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29 March 2018
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.
Toledo man indicted for having methamphetamineRead the Press Release
A Toledo man was indicted in federal court for distribution of methamphetamine, said U.S. Attorney Justin E. Herdman.
Darren F. Fenner, 63, was indicted on one count of conspiracy to possess with intent to distribute methamphetamine and one count of attempted possession with intent to distribute methamphetamine.
Fenner and others conspired to possess 15 grams of methamphetamine between November and December 2017, according to the indictment.
This case was investigated by the U.S. Postal Inspection Service. 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.
South Bay Methamphetamine Trafficker Sentenced to Ten Years in PrisonRead the Press Release
SAN JOSE – Jose Jesus Munoz was sentenced today to 120 months in prison for possessing with the intent to distribute methamphetamine announced Acting United States Attorney Alex G. Tse and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, following the entry of Munoz’s guilty plea to the charge on September 6, 2017.
Munoz, 46, of San Jose, admitted that he sold methamphetamine to persons he later discovered were undercover law enforcement officers. He sold the drugs in several transactions, five of which occurred in September and October of 2013, as well as in January, July, and September of 2014. The amount of methamphetamine sold as a result of the five transactions amounted to 3483.1 grams of methamphetamine in exchange for a total of $57.000. Munoz further admitted that beginning in January 2015, he entered into an agreement with others to distribute and to possess with the intent to distribute 500 grams or more of a substance containing methamphetamine. In sum, Munoz agreed that he conspired to distribute and possess with the intent to distribute 4.5 kilograms or more of actual methamphetamine.
On March 29, 2016, a federal grand jury indicted Munoz and charged him with one count of conspiracy to manufacture, distribute, and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846; six counts of distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1); and one count of using a communication facility to commit a felony drug offense, in violation of 21 U.S.C. § 843(b). Pursuant to his plea agreement, Munoz pleaded guilty to the conspiracy charge and the remaining charges were dismissed.
In addition to the prison term, Judge Koh ordered Munoz to serve a five-year period of supervised release.
Assistant U.S. Attorney Jeffrey Backhus is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the DEA, the Concord Police Department and the Internal Revenue Service.
Six Additional Members of Heroin Trafficking Ring with Ties to a Mexican Cartel Indicted in Brooklyn Federal CourtRead the Press Release
Earlier today, a seven-count superseding indictment was unsealed in federal court in Brooklyn, charging Enrique LaPorte, also known as “Chiquito,” Zaida Lopez, Philippe Medina, Carlos Mateo and Clarissa Vasquez, also known as “Clari,” with conspiring to distribute heroin as members of a large-scale trafficking operation that was based in Brooklyn and Queens. A sixth defendant remains at large. Defendants Clarissa Vasquez, Peter Vasquez and Luis Lopez are also indicted for laundering narcotics proceeds. Clarissa Vasquez additionally faces charges for making false statements to law enforcement during the investigation.
The five newly charged defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven Gold at the federal courthouse in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“The defendants were part of a large-scale heroin trafficking organization that moved hundreds of thousands of dollars in illicit proceeds across the country from Los Angeles to New York, enriching themselves in the process,” stated United States Attorney Donoghue. “These charges demonstrate the effectiveness of the cooperation among federal, state and local law enforcement in dismantling large-scale trafficking organizations and prosecuting those responsible to the fullest extent of the law.”
Mr. Donoghue expressed his appreciation to the New York Metropolitan Safe Streets Task Force, which is comprised of detectives from the NYPD and special agents from the FBI, and additionally thanked the Ohio State Highway Patrol, Pennsylvania State Police, Indiana State Police, New Jersey State Police, the Chicago Field Divisions of the Drug Enforcement Administration and Homeland Security Investigations, Drug Enforcement Administration New York City Strike Force and Bergen County Prosecutor’s Office for their participation and assistance in the investigation.
“Each day we face another overdose, another loved one lost to the illegal drugs flooding into our communities,” stated FBI Assistant Director-in-Charge Sweeney. “The subjects in this case allegedly created a cross-country drug trade, using the money to support lavish lifestyles all on the backs of people addicted to drugs that are killing tens of thousands of people all over the country every year. This case and others we are actively investigating each day on all of our FBI Safe Streets Task Forces illustrate our determination to go after dealers and keep these deadly drugs off the streets.”
According to the charging instruments and other court documents, all of the defendants were members of a large-scale heroin trafficking organization that trafficked hundreds of kilograms of heroin into New York City and had connections to a Mexican cartel. Between December 2011 and February 2015, law enforcement seized over $800,000 in narcotics proceeds from the organization. Some of the newly added defendants were found in possession of hundreds of thousands of dollars in narcotics proceeds while transporting them across the country in furtherance of their family-run operation. For example, in 2011, Ohio State troopers seized over $311,000 from a hidden “trap” inside a vehicle driven by defendant Medina; in 2014, Pennsylvania State troopers seized over $300,000 from a “trap” inside a vehicle registered to defendant Clarissa Vasquez, and in which defendants Zaida Lopez and Enrique LaPorte were traveling; and in 2015, Ohio State troopers stopped a vehicle driven by Carlos Mateo, from which Indiana law enforcement later recovered over $48,000 secreted in a “trap.”
The proceeds of the illicit narcotics operation funded a lavish lifestyle for the Lopez and Vasquez families, their associates and co-conspirators. For example, Clarissa Vasquez spent extravagantly on luxury goods and gifts, including gold and diamond encrusted jewelry, 24 karat gold-gilded and “Versace” branded birthday cakes for her brother and fiancée, and boasted of her co-defendants’ exorbitant purchases and expensive vehicles on social media. While law enforcement seized nearly $1 million in luxury vehicles, including a Rolls Royce Ghost, Lamborghini Hurácan, Audi R8 Spyder, Mercedes CLS63 AMG and Range Rover Sport, nearly $1 million in cash and tens of thousands of dollars’ worth of high fashion shoes and handbags, additional assets of the co-conspirators remain at large. All proceeds of the narcotics trafficking conspiracy will be subject to forfeiture, according to the indictment.
The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, all of the defendants face mandatory minimum sentences of 10 years’ imprisonment and maximum sentences of life.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes, Jennifer M. Sasso and Andrey Spektor are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit.
The Defendants: ENRIQUE LAPORTE (also known as “Chiquito”)
Age: 41
Brooklyn, New YorkZAIDA LOPEZ
Age: 41
Brooklyn, New YorkPHILIPPE MEDINA
Age: 32
Brooklyn, New YorkCARLOS MATEO
Age: 42
Brooklyn, New YorkCLARISSA VASQUEZ (also known as “Clari”)
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-390 (S-1) (RJD)
Sex Offender Sentenced to More Than a Year in Prison for Failing to Register in IowaRead the Press Release
A convicted sex offender who lived in Iowa for three weeks without registering was sentenced today to more than a year in federal prison.
Lucas Hertrampf, age 30, from Lancaster, Wisconsin, received the prison term after a December 1, 2017, guilty plea to failing to register as a sex offender.
Information from the sentencing hearing showed that Hertrampf was required to register as a sex offender because he was previously convicted of sexual assault involving the use of force. While still on probation for that conviction, Hertrampf had his supervision revoked seven times. In April 2017, Hertrampf was charged with stealing a car in Grant County, Wisconsin. He was scheduled to appear in court on that charge on June 26. Hertrampf failed to appear for that hearing. Instead, law enforcement found Hertrampf in Clayton County, Iowa, on June 29. Hertrampf had been living in Iowa for three weeks. During that time, he did not register as a sex offender as he was required to do.
Hertrampf was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Hertrampf was sentenced to 15 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Hertrampf is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshal’s Service and the Clayton County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-cr-57.
Follow us on Twitter @USAO_NDIA.
Rock Hill Man Pleads to Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Zadgery Collins McNeil, age 32, of Rock Hill, plead guilty in federal court to being a felon in possession of a firearm and ammunition and to possession with intent to distribute marijuana, 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), 841(b)(1)(D), and 851. 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 at approximately 1:25 pm on December 6, 2016, Rock Hill Police Department received numerous 911 calls regarding a shooting on Jones Avenue. One of the callers identified McNeil as being one of the individuals involved and provided a description of McNeil’s vehicle, as well as the other vehicle involved. An officer encountered McNeil’s vehicle and observed him fire a handgun before speeding away. A chase ensued, which resulted in McNeil bailing from his vehicle, which crashed into a porch of a residence. A foot chase ensued during which McNeil threw down the handgun. McNeil ran into a nearby home and the residents alerted law enforcement. McNeil was placed under arrest a short time later and officers recovered $550 and the discarded handgun. A search of McNeil’s vehicle revealed approximately 348 grams of marijuana and a spent shell casing among other items linked to McNeil.
McNeil is prohibited under federal law from possessing firearms and ammunition based upon his prior separate South Carolina state convictions for possession of crack cocaine (2006), assault and battery of a high and aggravated nature (2007), possession with intent to distribute marijuana (2012), possession with intent to distribute marijuana near a park (2014), and distribution of marijuana 2nd offense (2014). At the time of the instant offense, McNeil was on state probation for a North Carolina conviction for possession of a firearm by a felon (2014).
On the firearm charge, McNeil 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. McNeil faces a maximum of 10 years, a fine of $4,000,000 and 4 years of supervised release on the marijuana charge.
The case was investigated by the Federal Bureau of Investigation (FBI) Safe Streets Task Force and the Rock Hill 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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Rochester Man Pleads Guilty to Lying to an Fbi AgentRead 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 Michael Beers, 68, of Rochester, NY, pleaded guilty to making a false statement to an FBI special agent before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of eight years in prison and a fine of $250,000.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in February 2017, the FBI conducted a child pornography investigation during which an undercover agent downloaded four videos of child pornography directly from a device using an IP address belonging to the defendant at his residence on Lake Avenue in Rochester.
On March 10, 2017, the FBI executed a search warrant at Beers’ residence. Agents located a computer which contained file titles consistent with child pornography. The defendant was questioned regarding his use of the computer, at which point Beers willfully made materially false statements to FBI Agents. Specifically, the defendant denied having access to or using the computer, denied knowing the password for the computer, and denied that child pornography had been accessed, inadvertently or otherwise, on the computer. In reality, the defendant used the computer, personally set the password for computer, and had seen child pornography on the computer.
The plea is the culmination of an investigation on the part of Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for June 28, 2018 before Judge Siragusa.Roane County Man Sentenced to 5 Years in Prison for Distributing Child PornographyRead the Press Release
CHARLESTON, W.Va. - A Roane County man was sentenced today to 5 years for a child pornography crime, announced United States Attorney Mike Stuart. Kenneth Frederick Stier, also known as J D Stier, John Stier, John Davis, and John David Stier, a 30-year old from Spencer, West Virginia, previously pled guilty to distributing child pornography. United States District Court Judge Joseph R. Goodwin imposed the sentence. Stier was ordered to serve 20 years on federal supervised release after completion of his prison term, and to pay a $40,000.00 fine. He will also be required to register as a sex offender. Stuart commended the excellent work of the Federal Bureau of Investigation, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, the Roane County Sheriff’s Office, and the Alcohol, Tobacco, Firearms and Explosives.
“Over 600 images of a child were distributed by this predator. It’s disgusting and all like him are true monsters among us,” said United States Attorney Mike Stuart. “Stier’s sentence reflects the serious need to keep him away from our kids. Child porn is a crime of violence and every case and every predator will be dealt with seriously and harshly by my office.”
Stier admitted that he installed Kik messenger on his cell pohone. Kik Kik Messenger is an instant messenger application for mobile devices that allows users to send messages, pictures and videos. An undercover law enforcement operation revealed that on December 13, 2016, Stier used his cell phone to distribute two videos of child pornography to other individuals in a Kik chat group session.
Stier also admitted to distributing child pornography videos on another occasion and to possessing over 600 images and videos.
Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Recording Artist and Performer DMX Sentenced in Manhattan Federal Court to 1 Year in Prison for Tax FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EARL SIMMONS, an internationally known recording artist, performer, and actor known professionally as “DMX” and “X,” was sentenced today in Manhattan federal court to one year in prison for tax fraud in connection with evading the payment of income taxes in the period from 2010 through 2016. In total, during that time period SIMMONS concealed millions of dollars of income from the IRS and avoided paying $1.7 million of tax liabilities. SIMMONS pled guilty on November 30, 2017, before United States District Judge Jed S. Rakoff, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Earl Simmons, the recording artist and performer known as DMX, stole from the American taxpayers when he earned millions of dollars but failed to pay any taxes on his income. Today’s sentence shows that star power does not entitle people to a free pass. Together with our partners at the IRS, we will vigorously enforce our tax laws to make sure that people pay their fair share.”
According to the Indictment and statements made in open court:
SIMMONS worked as a recording artist, performer, and actor. Beginning in 1997, SIMMONS released a series of hip-hop albums that sold millions of records. Many of his albums went platinum and occupied the top positions on musical charts. During his career, SIMMONS has performed at venues across the United States and around the world, and has acted in motion pictures.
As a result of the income SIMMONS earned from sources including musical recordings and performances, from 2002 through 2005 he incurred federal income tax liabilities of approximately $1.7 million. Those liabilities went unpaid, and in 2005, the IRS began efforts to collect SIMMONS’s unpaid tax liabilities.
During the period from 2010 through 2015, SIMMONS earned more than $2.3 million, but SIMMONS did not file personal income tax returns during that time period. Instead, he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses. For example, SIMMONS received hundreds of thousands of dollars of royalty income from his music recordings. SIMMONS caused that income to be deposited into the bank accounts of his managers, who then disbursed it to him in cash or used it to pay his personal expenses. SIMMONS also participated in the “Celebrity Couples Therapy” television show in 2011 and 2012 and was paid $125,000 for his participation. When taxes were withheld from the check for the first installment of that fee by the producer, SIMMONS refused to tape the remainder of the television show until the check was reissued without withholding taxes.
SIMMONS took other steps to conceal his income from the IRS and others, including by filing a false affidavit in U.S. Bankruptcy Court that listed his income as “unknown” for 2011 and 2012, and as $10,000 for 2013. In fact, SIMMONS received hundreds of thousands of dollars of income in each of those years.
* * *
In addition to his prison sentence, SIMMONS, 47, of Yonkers, New York, was sentenced to three years of supervised release and ordered to pay $ 2,292,200 in restitution to the IRS.
Mr. Berman praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Richard Cooper is in charge of the prosecution.
Radio Equipment Seized from Two Illegal Radio Stations in BostonRead the Press Release
BOSTON – Radio transmission equipment from two radio stations that were operating illegally in Boston was seized on Monday, March, 26th.
According to court documents unsealed today, “Big City,” which broadcasted at times on 100.3 FM, 105.3 FM, and 101.3 FM, from Dorchester, with a studio in Roxbury, and “B87.7 FM,” which operated on 87.7 FM from Dorchester, were operating without a license from the Federal Communications Commission (FCC). The FCC issued multiple warnings to the illegal operators, but the radio stations continued to broadcast. Pursuant to federal forfeiture actions, authorities seized equipment operated by each radio station at that station’s antenna location on Blue Hill Avenue in Dorchester. The forfeiture actions were brought after the FCC received complaints, including a complaint from a licensed broadcaster about interference with its radio signal.
“When pirate radio stations refuse to cease operations, despite multiple warnings, action must be taken,” said United States Attorney Andrew E. Lelling. “It is a public safety hazard for illegal radio stations to broadcast, potentially interfering with critical radio communications. We will work in conjunction with the FCC’s Enforcement Bureau to identify violators of federal communications law.”
“Pirate radio stations are operating without an FCC license – and therefore breaking the law, as well as interfering with licensed broadcasters and potentially preventing those broadcasters from delivering critical public-safety information to listeners,” said Rosemary Harold, Chief of the FCC’s Enforcement Bureau. “We are pursuing multiple legal routes to stop pirate broadcasters; the seizure action in Boston is just one of them. We thank our partners in the Massachusetts U.S. Attorney’s Office and U.S. Marshals Service, and we’re particularly thankful for the great work of FCC Field agents in combatting this problem.”
The Communications Act of 1934 prohibits the operation of radio broadcasting equipment above certain low-intensity thresholds without a license issued by the FCC. The Act authorizes the seizure and forfeiture of any electronic or radio frequency equipment used to broadcast without an FCC license. The number of available radio frequencies is limited, and unlicensed broadcasting can interfere with the broadcasting of legitimate licensed radio stations, potentially causing chaos in the radio spectrum.
U.S. Attorney Lelling and FCC Enforcement Chief Harold made the announcement today. The U.S. Marshals Service and Boston Police Department provided assistance with the seizure operations. Assistant U.S. Attorney David G. Lazarus, Chief of Lelling’s Asset Forfeiture Unit, is handling the matter.
Queens Immigration Attorney Charged with Asylum FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and Patricia Menges, Director of the U.S. Citizenship and Immigration Services New York Asylum Office, announced that yesterday ANDREEA DUMITRU, a/k/a “Andreea Dumitru Parcalaboiu,” an immigration attorney based in Queens, New York, was charged with asylum fraud and making false statements. The case has been assigned to U.S. District Court Judge Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “Andreea Dumitru, an immigration attorney, is alleged to have submitted fraudulent forms for over 180 clients, each containing statements and representations she knew to be false. She now faces prison time for her alleged crimes.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Dumitru is alleged to have used her trusted position to defraud the government, submitting fraudulent documents to claim asylum. Her alleged actions took up time and resources while those with valid asylum claims waited in line. Now, Dumitru will enter a courtroom as a defendant to face the consequences for her alleged actions.”
Director Patricia Menges said: “U.S. Citizenship and Immigration Services is proud of the hard work of our fraud detection officers that leads to important cases like this one, and ensures that those who try to commit immigration fraud will face justice. USCIS is also grateful for the outstanding collaboration with ICE-HSI and our other law enforcement partners.”
According to the allegations in the Indictment[[1]]:
Between 2012 and 2017, DUMITRU participated in a scheme to submit fraudulent I-589 Forms in connection with applications for asylum. Specifically, DUMITRU submitted over 180 applications in which she knowingly made false statements and representations about, among other things, the applicants’ criminal histories, personal narratives of alleged persecution, and/or locations. Nevertheless, DUMITRU certified each application as true and correct under penalty of perjury.
* * *
DUMITRU, 42, of Queens, New York, is charged with one count of asylum fraud, which carries a maximum sentence of 10 years in prison, and one count of making false statements, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of HSI and United States Citizenship and Immigration Services, and thanked the Federal Bureau of Investigation for its assistance.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorneys Alison G. Moe and Robert B. Sobelman are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Philadelphia Man Charged with Possession of an Illegal FirearmRead the Press Release
Andre Pereira-Lopes, a/k/a “Davi Da Silva,” of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by an illegal alien, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about February 24, 2018, Pereira-Lopes, an illegal alien, knowingly possessed a .38 caliber Colt Detective Special revolver, which was loaded with six rounds of ammunition.
If convicted the defendant faces a maximum possible sentence of ten years and other penalties.
The case was investigated by Immigration and Customs Enforcement and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kevin Jayne.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Palm Springs Art Museum Agrees to Comply with ADA by Improving Access for People Who Are Deaf or Hard of HearingRead the Press Release
LOS ANGELES – The Palm Springs Art Museum has entered into a voluntary agreement with the United States to resolve allegations that the museum violated the Americans with Disabilities Act (ADA) by failing to provide scripts for audio programs or properly functioning assistive-listening devices, as well as other auxiliary aids and services, to persons who are deaf or hard of hearing.
Under the settlement agreement, the museum, which operates facilities in Palm Springs and Palm Desert, will provide equipment and services free of charge to ensure that people who are deaf or hard of hearing have full and equal enjoyment of all of the Museum’s exhibits, programs and activities in each of its locations.
The agreement with the United States Attorney’s Office resolves allegations that the museum was violating Title III of the ADA, which prohibits discrimination by places of public accommodation against individuals with disabilities.
The museum fully cooperated with the government’s investigation. Under the settlement agreement, the museum will provide, in general:
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Captions or transcripts for all audiovisual programs or audio-only programs in permanent exhibitions;
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Captions or transcripts for all temporary audiovisual programs if the museum has five or more days to make those arrangements;
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Sign language or oral interpreters, assistive-listening devices, or real-time captioning for public programs, touring exhibitions and special events for which the museum has no captions or transcripts, and upon advance request;
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Properly functioning assistive-listening devices;
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Advertisement of the availability of auxiliary aids and services;
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Designation of an ADA Compliance Officer; and
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Training on the ADA for supervisors and managers.
This matter was handled by Assistant United States Attorney Monica L. Miller in the Civil Division. For more information on the ADA, including access to publications to assist entities with ADA compliance, please visit www.ADA.gov or call the Department of Justice’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
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Ocean County, New Jersey, Business Owner Sentenced to 21 Months in Prison for Operating Unlicensed Money Transmitting BusinessRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 21 months in prison for owning and operating an unlicensed money transmitting business, U.S. Attorney Craig Carpenito announced.
Yisroel Malamud, 54, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with running an unlicensed money transmitting business. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money – determined to be more than $6 million – from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.
New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.
In addition to the prison term, Judge Thompson sentenced Malamud to three years of supervised release. Forfeiture will be determined at a later date.
U.S. Attorney Carpenito credited special agents of the FBI, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen, with the investigation leading to today’s sentencing.
The government is represented by Eric W. Moran, Chief of the Criminal Division for the southern vicinages in the District of New Jersey.
Defense Counsel: Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey
Oak Ridge Resident Sentenced to 168 Months in Federal Prison for Downloading and Sharing Child Pornography Through Peer-To-Peer File Sharing SoftwareRead the Press Release
KNOXVILLE, Tenn.- On March 28, 2018, James Edward Hiatt, 33, of Oak Ridge, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve168 months in federal prison for distributing and possessing child pornography. Following his release from prison, Hiatt will be supervised by the U.S. Probation Office for 14 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Hiatt pleaded guilty in May 2017 to federal charges stemming from his use of peer-to-peer file sharing software to obtain child pornography and make child pornography available for others to download via the internet. A search of Hiatt’s residence resulted in the seizure of evidence confirming that he had been distributing child pornography that he had accessed, downloaded, and stored on his computer.
This investigation was conducted by the U.S. Department of Homeland Security and Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New York Man Admits Distributing Synthetic Drug Leading to Overdose DeathRead the Press Release
New Jersey Woman Admits Shipping Designer Drugs from Farmingdale Post Office
NEWARK, N.J. – A New York man and a New Jersey woman today pleaded guilty to their roles in a cross-country conspiracy to distribute dangerous designer drugs over the internet, including a synthetic opioid that is several times more potent than morphine, U.S. Attorney Craig Carpenito announced.
Brian Parker, 34, of Long Island City, New York, and Victoria Koleski, 30, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge William H. Walls to separate informations charging them each with one count of conspiring to distribute controlled substance analogues, and one count of distributing and possessing with intent to distribute controlled substance analogues.
Controlled substance analogues are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances.
According to documents filed in this case and statements made in court:
Parker admitted that from May 16, 2016 through Aug. 3, 2017, he conspired with others to distribute the controlled substance analogues U-47700, a synthetic opioid several times more potent than morphine, and A-PHP and 3-MEO-PCP, which have chemical structures and hallucinogenic properties similar to A-PVP and PCP, respectively.
Parker manufactured and distributed these drugs and other illegal chemicals through two internet-based companies he controlled, Unbeatablechems and RC Powders. Parker admitted that on May 16, 2016, he distributed U-47700 to a customer in Madison, Wisconsin, which resulted in the death of that individual on May 22, 2016.
Parker used other conspirators, such as Koleski, to send and receive packages for his narcotics distribution business. Those conspirators received raw materials from China or elsewhere through the mail, repackaged and sent them to Parker, who then manufactured those materials into the chemicals that he sold online. Afterwards, Parker transported the finished products back to his conspirators, who then shipped them to Parker's customers.
Koleski admitted that from December 2016 through August 2017, she conspired with Parker to distribute controlled substance analogues. She also admitted that from June 30, 2017 through July 5, 2017, she shipped multiple parcels from a Farmingdale post office that contained controlled substance analogues A-PHP and 3-MEO-PCP.
Both charges in the informations carry a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Parker and Koleski is scheduled for July 2, 2018 and July 3, 2018, respectively.
U.S. Attorney Carpenito credited special agents and task force officers with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
Defense counsel: Parker: Candace Hom Esq., Assistant Federal Public Defender, Newark
Koleski: Michael Koribanics Esq., Clifton, New JerseyNew Orleans Woman Sentenced to Prison for Role in $3.2 Million Health Care Fraud and Kickback SchemeRead the Press Release
A New Orleans, Louisiana woman was sentenced today to 32 months in prison for her involvement in a $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Sandra Parkman, 63, was sentenced by U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who also ordered Parkman to pay $277,197 in restitution. On Nov. 8, 2017, after a three-day jury trial, Parkman was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive health care kickbacks, two counts of health care fraud and five counts of receiving health care kickbacks.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to defraud Medicare by suppling medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from co-defendant Tracy Richardson Brown, the owner of an equipment supply company, not only to provide personal identifying information of eligible Medicare beneficiaries, but also to obtain physican signatures on order forms for the medically unnecessary equipment. As a result of the scheme, Parkman received more than $47,000 in kickback payments, and Brown ultimately caused Medicare to pay over $3.2 million based on illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in August 2016, and was sentenced to 80 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,500 defendants who collectively have billed the Medicare program for over $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Woman Sentenced to Prison for Role in $3.2 Million Health Care Fraud and Kickback SchemeRead the Press Release
WASHINGTON –A New Orleans, Louisiana woman was sentenced today to 32 months in prison for her involvement in a $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Sandra Parkman, 63, was sentenced by U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who also ordered Parkman to pay $277,197 in restitution. On Nov. 8, 2017, after a three-day jury trial, Parkman was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive health care kickbacks, two counts of health care fraud and five counts of receiving health care kickbacks.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to defraud Medicare by suppling medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from co-defendant Tracy Richardson Brown, the owner of an equipment supply company, not only to provide personal identifying information of eligible Medicare beneficiaries, but also to obtain physican signatures on order forms for the medically unnecessary equipment. As a result of the scheme, Parkman received more than $47,000 in kickback payments, and Brown ultimately caused Medicare to pay over $3.2 million based on illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in August 2016, and was sentenced to 80 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,500 defendants who collectively have billed the Medicare program for over $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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New London Drug Dealer Receives 17 Years in Federal Prison for Overdose DeathRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 26, 2018, Tyler A. Kuhnke (age: 27) of New London, Wisconsin, appeared in federal court in Green Bay and was sentenced to 17 years in federal prison for distribution of fentanyl, resulting the death of a close relative in June of 2017.
Kuhnke admitted travelling with the victim to his drug source in Oshkosh for the purpose of obtaining heroin. The heroin was, unbeknownst to Kuhnke and the victim, an especially potent form of fentanyl. The medical examiner determined that the victim died of acute fentanyl toxicity.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the “terribly serious” nature of Kuhnke’s crime and the negative effect that fentanyl has had on the community, calling it “a poison that’s killing people.” He found that Kuhnke was aware of the inherent dangers of distributing illegal substances, and it was noted during the hearing that Kuhnke had previously supplied drugs that led to a non-fatal overdose of the same victim in 2016. Following his release from prison, Kuhnke will serve 8 years on federal supervised release.
The case was investigated by the New London Police Department and the Winnebago County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700