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Thursday 15 February 2018
Former State Legislator Sentenced for Mail FraudRead the Press Release
Montgomery, Ala. – On Thursday, February 15, 2018, former State Representative Micky Ray Hammon, 60, of Decatur, Alabama, received a sentence of three months’ imprisonment for committing mail fraud, announced United States Attorney Louis V. Franklin, Sr. Hammon served in the Alabama House of Representatives from 2003 until 2017, when he entered his guilty plea. During his service, Hammon represented the fourth district. From 2010 to 2017, Hammon served as the chamber’s majority leader. Hammon will be subject to three years of supervised release upon completion of his prison sentence.
According to court documents, Hammon used money donated to his 2014 reelection campaign to pay personal expenses. This is a violation of Alabama law, which strictly limits the ways that donated money can be used. Hammon used the United States Postal Service to commit his offense when he received campaign donation checks through the mail. All of the donors reasonably expected that the campaign would use money for legal purposes.
“The victims of Hammon’s offense were not only the donors to his campaign, but all Alabama voters,” stated United States Attorney Franklin. “All voters trust that elected officials will serve honorably, not line their own pockets. Hammon violated that trust. I would like to thank the United States Postal Inspection Service for the excellent work that led to this prosecution. My office will continue to hold our elected officials accountable.”
“This sentencing sends out the clear message that nobody is above the law when it comes to the sanctity of the U.S. Mail,” said U.S. Postal Inspector in Charge Adrian Gonzalez, Houston Division. “Postal Inspectors steadfastly work to defend the nation’s mail system from fraud in hopes of bringing anyone to justice that uses the U.S. Postal Service in violating the trust of the American public.”
The United States Postal Inspection Service investigated the case. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
Former Social Security Administration Employee Pleads Guitly to Theft of Government MoneyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Vasty Araceli Jimenez (32, Ellenton) has pleaded guilty to theft of government money. She faces a maximum penalty of 10 years in federal prison. The sentencing hearing is scheduled for April 19, 2018.
According to the plea agreement, between 2011 and 2014, Jimenez applied for child care subsidies for her children through the Early Learning Coalition of Manatee County (“ELC”). The funding for these subsidies was administered by the Office of Early Learning (“OEL”), a component of the Florida Department of Education that administered federal and state child care funds, including federal Child Care and Development Fund dollars, for the state of Florida. OEL funded various local early learning coalitions to assist families who qualified for subsidized daycare services. The subsidies were paid directly to the daycare providers.
During the relevant time period, Jimenez provided the ELC with pay stubs purportedly from her employer, the Social Security Administration. Jimenez, however, had altered the pay stubs to make it appear that her gross pay was less than it actually was. Based on these falsified pay stubs, the ELC determined that she qualified for child care subsidies. In addition, in her applications and re-certification paperwork, she failed to disclose that she was married and that her husband was part of her household, which would have affected the family’s eligibility for child care. Likewise, Jimenez failed to disclose any of her husband’s income in her ELC paperwork. These omissions resulted in Jimenez receiving child care subsidies to which she would not have otherwise been entitled. In total, Jimenez received approximately $48,895. She resigned from her position with the Social Security Administration prior to pleading guilty.
This case was investigated by the United States Social Security Administration’s Office of the Inspector General, the Florida Department of Financial Services, Division of Public Assistance Fraud, and the United States Department of Health and Human Services, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Former Sheriff's Deputy Sentenced to over 12 Years in Federal Prison for Receiving Child PornographyRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Justin Grant Crain, age 38, of El Dorado, Arkansas was sentenced today to 148 months in federal prison followed by five years of supervised release on one count of knowing receipt of child pornography. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in April of 2016, the National Center for Missing and Exploited Children forwarded information to the Arkansas State Police that images of child pornography were uploaded to cloud storage associated with a specific phone number. A resulting investigation by the Arkansas State Police and the Department of Homeland Security revealed that the images were uploaded by Crain. Crain was identified as a Union County Sheriff’s Deputy and former El Dorado Police Officer. The Arkansas State Police obtained and executed a federal search warrant on Crain’s cell phone while he was at work and found that he possessed over fifty images of child pornography. Crain was arrested on a federal criminal complaint obtained on June 3, 2016 for Accessing the Internet with the Intent to View Child Pornography and Receipt of Child Pornography. Crain was terminated as an employee of the Union County Sheriff’s Office.
A subsequent federal search warrant executed by the Arkansas State Police and the United States Secret Service on Crain’s electronic devices found that Crain possessed approximately 850 additional images of child pornography at his home. Crain was indicted by a federal grand jury sitting in the Western District of Arkansas in June of 2016 on federal charges and later pleaded guilty to the knowing receipt of child pornography in March of 2017.
This case was investigated by the National Center for Missing and Exploited Children, the Arkansas State Police Cybercrimes Unit, the Department of Homeland Security, the United States Secret Service, the Union County Sheriff’s Office, and the Arkansas Internet Crimes Against Children Taskforce. Assistant United States Benjamin Wulff prosecuted the case for the United States.
Former Navy SEAL Sentenced for Sexual Exploitation of a ChildRead the Press Release
NORFOLK, Va. – A former U.S. Navy SEAL was sentenced today to 27 years in prison, 25 years of supervised release, and fined $10,000 for producing images of child sexual abuse.
According to the statement of facts filed with the plea agreement, the investigation into Gregory Kyle Seerden, 32, began after a woman reported to base security at Joint Expeditionary Base Little Creek-Fort Story in Virginia Beach that Seerden sexually assaulted her. After NCIS agents seized and searched Seerden’s iPhone, a digital forensic examiner discovered several images of child pornography. Further analysis confirmed 78 images and four videos of child pornography. Agents later learned that Seerden took the videos with his iPhone, and that the minor victim was a five year-old child known to Seerden. The videos graphically depict Seerden sexually abusing the child while the child sleeps.
“Gregory Seerden victimized a child and used mobile technology to memorialize sexually explicit videos,” said Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia. “As this prosecution makes clear, the United States will seek to hold accountable anyone who sexually exploits our most vulnerable citizens.”
Seerden is also charged in San Diego for conduct stemming from the summer of 2014. That case is a reopening of a 2014 NCIS investigation that did not result in prosecution at the time. As described in court documents, the allegations in that case involve another minor known to Seerden, and the recording of sexual abuse involving the child on an iPhone, and are thus strikingly similar to the acts Seerden pleaded guilty to here.
“Instead of being a protector, Seerden was a predator who attacked a sleeping five year old child,” said Cliff Everton, Special Agent in Charge of the NCIS Norfolk Field Office. “He is the antithesis of every value the military services hold dear.”
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney David A. Layne, and Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-67.
Former Law Firm Office Manager Charged with Defrauding Law Firm of over $400,000 and Filing False Tax ReturnsRead the Press Release
Memphis, TN – A federal grand jury has returned a superseding indictment against Misty West, 40, of Olive Branch, Mississippi. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the superseding indictment today.
The superseding indictment alleges four counts of wire fraud, one count of interstate transportation of monies stolen or taken by fraud, and three counts of filing false tax returns.
The grand jury originally returned an indictment against West last May. The original indictment charged West with wire fraud and interstate transportation of monies stolen or taken by fraud. The superseding indictment returned Tuesday, February 13, 2018, also alleges that West filed false tax returns for calendar years 2013-2015.
According to the superseding indictment, West was employed as the office manager, bookkeeper and paralegal at the Fowler Law Firm, located on Dr. Martin Luther King Jr., Avenue in Memphis. The superseding indictment alleges that between August 2011 and July 2016, West engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000.
According to the superseding indictment, West used the internet to pay her personal cell phone bill from the firm’s account, and also to make a payment to the IRS on a personal tax debt.
The superseding indictment alleges that in other instances, Fowler gave West checks signed in blank to pay the firm bills. West completed the payee information and the amounts. The superseding indictment alleges that West routinely made some the checks payable to herself and deposited them to one of her bank accounts and thereafter withdrew funds.
Former ICE Chief Counsel Pleads Guilty to Using the Identities of Numerous Aliens for Wire Fraud and Aggravated Identity Theft SchemeRead the Press Release
Former Chief Counsel Raphael A. Sanchez of U.S. Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor pleaded guilty today for a wire fraud and aggravated identity theft scheme involving the identities of numerous aliens, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and ICE Deputy Director Thomas D. Homan.
Sanchez, 44, of Seattle, Washington, will be sentenced on May 11, before U.S. District Judge Robert S. Lansik of the Western District of Washington.
“It is the duty of our federal immigration authorities to ensure the honest enforcement of our nation’s immigration laws,” said Acting Assistant Attorney General Cronan. “Raphael Sanchez betrayed that solemn responsibility and abused his official position to prey upon aliens for his own personal gain. We should not let one bad actor detract from the dedicated work done by all ICE agents and attorneys to keep our neighborhoods safe, and ICE should be commended for quickly and fully investigating this matter and referring it to the Justice Department for prosecution.”
“At the top of ICE’s core values is integrity, with an expectation that our employees adhere to the highest standards of honesty and professional conduct,” said Deputy Director Homan. “While I am appalled by these egregious, independent acts of criminal misconduct by Mr. Sanchez, I am grateful to the men and women of ICE who do their job with the utmost professionalism every day, including those in the Seattle Office of Chief Counsel, who I’m confident will continue to accomplish their mission with integrity and dedication, and our agents in the ICE Office of Professional Responsibility, who investigated this case and presented it for successful prosecution.”
According to admissions in the plea agreement, from October 2013 through Oct. 25, 2017, Sanchez, who had responsibility over immigration removal proceedings in Alaska, Idaho, Oregon and Washington, intentionally devised a scheme to defraud seven aliens in various stages of immigration removal proceedings. For his own personal gain, Sanchez used the personally identifiable information of those aliens to open lines of credit and personal loans in their names, manipulated their credit bureau files and transferred funds to and purchased goods for himself using credit cards issued in their names.
Sanchez admitted that he obtained personally identifiable information of the victim aliens by using ICE’s official computer database systems and by accessing their official, hard-copy immigration A-files, and then forged identification documents on his work computer, such as social security cards and Washington State driver’s licenses, in the victims’ names. Sanchez used the forged documents to open credit card and bank accounts in the names of aliens, which he controlled.
In furtherance of the scheme, Sanchez listed his home address as the aliens’ residences on account paperwork; in some cases, created public utility account statements in their names to provide the necessary proof of residence in order to open lines of credit in their names or to conceal the scheme; and opened e-mail and online financial accounts in the names of several aliens. Sanchez also manufactured a false earnings and leave statement in the name of one alien in furtherance of the scheme and registered a car in her name.
Sanchez further admitted that once the accounts were approved and opened, he made charges or drew payments totaling more than $190,000 in the names of aliens to himself or entities that he controlled, often using PayPal and mobile point of sale devices from Amazon, Square, Venmo and Coin to process fraudulent Internet transactions. In a number of cases, Sanchez purchased goods online in the names of aliens and had them shipped to his residence. Sanchez also employed credit monitoring services on some of these aliens and corresponded with credit bureaus in the names of aliens to conceal his fraud scheme. Finally, as part of the scheme to defraud, Sanchez also claimed three aliens as relative dependents on his tax returns for 2014 through 2016.
ICE’s Office of Professional Responsibility, the FBI and the U.S. Postal Inspection Service investigated the case. Trial Attorneys Luke Cass and Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Federal Correctional Officer Sentenced to 24 Months in Prison for Taking BribesRead the Press Release
Ocala, Florida – Senior United States District Judge James D. Whittemore today sentenced Albert Larry Harris, Jr. (27, Lake County) to 24 months in federal prison for accepting a bribe as a public official. He pleaded guilty on November 15, 2017.
According to the plea agreement, Harris worked as a Correctional Officer at the Coleman Federal Correctional Complex. In June 2017, he began providing inmates at the prison with contraband (drugs and tobacco products) in exchange for large cash payments. On August 22, 2017, Harris met with an undercover agent in Ocala and accepted a $5,000 bribe and 200 Suboxone strips for delivery to a federal inmate. Following the exchange, Harris was arrested.
This case was investigated by the Department of Justice, Office of the Inspector General (DOJ OIG), and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former City of Hampton Employee Pleads Guilty to Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A former City of Hampton employee pleaded guilty today to distribution of child pornography.
According to court documents, Robert Dobbins, 36, of Hampton, law enforcement received information from a foreign law enforcement agency regarding the user “DEATHLYROSE55” on Website A. In September, the user responded to a foreign law enforcement officer working in an undercover capacity and indicated that he had committed a hands on offense against a child. He also sent the investigator a mega link, which contained child pornography. Law enforcement linked the email address to a residence in Hampton, and determined that Dobbins was previously convicted of receipt and possession of child pornography in January 2005, while he was employed by the U.S. Navy.
During the execution of a federal search warrant, Dobbins, who at the time was a city of Hampton employee, acknowledged accessing child pornography from his city-issued Samsung smartphone using the internet. Dobbins admitted to agents that he cut and pasted photographs from Facebook of his friends’ daughters and re-posted them on his Website A account, “DEATHLYROSE55.” Dobbins also stated that he “traded” links to child pornography images and videos with other individuals who he met online utilizing Website A.
Dobbins pleaded guilty to distribution of child pornography and faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison when sentenced on June 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dobbins in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after the guilty plea was accepted by U.S. District Magistrate Judge Douglas E. Miller. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-129.
Former Church Pastor Indicted for Theft of over $200,000 in Social Security FundsRead the Press Release
United States Attorney Duane A. Evans announced that OTHO SCHILLING (“SCHILLING”), age 58, of Mt. Hermon, Louisiana, was indicted today by a federal grand jury for Theft of Government Funds, in violation of 18 U.S.C. § 641.
According to the indictment, SCHILLING, while the pastor of a church in Bush, LA between 2005-2016, required the church to pay his personal expenses, such as his health and car insurance premiums, car payments, and personal land note in lieu of the church paying him a salary directly. During this period, SCHILLING was receiving Retirement, Survivors and Disability Insurance (“RSDI”) from the Social Security Administration in the amount of $1,728 a month. SCHILLING concealed both his earnings and employment from the Social Security Administration. Accordingly, SCHILLING fraudulently received over $200,000.00 in RSDI benefits he was not entitled to due to his employment with the church.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, SCHILLING faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Folsom Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Jason E. Mininger, 50, of Folsom, pleaded guilty today to wire fraud and money laundering, United States Attorney McGregor W. Scott announced.
According to court documents, Mininger was an investment broker and advisor in Folsom. Beginning in January 2014, and continuing until May 2017, Mininger misrepresented to his clients that he needed to use their previously invested funds as part of a new series of investments to be made or managed by Mininger. In truth, Mininger, after depositing the clients’ funds into his own bank account, used the investors’ money on his personal expenses. Mininger caused at least $870,000 in losses to his clients. Mininger also created false investment account statements to conceal his embezzlement of his clients’ funds.
This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Services-Criminal Investigations. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Mininger is scheduled to be sentenced by Judge Troy L. Nunley on May 31, 2018. Mininger faces a maximum statutory penalty of 20 years in prison on the wire fraud count and 10 years in prison on the money laundering charge. He also faces a fine or $250,000 or twice the gross loss or gross gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Florida felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Florida man pled guilty today to a federal gun charge, announced United States Attorney Mike Stuart. Derrick Shane McCullough, 27, of Keystone Heights, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigative efforts of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“As a staunch supporter of the Second Amendment, I take the prosecution of criminals who violate the gun laws that protect that right extremely seriously,” said U.S. Attorney Stuart. “Dangerous felons who disregard our gun laws put our communities at risk, and we will continue working with law enforcement to keep guns out of the hands of criminals.”
On July 16, 2016, officers with the Charleston Police Department stopped a vehicle on Chandler Drive in Charleston for a seatbelt violation. When one of the officers asked if there was anything illegal in the car, McCullough, a passenger, told the officer that there was a gun under his seat. Officers subsequently seized a short-barreled shotgun that McCullough admitted he had brought into the vehicle with him. McCullough was prohibited from possessing any firearm under federal law because of felony convictions in Florida in 2014 for burglary of a dwelling and grand theft.
McCullough faces up to 10 years in federal prison when he is sentenced on May 10, 2018.
Assistant United States Attorney Gabriele Wohl is in charge of the prosecution. United States District Judge Joseph R. Goodwin presided over the plea hearing.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Federal Search Warrants ExecutedRead the Press Release
On Wednesday, February 14, 2018, federal search warrants were executed at the following locations in Iowa and Oklahoma:
• 4600 block of Hubbell Avenue, Des Moines
• 1800 block of Dean Avenue, Des Moines
• 3100 block of East Tiffin Avenue, Des Moines
• 300 block of North Street, Promise City
• 1000 block of 69th Street, Windsor Heights
• 200 block of East Morton Street, Lucas
• 400 block of North 1st Street, Carlisle
• 18000 block of Oregon Street, Milo
• 1300 block of Andover Court, Oklahoma City, OklahomaThe searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Des Moines Police Department (DMPD); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Iowa Division of Narcotics Enforcement (DNE); Iowa State Patrol (ISP); Mid-Iowa Narcotics Enforcement Task Force – East (MINE – East); Central Iowa Drug Task Force (CIDTF); South Central Iowa Drug Task Force (SCIDTF); Wayne County Sheriff’s Office; and Lucas County Sheriff’s Office.
The following individuals were charged with possession with the intent to distribute methamphetamine:
• Terry Carl Sapp, 55, Des Moines
• Jennifer Michelle Jesse, 39, Des Moines
• Nicholas Allen George, 44, Des Moines
• Timothy Charles McClain, 58, Promise City
• Jeffrey Chaffee, 54, Carlisle
• Samuel Ivan Lamb, 57, LucasNo other information or comments will be released until documents have been filed with the court as part of the public record.
Federal Jury Returns Guilty Verdicts for Former Pilot Flying J President, Vice President, and Customer Account RepresentativeRead the Press Release
CHATTANOOGA, Tenn. – On February 15, 2018, following a multi-month trial in U.S. District Court, Chattanooga, before the Honorable Curtis L. Collier, Senior U.S. District Judge, a jury returned guilty verdicts against Mark Hazelwood, 59, of Knoxville, Tennessee; Scott “Scooter” Wombold, 58, of Gallatin, Tennessee; and Heather Jones, 47, of Knoxville, Tennessee.
Hazelwood, former president of Pilot Flying J, was convicted of conspiracy to commit mail fraud and wire fraud as charged in count 1 of the indictment, wire fraud as charged in count 8 of the indictment, and witness tampering as charged in count 14 of the indictment. Wombold, former vice president of Pilot Flying J, was convicted of wire fraud as charged in count 2 of the indictment. Jones, a former customer account representative for Pilot Flying J, was convicted of conspiracy to commit mail fraud and wire fraud as charged in count 1 of the indictment.
Evidence presented at trial proved a scheme to defraud certain Pilot Flying J trucking company customers through false and fraudulent representations and promises of diesel fuel discounts that were intended to induce victim customers to purchase diesel fuel from Pilot Flying J rather than a competitor. The scheme resulted in victim customers being cheated out of their promised diesel fuel discounts. The evidence at trial showed that the scheme’s goals were to increase Pilot’s market share of diesel fuel sales over its competitors, maximize Pilot’s profits, and maximize the scheme-participants’ potential for profit- and commission-based compensation from trucking companies targeted through the scheme to defraud.
Before trial, 14 other former Pilot Flying J executives and employees had already pleaded guilty to conspiracy charges related to the same scheme to defraud. They are awaiting sentencing. In July 2014, Pilot Flying J entered into a Criminal Enforcement Agreement with the United States in which the company agreed that some of its employees in its Direct Sales group engaged in fraudulent conduct in the payment of diesel fuel discounts for certain targeted Pilot customers. Pilot Flying J agreed that the conduct of those employees resulted in $56 million in loss to affected customers. In accordance with that agreement, Pilot Flying J agreed to pay full restitution to all victim customers in addition to paying a $92 million monetary penalty. Additionally, according to the terms of the Criminal Enforcement Agreement, this federal investigation not only resulted in the payment of full restitution to the scheme’s victims, but also created protection for trucking companies going forward through greater transparency in their future fuel pricing arrangements with Pilot Flying J.
Sentencing has been set for June 27, 2018, in U.S. District Court, Chattanooga. Hazelwood, Wombold, and Jones each face a sentence of up to 20 years in prison for their convictions.
Law enforcement agencies participating in this joint investigation included the FBI and IRS- Criminal Investigation. Assistant U.S. Attorneys F.M. (Trey) Hamilton III and David P. Lewen, Jr. represented the United States at trial.
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Federal Jury Convicts San Francisco Man of Credit Card Fraud and Identity TheftRead the Press Release
SAN FRANCISCO – Marcus Dieter Felder was convicted of access device fraud and aggravated identity theft, announced Acting United States Attorney Alex G. Tse, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, and Secret Service Special Agent in Charge David Murray. The guilty verdict was returned late yesterday following a six-day jury trial before the Honorable Maxine M. Chesney, U.S. District Judge
The jury found that Felder, 51, of San Francisco, had engaged in numerous instances of credit card fraud in San Francisco; Hawaii; Placer County, Calif.; and elsewhere in April 2013, June 2014, and October 2014. With respect to the aggravated identity charge, the jury found that Felder had illegally used personal information associated with another individual who shared his first and last names during and relation to the credit card fraud that he had committed in June 2014.
Evidence at trial showed that Felder used Visa, MasterCard, and American Express credit cards issued to other persons to engage in transactions at high-end or boutique hotels, including the Four Seasons Resort in Maui and several venues in San Francisco including the Fairmont Hotel, the Hotel Nikko, the Hilton Union Square, the Grand Hyatt, and the Hotel Metropolis. The evidence at trial also showed that, among other transactions, the defendant used credit cards issued to other persons to pay for first-class air travel from San Francisco to Maui on United Airlines and to rent an exotic car from Enterprise Rent-A-Car. Felder was arrested on October 30, 2014, at the Thunder Valley Casino Resort in Placer County for presenting a counterfeit credit card. He was handed over to federal authorities shortly thereafter.
A federal grand jury issued a superseding indictment on September 19, 2017, charging Felder with one count of fraudulent use of unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2); two counts of effecting transactions with access devices issued to other persons, in violation of 18 U.S.C. § 1029(a)(5); and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
Felder is currently on release on a bond.
Felder’s sentencing hearing is scheduled for May 30, 2018, before Judge Chesney in San Francisco. The maximum statutory penalty for the count in violation of 18 U.S.C. § 1029(a)(2) is 10 years’ imprisonment and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for each of the two counts in violation of 18 U.S.C. § 1029(a)(5) is 15 years’ imprisonment and a fine of $250,000 plus restitution, if appropriate. The statutory penalty for the count in violation of 18 U.S.C. § 1028A(a)(1) is a mandatory two-year consecutive term of imprisonment and a fine of $250,000 plus restitution, if appropriate. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Katherine M. Lloyd-Lovett and Kyle F. Waldinger are prosecuting the case with the assistance of Lilian ArauzHaase and Jeremy Acala. The prosecution is the result of a five-year investigation by HSI and the United States Secret Service.
Federal Jury Convicts Illinois Attorney in Mortgage Fraud SchemeRead the Press Release
CHICAGO — A federal jury today convicted an Illinois attorney of fraudulently obtaining loans related to the purchase, maintenance and sale of properties on Chicago’s South Side.
JESSICA ARONG O’BRIEN fraudulently caused lenders to issue and refinance approximately $1.4 million in mortgage and commercial loans by making false representations and concealing material facts in documents submitted to the lenders. O’Brien used the fraudulently obtained mortgage loan proceeds to purchase an investment property in the 600 block of West 46th Street in Chicago. She fraudulently refinanced the mortgage on the property, as well as on a second investment property in the 800 block of West 54th Street in Chicago. O’Brien then fraudulently obtained a commercial line of credit to maintain the properties, before selling them to a loan officer – co-defendant MARIA BARTKO – and a straw buyer whom O’Brien knew would fraudulently obtain mortgage loans.
The jury convicted O’Brien, 50, of Chicago, on both counts against her, including one count of mail fraud affecting a financial institution, and one count of bank fraud. Each count is punishable by a maximum sentence of 30 years in prison. U.S. District Judge Thomas M. Durkin set sentencing for July 6, 2018.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Matthew F. Madden and Tyler C. Murray.
Evidence at trial revealed that O’Brien carried out the fraud scheme from 2004 to 2007. At the time, O’Brien was employed as a Special Assistant Attorney General for the Illinois Department of Revenue, while also owning a real estate company, O’Brien Realty LLC, and working part time as a loan officer for Amronbanc Mortgage Corp. in Lincolnwood. At the time, Bartko was employed at Amronbanc as a loan officer.
Bartko, of Chicago, pleaded guilty before trial to one count of mail fraud affecting a financial institution. Judge Durkin will schedule Bartko’s sentencing hearing at a later date.
Federal Inmate Sentenced to an Additional Eight Years in Prison for StabbingRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Timothy Whittington, Jr. (37, Kansas) to eight years in federal prison for assault with a dangerous weapon with the intent to cause bodily harm. The Court ordered the sentence to run consecutively to Whittington’s existing sentence for possessing a firearm as a convicted felon, which he was serving at the time he committed the offense.
Whittington pleaded guilty on November 16, 2017.
According to court documents, on June 22, 2017, while Whittington was an inmate at the Federal Correctional Complex, he repeatedly stabbed another inmate in the arm and neck with a shank in the prison cafeteria.
“The rule of law does not stop at the prison walls,” said Special Agent in Charge Charles P. Spencer. “Inmates in federal prisons have the right to pay their debts to society without being subject to violent crimes while incarcerated, and the FBI will continue to investigate these incidents fully.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney William S. Hamilton.
FDC Inmate Found Guilty of Assault Resulting in Serious Bodily InjuryRead the Press Release
HONOLULU – A federal jury yesterday found Taloa Latu, 28, guilty of assault resulting in serious bodily injury. The verdict came a few hours after a two and a half day trial. Latu faces a maximum term of imprisonment of ten years when he is sentenced on June 4, 2018, by Chief U.S. District Judge J. Michael Seabright.
Kenji M. Price, United States Attorney, said that according to information produced in court, surveillance camera footage showed Latu, a State of Hawaii inmate housed at the Federal Detention Center ("FDC"), Honolulu, repeatedly punching, kicking, and stomping the victim on September 11, 2016, at FDC. After the assault, the victim was transported to the Queens Medical Center, where he was treated for serious injuries, including a broken jaw and broken ribs. This case was prosecuted in federal court, as the United States has concurrent jurisdiction for crimes committed at FDC, Honolulu.
The investigation in this case was led by the Federal Bureau of Investigation, with assistance from the Federal Bureau of Prisons. Assistant U.S. Attorneys Morgan Early and Michael Nammar handled the prosecution.
Essex County, New Jersey, Man Sentenced to 20 Years for Robbing Two Banks, Firing A WeaponRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 20 years in prison for robbing the same Capital One Bank in Newark twice, including once in an armed robbery, U.S. Attorney Craig Carpenito announced.
Gregory A. Jones, 61, of Newark, was previously convicted of one count of bank robbery, one count of armed bank robbery, and one count of using a firearm during a crime of violence. Jones was convicted following a one-week trial before U.S. District Judge Kevin McNulty, who imposed today’s sentence in Newark federal court.
According to documents filed in this case and the evidence at trial:
On May 6, 2014, Jones entered the Capital One Bank wearing dark glasses and a scarf around his head and presented the teller a note demanding cash. After Jones left the bank with stolen money a hidden dye pack burst, and he left his glasses, scarf, and hat at the scene of the crime. Law enforcement officers recovered the glasses, hat, and scarf near the bank next to currency, saturated with ink from the dye pack. DNA recovered from the glasses, hat, and scarf matched a DNA sample that was lawfully obtained from Jones.
On Sept. 19, 2014, Jones entered the bank again, brandished a firearm from underneath his sweatshirt, and told a teller to give him money, stating that he had a gun and would shoot. Jones fired the weapon into the ceiling and left with several thousands of dollars. He was later identified using surveillance video and witness statements.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; N.J. State Police, under the direction of Col. Patrick J. Callahan; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino; and the Newark Division of Public Safety, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Defenders Carol Gillen and David Holman
Elyria man charged with trafficking fentanyl, cocaine and firearms offensesRead the Press Release
A federal grand jury indicted Clint D. Jackson, 26, of Elyria, on multiple firearms and narcotics offenses, said United States Attorney Justin E. Herdman.
The indictment charges that Jackson, who had previously been convicted of two felonies, possessed three different firearms in January of 2018. The indictment also charges Jackson with seven counts relating to the distribution of fentanyl and cocaine, one count of possessing a firearm in furtherance of a drug trafficking crime, and one count of selling or transferring firearms to a prohibited person.
The case was investigated by the Elyria Police Department and the ATF. Assistant U.S. Attorney James Lewis is prosecuting the case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Elkhart Man Charged by ComplaintRead the Press Release
SOUTH BEND - Jacob Ryan Underwood, 22, of Elkhart, Indiana was charged by Criminal Complaint with possession of a firearm, namely a destructive device, which is not registered to him in the National Firearms Registration and Transfer Record announced United States Attorney Thomas L. Kirsch II.
United States Attorney Kirsch said, “Destructive devices, such as pipe bombs, are not only illegal, but present an imminent danger to life and property. The US Attorney’s Office will continue to aggressively prosecute those who possess and attempt to detonate devices like these.”
Based upon the investigation, the complaint alleged that: Jacob Underwood assisted in constructing one pipe bomb; he watched as two pipe bombs were made and; that he later threw those two pipe bombs out of a car window while he was in Mishawaka, which are believed to be the two pipe bombs found on January 29, 2018. Investigators also received information that Underwood had detonated a pipe bomb outside of his residence, and they found a garbage can outside of his residence that appeared to be damaged by an explosive device.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Indiana State Police, Elkhart County Sheriff’s Department, South Bend Police Department, Elkhart County Interdiction and Covert Enforcement Unit, Mishawaka Police Department, and the St. Joseph County Police Department. The case is being handled by Assistant U.S. Attorney Molly E. Donnelly.
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El Salvadoran Man Pleads Guilty to Transporting Illegal Aliens Within the United StatesRead the Press Release
Gulfport, Miss. – Marlon Alvarez-Campos, 30, a citizen of El Salvador, pleaded guilty today before U.S. District Judge Louis Guirola, Jr., to the crime of transporting illegal aliens within the United States, announced U.S. Attorney Mike Hurst and Raymond R. Parmer, Jr., Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. Mr. Alvarez-Campos was found guilty of the offense and is scheduled to be sentenced by Judge Guirola on May 16, 2008. Alvarez-Campos faces a potential maximum 5 years imprisonment, not more than 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100.
On August 17, 2017, a Toyota Corrola being driven by Alvarez-Campos, was stopped by a City of Biloxi Police Officer on Interstate-10 in Harrison County, Mississippi, at approximately 1:30 a.m., for careless driving. The driver did not have a valid driver’s license, and the police officer observed that, in addition to the driver, there were four passengers for a total of five occupants in the vehicle. The vehicle passengers could not speak English and the police officer suspected human smuggling was taking place. The Biloxi Police Department notified the United States Department of Homeland Security, Homeland Security Investigations (HSI) and requested federal assistance. HSI agents responded and began a federal investigation.
None of the vehicle occupants had proper documents, and all were illegally present in the United States. The four passengers were being smuggled by Mr. Alvarez-Campos who also was present in the U.S. illegally. All occupants of the vehicle were arrested, and Alvarez-Campos confirmed that he knew his passengers were illegal aliens and that he was being paid to transport them from Texas.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, and the Biloxi Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Drug Offenses Land Texas Man in Prison for 7 YearsRead the Press Release
MISSOULA – Bryan Tate Dollar, 37 of Haslet, Texas, was sentenced today to 84 months in prison followed by five years of supervised release after pleading guilty to conspiracy to distribute methamphetamine. United States District Judge Dana L. Christensen handed down the sentence.
Beginning in March of 2016 and continuing through December of 2016, Dollar brought methamphetamine from Las Vegas, Nevada and distributed it in the Billings and Missoula areas. Upon arrest for this activity, members of law enforcement recovered more than 250 grams of pure methamphetamine and a firearm from Dollar. Dollar pleaded guilty to conspiracy to distribute methamphetamine in November of last year.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by FBI’s Montana Regional Violent Crime Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Department of Justice Files Complaint to Denaturalize Diversity Visa Recipient Who Obtained Naturalized Citizenship After Failing to Disclose Two Prior Orders of RemovalRead the Press Release
The Department of Justice yesterday filed a complaint in the Eastern District of Michigan to revoke the naturalized U.S. citizenship of Humayun Kabir Rahman fka Md Humayun Kabir Talukder aka Ganu Miah aka Shafi Uddin. The case was referred to the Department of Justice by U.S. Citizenship and Immigration Services (USCIS) and identified as a part of Operation Janus.
The complaint alleges Humayun Kabir Rahman arrived in the United States in February 1992 at John F. Kennedy International Airport, claiming his true name was Ganu Miah while in possession of a passport that did not belong to him. He was paroled into the United States so he could seek asylum, and his application was referred to the immigration court where an immigration judge ordered him removed in 1998. In 1994, while Ganu Miah’s proceeding was underway, Rahman sought asylum under a different name, Shafi Uddin. That application was also referred to the immigration court, and he was ordered to be removed in 1997. Later in 1997, using his third identity, Md Humayun Kabir Talukder, Rahman applied for and received an immigrant visa through the diversity visa program, claiming he had entered the United States by car from Canada. In 2004, he applied for and was granted permanent resident status, which he ultimately used to become a naturalized U.S. citizen in 2004. Throughout his immigration and naturalization proceedings, Rahman concealed that he had twice been ordered removed and lied about his identity and immigration history under oath. Rahman was also never lawfully admitted to the permanent resident status upon which he naturalized.
“As our country’s leaders debate the future of our immigration system, this alleged case of a decade of defrauding the United States to obtain citizenship is particularly alarming,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “In this instance, the suspect allegedly lied to the government as he twice sought to secure asylum under different identities, but was rebuffed and ordered removed both times before being randomly selected for a diversity visa. While the United States Senate assesses whether to continue the diversity visa program, the Justice Department will find the program’s fraudsters and hold them to account, to protect our national security.”
"This case illustrates the kind of fraud that we have discovered, and I hope today’s announcement sends a clear message that attempting to fraudulently obtain U.S. citizenship will not be tolerated," USCIS Director Francis Cissna said in a statement. "We are grateful to our partners who are working to bring these cases to justice and protect the integrity of our immigration system."
This case was investigated by USCIS and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit), with support from USCIS Office of the Chief Counsel, Central Law Division.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
DOJ Antitrust Chief Makan Delrahim to Meet with High-Level Officials, Colleagues in EuropeRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division will travel to Europe today with stops in Paris, Brussels, and Bonn for a series of meetings, speaking engagements, and workshops with high-level officials and colleagues.
AAG Delrahim will be in Paris on February 15 and 16 and will be joined by Acting Deputy Assistant Attorney General Marvin Price to discuss the Antitrust Division’s cartel enforcement program at the American Bar Association’s biennial International Cartel Workshop. At the conference, AAG Delrahim will also meet with officials from the Division’s foreign enforcer counterparts.
From Paris, AAG Delrahim will travel to Brussels, where on February 20 he will meet with the European Union’s Commissioner for Competition, Margrethe Vestager, and other senior members of her team. The Deputy Assistant Attorney General for International, Roger Alford, will join AAG Delrahim for those meetings. The discussions will address international cooperation on enforcement and policy matters, including cases where the two agencies are jointly investigating. On February 21, AAG Delrahim will address EU antitrust practitioners at the College of Europe’s Global Competition Law Centre.
Following the engagements in Brussels, AAG Delrahim and DAAG Alford will travel to Bonn for meetings with the German antitrust authority, the Bundeskartellamt, including Andreas Mundt, the president of the Bundeskartellamt. They will also participate in a conference on the occasion of the 60th anniversary of the Bundeskartellamt.
From Bonn, DAAG Roger Alford will continue on to London, where on February 23, he will be the keynote speaker at a King’s College London conference on Innovation Economics for Antitrust Lawyers.
“Our relationships with our foreign counterparts are critical to enabling our enforcement work, and to promoting sound competition policy,” said Assistant Attorney General Delrahim. “I look forward to this opportunity to strengthen the bonds we have with our European colleagues.”
Cuban National Indicted on Federal Charges of Labor Trafficking, Alien Smuggling, Loan Sharking, and Identity TheftRead the Press Release
A Cuban national, living in Palm Beach County, was arrested in Las Vegas, Nevada, on February 12, after being charged with labor trafficking, alien smuggling, loan sharking and identity theft.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, (ICE-HSI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO), made the announcement.
Ivan Madrigal Zamora, 56, of Cuba, who was living in Palm Beach County, was charged by indictment with one count of forced labor trafficking, in violation of Title 18, United States Code, Section 1589(a), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of production of a false identification document, in violation of Title 18, United States Code, Section 1028(a)(1), one count of loan sharking, in violation of Title 18, United States Code, Section 894(a)(1), and one count of encouraging and inducing an alien to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv) & (B)(i). If convicted on all charges, Zamora faces a combined statutory maximum sentence of 62 years in prison. Zamora is currently being detained without bond pending further court proceedings in West Palm Beach.
According to court records, from in July 2017, Zamora obtained forced labor from the victim and used extortionate means to collect a debt from the victim. From December 2016 through July 2017, Zamora procured a fake Florida driver license and encouraged or induced an illegal alien come to, enter and reside in the United States.
Mr. Greenberg commended the investigation efforts of ICE-HSI and PBSO and the partnership of the Palm Beach County Human Trafficking Task Force. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
An indictment merely an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Convicted Felon Receives Maximum for Firearm PossessionRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on February 14, 2018, Chief United States District Court Judge Clay D. Land sentenced Allandoe Cortez Boyd, age 37, of Columbus, GA, to 10 years imprisonment for the offense of possession of a firearm by a convicted felon, the maximum sentence for this offense.
The evidence showed that on October 5, 2016, Columbus, GA, police officers served a search warrant at Boyd’s residence in connection with alleged possession of stolen car parts. During the course of the search, officers recovered several car parts cannibalized from stolen vehicles. Additionally, they seized four firearms, including an AK-47 semi-automatic rifle with a 50 round magazine. All four weapons were fully loaded. Adjacent to one of the firearms, police found a quantity of heroin, a digital scale, and various packaging materials. In a back bedroom of the residence, officers found a backpack containing over 400 rounds of rifle, handgun, and shotgun ammunition.
Mr. Boyd has at least six prior felony convictions dating back to 1999.
“A man who is obviously a career criminal possessing four loaded weapons, one of them semi-automatic rifle loaded with a 50 round magazine, along with hundreds of rounds of ammunition, apparently to protect his illegal stash of drugs and stolen property, Mr. Boyd is the exact person Congress had in mind when it made possession of a firearm by a convicted felon illegal. We are pleased to see him receive the maximum sentence in this case.” said United States Attorney Peeler.
This investigation was conducted by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives and prosecuted by Assistant United States Attorney Melvin E. Hyde.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Concord Township man indicted for child pornography crimesRead the Press Release
A Concord Township man was indicted for child pornography crimes, said U.S. Attorney Justin E. Herdman.
Ronald B. Goldfarb, 62, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about January 1, 2017, through on or about April 12, 2017, Goldfarb knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about May 4, 2017, Goldfarb possessed a computer tower, external hard drives, and other computer storage devices that contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by Special Agent Charles Sullivan of the FBI’s Youngstown office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clairton Felon Sentenced for Drugs and GunsRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 199 months in federal prison, followed by five years of supervision by United States Probation Officers, as a result of violating federal firearm and drug laws, United States Attorney Scott W. Brady announced today.
Dwight D. Henley, 38, formerly of Clairton, Pa., received the sentence after previously pleading guilty to one count of possession of a firearm by a convicted felon and one count of possessing marijuana with the intent to distribute it, before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that Henley was previously convicted of a total of 16 counts at six different cases in the Allegheny County Court of Common Pleas. These convictions included drug offenses (12 counts), Terroristic Threats (one count), DUI (two counts), and Criminal Use of a Communication Device (one count). Each of these offenses was serious enough to preclude him from possessing a firearm or ammunition under federal law.
The Court learned that Henley was on state parole for his prior crimes when parole officers located marijuana in his house on February 23, 2015. As local police officers obtained a search warrant to search the entire residence, Henley admitted that he had marijuana, as well as a gun in the house "for protection." The search warrant revealed a loaded semi-automatic pistol, ammunition for two different guns, approximately 1.5 pounds of marijuana, over $2,100 in cash, three cellphones, two iPads and a laptop. Testimony from a prior hearing indicated that Henley was associated with the Ruff Ryders and Maxx’d Out motorcycle groups.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
Judge Hornak noted that since the defendant is an Armed Career Criminal with at least three prior convictions for serious drug and/or violent felony offenses, the law provided for a total sentence of not less than 15 years and up to life imprisonment. The Court was provided with a lengthy Pre-Sentence Report created by the United States Probation Office that detailed the defendant’s background, including his criminal, educational, family, and work history, before determining that the 199-month sentence was sufficient but not greater than necessary.
The defendant has been incarcerated in the custody of the United States Marshal Service since the time of his federal arrest.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Henley, with the valuable assistance of agents from the Pennsylvania Board of Probation and Parole, the Pennsylvania Attorney General’s Office and police officers from the Clairton and Elizabeth police departments. United States Attorney Brady commended all of the law enforcement officers involved for their cooperative efforts in the successful investigation.
Citizen of Mexico Sentenced for Illegally Reentering the U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VICTOR MANUEL AGUILAR CAMACHO, 39, a citizen of Mexico, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately five months of imprisonment, time already served, for illegally reentering the United States after being deported.
According to court documents and statements made in court, in September 2013, the Willimantic Police Department arrested AGUILAR CAMACHO after a domestic violence incident. The victim reported to police that AGUILAR CAMACHO, against whom the victim had obtained a protective order, had hid outside of her home, forced his way inside and assaulted her.
On March 11, 2014, AGUILAR CAMACHO pleaded guilty to violation of a protective order and strangulation in the second degree, and was sentenced to five years of incarceration, execution suspended, and three years of probation. He was removed to Mexico in September 2014.
AGUILAR CAMACHO illegally reentered the U.S. and returned to Connecticut. In September 2017, he was spotted outside the home of the victim.
AGUILAR CAMACHO has been detained in federal custody since October 5, 2017. On November 20, he pleaded guilty to one count of reentry of a removed alien.
At the conclusion of today’s court proceeding, AGUILAR CAMACHO was taken into ICE custody and will be removed to Mexico.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Alina Reynolds.
Circle Man Who Received and Possessed Child Pornography Sentenced to 7 Years in PrisonRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Matthew Stoney Olson was sentenced to 84 months in prison, 20 years of supervised release, and a $100 special assessment. U.S. District Judge Susan Watters presided over the hearing.
Olson was previously convicted at trial of receipt of child pornography and possession of child pornography. In early 2015, Olson routinely received child pornography by downloading it via a peer-to-peer sharing network. During that time, law enforcement officials with the Department of Homeland Security became aware of these downloads and obtained a search warrant for Olson’s home. The search warrant was executed and a large number of pictures and videos depicting child pornography were discovered on Olson’s personal computer.
In a sentencing memorandum filed in federal court, Assistant United States Attorney Colin Rubich stated that Olson represented a “predatory danger to the community” due to his “unwillingness to acknowledge his crimes and his refusal to seek treatment.”
United States Attorney Kurt Alme stated, “Children have the right to grow up free from exploitation by adults who film them and those who drive the market by purchasing the films. We encourage all Montanans to report situations to law enforcement where children may be at risk.
Judge Watters sentenced Olson to 7 years in federal prison, with 20 years of supervised release to follow. Because there is no parole in the federal system, Olson will likely serve all of the time imposed by the court. In the federal system, Olson does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The case was investigated by the Department of Homeland Security, the Montana Department of Criminal Investigation, and other federal, state, and local agencies.
Chicago Trader Facing Federal Fraud Charge for Allegedly Misappropriating $2 Million in CryptocurrenciesRead the Press Release
CHICAGO — In the first criminal prosecution in Chicago involving the cryptocurrency trading industry, a Chicago trader was charged today with fraud for allegedly misappropriating $2 million in Bitcoin and Litecoin.
JOSEPH KIM, 24, of Chicago, was charged in a federal criminal complaint with one count of wire fraud. He is scheduled to make an initial court appearance on Feb. 16, 2018, at 10:30 a.m., before U.S. Magistrate Judge Daniel G. Martin in Courtroom 1743 of the Dirksen Federal Building in Chicago.
Kim worked as an assistant trader for Consolidated Trading LLC, a Chicago trading firm that recently formed a cryptocurrency group to engage in cryptocurrency trading, the complaint states. Over a two-month period in the fall of last year, Kim misappropriated at least $2 million of the firm’s Bitcoin and Litecoin cryptocurrency for his own personal benefit, and he made false statements and representations to the company’s management in order to conceal the theft, according to the complaint.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
According to the complaint, from September through November 2017, Kim transferred more than $2 million of the trading firm’s Bitcoin and Litecoin to personal accounts to cover his own trading losses, which had been incurred while trading cryptocurrency futures on foreign exchanges. In order to conceal the transfers, Kim lied to the firm’s management about the location of the company’s cryptocurrency and his trading of the company’s cryptocurrency, the complaint states. Consolidated’s management team discovered the misappropriation in late November, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Sunil Harjani and Sheri Mecklenburg.
Chicago Man Sentenced to Federal Prison for String of Retail TheftsRead the Press Release
A Chicago man who stole more than $36,000 worth of merchandise from various home improvement stores across four states was sentenced on February 14, 2018, to eight months in federal prison.
Paris Lawrence, age 29, from Chicago, Illinois, received the prison term after a September 28, 2017, guilty plea to conspiracy to transport stolen property in interstate commerce.
In a plea agreement, Lawrence admitted that between February 2016 and May 2016, he participated in over 25 thefts from various home improvement stores in Iowa, Illinois, Michigan, Wisconsin, and Indiana. Lawrence and his co-conspirators would enter a store, steal various items, and later return the items for store credit. During the course of the conspiracy, Lawrence stole more than $36,000 worth of merchandise.
Lawrence was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lawrence was sentenced to eight months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $36,438.33 in restitution to Lowe’s Home Improvement. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Lawrence 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 Ravi T. Narayan and investigated by the Dubuque Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-1020.
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Castelli Sentenced for Threatening U.S. Military Members and Their FamiliesRead the Press Release
COVINGTON, Ky. – A Maysville, KY woman, who previously pleaded guilty to communicating threats in interstate commerce, was sentenced today to ninety (90) months in prison.
U.S. District Judge David L. Bunning sentenced 57-year-old Marie Antoinette Castelli for communicating threats in interstate commerce.
Castelli, a United States Citizen, was an active member of an invitation-only Facebook group in which many members discussed their support for ISIS. Within this group, the Defendant participated in online discussions and disseminated information and propaganda supporting violence against the West and the establishment of a worldwide Caliphate.
On October 19, 2015, the Defendant posted a message to the Facebook group stating, “A great sister on twitter published addresses of the kafir men who killed sheikh awlaki and his son with the drone[.] [P]raying the mujahadine will send someone for justice[.]” The message included a link to a publically-viewable webpage calling for the killing of certain United States Service Members and their families. The document referred to the service members and their families as “targets,” and outlined their purported “atrocities” against Osama Bin Laden and Anwar Al-Awlaki. The document was posted “to ask my brothers and Al-Qaeda in the U.S. to eventually hunt him down and execute him.”
In addition, the Defendant posted a series of additional messages to the Facebook group. In the first message, the Defendant posted the full name, date of birth and address of the military members, and stated, “they make targets on our heads so here are their heads for targets…” The Defendant transmitted these messages for the purpose of issuing a threat, and with knowledge that the communications would be viewed as a threat.
FBI Special Agents Kristine Holden and W. Aaron Graves investigated the case. Assistant United States Attorney Robert K. McBride, with assistance from the Counterterrorism Section, National Security Division, represented the United States.
Under federal law, Castelli must serve 85% of her prison sentence. She will be under the supervision of the U.S. Probation Office for up to 3 years after her release from prison.
Edward O’Callaghan, Acting Assistant Attorney General, Robert M. Duncan, United States Attorney, and Amy S. Hess, FBI Special Agent in Charge, jointly announced the sentence.
California Man Convicted of Directing Cyber-Attack Against Oklahoma BusinessRead the Press Release
Oklahoma City – DAVID CHESLEY GOODYEAR, 44, of El Segundo, California, was convicted today by a federal jury on one count of directing distributed-denial-of-service (DDoS) cyber-attacks against two websites owned by Oklahoma telescope retailer Astronomics in August 2016, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
In distributed-denial-of-service (DDoS) cyber-attacks, the perpetrator floods the victim computer with useless information from botnets (large clusters of connected devices infected with malware and controlled remotely) and prevents legitimate users from accessing the victim computer.
In August 2017, a federal grand jury charged Goodyear by indictment with attacking the websites of Astronomics, a family-owned telescope retailer located in Norman, Oklahoma.
Today, after hearing two days of trial, a jury returned a guilty verdict against Goodyear. Evidence at trial showed that Astronomics operated the world’s largest free astronomy forum on the internet, called Cloudy Nights, and that Goodyear had been a registered user on the site under a variety of aliases. Each of Goodyear’s usernames and his primary IP address had been banned for violating the terms of service of Cloudy Nights, including sending threats to other users, administrators, and moderators.
Evidence at trial showed that Goodyear attempted to access Cloudy Nights as "JamesSober" on August 13, 2016, but his access to the online community was denied because his "JamesSober" account had been banned on August 9, 2016. Goodyear then posted messages on Cloudy Nights under a new alias, "HawaiiAPUser," including pornography and profanity directed at Astronomics and the volunteer administrators and moderators of Cloudy Nights. In the posts, he threatened that he would "talk with [his] contacts and just DOS this site as well as A55tronomics." Evidence further showed that DDoS attacks against Astronomics and Cloudy Nights commenced that night and continued intermittently until the end of August 2016, when Goodyear was interviewed by law enforcement and admitted he was responsible for the attacks.
The jury deliberated for about an hour and a half before returning the guilty verdict. At sentencing, Goodyear faces up to ten years in federal prison, three years of supervised release, a $250,000.00 fine, and payment of restitution to the victim. His sentencing will be set by the court at a future date.
This conviction is the result of an investigation led by the Federal Bureau of Investigation, with support from the United States Secret Service Electronic Crimes Task Force in Los Angeles, which includes personnel from the Los Angeles Police Department. The case was prosecuted by Assistant U.S. Attorneys McKenzie Anderson and William Farrior.
Bronx Men Charged in Manhattan Federal Court with Explosives ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Police Commissioner of the City of New York, (“NYPD”), announced that CHRISTIAN TORO and TYLER TORO have been charged in U.S. District Court for the Southern District of New York in connection with their stockpiling of explosive materials and manufacture of destructive devices at their residence in the Bronx. Both defendants were presented before U.S. Magistrate Judge Debra Freeman in Manhattan federal court this afternoon and detained.
As alleged in the Complaint[1]:
On or about December 4, 2017, a bomb threat was called into a high school in Harlem, New York (the “School”). Shortly after a student was arrested in connection with that incident, CHRISTIAN TORO, who was a teacher at the School, resigned. After CHRISTIAN TORO’s resignation, TYLER TORO returned to the School a laptop computer (the “Laptop”) that the School had provided to CHRISTIAN TORO for use in connection with his employment. A School employee found, on the Laptop, a copy of a book that provides instructions for, among other things, manufacturing explosive devices.
Law enforcement agents subsequently interviewed multiple students at the School, who indicated that at least two students at the School had visited CHRISTIAN TORO’s residence (the “Residence”), where CHRISTIAN TORO would pay them approximately $50 per hour to break apart fireworks and store the powder that came out of the fireworks in containers.
On February 15, 2018, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. In a bedroom identified as shared by CHRISTIAN TORO and TYLER TORO, law enforcement agents recovered, among other items, (i) approximately 20 pounds of iron oxide; (ii) approximately five pounds of aluminum powder; (iii) a substance appearing to be thermite, mixed from iron oxide and aluminum powder; (iv) approximately five pounds of potassium nitrate; (v) a glass jar containing explosive powder; and (vi) a cardboard box containing firecrackers. In addition, law enforcement agents found a handwritten diary labeled with TYLER TORO’s name, which stated, among other things, “WE ARE TWIN TOROS STRIKE US NOW, WE WILL RETURN WITH NANO THERMITE” and “I AM HERE 100%, LIVING, BUYING WEAPONS. WHATEVER WE NEED.” Law enforcement agents also recovered a backpack, identified as belonging to CHRISTIAN TORO, containing an index card with handwriting reading “UNDER THE FULL MOON THE SMALL ONES WILL KNOW TERROR.”
* * *
CHRISTIAN TORO, 27, of the Bronx, New York, is charged in the Complaint with one count of unlawfully manufacturing a destructive device, in violation of 26 U.S.C. §§ 5822, 5861(f), and 5871 and 18 U.S.C. § 2, which carries a maximum sentence of 10 years in prison, and one count of distribution of explosive materials to a minor, in violation of 18 U.S.C. § 842(d)(1), which carries a maximum sentence of 10 years in prison. TYLER TORO, also 27 and of the Bronx, New York, is charged with one count of unlawfully manufacturing a destructive device, in violation of 26 U.S.C. §§ 5822, 5861(f), and 5871 and 18 U.S.C. § 2, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents of the FBI and detectives of the NYPD.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Elizabeth Hanft is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Billerica Man Sentenced to 40 Years in Prison for Sexual Exploitation of Two Young BoysRead the Press Release
BOSTON – A Billerica man was sentenced today in federal court in Boston for sexually exploiting two young boys over a five-and-a-half year period.
Philip Toronto, 43, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 40 years in prison and five years of supervised release. In November 2017, Toronto pleaded guilty to two counts of sexual exploitation of children.
On Feb. 28, 2017, a search warrant was executed at Toronto’s home in response to multiple CyberTips that tracked the trade of child pornography over Skype to Toronto’s Billerica address. During the search, law enforcement recovered evidence of child pornography. Law enforcement confronted Toronto with evidence that some of the child pornography appeared to be homemade. Toronto admitted to filming his sexual abuse of two young boys: a five-year-old boy as recently as September 2016; and a now 15-year-old boy between 2011 and 2014.
More extensive forensic review of the devices seized from Toronto’s home revealed surreptitious recordings of the children in various stages of undress as well as videos and images of Toronto raping and indecently assaulting each of the boys.
United States Attorney Andrew E. Lelling; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. This case was investigated in conjunction with the Middlesex District Attorney’s Office, which indicted Toronto for the rape and assault of both boys. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of his Major Crimes Unit, prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Bettendorf Woman Sentenced to 72 Months in Prison for Wire Fraud and Benefits FraudRead the Press Release
DAVENPORT, Iowa - On February 14, 2018, Chief United States District Court Judge John A. Jarvey sentenced Michele Lynn McGee, 45, of Bettendorf, Iowa, to 72 months in prison for five counts of wire fraud and one count of benefits fraud, announced United States Attorney Marc Krickbaum. McGee was also ordered to serve 3 years of supervised release following her imprisonment, and pay $600 to the Crime Victims’ Fund. McGee was also ordered to self-surrender to the designated prison.
On August 28, 2017, McGee pled guilty to the charges, which arose from an investigation initiated by the Bettendorf Police Department and further pursued by the Federal Bureau of Investigations. As stated in the plea agreement, McGee defrauded UbiCare, a healthcare solutions company out of Boston, Massachusetts, that markets interactive mobile messaging to healthcare providers throughout the country. They hired McGee as the director of sales attempting to expand into the Midwest market. McGee was employed from May 12, 2014, through February 12, 2015. Between those dates, McGee purportedly signed five new clients (hospitals) to contracts with UbiCare totaling $1,896,375, all of which were fraudulent, in that all of the contracts contained a forged signature placed there by McGee. McGee was paid a salary, commission, and bonuses totaling $115,973. During the execution of a search warrant at McGee’s residence, McGee admitted that she drafted the five fraudulent contracts. McGee was ordered to pay $115,973 in restitution to UbiCare.
Further investigation revealed that beginning in February 2012, McGee received Supplemental Nutrition Assistance Program (SNAP) benefits and received Title XIX Medicaid benefits through the Iowa Department of Human Services (DHS). These benefits continued monthly until July 2014. During that time period, McGee received over $11,000 in fraudulent food stamps and Medicaid benefits by not reporting her household earnings. McGee admitted that she knowingly withheld household income information from DHS because she believed her public aid would be cancelled if DHS was aware of it. McGee was ordered to pay the State of Iowa $11,514.91.
From February 2012 until August 2012, McGee worked from home for RXS Group, LLC, a company located in Utah. McGee represented to RXS that she obtained a contract with the Nevada prisons for RXS to provide pharmaceutical medications for a five-year period. The contract was fraudulent and contained a forged signature placed there by McGee. Based on the contract, RXS drew up a business plan for expanded operations in Nevada which included entering into purchase agreements for a pharmacy and equipment needed to package the medications, suffering a substantial loss. McGee was ordered to pay restitution to RXS in the amount of $384,869.57.
This matter was investigated by Bettendorf Police Department, and the Federal Bureau of Investigations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bay Area Defendants Indicted in Alleged Drug Trafficking ConspiracyRead the Press Release
SAN FRANCISCO – A federal grand jury indicted three Bay Area men for their respective roles in an alleged conspiracy to possess and distribute methamphetamine, announced Acting United States Attorney Alex G. Tse, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. One defendant also is charged in the indictment with possessing with the intent to distribute cocaine. All three defendants have been arrested and are in custody. Complaints were also filed against each of these defendants in connection with these charges.
According to the indictment, between December 8, 2016, and January 30, 2018, Sergio Steven Vasquez-Gonzalez (a/k/a Checo, a/k/a Checks a/k/a Number One), 26, of Bay Point, California; Arturo Vazquez, 33, of Stockton, California; and Sergio Rubalcaba, 23, of Bay Point, California, conspired to distribute and possess with intent to distribute 500 grams or more of methamphetamine in the Northern District of California and elsewhere. In addition, the indictment alleges that on May 16, 2017, Vasquez-Gonzalez distributed 50 grams or more of pure methamphetamine, and on January 29, 2018, possessed with the intent to distribute 500 or more grams or more of cocaine. In addition, A. Vazquez is alleged to have distributed 50 grams of methamphetamine on November 29, 2017, and Rubalcaba is alleged to have possessed with intent to distribute 500 grams or more of the drug on January 30, 2018.
According to the complaint filed against him, Vasquez-Gonzalez was arrested on January 29, 2018, when a traffic stop of the vehicle he was driving resulted in the seizure of a kilogram of cocaine. According to the complaint filed against him, Rubalcaba was arrested the following day when law enforcement searched his vehicle and seized a kilogram of methamphetamine, ten pounds of marijuana, and two ounces of black tar heroin. A. Vazquez was arrested in Stockton pursuant to a federal complaint alleging that he distributed methamphetamine on November 29, 2017.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The charges carry the maximum statutory sentences indicated in the chart below:
Charge
Defendants Charged
Maximum Statutory Sentence
Count One:
Conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
(21 U.S.C. § 846)
All Three Defendants
Life in prison
Count Two:
Distribution of 50 grams or more of methamphetamine
(21 U.S.C. § 841(a)(1))
Sergio Steven Vasquez-Gonzalez
Life in prison
Count Three:
Possession with intent to distribute 500 grams or more of a mixture and substance containing cocaine
(21 U.S.C. § 841(a)(1))
Sergio Steven Vasquez-Gonzalez
40 years in prison
Count Four:
Distribution of 50 grams or more of a mixture and substance containing methamphetamine
(21 U.S.C. § 841(a)(1))
Arturo Vazquez
40 years in prison
Count Five:
Possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine
(21 U.S.C. § 841(a)(1))
Sergio Rubalcaba
Life in prison
In addition, any defendant convicted of the conspiracy charge will face a mandatory 10-year term of imprisonment. The remaining counts carry the following mandatory minimum terms of imprisonment: Count Two–10 years; Count Three–5 years; Count Four–5 years; Count Five–10 years. Any sentences following the defendants’ convictions would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Vasquez-Gonzalez and Rubalcaba appeared on the indictment this morning before the Honorable Kandis A. Westmore, U.S. District Magistrate Judge. Vazquez was previously arraigned in Stockton, California, and is being transported to the Northern District of California. All of the defendants remain in federal custody. The parties are scheduled to appear before the District Court on March 9, 2018.
Assistant U.S. Attorneys Andrew Dawson and Nikhil Bhagat are prosecuting the case with the assistance of Patricia Mahoney and Rawaty Yim. The prosecution is the result of an investigation by HSI, the DEA, and the FBI. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Baton Rouge Man Sentenced to Federal Prison for Oxycodone DistributionRead the Press Release
BILLINGS – Nishen Ramon Palmer, a 36-year-old resident of Baton Rouge, was sentenced today to 27 months in prison followed by 3 years supervised release after pleading guilty to conspiracy to possess with intent to distribute oxycodone last August. U.S. District Judge Susan Watters handed down the sentence.
In late 2015, Palmer sold over 550 oxycodone pills to undercover agents for $20,000 in four separate transactions. The transactions occurred in Billings, Denver, and Houston. Palmer would stop in Billings on his way to or from California and Louisiana. The investigation ended in Spring 2016 when Palmer was arrested in Louisiana.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Drug Enforcement Administration Tactical Diversion Squad and its task force officers.
Bank Robber Sentenced to 180 Months ImprisonmentRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Darryl William Young, age 66, of Seattle, Washington, was sentenced for three counts of Armed Bank Robbery and two counts of Bank Robbery. United States District Judge Salvador Mendoza, Jr. sentenced Young to a 180-month term of imprisonment, to be followed by five years of court supervision after he is released from federal prison. Young pled guilty to these charges on October 11, 2017.
According to information disclosed during court proceedings, Young committed a string of five bank robberies over a five-week period. On June 8, 2016, and June 18, 2016, Young entered a Key Bank and a Wells Fargo Bank in Seattle, Washington, brandished a pistol replica at a teller at each bank, and demanded money. The tellers gave Young money and he left the banks. On June 29, 2016, and July 1, 2016, Young entered a Key Bank in Issaquah, Washington, and a Banner Bank in Woodinville, Washington, approached a teller at each bank, and demanded money. The tellers gave Young money and he departed. On July 11, 2016, Young entered a U.S. Bank in Selah, Washington, and asked a teller to change a $10 bill. After this transaction, Young made a gesture which led the teller to believe he was armed, and he demanded money. The teller gave Young money and he left. Young was arrested later that day.
On February 14, 2018, United States District Judge Salvador Mendoza, Jr. sentenced Young to a 180-month term of imprisonment, followed by five years of court supervision, and ordered Young to pay $14,000 in restitution.
Joseph H. Harrington said, “This office will continue to prosecute to the fullest extent any person who uses the threat of violence to victimize the community and commit crime. This case is yet another example of the successful investigative efforts that can be accomplished when state and federal law enforcement work in partnership.”
The Federal Bureau of Investigation, the Selah Police Department, the Yakima County Sheriff’s Office, the Seattle Police Department, the Kennewick Police Department, and the King County Sheriff’s Office conducted the investigation of this matter. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Ashburn Woman Arrested for $5 Million Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Ashburn woman was arrested today on charges of orchestrating a multi-year loan fraud scheme causing approximately $5 million in losses to dozens of victims.
According to allegations in the complaint affidavit, Keisha L. Williams, 42, solicited over $5 million from individual victim lenders by telling them that she needed emergency funding to get software that she had purchased out of “escrow” in Austria. In fact, Williams spent the vast majority of victims’ money on personal expenditures, including approximately $1 million on luxury travel and $1 million on shopping and retail purchases at places like Chanel, Gucci, and Louis Vuitton.
Williams has been charged with conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Grace L. Hill is prosecuting the case.
Individuals who believe they may be a victim of this fraud are encouraged to call the Eastern District of Virginia Victim/Witness Coordinators at 1-800-221-6538.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-68.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Arapahoe, Wyoming Resident Convicted on Drug, Firearm, and Assault ChargesRead the Press Release
U.S. Attorney Mark Klaassen announced today that Arapahoe resident Cameron Means-Goodman has been convicted in federal court. A jury found Means-Goodman guilty of Conspiracy to Distribute Methamphetamine, Possession with Intent to Distribute Methamphetamine, Using and Carrying a Firearm During and In Relation to a Federal Drug Trafficking Crime, Felon in Possession of a Firearm, and Assault after a seven-day jury trial in the United States District Court in Cheyenne. Means-Goodman is scheduled to be sentenced on April 24, 2018.
This case was prosecuted by Assistant U.S. Attorney Kerry J. Jacobson, with the assistance of the Bureau of Indian Affairs, U.S. Drug Enforcement Administration, Wind River Police Department, Fremont County Sheriff’s Office and, Federal Bureau of Investigation.
Wednesday 14 February 2018
Wexford Man Indicted for Failure to Register as a Sex Offender and Failure to Surrender to Serve his Prison SentenceRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of failure of to register as a sex offender and failure to surrender for service of sentence, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on February 13, named Daniel Teed, 56, of Wexford, Pa., as the sole defendant.
According to the indictment, from October 23, 2017, and continuing through the date of this indictment, Teed, who was required to register under the Sex Offender Registration and Notification Act (SORNA) after being convicted of Conspiracy to Commit Sex Trafficking of Children on June 14, 2017, knowingly failed to register, as required by the SORNA. The indictment further alleges that on January 2, 2018, Teed, after having been released, while awaiting surrender for service of sentence after conviction for Sex Trafficking of Children, a felony, and having been directed by the Court to surrender for service of sentence to the Federal Correctional Institution (FCI) Loretto in the Western District of Pennsylvania, knowingly and willfully failed to surrender for service of sentence as ordered by the Court.
Teed was arrested on February 12 in Flagstaff, Ariz. The U.S. Marshals Service led a nationwide manhunt that resulted in the apprehension. Teed, a convicted sex offender, was wanted for failing to surrender to serve a 10-year prison term. Deputy Marshals were dispatched to multiple states and eventually developed information that Teed had traveled to Flagstaff. Investigation revealed that Teed was employing an alias and had disguised his appearance to avoid capture. Deputy Marshals developed information that Teed was at staying at the Super 8 in the 2500 block of East Lucky Lane, in Flagstaff. Teed was arrested without incident late Monday afternoon as he exited the motel and approached his vehicle.
The law provides for a maximum total sentence of 20 years imprisonment, fine of $500,000, a term of supervised release for no more than three years, or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Marshals Service and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Weleetka Man Sentenced to 24 Months, $100,000 Fine for Health Care FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Guy William Sheneman, age 61, of Weleetka, Oklahoma, was sentenced to 24 months imprisonment, $100,000 fine and 3 years supervised release for Health Care Fraud, in violation of Title 18, United States Code, Section 1347.
The Information alleged that beginning on January 3, 2012, and continuing through October 31, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant knowingly and willfully, with the intent to defraud, devised and executed a scheme to defraud the Medicaid and Medicare programs by causing fraudulent claims to be filed, in that defendant submitted claims for reimbursement for more expensive drugs than were actually dispensed to the patients.
The charge arose from an investigation by the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.United States Attorney Brian J. Kuester said, “Schemes like the defendant’s that defraud Medicaid and Medicare drive up the cost of health care and in essence steal tax dollars that should be used for legitimate medical claims. This investigation and prosecution of Mr. Sheneman put an end to the fraudulent padding of his pockets and holds him accountable. This office is thankful for the work of the HHS Inspector General and the FBI which allowed us to successfully prosecute the defendant.”
The Honorable Ronald A. White, U.S. District Jude in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Melody Nelson represented the United States.Virginia man admits to bank fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Virginia man has admitted to bank fraud, United States Attorney Bill Powell announced.
Ajarhi Roberts, also known as Wayne Roberts , age 25, of Stephens City, Virginia, pled guilty to one count of “Bank Fraud.” Roberts admitted to using another’s identifying information to commit bank fraud. The crime occurred in March and June of 2016 in Berkeley County, West Virginia.
Roberts faces up to 30 years incarceration and a fine of up to $1,000,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating.U.S. Magistrate Judge Robert W. Trumble presided.
U.S. Attorney’s Office Hosts Roundtable Discussion on Sexual Harassment in HousingRead the Press Release
LOS ANGELES – The U.S. Attorney’s Office for the Central District of California hosted a roundtable discussion yesterday on Sexual Harassment in Housing for community organizations, U.S. Attorney Nicola T. Hanna announced.
The event included local legal services offices, fair housing organizations, shelters and transitional housing providers. Each organization was invited because they often work with the Central District of California’s most vulnerable populations, who could also become victims of sexual harassment in housing.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single parents, individuals who have financial difficulties, and people who have suffered sexual violence in their past. These individuals often do not know where to turn for help.
“Sexual harassment in housing is often underreported, but it is an egregious violation of a person’s right to fair housing,” U.S. Attorney Hanna said. “Landlords and property managers using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. My Office is dedicated to uncovering such violations where they exist and vigorously enforcing the law.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The Justice Department is hosting a series of roundtable discussions on this topic around the country and this was the first one on the West Coast. The U.S. Attorney’s Office for the Central District of California is collaborating with the Civil Rights Division to spread the word about options to help individuals experiencing sexual harassment within the seven districts that comprise the Central District of California: Los Angeles, Orange, Riverside, Santa Barbara, San Bernardino, San Luis Obispo, and Ventura counties. Community organizations, such as legal services offices, fair housing organizations, shelters and transitional housing providers, can identify the misconduct and recommend that individuals report sexual harassment to the Justice Department.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
In 2017, the Justice Department recovered for harassment victims more than $1 million in damages. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
The Justice Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office Civil Division’s Civil Rights Section.
Two Violent YNB Stretch Gang Members Admit to Drug and Firearm ChargesRead the Press Release
DALLAS — Kris Landon Green, aka “#5,” 20, and Marcus Jackson, aka “Marty-Mar,” 23, both of Dallas, Texas, pleaded guilty yesterday before U.S. District Magistrate Judge Rebecca Rutherford to their role in a drug distribution group that operated within an area referred to as the “2600 Money Block” (4500 block of Maple Avenue in Dallas, Texas), announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas
Green, a member of the Dallas–based violent criminal street gang known as “YNB Stretchgang,” pleaded guilty to one count of conspiracy to distribute a Schedule II controlled substance (cocaine base) and one count of possession of a firearm by a user of a controlled substance. Green faces not less than five years or more than forty years in federal prison and a $5,000,000 fine on the conspiracy count and not more than 10 years in federal prison and a $250,000 fine for the firearms count. Green will remain in custody pending sentencing.
Jackson, pleaded guilty to one count of distribution of a Schedule II controlled substance (cocaine base). Jackson faces up to twenty years in federal prison and a $1,000,000 fine. Jackson will remain in custody pending sentencing.
“Gangs, such as YNB Stretchgang, that spread illegal drugs and wage violence in our community will be held accountable by the Department of Justice,” said U.S. Attorney Nealy Cox. “I commend the many law enforcement officers efforts who have dedicated enormous amounts of time and effort investigating and prosecuting this case.”
A thirty-three count superseding indictment was returned in December 2017 charging fifteen defendants, including Greene and Jackson. The superseding indictment alleges that beginning in January 2016, the defendants used an area in Dallas referred to as “2600 Money Block” to cut, package and distribute cocaine, crack cocaine, marijuana, methamphetamine and ecstasy/OxyContin pills to numerous customers. The proceeds from the sale of drugs were sometimes used to produce music videos glorifying acts of violence and promoting the lifestyle of “YNB Stretchgang” members and associates. Those videos were often uploaded to YouTube or shared through social media.
According to the plea agreement factual resumes filed in Green’s and Jackson’s case, both defendants admit that beginning in March 2016, they were members of “YNB Stretchgang.” On multiple occasions during 2016 and 2017, Green, Jackson and other “YNB Stretchgang” members and associates produced and appeared in music videos glorifying acts of violence and promoting the lifestyle of “YNB Stretchgang” members. Green and Jackson distributed controlled substances including cocaine base and marijuana as a means to make money within the 4500 block of Maple Avenue in Dallas, Texas.
The Bureau of Alcohol Tobacco and Firearms, United States Marshal’s Service, and Dallas Police Department investigated the case. The case is being prosecuted by Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert.
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Two Russian Nationals Sentenced to Prison for Massive Data Breach ConspiracyRead the Press Release
CAMDEN, N.J. – Two Russian nationals were sentenced today to federal prison terms for their respective roles in a worldwide hacking and data breach scheme that targeted major corporate networks, compromised 160 million credit card numbers and resulted in hundreds of millions of dollars in losses – the largest such scheme ever prosecuted in the United States.
The sentencings were announced by New Jersey, Acting U.S. Attorney William E. Fitzpatrick, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Mark McKevitt, Special Agent in Charge of the U.S. Secret Service Newark Field Office.
Vladimir Drinkman, 37, of Syktyvkar and Moscow, Russia, previously pleaded guilty before U.S. District Judge Jerome B. Simandle of the District of New Jersey to one count of conspiracy to commit unauthorized access of protected computers and one count of conspiracy to commit wire fraud. He was sentenced to 144 months in prison. Dmitriy Smilianets, 34, of Moscow, previously pleaded guilty to conspiracy to commit wire fraud in a manner affecting a financial institution and was sentenced to 51 months and 21 days (in prison) time served. Both men pleaded guilty in September 2013 before Judge Simandle, who imposed the sentences today in Camden federal court.
Drinkman and Smilianets were arrested in the Netherlands on June 28, 2012. Drinkman was extradited to the District of New Jersey on Feb. 17, 2015, and Smilianets was extradited on Sept. 7, 2012.
“These defendants operated at the highest levels of illegal hacking and trafficking of stolen identities,” Acting U.S. Attorney Fitzpatrick said. “They used their sophisticated computer skills to infiltrate computer networks, steal information and sell it for a profit. Perpetrators of some of the largest data breaches in history, these defendants posed a real threat to our economy, privacy and national security, and cannot be tolerated.”
“Drinkman and Smilianets not only stole over 160 million credit card numbers from credit card processors, banks, retailers, and other corporate victims, they also used their bounty to fuel a robust underground market for hacked information,” Acting Assistant Attorney General Cronan said. “While mega breaches like these continue to affect millions of individuals around the world, hackers and would-be hackers should know that the Department of Justice will use all available tools to identify, arrest, and prosecute anyone who attacks the networks on which businesses and their customers rely.”
“This case demonstrates the investigative capabilities of the U.S. Secret Service and the collaborative efforts of our law enforcement partners, specifically the U.S. Attorney’s Office District of New Jersey, and the Dutch Ministry of Security and Justice,” Special Agent in Charge McKevitt said. “The Secret Service will continue to develop innovative ways to protect the financial infrastructure of the United States and bring to justice cyber criminals who use emerging technologies to conduct business.”
According to documents filed in this case and statements made in court:
Drinkman, Smilianets and three co-defendants hacked into the networks of corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information that the conspirators could exploit for profit, including the computer networks of NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard.
The five defendants each played specific roles in the scheme. Drinkman and Alexandr Kalinin, 31, of St. Petersburg, Russia, specialized in penetrating network security and gaining access to the corporate victims’ systems. Drinkman and Roman Kotov, 36, of Moscow, also a hacker, specialized in mining the networks to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 30, of Odessa, Ukraine. Smilianets sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Drinkman and Kalinin were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 34, of Miami, Florida, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. Kalinin is also charged in two federal indictments in the Southern District of New York: the first charges Kalinin in connection with hacking certain computer servers used by NASDAQ and the second charges him and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information from U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme.
Kalinin, Kotov and Rytikov are fugitives.
The Attacks
The five defendants penetrated the computer networks of corporate victims and stole user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. The conspirators allegedly acquired more than 160 million card numbers through hacking.
The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants placed malicious code, or malware, in the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were able to regain access through persistent attacks.
Instant message chats obtained by law enforcement revealed the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.
The defendants used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, selling the data only to trusted identity theft wholesalers. He charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.
To protect against detection by the victim companies, the defendants altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.
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As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges. The charges and allegations contained in indictments against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
In addition to the prison terms, Judge Simandle sentenced Drinkman and Smilianets to three years of supervised release.
Acting U.S. Attorney Fitzpatrick and Acting Assistant Attorney General Cronan credited the special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge McKevitt, and the Criminal Investigative Division, under the direction of Special Agent in Charge Michael D’Ambrosio, for the ongoing investigation leading to today’s sentencings. They also thanked public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police.
The government is represented by Assistant U.S. Attorney Justin Herring of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, Trial Attorneys Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section, and Judith Friedman of the Office of International Affairs.
Two Linn County Men Each Sentenced to More than a Decade in Prison for Stealing GunsRead the Press Release
Two men from Linn County, Iowa, who stole guns from two federally licensed firearms dealers in June 2017 were each sentenced on February 13, 2018, to more than ten years in federal prison.
John Gillespie, age 19, from Cedar Rapids, Iowa, received the prison term after an August 31, 2017, guilty plea to two counts of theft from a federal firearms licensee. Jeremy Reynolds, age 18, from Hiawatha, Iowa, received the prison term after September 1, 2017, guilty plea to two counts of theft from a federal firearms licensee.
At their plea hearings, both Gillespie and Reynolds admitted to breaking into America’s Second Amendment Firearms in Cedar Rapids on June 3, 2017, and Midwest Shooting in Hiawatha on June 16, 2017. In total, the two stole 60 guns from the two stores. Law enforcement officers arrested Reynolds near Midwest Shooting shortly after the break in. Officers arrested Gillespie several hours later after locating him in a car containing a duffle bag with multiple guns stolen from Midwest Shooting. After his arrest, Gillespie attempted to discard one of the guns stolen from America’s Second Amendment Firearms in the back of a police car.
Gillespie was sentenced to 131 months’ imprisonment. Reynolds was sentenced to 121 months’ imprisonment. Both Gillespie and Reynolds were ordered to pay a special assessment of $200 and were ordered to make $12,996.96 in restitution to the two businesses. Both most also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gillespie and Reynolds were each sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Gillespie and Reynolds are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hiawatha Police Department, the Cedar Rapids Police Department, and the Loves Park Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. Gillespie’s case file number is 17-CR-00050 and Reynolds’ case file number is 17-CR-00051.
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Two Indian Citizens and India-based Corporation Sentenced for Conspiring to Smuggle Counterfeit CigarettesRead the Press Release
Abhishek Shukla and Harish Shabhai Panchal, both citizens of India, along with the India-based company, Jubilee Tobacco Industries Corp., were sentenced in federal District Court in Miami, for conspiring to smuggle counterfeit cigarettes into the United States.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Peter H. Kuehl, Acting Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
U.S. District Judge Kathleen M. Williams sentenced each of Shukla and Panchal to 23 months imprisonment, to be followed by supervised release for two years. Judge Williams sentenced Jubilee to corporate probation of two years and ordered Jubilee to forfeit $300,000 to the United States.
All three defendants previously pled guilty to conspiring with each other, with the intent to defraud and mislead, sell and cause the sale and dispensing of a counterfeit tobacco product (cigarettes), the containers and labeling of which bore the trade name and marks of the American brand of Newport cigarettes, a tobacco product listed with the FDA pursuant to Title 21, United States Code, Section 387(e)(i)(1), (approximately 68,600 cartons of cigarettes), while knowingly using a counterfeit mark on and in connection with such cigarettes, the use of which marks was likely to cause confusion, to cause mistake, and to deceive. The counterfeit marks were substantially indistinguishable from the marks of the United States domestic manufacturer of Newport brand cigarettes, which marks were then in use by and registered to that manufacturer on the principal register of the United States Patent and Trademark Office, all in violation of Title 18, United States Code, Section 371.
According to court records, including a Joint Factual Statement submitted by the parties, beginning in March 2015 and continuing through August 16, 2017, the defendants initiated contact with an individual cooperating with FDA-OCI, offering counterfeit cigarettes for sale. Through internet negotiations, an agreement was reached for a 20-foot container filled with counterfeit Newport brand cigarettes to be shipped from India to Miami. Payment for the shipment was made in installments through international wire transfers to bank accounts in India and in Dubai, United Arab Emirates. On November 1, 2016, the container arrived and was seized at the Port of Miami with the assistance of U.S. Customs and Border Protection Officers. If distributed in the State of Florida, the un-taxed importation would have an approximate value of $1.2 million. Analysis conducted by FDA’s Forensic Chemistry Center determined that the cartons, packs, and cigarettes were all counterfeit.
Within two weeks of the arrival, the coconspirators sought out FDA-OCI undercover agents offering another shipment, twice as large. By April 2017, deposits totaling $55,000 had been made for more counterfeit Newport cigarettes. On June 9, 2017, the container arrived at the Port of Miami and was again seized with the assistance of Customs and Border Protection Officers, and turned over to FDA-OCI Special Agents. If distributed in the State of Florida, the un-taxed importation would have an approximate value of $3.2 million.
According to acts described in the conspiracy charge, Shukla and Panchal traveled to Miami in August 2017 to meet with the undercover agents to promote further business dealings. During the recorded meeting, they advised the agents that they had been partners for twelve years and personally oversaw the production of all the products being offered. They also assured the agents that they could counterfeit any American-made menthol cigarette with no problem, as well as other trademarked brands, and that they could produce tobacco blends, which would closely match the legitimate product.
Mr. Greenberg commended the investigative efforts of FDA-OCI, ICE-HSI and BSO, for their assistance with this long-term investigation. Mr. Greenberg also thanked U.S. Customs and Border Protection for their support. 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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.