictions, there was no indication that she possessed weapons, and because Simmons was identified as the leader of the sex trafficking operation.
The case was investigated by agents of ICE-Homeland Security Investigations, Greenville County Sheriff’s Office, Anderson County Sheriff’s Office, and Newberry County Sheriff’s Office. Assistant United States Attorneys Jamie Lea Schoen and Carrie Fisher Sherard of the Greenville Office prosecuted the case.
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Two Long Island Men Plead Guilty to Filing False Tax ReturnsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Parviz Hakimian and Khosrow Hakimian, both of whom are Long Island residents, pleaded guilty to filing false tax returns related to the failure to disclose overseas bank accounts. Each defendant agreed as part of the guilty plea to pay $7,730,000 in civil penalties. The guilty pleas were entered before United States District Judge Nicholas G. Garaufis.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty pleas.
“As alleged, both Parviz and Khosrow Hakimian utilized overseas bank accounts to conceal millions of dollars in income from the United States government,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work together to ensure that individuals who attempt to evade their responsibilities as taxpayers are held accountable.”
“The Hakimian brothers took extreme measures to evade paying millions in taxes, while other taxpayers paid their fair share,” stated IRS-CI Special Agent-in-Charge Robnett. “This should not and will not be tolerated. As evidenced by the Hakimian brothers pleading guilty today, those that attempt to evade their tax liabilities by hiding US earnings in secret off-shore accounts will be identified and prosecuted.”
As stated in the charging documents, between 2009 and 2011, both defendants maintained undeclared bank accounts at an Israeli private bank headquartered in Tel Aviv, Israel. The bank provided private banking services to, and maintained undeclared accounts for, United States taxpayers. Parviz and Khosrow Hakimian each failed to report these accounts, and the interest income from these accounts, in their tax filings.
At sentencing, each defendant faces a maximum of three years in prison.
Assistant United States Attorney Margaret Lee is in charge of the prosecution.
The Defendants:
PARVIZ HAKIMIAN
Age: 70
Great Neck, New YorkE.D.N.Y. Docket 18-CR-70 (NGG)
KHOSROW HAKIMIAN
Age: 64
Great Neck, New YorkE.D.N.Y. Docket 18-CR-71 (NGG)
Twenty Charged in Drug Conspiracy Distributing Heroin and Methamphetamine throughout King, Pierce, Snohomish, and Thurston CountiesRead the Press Release
A task force led by the Drug Enforcement Administration today arrested 15 people and continues to search for an additional six defendants charged in connection with a long-term investigation of drug trafficking, announced U.S. Attorney Annette L. Hayes. Law enforcement served search warrants at eight locations and searched more than a dozen vehicles. At locations in Tacoma, Seattle, Auburn, Fife, Renton, Bonney Lake, and Tumwater, officers and agents seized more than a dozen weapons, 11 pounds of heroin and more than $40,000 in cash. The defendants arrested today will appear at 2:30 today in U.S. District Court in Tacoma.
"I commend the strong partnership between federal, state and local law enforcement that led to charges against twenty defendants responsible for pumping the misery of methamphetamine into south King County and beyond,” said U.S. Attorney Annette L. Hayes. “Working together we were able to use federal tools such as wiretaps to unmask those behind the drug crimes that have plagued many of our suburban neighborhoods and communities.”
The lead defendant in this case is DERRICK DONNELL TAYLOR-NAIRN, 32, of Seattle, who was at the center of the drug trafficking conspiracy. Four other defendants, JESSICA PLASCENCIA HERNANDEZ, 34, of Renton, JOSE MARGARITO MALDONADO, 38, of Bonney Lake, LEBRET MARQUIS RICHARDSON, 37 of Fife, and ANDREW LEIE YOUNG, 34, of Seattle, allegedly supplied large quantities of methamphetamine and face longer potential sentences due to the drug quantities involved.
The 15 additional defendants named in the indictment are:
LISA ANN ADAMS, 42, of Lake Stevens
DAVID EARL BEEMAN, 51, of Tukwila
IAN EDWARD DISTRITO, 41, of Auburn
SHAIINE RODNEY JARDINE, 29, of Puyallup
ARTHUR ALONZO JEFFERSON, 59, of Lynnwood
DE’ANDRE AARON JONES, 39, of Auburn
SHANNON MARIE LEUPOLD, 44, of Tumwater
RIJAONA C. LASHAE LINDSEY, 26, of Seattle
LAURA ANN PALPALLATOC, 64, of Renton
SOURIYANH L. PASOMSOUK, 43, of Federal Way
CHAD MICHAEL STAHLMAN, 24, of Bonney Lake
CORI NICOLE TROMBLEY, 33, of Tacoma
SERESA MAE WALTERS, 40, of Tacoma
CRYSTAL MARLENE WEAVER, 36, of Bellevue
JACK NY YIM, 47, of Federal Way
One additional defendant was arrested today and charged by criminal complaint. CRAIG FELLERS, SR., 49, of Seattle, was charged with making a false statement in connection with an attempted firearms purchase. In September 2017, FELLERS attempted to purchase a semi-automatic assault pistol at the direction of drug ring-leader TAYLOR-NAIRN. FELLERS allegedly lied on purchase forms claiming the gun was for his personal use, when monitored telephone calls revealed the gun was being purchased for someone who is prohibited from possessing firearms. After being alerted by law enforcement the gun store refused to sell FELLERS the gun.
“We are very proud of our partnership with the Tahoma Narcotics Enforcement Taskforce,” said Puyallup Chief of Police Scott Engle. “Our partnership reveals the strength of federal and local agencies working together to make our communities safer. I am proud of all the hard work done by detectives and task force officers.”
DEA Special Agent in Charge Keith Weis said, “Today’s success is due to the strong partnerships built within the law enforcement community which collectively came together with the vision to remove an armed drug trafficking group representing imminent danger to our communities.”
The charges contained in the indictment and criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was conducted by DEA Tacoma, the Tahoma Narcotics Enforcement Team (TNET), and the Puyallup Police Department, with significant assistance from Bonney Lake, Auburn and Kent Police Departments. The investigation was supported by agents from Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, deputies from the United States Marshal’s Service, and analysts from the Northwest High Intensity Drug Trafficking Area (HIDTA) and National Guard.
The case is being prosecuted by Assistant United States Attorneys Marci L. Ellsworth and C. Andrew Colasurdo.
Tulsa Man Charged with Possessing Marijuana for DistributionRead the Press Release
United States Attorney Trent Shores announced today that Kong Meng Vang, 34, of Tulsa, Oklahoma, was charged by complaint in Federal Court with possession of more than 100 kilograms of marijuana with intent to distribute. The complaint alleges that state and federal law enforcement officers executed search warrants at Vang’s residence and business in Tulsa, resulting in the seizure of almost 1,500 pounds of marijuana located in two rental trucks, a cell phone, three semi-automatic handguns, and several additional firearms.
The complaint is the result of an investigation by the Tulsa Police Department, the Drug Enforcement Administration, and the Internal Revenue Service. Assistant United States Attorney Joseph F. Wilson is prosecuting the case.
A complaint is a method of informing a defendant of an alleged federal crime, which must later be indicted by a grand jury, then proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Trio Charged with Intent to Distribute HeroinRead the Press Release
Edward Torres, 30, of Philadelphia, Pennsylvania and Alejantro Levya-Granados, 47 and Sergio Arturo Maciel-Landeros, 28, both of Mexico, were charged today by Indictment[1] with conspiracy to possess with intent to distribute six kilograms of heroin and possession with intent to distribute six kilograms of heroin, and aiding and abetting the same; announced United States Attorney Louis D. Lappen. The charges arise from the defendants’ possession of approximately six kilograms of heroin inside of a hidden compartment in the car in which they were travelling in order to facilitate the sale of those drugs for $52,000 per kilogram.
If convicted the defendants face maximum possible sentences of life imprisonment.
The case was investigated by the Drug Enforcement Administration and the Bensalem Township Police Department and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.