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27 March 2018
Manhattan U.S. Attorney Announces Arrests of Operators of Multi-State Prostitution RingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Angel M. Melendez, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New York (“HSI”), announced today the arrest of GUI YOU WU, a/k/a “David, a/k/a “Michael,” YOUMEI CHEN, a/k/a “Ah Mei,” a/k/a “You Mei Chen,” GUIXIA WU, and HONG ZHONG, a/k/a “5023,” a/k/a “023,” stemming from a conspiracy to engage in the interstate trafficking of women, primarily Chinese nationals, for the purposes of prostitution. GUIXIA WU was arrested in Bronxville, New York, and the other three defendants were arrested in Flushing this morning. They will be presented today before U.S. Magistrate Judge Paul E. Davison in White Plains federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants promoted and managed a multi-state prostitution business through an extensive network of operators who worked in different locations to advertise and facilitate prostitution. These defendants then allegedly raked in millions dollars from their illegal and exploitive activities.”
FBI Assistant Director-in-Charge William F. Sweeney said: “Prostitution is a serious and harmful offense. And, in some cases prostitution can serve as a gateway for criminals with direct connections to human trafficking, organized crime, and other illegal activities. The migratory nature of these crimes makes it critical for law enforcement entities to work together to tackle this widespread dilemma. We will continue to support our law enforcement partners who play a critical role in combating this type of criminal activity.”
HSI Special Agent-in-Charge Angel M. Melendez said: “For years these individuals allegedly used women as a commodity, selling them for sex and transporting the women from hotel to motel and state to state. For those who choose trafficking of people as a profession, you will be arrested, you will be prosecuted, and you will face the consequences of your actions.”
According to the Indictment[1] unsealed today in federal court:
Between about 2013 and 2017, GUI YOU WU was the manager of a business engaged in the interstate trafficking of women, primarily Chinese nationals, for the purposes of prostitution (the “Prostitution Business”). As part of the Prostitution Business, GUI YOU WU and others transported women for the purposes of prostitution to and from hotels and motels in multiple states, including New York, Connecticut, Delaware, Maryland, Virginia, Colorado, Missouri, and elsewhere, by means of vehicles and through the purchase of airline tickets.
The Prostitution Business recruited customers through the placement and purchase of advertisements for escort services on classified websites such as Backpage.com. CHEN, GUIXIA WU, and ZHONG assisted GUI YOU WU in the promotion and management of the Prostitution Business through, among other things, payment for hotels and other business expenses, placement of advertisements, coordination of travel, communication with women working as prostitutes, and the movement and receipt of proceeds from the Prostitution Business.
GUI YOU WU also employed several individuals, including ZHONG, as telephone operators for the Prostitution Business (the “Operators”). The Operators placed advertisements to recruit customers for the Prostitution Business and used cellphones to coordinate between the customers and the prostitutes.
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GUI YOU WU, 46, of Flushing, CHEN, 51, of Flushing, GUIXIA WU, 49, of Bronxville, and ZHONG, 37, of Flushing, are each charged with one count of conspiring to violate the Mann Act and the Travel Act by conspiring to transport an individual or individuals in interstate commerce with the intent that such persons engage in prostitution, or any sexual activity for which a person can be charged with a criminal offense, and by traveling in interstate commerce or causing someone else to travel in interstate commerce or using or causing to be used the mail and facilities in interstate and foreign commerce, with the intent to promote, manage, establish, carry on, and facilitate unlawful prostitution and promotion of prostitution, which carries a statutory maximum penalty of 10 years in prison. GUI YOU WU is also charged with violating the Mann Act by knowingly transporting an individual in interstate commerce with the intent that the individual engage in prostitution and sexual activity on or about February 25, 2016, which carries a statutory maximum penalty of 10 years in prison.
The statutory maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Any individuals who believe they have information that may be relevant to the investigation should contact the FBI at 212-384-1000 or https://tips.fbi.gov/.
Mr. Berman praised the work of the FBI and HSI and thanked the Orange County District Attorney’s Office, the Sullivan County District Attorney’s Office, and the Orange County Sheriff’s Office for their assistance with this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jessica Feinstein, Allison Nichols, and Jamie Bagliebter are in charge of the prosecution.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mandeville Financial Adviser Convicted of Stealing up to $1.5 Million from InvestorsRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of a Mandeville investment adviser who stole up to $1.5 million from investors in a widespread investment fraud scheme.
On March 26, 2018, RALPH WILLARD SAVOIE, age 70, of Mandeville, Louisiana, pled guilty to mail fraud before U.S. District Judge Shelly D. Dick. As a result of his guilty plea, SAVOIE faces a significant term of imprisonment, fines, restitution orders, forfeiture, and a term of supervised release following imprisonment. A sentencing date has not yet been scheduled.
As SAVOIE acknowledged in court during his guilty plea, from in or about January 2013 through at least March 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations. SAVOIE told his victim investors that he would invest their funds in securities and insurance, and described the investment opportunities as a “sure thing.” SAVOIE also guaranteed the victim investors high rates of return. However, instead of investing the funds as promised, SAVOIE spent the victim investor funds on jewelry, hotels, and restaurants, and withdrew the funds in cash. SAVOIE also used victim investor funds to pay his credit card bills and rent and to pay off other victim investors who had previously invested their money with him.
Towards the end of SAVOIE’S fraudulent scheme, a victim investor confronted SAVOIE about his investment. SAVOIE admitted to the victim investor that what he did with the victim investor’s money was illegal. Despite admitting his criminal conduct, SAVOIE later told the victim investor that he would never see his money returned if he reported the matter to law enforcement. SAVOIE also concealed from victim investors that the Financial Industry Regulatory Authority, an organization dedicated to market integrity and investor protection, had barred him from acting as a broker or otherwise associating with firms that sell securities to the public. During his guilty plea, SAVOIE admitted that he stole up to $1.5 million from investors.
U.S. Attorney Fremin stated, “My office, along with our federal, state, and local partners, is committed to aggressively pursuing corrupt professionals who abuse their positions of trust to fraudulently line their own pockets. I greatly appreciate the efforts of those prosecutors and agents with my office, IRS-CI, the Louisiana Office of Financial Institutions, and the Louisiana Bureau of Investigation who have worked together on this important matter.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Internal Revenue Service Criminal Investigation Division, with the assistance of the Louisiana Office of Financial Institutions and the Louisiana Bureau of Investigation, a section of the Louisiana Department of Justice. It is being prosecuted by Assistant United States Attorney Ryan Rezaei.
Luzerne County Man Sentenced to 27 Months in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Cleveland Linder, age 33, of Plymouth, was sentenced on March 23, 2018, by Senior U.S. District Court Judge James M. Munley to serve 27 months in prison for his role in a heroin trafficking conspiracy that operated in Luzerne County during 2014.
According to United States Attorney David J. Freed, Linder previously pleaded guilty to conspiring with others to distribute heroin. Linder admitted to being involved in the distribution of more than 60 grams and less than 80 grams of heroin, which is equivalent to between 2,500 and 3,300 retail bags of heroin.
Judge Munley also ordered Linder to serve three years on supervised release following his prison sentence.
The investigation resulted in the arrest of ten people connected to the drug ring, all of whom pleaded guilty. Desmond Mercer, the leader of the conspiracy, was sentenced to 14 years in prison. Two key associates, Shaquan Murphy and Shaliek Stroman, were each sentenced to 12 ½ years in prison. Another member of the drug ring, Antoine Jamison, received a five-year prison sentence. Omar Bell, another member of the drug ring, was recently sentenced to 52 months in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Justice Department and West Palm Beach Announce Settlement Related to the City’s Resolution and the Department’s Immigration Cooperation Grant ConditionsRead the Press Release
The Department of Justice and the City of West Palm Beach announced today that they had reached an agreement regarding Resolution Number 112-17. The Department had been investigating whether West Palm Beach’s Resolution Number 112-17 and polices related to the resolution comply with 8 U.S.C. § 1373, which protects information sharing between local law enforcement and the Department of Homeland Security (DHS).
Following the City’s agreement to, and subsequent dissemination of, a memorandum from West Palm Beach to its employees stating West Palm Beach’s position that its local laws do not restrict information sharing with DHS, the Department issued a letter to West Palm Beach concluding its section 1373 review. The letter stated, “[i]n light of our ongoing discussions and your agreement to and sending of a memorandum to all employees stating that they are not restricted from sharing information with DHS, we find no evidence that you are currently out of compliance with section 1373.”
West Palm Beach also agreed to dismiss its lawsuit requesting a declaration that its Resolution complies with federal law and challenging the Department’s authority to impose immigration cooperation-related grant conditions.
Today’s settlement protects public safety by providing assurance that West Palm Beach’s Resolution, as interpreted by West Palm Beach, does not violate section 1373, and permits DHS to receive the information it may need to take custody of aliens who commit crimes.
Justice Department Sues to Shut Down LaGrange, Georgia Tax Return PreparerRead the Press Release
The United States sued in federal court in Newnan, Georgia, to permanently bar Lucrezia Finch Henderson from preparing federal income tax returns for others, the Justice Department announced today. The complaint alleges that Henderson unlawfully reported information on her customers’ returns that resulted in the customers claiming more tax credits and refunds than they were entitled to receive.
As alleged in the complaint, Henderson engaged in abusive tax schemes such as reporting fake businesses on her customers’ returns in order to generate losses to lower their tax liabilities. Henderson falsely claimed education credits for customers who did not attend college that year, according to the complaint. According to that complaint, Henderson prepares tax returns at Infinity Tax located at 104 Sage Commercial Drive, Suite B, in Lagrange, Georgia.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on their website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Files Lawsuit to Shut Down St. Louis Tax Preparation BusinessRead the Press Release
A mother-daughter tax return preparer team in St. Louis, Missouri, prepares false federal income tax returns for their customers, according to a new lawsuit filed by the Department of Justice today. The suit asks the court to permanently bar Cherlynn Harrington, Linda McClendon, and their business Goodlink, LLC d/b/a Goodlink Tax Services from preparing federal income tax returns for others. The complaint alleges that defendants unlawfully understate their customers’ income tax liabilities and overstate their customers’ refunds.
The complaint alleges that Harrington and McClendon fabricate income and/or expenses in order to improperly claim the Earned Income Tax Credit (EITC), sometimes charging their customers more than $1,500 to prepare these false tax returns. In some cases, Harrington made unauthorized withdrawals from debit cards loaded with her customers’ false tax refunds according to the complaint.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Tipton Man of Producing Child PornographyRead the Press Release
A man who produced child pornography involving a prepubescent child and traded child pornography with others was convicted by a jury on Friday, March 23, 2018, after a four-day trial in federal court in Cedar Rapids.
Christian Hansen, age 40, from Tipton, Iowa, was convicted of one count of sexual exploitation of a child, one count of sexually exploiting a child while being required to register as a sex offender, one count of distribution of child pornography, one count of receipt of child pornography, and five counts of possession of child pornography.
The evidence at trial showed that, in July 2017, Hansen took photos of a prepubescent child’s genital area and e-mailed the photos to others. Hansen also traded child pornography with others and possessed child pornography on multiple devices. At the time of these offenses, Hansen was required to register as a sex offender based on his 2011 Nebraska convictions for three counts of possession of child pornography.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Hansen remains in custody of the United States Marshal pending sentencing. Hansen faces a mandatory minimum sentence of 35 years’ imprisonment and a possible maximum sentence of 240 years’ imprisonment, a $2,250,000 fine, $45,900 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Iowa Division of Criminal Investigation, the Tipton Police Department, and the Cedar Rapids Police Department.
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.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-99.
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Iowa Hospital to Pay $1.88 Million to Resolve False Claims Act Allegations Relating to Improper Inpatient Admission ClaimsRead the Press Release
DAVENPORT, Iowa – Genesis Medical Center, an acute care hospital in Davenport, has agreed to pay $1.88 million to the United States to resolve allegations it violated the False Claims Act.
The settlement resolves claims that, from January 1, 2013, to December 31, 2016, Genesis violated the False Claims Act by improperly retaining Medicare overpayments for hospital inpatient admission claims when those claims should have been billed at the lower reimbursement rate for either outpatient or observation services. The False Claims Act claims resolved by this settlement are allegations only and there has been no determination of liability.
“Our office will aggressively use the False Claims Act to ensure all health care providers play by the same rules and taxpayers do not pay the bill for unnecessary services,” said Marc Krickbaum, United States Attorney for the Southern District of Iowa. “This recovery sends the message to health care providers there will be consequences if they fail to comply with state and federal regulations. We also note and appreciate the hospital’s cooperation throughout the investigation.”
The United States Attorney’s Office for the Southern District of Iowa, in conjunction with the United States Attorney’s Office for the Northern District of Iowa, initiated this case. False Claims Act cases can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and share in any recovery.
Hazleton Men Indicted for Trafficking Heroin and Crystal MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Silvestre-Ubri a/k/a Joel DeJesus-Marquez, a/k/a Mayor, age 38, and Willis De La Rosa, a/k/a Joey Reyes Arroyo, a/k/a Willie, age 32, both of Hazleton, Pennsylvania, were indicted by a federal grand jury on May 17, 2016, for drug trafficking offenses. The indictment remained under seal until both defendants were apprehended, De La Rosa in June 2016 and Silvrestre-Ubri in March 2018. Both men were detained following their initial appearances before the court.
According to United States Attorney David J. Freed, the indictment charges Silvestre-Ubri and De La Rosa with conspiring to distribute heroin and in excess of 500 grams of crystal methamphetamine from February through April 2016. The indictment also charges Silvestre-Ubri with distributing heroin and crystal methamphetamine on March 24, 2016.
The case was investigated by Homeland Security Investigations, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalties under federal law for the most serious offenses are a minimum of 10 years and a maximum of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Island Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on March 27, 2018, Rowden D. Schneberger, 32, of Grand Island was sentenced to 14 years and five months (173 months) in federal prison for possession with intent to distribute five grams or more of actual methamphetamine on November 7, 2016. Following the prison term, Schneberger will serve four years on supervised release.
On November 7, 2017, Schneberger sold approximately one ounce of methamphetamine to a confidential informant in Grand Island. Testing at the State Lab showed at least 25 grams of actual/pure methamphetamine.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Golden Company Sentenced for Violating the Clean Air ActRead the Press Release
DENVER – OE Construction Corporation, a Golden-based excavation and underground utility company, pled guilty yesterday to being an accessory after the fact to violating the Clean Air Act. U.S. Magistrate Court Judge Kristin L. Mix sentenced OE to pay a $15,000 fine and up to $55,000 in restitution to companies that purchased modified trucks from OE. She also sentenced OE to three years of supervised probation, during which time the government will closely monitor OE’s trucks to ensure that their emissions systems are in compliance with state and federal law.
According to the plea agreement, an employee at OE worked with a Canadian company called J-Ball Electronics to falsify the monitoring devices required by the Clean Air Act on at least six OE Construction-owned vehicles. The OE Construction employee purchased kits from J-Ball that allowed him to alter the vehicles’ emission control systems. The effect of these modifications was to dramatically increase the release of dangerous pollutants from these vehicles, including particulate matter, NOx (mono-nitrogen oxides), and hydrocarbons.
When contacted by the government concerning these Clean Air Act violations, OE Construction admitted that four vehicles had been modified, and assured the government that only the four vehicles had been tampered with and that it had repaired the four vehicles. However, OE Construction did not reveal that J-Ball and OE’s employee had modified at least two other vehicles that OE Construction intended to put up for auction. In this way, OE attempted to avoid detection, prosecution, and punishment for the additional vehicles that the OE employee had modified.
“We take seriously our job of protecting the environment in Colorado, and we won’t hesitate to prosecute corporations or individuals committing environmental crimes,” said U.S. Attorney Bob Troyer.
“Emission control devices for vehicles are required to ensure public health and safety,” said Jeffrey Martinez, special agent in charge of EPA’s criminal enforcement program in Colorado. “The illegal actions in this case were not isolated incidents or mistakes; they were deliberately and carefully planned. Today’s sentencing shows that EPA and its law enforcement partners will hold responsible those who violate laws designed to protect the health of our communities.”
This matter was investigated by the EPA’s Criminal Investigation Division. The prosecution was handled by Assistant U.S. Attorneys Rebecca Weber and Suneeta Hazra.
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Georgia Man Admits Using Fictitious Businesses for $530,000 Unemployment Insurance, Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A Georgia man today admitted devising a scheme in which he and others fraudulently collected unemployment benefits and tax refunds by pretending to have worked for several phony companies that he created, U.S. Attorney Craig Carpenito announced.
Lashawn Porcher, 32, of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit mail fraud and one count of aiding and assisting in the filing of a false tax return.
According to documents filed in this case and statements made in court:
Porcher incorporated numerous fictitious businesses in New Jersey, including Computer Tyme Corporation, Cleaning Experience Corporation, Cleaning Time, and The Dream Team, all of which did not conduct any actual business and had no offices, employees, or officers.
From February 2010 through June 2014, Porcher used Computer Tyme Corporation and Cleaning Experience Corporation to seek unemployment insurance benefits for himself and other conspirators based on false claims that they had received compensation as employees of these companies.
To carry out the scheme, Porcher submitted fraudulent wage reports to the N.J. Department of Labor and Workforce Development for himself and others. He also supplied his conspirators with false wage records so that they could submit false claims as well. As a result, Porcher and others were able to fraudulently receive $436,982 in unemployment benefits.
In addition, Porcher used Cleaning Time and The Dream Team to prepare false federal tax returns for himself and other purported employees of these fictitious companies. Porcher admitted falsifying information on W2 forms concerning their wages in order to obtain inflated tax refunds for tax years 2009 through 2012. As a result, he and other conspirators fraudulently collected approximately $103,276 in tax refunds.
The mail fraud conspiracy charge carries a maximum potential penalty of 20 years in prison. The filing of a false tax return charge carries a maximum potential penalty of three years in prison. Both charges carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 11, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
Defense counsel: Leticia M. Olivera Esq., Office of the Federal Public Defender, Newark
Four Clarksburg men admit to their roles in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four Clarksburg residents have admitted to their roles in a drug distribution operation, United States Attorney Bill Powell announced.
Ernest Russell Claypool, Jr., age 53, pled guilty to one count of “Aiding and Abetting the Possession of Firearm in Furtherance of Drug Trafficking Crime” and one count of “Maintaining Drug-Involved Premises-Aiding and Abetting.” Claypool admitted to having 20 different firearms, including pistols, shotguns, rifles, and revolvers, during and in relation to a drug trafficking crime. He also admitted to maintaining a property in Clarksburg for distributing heroin and storing and distributing marijuana. The crimes occurred from an unknown date until September 2017 in Harrison County.
Chadley Russell Claypool, age 32, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Fentanyl.” Claypool admitted to distributing heroin in Harrison County from an unknown date to September 2017. He also admitted to selling fentanyl in August 2017 in Harrison County.
Colton Justice Kallel, age 22, pled guilty to one count of “Distribution of Fentanyl” and one count of “Aiding and Abetting the Distribution of Fentanyl in Proximity of a Protected Location.” Kallel admitted to selling fentanyl on July 11, 2017 in Harrison County. He also admitted to selling fentanyl near Clarksburg City Park, on July 31, 2017 in Harrison County.
Zachery Allen Queen, age 26, pled guilty to one count of “Aiding and Abetting the Distribution of the Controlled Substance Analogue Cyclopropylfentanyl.” Queen admitted to selling the drug in August 2017 in Harrison County.
Ernest Claypool faces up to life incarceration and a fine of up to $250,000. Chadley Claypool and Queen each face up to 20 years incarceration and a fine of up to $1,000,0000 for each count. Colton Kallel faces up to 20 years incarceration and a fine of up to $1,000,0000 for the first count, and faces up to 40 years incarceration and a fine of up to $2,000,000 for the second count. 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 Traci M. Cook is prosecuting the cases on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
U.S. Magistrate Judge Michael John Aloi presided.Former Union Official Sentenced to 10 Months in Prison for Stealing More Than $130,000 from OrganizationRead the Press Release
WASHINGTON – Takisha Brown Dorsey, a former union official with the Fraternal Order of Police, was sentenced today to 10 months in prison on a federal charge stemming from her theft of more than $130,000 from the organization, announced U.S. Attorney Jessie K. Liu and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Brown Dorsey, 42, of Waldorf, Md., pled guilty in March 2017 to a charge of wire fraud, in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Following her prison term, Brown Dorsey will be placed on six months of home confinement and three years of supervised release. Judge Walton also ordered her to pay $132,305 in restitution and an identical amount in a forfeiture money judgment.
According to a statement of offense filed at the time of the plea, Brown Dorsey took office in January 2012 as the elected chairperson of the union representing correctional officers employed by the District of Columbia Department of Youth Rehabilitation Services (DYRS). She led the Fraternal Order of Police-DYRS, which has approximately 240 members, through December 2015. As chairperson, Brown Dorsey, who also was a correctional officer, had access to union funds and was authorized to spend union money in accordance with bylaws.
In 2014, Brown Dorsey removed a safeguard requiring a second signature on all union checks, making herself the only required signatory. She also was the only one who had access to the union’s bank account and the ATM card that was associated with it. On Nov. 24, 2015, the union took a vote of no confidence in Brown Dorsey, and soon after that, members of the union’s executive board visited the Bank of America to inquire about the union’s finances. The balance was only $277, even though more than $100,000 in union dues were deposited into the account in calendar 2015. At the time that Brown Dorsey resigned, in December 2015, the union was about $92,000 in debt; at the beginning of her tenure, the union had a balance of $49,100.
A subsequent investigation determined that, from April 2013 through December 2015, Brown Dorsey withdrew, debited, or transferred more than $130,000 from the union’s bank account for her personal use or for deposit into her personal account.
In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Aisha Keys and Kristy Penny, former Special Assistant U.S. Attorney Vesna Harasic-Yaksic, who assisted with forfeiture issues, and Assistant U.S. Attorney Kendra D. Briggs, who prosecuted the matter.
Former Pratt School Secretary Indicted on Federal Firearms ChargesRead the Press Release
WICHITA, KAN. – A former Pratt school secretary was indicted Tuesday on federal firearms charges, U.S. Attorney Stephen McAllister said.
Claudia Rodriguez-Oviedo, 33, a citizen of Mexico, was indicted on two counts of unlawful possession of a firearm by an alien illegally in the United States. The indictment alleges that on Nov. 8, 2017, she possessed a Remington handgun and 35 rounds of ammunition.
Rodriguez-Oviedo currently is serving a 12-month sentence after she was convicted in Pratt County District Court on charges of placing a fake bomb threat to USD 382 in Pratt.
If convicted, she faces a sentence of up to 10 years in federal prison and a fine up to $250,000 on each count. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ERO) investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Jerry A. Anderson, Jr., 32, Hutchinson, Kan., is charged with one count of bank robbery. The indictment alleges that on March 8, 2018, he robbed the Meritrust Credit Union at 2900 S. Oliver in Wichita.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Javier Pichardo, 55, a citizen of Mexico, is charged with one count of illegal re-entry after being deported (count one), one count of unlawful production of an identification document (count two), one count of misuse of a Social Security number (count three) and one count of aggravated identity theft (count four). The crimes are alleged to have occurred in 2017 and 2018 in Sedgwick County, Kan.
Upon conviction, he faces up to two years in federal prison and a fine up to $250,000 on count one, up to 15 years and a fine up to $250,000 on count two, up to five years and a fine up to $250,000 on count three, and a mandatory two years (consecutive) on count four. Immigration and Customs Enforcement’s Enforcement Removal Operations (ERO) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Cindy Hernandez, 33, Moreno Valley, Calif., is charged with one count of possession with intent to distribute five kilograms or more of cocaine. The crime is alleged to have occurred Feb. 11, 2018, in Wabaunsee County, Kan.
If convicted, she faces a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
John Johnson, 41, Canal Winchester, Ohio, and Catherine Boyd, 36, Grove City, Ohio, are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 8, 2018, in Wabaunsee County Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
Donya Swayden, 34, Medicine Lodge, Kan., is charged with three counts of embezzlement from the U.S. Postal Service and three counts of making false entries in postal records. The crimes are alleged to have occurred in 2017 in Pratt County, Kan.
The indictment alleges she issued three postal orders to customers who did not pay for them.
If convicted, she faces up to five years in federal prison and a fine up to $250,000. The U.S. Postal Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former NYPD Officer Sentenced to More Than 14 Years in Prison on Extortion and Firearms ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Besnik Llakatura was sentenced by United States District Judge Eric N. Vitaliano to 171 months’ imprisonment, to be followed by a term of five years’ supervised release, for his convictions on two counts of Hobbs Act extortion conspiracy and one count of brandishing a firearm in relation to a crime of violence. The charges relate to the defendant’s participation in two schemes to extort small business owners in Astoria, Queens. At the time of his crimes, Llakatura was an active-duty police officer with the New York City Police Department (NYPD) assigned to the 120th Precinct on Staten Island. Llakatura was suspended without pay upon his arrest in December 2013 and dismissed from the NYPD following his guilty plea in December 2015. The Court also imposed restitution in the amount of $10,000 and forfeiture in the amount of $10,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, NYPD, announced the sentence.
“In flagrant violation of his sworn duty to serve and protect the community, former police officer Llakatura, along with his criminal partners, used fear, intimidation and threats of violence to demand payment from hard-working citizens who dared to open businesses on their so-called ‘turf’ of Astoria, Queens,” stated United States Attorney Donoghue. “Today’s sentence drives home the message that no one is above the law and a police officer who commits crimes against the community he serves will be held fully accountable.” Mr. Donoghue extended his grateful appreciation to the members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division for their cooperation and assistance in the investigation.
“Besnik Llakatura took an oath to serve and protect the citizens of New York City as an officer of the NYPD, while simultaneously pledging his allegiance to a violent organized crime group bent on shaking down local Queens business owners within the Albanian community,” stated FBI Assistant Director-in-Charge Sweeney. “He quickly discovered what happens to those who find themselves on the wrong side of the law, and after his guilty plea, was stripped of his shield of honor. Today’s sentence is a reminder that even those who enforce the rules will still be held to their highest standards.”
According to prior court filings and evidence presented at the trial of co-defendant Dervishaj, between May and November 2013, Llakatura, Dervishaj and Nikolla conspired and attempted to extort a Queens restaurant owner, demanding monthly payments in exchange for so-called “protection.” Shortly after the victim opened a restaurant in Astoria, Dervishaj demanded $4,000 per month because the victim had opened it in “our neighborhood.” The victim sought help from his friend Llakatura, at the time an NYPD officer. Unbeknownst to the victim, Llakatura was already conspiring with Dervishaj and Nikolla in the extortion scheme. Llakatura actively discouraged the victim from reporting the extortion to the police, and warned the victim that Dervishaj would hurt him and had ties to dangerous Albanian organized crime figures – including his brother Plaurent Dervishaj, at the time Albania’s most wanted fugitive. When the victim failed to make the demanded payments, Nikolla – accompanied by Dervishaj – threatened him on a public street in Queens and chased him at gunpoint, before the victim managed to escape in his car. Shortly thereafter, Dervishaj called the victim and told him that he “got lucky this time.” Over the course of five months, each of the three defendants took turns collecting monthly extortion payments totaling $24,000.
During the same time period, Llakatura and his co-defendants also conspired and attempted to extort a proprietor of two social clubs in Astoria. Accompanied by Dervishaj, Nikolla demanded payments of $1,000 per week, once again for “protection.” The victim refused to make the demanded payments and stopped going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed that all three defendants worked together to locate the victim and force him to pay. In one instance, the defendants confronted a friend of the victim in an effort to find the victim and send him a message. Llakatura and his co-defendants threatened, punched and pulled a gun on the victim’s friend, leaving him with injuries to his face. Upon learning of this assault, the extortion victim fled to a foreign country for a period of time to avoid the defendants’ extortionate threats, and later sold his social clubs.
Co-defendant Redinel Dervishaj, who was convicted of 12 extortion and firearms counts after a three-week trial, was previously sentenced on March 24, 2017 to 57 years’ and one day of imprisonment. Co-defendant Denis Nikolla, who previously pled guilty to three extortion counts and one firearms count, was sentenced on March 10, 2017 to 18 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia Shihata, Patrick Hein and M. Kristin Mace are in charge of the prosecution.
The Defendant: BESNIK LLAKATURA
Age: 38
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 13-CR-668 (ENV)
Former Lincoln Accountant Sentenced for Wire FraudRead the Press Release
United States Attorney Joseph P. Kelly announced that Sarah E. Batenhorst, 42, of Lincoln, Nebraska, was sentenced in Lincoln, Nebraska, to 10 months in prison by United States Senior District Judge Richard G. Kopf, for wire fraud. Batenhorst was also ordered to serve a period of 3 years on supervised release and pay restitution in the amount of $343,773.55.
From 2006 to 2016 Batenhorst worked as an assistant bookkeeper and then accountant at the Nebraska Rural Electric Association (NREA) with access to the NREA checking account. Beginning in 2014, without authorization or approval of the NREA board or other officers, Batenhorst increased her annual salary. Also in 2015, Batenhorst, began increasing printing and set-up rates for the Rural Electric Nebraska magazine, and used the increased income to pay her own Discover credit card account and personal loans.
Additionally, Batenhorst paid her Discover credit card and personal loan accounts from checks fraudulently written on the NREA account and then, to conceal her actions, she altered copies of those checks and also altered the NREA bank statements. These checks were processed through wire transfers from Nebraska, in interstate commerce, through intermediate banks, to the bank used by Discover Card, located in the state of Delaware.
This case was investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Former Car Dealership General Manager Sentenced to 11 More Months in Prison for Fraud SchemeRead the Press Release
ERIE, Pa. - A former resident of Edinboro, Pennsylvania, has been sentenced in federal court to 11 months in jail on his conviction of violating federal bankruptcy laws, conspiracy to commit wire fraud and wire fraud in two separate cases, United States Attorney Scott W. Brady announced today. The sentence imposed will be consecutive to the two-year sentence the defendant is presently serving.
United States District Judge David S. Cercone imposed the sentence on Douglas Alan Grooms, 47.
According to information presented to the court, Grooms concealed property from the United States Bankruptcy Trustee in connection with his bankruptcy case. In addition, from in and around May 2015, to in and around March 2016, Grooms and two co-defendants engaged in a scheme to defraud auto loans providers by utilizing two straw purchasers to buy vehicles in their own names from Rick Weaver Buick GMC. The vehicles would then actually remain in a co-defendant's possession. The three facilitated the scheme by falsifying the loan applications to make the straw purchasers appear more credit worthy and by not revealing that the straw purchasers were buying multiple vehicles at the same time. The value of many of the vehicles was also inflated to increase the funds received by the co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Grooms.
Felon Charged with Heroin, Fentanyl, Cocaine and Crack Cocaine TraffickingRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count indictment named Nathaniel Smiley, Jr., 38, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on December 19, 2016, Smiley, Jr. distributed and possessed with intent to distribute a quantity of heroin. The indictment further alleges that on April 2, 2017, Smiley, Jr. possessed with intent to distribute quantities of fentanyl and cocaine, as well as 28 grams or more of crack cocaine.
The government has filed a written notice with the Court indicating that Smiley, Jr. has two previous convictions for drug dealing. As a result, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crimes Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration and Troopers from the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Finds Three Guilty in Fentanyl Distribution ConspiracyRead the Press Release
A federal jury in Nashville, Tennessee yesterday, returned guilty verdicts against three individuals on trial for their role in a deadly fentanyl distribution conspiracy, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. After an 8-day trial, the jury returned the guilty verdicts against Joedon Bradley, 32, of Nashville, Tennessee, Johnny Williams, 32, and Jonathan Barrett, 30, both of Murfreesboro, Tennessee. The jury found a fourth defendant, Jason Moss, not guilty on all counts.
“Nearly one third of drug overdose deaths in 2016 were the result of synthetic opioids, and drug traffickers can order them with a few clicks of a mouse," said Attorney General Sessions. "These drugs are so strong that a few grains of it can be fatal. Showing no regard for people's safety, the defendants mixed fentanyl into hundreds of pills, including some that killed at least one person and harmed countless others. I want to thank the DEA, the FDA, our fabulous state and local partners with the Tennessee Bureau of Investigation, Murfreesboro Police, and the Rutherford County Sheriff's Office, as well as Department of Justice attorneys Amanda Klopf and Brent Hannafan for their hard work on this case. Their efforts have led to justice being served."
“The jury’s verdicts in this case will now hold these individuals accountable for seeking to profit from the devastating opioid epidemic that continues to plague communities across our nation,” said U.S. Attorney Cochran. “Long prison sentences for these individuals will soon follow. I commend the jury for seriously shouldering their responsibility and I thank our law enforcement partners and our prosecutors for their untiring efforts in bringing justice on behalf of the people of this district”.
This case began on July 6, 2016, when law enforcement and medical personnel in the Murfreesboro, Tennessee area were overwhelmed by a series of overdoses caused by pills that appeared to be prescription Percocet pills. The pills were counterfeit and contained fentanyl, alprazolam, and acetaminophen, and had been pressed by Joedon Bradley and Eric Falkowksi.
According to testimony at trial, in May 2016, Eric Falkowski moved his pill operation to Madison, Tennessee, after law enforcement conducted a search of his home in Florida and seized his pill presses. Following the seizure, Falkowski obtained more fentanyl through the internet from China and purchased a new pill press through Amazon.com.
Beginning on July 4, 2016, Joedon Bradley and Eric Falkowski mixed together a combination of inert pill binder, alprazolam (“Xanax”), acetaminophen (sold as Tylenol), and fentanyl. Over the course of approximately 24 hours, Joedon Bradley helped press thousands of pills, using a pill mold that imprinted “A333” onto the ultimate product: a white, oblong pill that was almost identical to a prescription A333 Percocet pill.
On July 5, 2016, Johnny Williams obtained approximately 300 pills through the chain of distribution. Williams arranged to sell 150 of those pills for $1,050, to Jonathan Barrett through Jennifer Dogonski, a woman who acted as a broker.
According to evidence at trial, during the period of July 5-6, 2016, Jonathan Barrett, Johnny Williams and Joedon Bradley all distributed counterfeit Percocet pills containing fentanyl, with the markings “A333,” that were produced by Falkowski and Bradley. On July 6, 2016, Barrett learned that some individuals who had purchased the counterfeit pills had overdosed, and that one had possibly died, but he continued to distribute the counterfeit pills.
Law enforcement later searched a home in Madison, Tennessee, pursuant to a federal search warrant, and found, among other things, the pill press, multiple molds used for embedding text onto pills, including a mold for “A333,” a pill grinder, fentanyl, alprazolam and other drug manufacturing equipment. Testing later confirmed that the mold found at the house was the same mold used to make some of the pills seized from overdose victims during the investigation.
The jury found that the distribution of the counterfeit pills containing fentanyl caused one individual to die and seven other persons to experience serious bodily injuries.
The defendants face a mandatory minimum term of twenty years in prison, up to life and up to a $1,000,000.00 fine for each count charged when they are sentenced later this year.
Five other defendants indicted in this case have pleaded guilty and are awaiting sentencing. They include Eric Falkowski, 36, of Kissimmee, Florida; Preston Davis, 24, of Madison, Tennessee; Davi Valles, Jr., 26, and LaKrista Knowles, 26, both of Nashville, Tennessee; and Jennifer Dogonski, 34, of Murfreesboro, Tennessee.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorneys Amanda J. Klopf and Brent A. Hannafan.
Everett Resident Who Sent Explosive Powder to more than a Dozen Washington DC Area Locations Charged in Federal CourtRead the Press Release
A 43-year-old Everett resident made his initial appearance in U.S. District Court today charged by criminal complaint with shipping of explosive materials, announced U.S. Attorney Annette L. Hayes. THANH CONG PHAN, was arrested Monday March 26, 2018 after a number of packages containing small amounts of black explosive powder were received at various mail-screening locations in the Washington DC area. The mailings were addressed to the White House, the FBI, and various government and military installations. The investigation to locate and isolate all of the packages is ongoing. No packages have exploded or caused any injuries.
PHAN became a suspect in the case when a U.S. Postal Service inspector traced the tracking information on one of the packages to the Mill Creek, Washington post office self-service kiosk. Surveillance photos from the time of the mailing appeared to show PHAN. Writings contained in the package were also similar to previous correspondence from PHAN to various government agencies. PHAN had been known to police previously because of the writings, and due to frequent contact with the 9-1-1 emergency dispatch system. PHAN was taken into custody without incident.
Shipping of explosive materials is punishable by up to ten years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI, the U.S. Postal Inspection Service and the U.S. Secret Service.
Easley Man Pleads Guilty to Child Porn ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that William F. Haynes, age 61, of Easley, pled guilty in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. Senior United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement conducted a proactive investigation involving a file-sharing network used by individuals with an interest in child pornography. An undercover officer downloaded images that Haynes had available for sharing.
A federal search warrant was obtained and executed. Electronic devices were seized and law enforcement found over 8000 images of child pornography. Agents found images of children under the age of 18, and some prepubescent, engaged in the lascivious display of the genitals and sexual activity.
Ms. Drake stated the maximum penalty Haynes can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Duquesne Man Charged with Illegally Possessing a Firearm and Distributing Heroin and Fentanyl AnaloguesRead the Press Release
PITTSBURGH, PA – A resident of Duquesne, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on March 21 and unsealed today, named Marquis Brown, age 29, as the sole defendant.
According to the indictment, on or about October 3, 2017, Marquis Brown possessed with the intent to distribute quantities of heroin, para-fluoroisobutyryl fentanyl, and methoxyacetyl fentanyl. On the same date, Brown is also charged with possession of a firearm as a convicted felon, and possession of that firearm in furtherance of a drug trafficking crime. Federal law prohibits a felon from possessing a firearm.
For the drug charges, the law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Brown also faces a maximum total sentence on the firearms charges of not less than five years and up to life in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
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.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the indictment in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced in federal court in Boston yesterday for illegally reentering the United States after deportation.
Bolivar Santias Coste-Anias, 44, pleaded guilty today and was immediately sentenced by U.S. District Court Judge F. Dennis Saylor IV to time served and three years of supervised release. Coste-Anias will be subject to deportation proceedings. In January 2018, Coste-Anias was charged with one count of illegal reentry of a deported alien.
On Dec. 18, 2017, Coste-Anias was encountered by law enforcement in Boston and determined to be illegally present in the United States. Coste-Anias was previously deported in July 2008.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Federal Drug ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Worcester to his role in a heroin and cocaine conspiracy.
Ricardo Ortega Vasquez, 42, a Dominican national residing in New York City, pleaded guilty to one count of conspiring to distribute heroin and cocaine and to possess heroin and cocaine with the intent to distribute. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 29, 2018. Ortega Vasquez and four co-defendants, Vito Nuzzolilo and Kristin Little, both of Worcester; and Thomas Walker and Melissa Rock, both of Pemaquid, Maine, were indicted in July 2017.
According to court documents, Nuzzolilo ordered sizable quantities of heroin and cocaine from a New York-based source of supply, and Ortega Vasquez transported cocaine and heroin from New York City to Nuzzolilo on behalf of the New York-based source of supply. On May 7, 2017, law enforcement seized more than a quarter-kilogram of cocaine from Ortega Vasquez in Worcester, shortly after Ortega Vasquez had taken a bus from New York City to Worcester.
In November 2017, Danielle Lloyd, 44, of Worcester, pleaded guilty to her role in this conspiracy and admitted to facilitating the shipment of heroin and cocaine from New York to Worcester on May 7, 2017, and another on April 25, 2017. Lloyd was sentenced on March 21, 2018, to time-served.
Ortega Vasquez faces a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, a fine of $5 million, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Darrell Lansing Hobbs Sentenced for Counterfeiting Conspiracy and Being a Felon in Possession of FirearmsRead the Press Release
GREENEVILLE, Tenn. – On March 27, 2018, Darrell Lansing Hobbs, a/k/a Darrell “Lance” Hobbs, 36, of Gray, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in prison for his role in a conspiracy to produce counterfeit obligations of the United States with intent to defraud the government, possession of stolen firearms and being a felon in possession of firearms. The court imposed the statutory maximums of 120 months on both gun charges and 60 months on the counterfeiting conspiracy charges. The sentences will run concurrently.
Hobbs pleaded guilty in October 2017 to the charges referenced above. Details of the conspiracy are included in his plea agreement on file with U.S. District Court. According to the plea agreement, from March 2017 through July 2017 Hobbs and three co-conspirators produced counterfeit Federal Reserve notes, which were used and attempted to be used to purchase various items from retail outlets and private individuals, including firearms, tools and at least one vehicle. Additionally, he and another co-conspirator sold firearms during May and June 2017 that were considered stolen since they had previously been purchased by them using counterfeit notes. As a convicted felon, it was illegal for Hobbs to possess firearms or ammunition at any time.
Hobbs along with his co-conspirators produced the counterfeit notes by taping real money to a flatbed scanner, scanning them, and then printing the front and back of the scanned notes to various types of parchment paper purchased from a local retail establishment. Investigators determined that Hobbs and co-conspirators produced between $95,000 and $150,000 in counterfeit Federal Reserve notes.
Others charged in this conspiracy included: Sean Bowman, 19, of Jonesborough, Tennessee; Robert William Guy, 19, of Kingsport, Tennessee; and Jason Massengill, 39, of Kingsport, Tennessee. Bowman pleaded guilty to the conspiracy and was sentenced to serve five years of probation after serving approximately five months in prison. Guy pleaded guilty to the conspiracy and awaits sentencing. Massengill also pleaded guilty to the conspiracy and was recently sentenced to serve 37 months in federal prison.
Investigative agencies participating in this case included the United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kingsport Police Department, Washington County Sheriff’s Office, Carter County Sheriff’s Office, Bluff City Police Department, Erwin Police Department and Elizabethton Police Department. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Cosby Resident Sentenced to Serve 79 Months in Federal Prison for Possession of Stolen FirearmsRead the Press Release
GREENEVILLE, Tenn. – On March 27, 2018, Rodney Shackleford, 26, of Cosby, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 79 months in federal prison for possessing stolen firearms. Shackleford pleaded guilty to a one-count information in October 2016.
Two accomplices of Shackleford, James Summers, 26, and Tiffany Gentry, 32, both of Newport Tennessee, were indicted in October 2016 and also charged with possession of stolen firearms. Additionally, Summers was charged with being a convicted felon in possession of a firearm and Gentry was charged with lying to the government. Summers previously pleaded guilty and was sentenced in November 2017 to serve 84 months in federal prison. Gentry also pleaded guilty and was sentenced to probation.
According to the plea agreement on file with U.S. District Court, in February 2016, Shackleford and Summers burglarized a residence in Newport, Tennessee, and stole, among other things, seven firearms. One of the firearms included a high-capacity magazine capable of holding 30 rounds of ammunition. The stolen firearms were loaded into a vehicle belonging to Gentry and driven back to the motel where they all resided. Summers and Gentry made an agreement to sell the firearms to a relative of Gentry and use the proceeds to purchase illegal narcotics.
Agencies involved in the investigation of this case included the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cocke County Sheriff’s Department. Assistant U.S. Attorney TJ Harker represented the United States in Court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Convicted child rapist from Cleveland man sentenced to 24 years in prison for child pornography crimesRead the Press Release
A convicted child rapist from Cleveland man was sentenced to more than 24 years in prison for child pornography crimes, said U.S. Attorney Justin E. Herdman.
Roland A. Wolfe, 53, was sentenced to 293 months in federal prison after pleading guilty in federal court to receiving and possessing visual depictions of minors engaged in sexually explicit conduct and having a computer that contained images of child sexual abuse.
“This case is a testament to the hard work of the Ohio Adult Parole Authority, ICAC and the Cleveland State police,” Herdman said. “They each worked to make our community safer.”
Wolfe was at Cleveland State University using the school’s free wi-fi to view images of child pornography and child sexual abuse on his personal laptop in 2016. He was arrested and charged with criminal trespassing and obstructing official business, according to court documents.
A subsequent investigation tracked him to a Cleveland homeless shelter, where Wolfe possessed a Dell laptop computer and five USB storage devices, each of which contained child pornography, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Kathryn Andrachik following an investigation by the Ohio Adult Parole Authority, the Ohio Internet Crimes Against Children Task Force and the Cleveland State University Police Department.
Concord, N.C. Man Sentenced to 11 Years on Drug Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Montorio Darell Allison, 38, of Concord, N.C. was sentenced to 132 months in prison on drug trafficking charges. U.S. District Judge Max O. Cogburn, Jr. also ordered Allison to serve 10 years under court supervision after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Gary J. Gacek with the Concord Police Department.
According to filed court documents and today’s sentencing hearing, Allison was a member of a drug trafficking organization (DTO) responsible for trafficking large quantities of cocaine from supply sources in Mexico and Texas, and utilized drug couriers to transport the drugs to Allison and other drug traffickers throughout North Carolina and elsewhere. Court records also show that between March and September 2015, a courier for the DTO delivered five kilograms of cocaine to Hillsborough, N.C.; 15 kilograms of cocaine to Fayetteville, N.C.; and one kilogram of cocaine to Concord, N.C. After distributing the cocaine, local DTO members returned large sums of bulk currency generated from drug sales.
According to court records, over the course of the investigation into Allison, law enforcement seized cocaine, heroin, other narcotics, 13 empty kilogram wrappers, other drug paraphernalia, and cash. Allison pleaded guilty in June 2017 to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Allison is in federal custody and will be transferred to the custody of Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The DEA led the investigation. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Compounding Pharmacy Owner Sentenced to Five Years in Prison for $10.5 Million Health Care FraudRead the Press Release
BIRMINGHAM – A federal judge today sentenced the owner of a Decatur compounding pharmacy to five years in prison for conspiring to defraud a federal health insurance program out of more than $10 million. U.S. Attorney Jay E. Town, Food and Drug Administration, Office of Criminal Investigation, Miami Field Office, Special Agent in Charge Justin D. Green and Defense Criminal Investigative Service Special Agent in Charge John F. Khin announced the sentence.
U.S. District Judge R. David Proctor sentenced JOHN CHRISTOPHER LEMLEY, 51, of Decatur, for the health care fraud conspiracy and ordered him to forfeit nearly $1 million as proceeds of the crime. Most of that amount – $918,234 – already has been seized from bank accounts held by Lemley or his businesses, along with a 2015 Lexus Gx-460 Premium bought with criminal proceeds, according to court documents. The judge also ordered Lemley to pay $918,234 in restitution to the federal military health insurance program. Lemley pleaded guilty to the conspiracy charge in November. He must report to prison June 20.
“Every dollar stolen from TRICARE is a dollar that weakens our overall military posture and makes healthcare for our troops even more embattled,” Town said. “Whether $10 million or $10,000, those who intend to defraud the federal government, especially our DOD components, will be joining Mr. Lemley soon.”
“This sentencing, resulting from a complex and widespread investigation by DCIS and other law enforcement partners, is a strong warning to anyone who believes they can get away with conspiring and scheming to fleece the Defense Department's TRICARE system,” Khin said. “Fraud and corruption in our health care programs, especially involving deceptive practices with prescription medications, is far from a ‘victimless’ crime. This defendant selfishly put greed and personal gain before the safety and well-being of our military members, their families, and retirees, who deserve proper medications and the best care available.”
“U.S. consumers rely on the FDA to ensure they receive drugs which are safe, effective, and properly labeled,” Green said. “We remain fully committed to pursuing those individuals who endanger the public health by distributing misbranded products.”
Lemley owned a Decatur pharmacy that operated as Southern Compounding. He also owned Apotheca Supply, which was licensed to relabel and repackage pharmaceutical drugs. Apotheca was located in a suite adjoining Southern Compounding on U.S. Highway 31 South. Lemley also had a 20 percent membership interest in Medworx Sunflower LLC, an affiliate of Medworx Compounding, a pharmacy in Ridgeland, Miss., according to the charges against Lemley and the government’s sentencing memorandum.
Between February 2015 to January 2016, Lemley conspired with others at Medworx Sunflower and Southern Compounding to defraud TRICARE, a U.S. Department of Defense health care program, as well as third-party prescription-drug program administrator Express Scripts Incorporated, according to the court documents. Southern Compounding submitted prescription reimbursement claims to TRICARE as part of ESI’s pharmacy network.
As part of the conspiracy, Lemley conducted the fraud by various means that included improperly contracting with Medworx Compounding to refer prescriptions to Southern Compounding. He also paid kickbacks to independent sales representatives as incentive to refer TRICARE prescriptions, sold misbranded over-the-counter medications as prescription drugs, and failed to reverse claims on prescriptions he knew were forged, according to court documents.
Although ESI’s regulations prohibited Southern Compounding from subcontracting any of its work, Southern entered a management agreement with Medworx in early 2015 whereby Medworx referred prescriptions to Southern Compounding. Southern filled the prescriptions, billed third-party administrators for them and sent almost all the payments received to Medworx. Medworx then returned a portion of those payments directly to Lemley. The amount returned totaled $918,234, representing a distribution for Lemley’s 20 percent membership interest in the Medworx affiliate, Medworx Sunflower.
Southern Compounding’s billings to TRICARE soared in the two months after Southern entered its agreement with Medworx, according to court documents. In the 13 months prior to the agreement, TRICARE paid claims of about $215,561 to Southern. In the two months following the February 2015 agreement, TRICARE, through ESI, paid about $10.5 million in claims to Southern. More than 90 percent of that was profit.
In accordance with Southern’s management agreement with Medworx, Lemley transferred most of the money – about $10.2 million – to Medworx. Most of the transferred money was to fund kickbacks to the independent sales representatives, according court documents.
FDA-OCI and DCIS investigated the case, which Assistant U.S. Attorney Chinelo Dike-Minor prosecuted.
Clairton Woman is Eighth Defendant in Drug Trafficking Case to Plead GuiltyRead the Press Release
PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Jean Hull, 52, pleaded guilty to one count of conspiring, with 20 other individuals, to distribute narcotics between March and August of 2017. In connection with the guilty plea, the court was advised that Hull regularly purchased heroin from her co-defendant, Skylar Carter, for both personal use and further distribution and was responsible for the distribution of between 20 and 40 grams of heroin. Hull is the eighth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 30, 2018, at 10:30 a.m. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Hull remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Chicago Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Daniel Oliva, 30, of Chicago, Illinois, was sentenced before Hammond District Court Judge Joseph S. Van Bokkelen on his plea of distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Thomas L. Kirsch II.
Oliva was sentenced to 70 months imprisonment and 3 years of supervised release upon completion of his prison term.
According to documents in this case, law enforcement conducted a total of four controlled buys of cocaine with Oliva from September of 2016 to February of 2017. On February 13, 2017, law enforcement arrested Oliva after he attempted to sell four ounces of cocaine from within his vehicle. A search of the vehicle revealed he also possessed a semiautomatic pistol during the attempted drug sale.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States. Attorney Thomas McGrath.
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Buffalo Man Pleads Guilty to Selling Cocaine Near A Buffalo SchoolRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Stevie Alejandro, 31, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, 500 grams or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that the defendant operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School. Between May 2017 and October 18, 2017, the defendant utilized the barber shop to facilitate a drug distribution network. Alejandro conspired with co-defendants Aaron Hill, Cleophus Dentmond, a/k/a Face, Gilbert Guzman, Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
During the conspiracy, Alejandro conducted negotiations with an undercover law enforcement officer regarding the sale, cost, amount, and delivery of cocaine. Then, the defendant, or one of his co-conspirators, would conduct the drug transaction with the undercover officer. Co-conspirators who conducted any transactions returned the proceeds to the defendant. A total of 14 cocaine sales took place with the undercover officer.
Charges are pending against defendants Aaron Hill, Cleophus Dentmond, Gilbert Guzman, and Catherine Ramos. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard
Sentencing is scheduled for July 13, 2018 at 12:30 p.m. before Judge Arcara.
Boston Man Sentenced for Two Bank RobberiesRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for robbing a branch of the RTN Federal Credit Union in Brookline and a branch of the Mansfield Bank in West Bridgewater in November 2016.
Stephen D. Williams, 56, was sentenced by U.S. Senior District Court Judge Mark. L. Wolf to five years in prison, three years of supervised release, and ordered to pay $2287 in restitution. In December 2017, Williams pleaded guilty to two counts of bank robbery.
On Nov. 15, 2016, two individuals, one later identified as Williams, and the other later identified as Joseph Morris, entered a branch of the RTN Federal Credit Union in Brookline. Williams approached a teller and demanded cash. The teller handed Williams cash from her drawer and Williams and Morris exited the bank and fled the area in a dark-colored Volkswagen.
On Nov. 22, 2016, an individual, later identified as Williams, entered a branch of the Mansfield Bank in West Bridgewater. Williams gestured that he had a firearm and demanded the tellers give him the bank’s money. The teller handed Williams cash, and Williams fled the area again in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers familiar with both Williams and Morris located the dark-colored Volkswagen and arrested the two men at an apartment complex in Brockton.
Morris was charged in state court with the robbery of the RTN Federal Credit Union in Brookline and was sentenced to eight-to-10 years in jail.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the District of Massachusetts; Norfolk County District Attorney Michael Morrissey; West Bridgewater Police Chief Victor R. Flaherty Jr.; Brookline Acting Police Chief Mark P. Morgan; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Berkeley County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joshua Neal Krieger, of Hedgesville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Krieger, age 29, pled guilty to one count of “Unlawful Transfer of a Firearm.” He admitted to selling a machine gun conversion part designed to convert a weapon into a machine gun for $2900 in May 2017 in Berkeley County.
Krieger faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bank Employee Arrested and Charged with Bank EmbezzlementRead the Press Release
BOSTON – Jessica Vargas, 34, of Athol, was arrested today and charged in federal court in Worcester with one count of bank embezzlement.
According to the charging documents, Vargas was an employee of a federally-insured bank when she embezzled more than $100,000 by making unauthorized cash withdrawals from customer accounts. Bank documentation shows that Vargas made unauthorized withdrawals from the accounts of various customers, including more than $53,000 from the account of an 84-year-old bank customer and almost $13,000 from the account of an 88-year-old customer.
Vargas faces a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bangor Man Pleads Guilty to Marijuana ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jeremy Duguay, 34, of Bangor, pleaded guilty today in U.S. District Court to conspiring to manufacture, distribute, and possess with intent to distribute marijuana.
According to court records, during a period between October 2010 and August 2016, the defendant conspired with others to illegally manufacture and distribute marijuana. The defendant was paid to assist in the production of marijuana at a large, sophisticated indoor growing facility in Frankfort, Maine. In May 2016, law enforcement officers executed a federal search warrant at the facility and seized about 400 marijuana plants, 295 marijuana root balls, and paraphernalia used to manufacture and process marijuana. The defendant had a firearm when agents arrived at the facility. According to the search warrant affidavit, the location of the facility was not reported to the Maine Department of Health and Human Services.
The defendant faces up to 20 years in prison, between three years and life of supervised release, and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Baltimore BGF Member Sentenced to 31 and A Half Years in Prison for 2013 Murder of WitnessRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge James K. Bredar sentenced Wesley Jamal Brown, a/k/a “Wes,” age 25, of Baltimore, Maryland, to 31 and a half years in prison, followed by five years of supervised released for conspiring to participate in a racketeering enterprise known as the Black Guerilla Family’s Greenmount Avenue Regime. Brown had admitted that on May 2, 2013, he murdered a witness to prevent him from testifying against a fellow BGF member in a pending state case.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Darryl DeSousa; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interest of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Specifically, Brown admitted that on or about April 26, 2013, he possessed with intent to distribute cocaine and heroin. Brown further admitted that on or about June 20, 2013, he possessed 51 grams of heroin and a quantity of cocaine that he planned to sell.
Brown further admitted that on or about May 2, 2013, in the 600 block of Cokesbury Avenue, he shot and killed Moses Malone with a .22 caliber handgun. In the weeks before his death, Malone had been the victim of a robbery and shooting committed by Norman Handy, Brown’s half-brother and fellow member of the BGF Greenmount Regime. On April 19, 2013, Malone identified Handy as the person who robbed and shot him during an interview with Baltimore Police officers. Brown admitted that he shot and killed Malone to prevent him from testifying against Handy in the pending state case.
According to his plea agreement, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interests of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Brown admitted that on or about May 12, 2013, he exchanged text messages with a BGF associate, in which he agreed to sell the .22 caliber handgun that he had used to kill Malone for $250.
Acting United States Attorney Schenning commended ATF Baltimore, FBI Baltimore, the Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Peter J. Martinez and Christina A. Hoffman, who prosecuted the case.
Andover Man Sentenced on Meth ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Bradley J. Hollenbeck, 37, of Andover, NY, who was convicted of conspiracy to manufacture, possess with intent to distribute, and to distribute, 50 grams or more of a mixture and substance containing methamphetamine, was sentenced to 110 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that between January 2011 and late 2014, the defendant engaged in the practice of “smurfing,” buying small quantities of pseudoephedrine, at local pharmacies. Hollenbeck did so to get around restrictions on purchasing products containing pseudoephedrine. This is the most important chemical necessary in the process of manufacturing methamphetamine.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, U.S. Border Patrol, under the direction of Patrol Agent in Charge Steven Oldman, and the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
26 March 2018
XTO Energy Inc. to Make System Upgrades and Undertake Projects to Reduce Air Pollution on the Fort Berthold Indian Reservation in North DakotaRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Houston-based XTO Energy Inc., resolving alleged Clean Air Act violations stemming from the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota.
The settlement resolves claims that XTO failed to adequately design, operate, and maintain vapor control systems on its storage tanks at oil and natural gas well pads, resulting in emissions of volatile organic compounds (VOCs). VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
As part of the settlement, XTO will ensure the adequacy of its vapor control systems and improve its operation and maintenance practices, monitoring, and inspections. These improvements to XTO’s operations on the Fort Berthold Indian Reservation will significantly reduce VOC emissions, including through monthly use of infrared cameras during inspections to better detect and respond to air emissions. In addition, EPA estimates that XTO will spend at least $450,000 to fund an environmental mitigation project. XTO will also pay a $320,000 civil penalty.
EPA estimates that XTO’s system upgrades will annually reduce the emission of at least 2,200 tons of VOCs. Improved operation and maintenance will result in additional emissions reductions. Today’s settlement resolves alleged violations at all 20 of XTO’s well pads on the Fort Berthold Indian Reservation.
“This settlement will reduce harmful air pollutants, benefiting the health of residents of the Fort Berthold Indian Reservation, as well as those living in surrounding communities,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice. “This case further demonstrates the shared commitment of the Justice Department and EPA to enforce the nation’s environmental laws, including in Indian Country.”
“This settlement with XTO Energy will reduce emissions from its production facilities on the Fort Berthold Reservation and will benefit tribal communities and regional air quality,” said EPA Regional Administrator Doug Benevento. “EPA will continue to work with energy producers and our state and tribal partners to ensure that oil and natural gas extraction occurs in accordance with the laws that protect our air and water resources.”
As part of the settlement, XTO has agreed to evaluate the design and capacity of its vapor control systems, modify those vapor control systems as necessary to ensure that that they are adequately designed and sized to collect and convey emissions to a control device, implement an enhanced inspection and maintenance program, and undertake monthly infrared camera inspections to identify any emissions and take prompt corrective action to address those emissions.
XTO will also conduct an environmental mitigation project to install and operate auto-gauging equipment on storage tanks to reduce how often thief hatches are opened. This project is expected to significantly reduce VOC emissions.
XTO’s oil and natural gas production operations in North Dakota use storage tanks to store produced oil and produced water. The oil and water are stored at separate well pads prior to transport by pipeline or truck. Multiple storage tanks are typically present at a well pad and are frequently controlled by the same vapor control system.
The case arose from EPA’s inspections and information requests in 2015 that found violations related to VOC emissions from produced oil and produced water storage tanks, due to undersized vapor control systems and inadequate operation and maintenance.
This settlement is part of EPA’s national enforcement initiative to reduce public health and environmental impacts from energy extraction activities. For more information about EPA’s enforcement initiative, click here: http://www2.epa.gov/enforcement/national-enforcement-initiative-ensuring-energy-extraction-activities-comply.
The proposed consent decree, lodged in the U.S. District Court for the District of North Dakota, is subject to a 30-day public comment period and approval by the federal court. Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decrees.
Walterboro Man Sentenced to 48 Months in Federal Prison on Firearms ChargesRead the Press Release
Charleston, South Carolina---- United States Attorney Beth Drake stated today that Dominique Raheem Manigo, a/k/a “Doma”, age 19, of Walterboro, was sentenced for felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Section 922(g)(1). United States District Judge David C. Norton sentenced Manigo to 48 months in federal prison with three years of supervised release to follow.
The evidence presented at the guilty plea hearing established that on April 4, 2017, Manigo initiated a live video stream on a social network platform that showed him sitting in his car with two other individuals packaging marijuana for distribution and possessing a shotgun and an AR-15 style firearm. As a result of this video, federal agents obtained a search warrant for Manigo’s residence, which was executed on April 19, 2017. During the search inside Manigo’s bedroom, agents located a pistol magazine that contained fifteen rounds of 9mm ammunition, a box containing thirteen 12-gauge shotgun shells, a box containing four rounds of .45 colt ammunition and one round of .223 caliber ammunition. Inside a shed on the property, agents located a green and black 12-gauge shotgun that was loaded with six 12-gauge shotgun shells, a Smith & Wesson .556 caliber rifle that contained sixty-seven rounds of .223 caliber ammunition and a bag containing twenty-one rounds of various ammunition. The .223 ammunition in the rifle was loaded into two large capacity magazines that were taped together.
Manigo has prior convictions for burglary and failure to stop for a blue light that prohibit him from possessing firearms and ammunition.
This case was investigated by Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Officers with the Colleton County Sheriff’s Office. The case was prosecuted pursuant to 14th Circuit Solicitor Duffie Stone’s longstanding partnership with the United States Attorney’s Office to target career criminals in Beaufort, Jasper, Hampton, Colleton, and Allendale Counties in federal court. Special Assistant United States Attorney Carra Henderson of the 14th Circuit Solicitor’s Office prosecuted the case.
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Unprecedented Stalking Conviction Sends Former Richmond Resident to PrisonRead the Press Release
HOUSTON – A 45-year-old former Richmond man has been given the statutory maximum sentence for systematically torturing a former girlfriend by sending horrific images and threatening email messages, announced U.S. Attorney Ryan K. Patrick. The jury returned its verdict Oct. 27, 2017, against Heriberto Latigo following five days of trial and less than two hours of deliberations.
This is the first case tried in the Southern District of Texas in which a defendant used the internet to cause substantial emotional distress. In the last 10 years, less than 100 defendants have been convicted using this federal stalking statute.
Today, U.S. District Judge Kenneth Hoyt sentenced Latigo to 60 months in prison. Additional information was also presented today, including a letter the victim had written which detailed the torment she endured and how Latigo’s actions have changed her life forever, stating that no matter how hard she has tried, she has not been able to overcome what he did to her. “There was not a day that I didn’t feel scared,” she said.
Latigo was further ordered to serve three years on supervised release following completion of his prison term during which time the court ordered him to get mental health treatment. Judge Hoyt also noted that the maximum sentence imposed may not be sufficient for the crime and stated the possibility that Latigo might just be “mean and evil.”
Latigo began a romantic relationship with the victim in 2013. As it progressed, Latigo’s conduct became controlling and demanding to include forcing her to send him naked images of her. The relationship eventually devolved into physical altercations to include an alleged rape. The victim testified that she was and is afraid of Latigo.
In June 2014, she discovered she was pregnant. She testified that Latigo was so controlling and crazy during this time that she decided to end the pregnancy. Latigo found out and created a Facebook page titled “Magdelana Aborted” where he pretended to be the aborted fetus, sent the link to her and said “Your abortion video will now be posted you whore.” She was so upset that she overdosed on tranquilizers in an attempt to take her own life.
From March 2014 to April 2015, Latigo used threats and blackmail tactics to force the victim to do things against her will. Latigo had used the naked images she had previously sent during their relationship to compel her to do a variety of things, including complying with his sexual demands. If she refused, he would post the images online until she acquiesced. On many occasions, she had to contact Google to have naked pictures of her removed. Latigo also sent the images to her sister, her sister’s boss and male co-workers in an effort to control and harass her.
Latigo used his own email address to send messages to the woman in which he berated her and demanded she do things. He even created a Gmail account and Google+ page with the victim’s name and used a naked photograph of her as the profile picture.
Latigo’s actions caused the victim to move. She even changed jobs. She closed her Facebook account and got offline. However, he ultimately found her again, went to her new job and continued to harass her.
The jury also heard from another witness that placed Latigo at the victim’s daughter’s school indicating he was physically stalking her. A computer forensic expert also testified that Latigo accessed multiple Facebook accounts and the victim’s email from his own computer and attempted to cover his trail in the process.
Latigo represented himself during the trial and attempted to convince the jury that this entire case was about the victim wanting to hurt him. He claimed she created the accounts used to harass her. However, she actually broke down in tears on the stand when she learned her naked images had been sent in response to a Craigslist ad she supposedly created. No evidence was presented to the jury that demonstrated the victim ever had control of either of these accounts. In fact, Latigo’s owne xpert witness testified that the email address at issue was created on one of Latigo’s computers seized by the FBI during a search of his home.
The jury ultimately did not believe Latigo’s claims and found he intentionally harassed the victim and caused her substantial emotional distress. He was convicted as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Sherri Zack and Steve Schammel are prosecuting the case.
United States Files Suit Against Reading-Area Physician for Opioid PrescribingRead the Press Release
The United States filed a civil lawsuit today against Stephen Latman, a physician in the Reading, Pennsylvania area, alleging that he wrote improper opioid prescriptions for several of his patients, announced United States Attorney Louis D. Lappen. According to the complaint, Latman issued 343 opioid prescriptions to three of his patients that lacked a legitimate medical purpose and were issued outside of the usual course of his professional practice.
The United States and Dr. Latman have also entered into a Stipulated Order and Consent Judgment, subject to the Court’s approval that would resolve the matter without litigation. If approved by the Court, the Judgment would require Latman to pay $400,000 to the United States, prohibit Latman from ever seeking a future DEA controlled substance license, require Latman to voluntarily relinquish his license to practice medicine, and require Latman to execute an agreement with the U.S. Department of Health and Human Services to be excluded from Medicare, Medicaid, and all other Federal health care programs.
The complaint filed by the United States alleges that Latman, for these three patients, prescribed approximately 123,660 opioid pills from 2014 through 2016. Those prescriptions were often written for oxycodone 30mg, one of the most heavily abused and most lucrative oxycodone prescriptions on the black market. An expert review of these prescriptions indicated that the prescriptions were dangerous, inappropriate, and susceptible to illicit use.
“The opioid crisis in our communities has had a devastating impact,” said United States Attorney Louis D. Lappen. “Physicians have the vital responsibility to write prescriptions that are in the best interest of the patient, particularly for opioids. Our office will continue to hold physicians accountable when they violate that responsibility.”
The United States filed this lawsuit under the Controlled Substances Act. The complaint contains allegations only, and not findings of liability.
The investigation was conducted by the Drug Enforcement Administration and assisted by the Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Anthony D. Scicchitano handled the matter.
U.S. Reaches Agreement with Healthcare Provider on Communication with Deaf IndividualsRead the Press Release
United States Attorney Louis D. Lappen today announced that the Government has reached a settlement with Allergy & Asthma Specialists, P.C. (“A&A”) to resolve alleged violations of title III of the Americans with Disabilities Act (“ADA”) for failure to provide a deaf patient with effective communication.
Under title III of the ADA, no person who owns, leases (or leases to), or operates a place of public accommodation may discriminate against an individual on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation. Discrimination includes failing to take such steps as necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than any other individual because of the absence of auxiliary aids and services.
According to the United States= allegations, in 2017, a deaf patient had difficulty effectively communicating with A&A staff during a visit to an A&A facility in Jenkintown, Pennsylvania. Although A&A provided an interpreter who could speak some sign language, the interpreter was not a certified sign language interpreter, and the patient had difficulty understanding the interpreter.
As a result of the United States’ investigation and the full cooperation of A&A, A&A has agreed to implement an effective communication policy and to annually train its staff regarding that policy.
This case was investigated by Assistant United States Attorney Jacqueline C. Romero.
U.S. Attorney’s Office and Rensselaer County Unite to Confront the Opiate EpidemicRead the Press Release
ALBANY, NEW YORK – The United States Attorney’s Office is partnering with the Rensselaer County Department of Health, Rensselaer County Sheriff’s Office, Rensselaer County District Attorney’s Office, Rensselaer County Heroin Coalition, the New York State Police and school districts throughout Rensselaer County to highlight the deadly effects of the opiate epidemic and to bring together all of the resources necessary to address it, announced United States Attorney Grant C. Jaquith. A range of events, including school assemblies and evening community events, continue throughout March to unite private citizens, service providers, and law enforcement agencies to ‘get out in front’ of this deadly epidemic.
“We are experiencing the deadliest drug epidemic in our nation’s history,” said United States Attorney Jaquith. “Drug overdoses are now the leading cause of death among Americans under 50. About two-thirds of the deaths are from opioids overdoses involving prescription painkillers, heroin, and fentanyl. Aggressive enforcement is important to punish the poison peddlers who play Russian roulette with the lives of their customers and the rogue doctors who prescribe pills for illicit profits, but prevention is the best protection. We are pleased to partner with the Rensselaer County Department of Health, Rensselaer County Sheriff’s Office, Rensselaer County District Attorney’s Office, Rensselaer County Heroin Coalition, and school districts throughout Rensselaer County, the New York State Police, the Drug Enforcement Administration, and the Federal Bureau of Investigation to increase public awareness, resilience and reduce the tragedies regularly striking families in our region.”
“There have been record numbers of Rensselaer County families affected by the opioid epidemic, with too many deaths, overdoses, and damaging, life-altering addictions. Rensselaer County appreciates the help and support of the U.S. Attorney's Office for the Northern District of New York to fight this deadly problem and help save lives,” said County Executive Steve McLaughlin.
“The Rensselaer County Sheriff’s Office is pleased to be part of this very important effort. The more we can do to bring awareness to this issue and educate the public the better,” said Sheriff Patrick Russo, Rensselaer County Sheriff and Co-Chair of the Rensselaer County Heroin Coalition.
“As the Public Health Director of Rensselaer County and Co-Chair of the Rensselaer County Heroin Coalition, we work daily to combat the opioid epidemic in our county. This campaign brings hope and awareness to the students of our school districts and within our surrounding communities,” said Mary Fran Wachunas.
All of the events include a viewing of Chasing the Dragon: The Life of An Opiate Addict (https://www.fbi.gov/news/stories/raising-awareness-of-opioid-addiction ) followed by an Interactive Community Response Panel to discuss the epidemic impact locally. The range of panelists include parents whose children are addicts, a young person who is addicted and in treatment, school counselors, treatment counselors, first responders, Sheriff’s Deputies and New York State Troopers, an Assistant United States Attorney, the District Attorney, a pharmacist, a funeral home, a recovery coach, people in recovery, and students who have made the commitment to be alcohol and drug free. In a facilitated discussion, the panelists illustrate the progression of use/abuse/addiction, the impact on individuals, families, schools, agencies and demonstrate how systems respond. All are welcome at the evening community-wide events.
UNITED TO FIGHT IT – Chasing the Dragon events
Brunswick Central School District - March 20, 2018
Daytime assembly for junior & senior high school students
Hoosic Valley School District - March 21, 2018
Daytime assembly for junior & senior high school students
Hoosic Valley & Brunswick School Districts - March 21, 2018
Combined evening joint community-wide event
Maple Hill Junior & Senior High School - March 27, 2018
Evening community-wide event
Averill Park School District - April 6, 2018
Evening community meeting
Catholic Central School - May 1, 2018
Evening community-wide event
City School District of Troy - May 17, 2018
Daytime assembly for junior & senior high school students
Evening community-wide event
Rensselaer City & E. Greenbush School Districts
Daytime school assemblies for junior & senior high school students
Combined evening joint community-wide event
May 2018 dates to be announced
Other school districts may also deliver assemblies and community-wide events. Go to the www.rensco.com website for updates or call the Rensselaer County Health Department at 518-270-2626.
Two Officers with Gardena Police Department Named in Federal Indictment that Alleges They Operated Illegal Firearms BusinessesRead the Press Release
LOS ANGELES – Two members of the Gardena Police Department were charged by a federal grand jury with participating in a scheme in which they purchased “off-roster” firearms not available to the general public and illegally operated businesses that resold the weapons.
The two police officers were charged in a five-count indictment that was unsealed Friday afternoon. The indictment alleges that the officers conspired with each other and that each engaged in the business of dealing in firearms without a license.
The two officers are collectively charged with illegally selling approximately 100 firearms, mostly .38-caliber pistols. The two defendants are:
Carlos Miguel Fernandez, 42, of Norwalk, whose Instagram handle was “the38superman,” and
Edward Yasushiro Arao, 47, of Eastvale.
Both defendants have been summoned to appear on April 3 for arraignments in United States District Court.
According to the indictment, Fernandez advertised firearms for sale – guns being offered by both himself, Arao and others – on his Instagram account. The vast majority of posts on the account contained images of firearms. Arao, who was the CEO of Ronin Tactical Group, which was a federal firearms licensee (FFL), similarly advertised guns on the company’s Instagram account. Additionally, both defendants marketed firearms at gun shows. Neither defendant was licensed individually to engage in the business of dealing in firearms when the illegal gun sales alleged in the indictment took place.
Fernandez allegedly purchased “off-roster” firearms – mostly Colt .38-caliber handguns that were not available to the general public, but which could be legally purchased by law enforcement officers – and sold dozens of these weapons through private-party transfers. Similarly, Arao obtained “off-roster” weapons by transferring them to himself individually from the inventory of Ronin Tactical Group. Through messages on Instagram and other means, Fernandez and Arao negotiated the prices and terms of firearm sales, and they accepted payment for the guns once they were delivered, according to the indictment.
The indictment in this case was unsealed Friday afternoon after two other defendants in the case were arraigned in federal court on charges that they engaged in a “straw purchase” transaction involving a gun sold through Fernandez. The indictment alleges that Oscar Morales Camacho Sr., 63, of Salinas, falsely certified that he was purchasing a firearm for himself in a 2017 private-party transfer, when he in fact was buying the gun for his son, Oscar Maravilla Camacho Jr., 34, also of Salinas. Camacho Jr. has a prior criminal conviction that prohibits him from possessing firearms. The indictment alleges that Fernandez and both Camachos “well knew [that] defendant Camacho Sr. was not the actual buyer of the firearm.”
At their arraignments last week, both Camachos entered not guilty pleas and were ordered to stand trial on May 31.
The indictment alleges a second “straw purchaser” transaction in which a South Los Angeles woman allegedly purchased two firearms for her boyfriend. As in the other straw purchase alleged in the indictment, Bianca Elizabeth Ibarria, 23, and Adalberto deJesus Vasquez Pelayo Jr., 24, also of South Los Angeles, are charged with making a false statement in a federal firearm licensee’s records during purchase of a firearm. Ibarria and Pelayo also have been directed to appear in federal court for arraignments on April 3.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Each count in the indictment carries a statutory maximum penalty of five years in federal prison. Therefore, if convicted of all charges, Fernandez would face up to 15 years in federal prison, and Arao could be sentenced to as much as 10 years.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Gardena Police Department provided its full cooperation during the investigation.
The prosecution is being handled by Assistant United States Attorney Katherine A. Rykken of the Major Frauds Section.
Three More Defendants Plead Guilty for Roles in Federal Drug ConspiracyRead the Press Release
Defendants are latest to plead guilty out of nearly two dozen indicted after long-term narcotics investigation
CHARLESTON, W.Va. -- Three men pled guilty today for their roles in a drug trafficking conspiracy, announced United States Attorney Mike Stuart. Jonathan Brockman, 34, of Fayette County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of fentanyl, a quantity of oxycodone, and a quantity of marijuana for remuneration. David Shaun Coleman, 47, of Fayette County, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, and a quantity of oxycodone. Rashaun Carter, aka “Show,” 40, of Raleigh County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, and a quantity of cocaine, and a quantity of fentanyl. Brockman, Coleman, and Carter are three of 23 defendants indicted in June 2017 after a comprehensive investigation of drug trafficking in Southern West Virginia. U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“Getting these poison peddlers - Brockman, Coleman, and Carter - off the streets will, pure and simple, save lives. They were pedaling a smorgasbord of opiates – including one of the most dangerous – fentanyl,” said United States Attorney Mike Stuart. “These drug thugs and others like them put kids, families and first responders in jeopardy,” continued Stuart. “We will lock them up every chance we get.”
Jonathan Brockman, admitted that between May 2017 and June 28, 2017, he took part in a drug trafficking conspiracy in Fayette County with multiple participants involving the distribution of heroin, oxycodone, fentanyl, and marijuana. Brockman admitted that he worked with another member of the drug trafficking organization to purchase a kilogram of heroin for the purpose of distributing heroin in and around Fayette County. Brockman further admitted to distributing oxycodone tablets in and around Fayette County. Brockman also admitted that on June 28, law enforcement officers executed a search warrant at his residence and on other property. During the search police officers recovered approximately 14 kilograms of marijuana at Brockman’s residence, 200 oxycodone tablets, and 75 tablets that contained a mixture of heroin, fentanyl, and oxycodone. Brockman intended to distribute all of the controlled substances recovered. Police officers also recovered over $182,000 in cash, 11 firearms, and a boat and trailer that Brockman admitted had been purchased with drug proceeds. Brockman agreed to forfeit the cash and boat as part of his plea agreement.
David Shaun Coleman admitted that between May 2017 and June 28, 2017, he too participated in a drug trafficking organization that distributed more than 100 grams of heroin and oxycodone, in and around Fayette County. Coleman admitted that during this time period, he received approximately 215 grams of heroin and approximately 700 oxycodone 30 mg tablets from other members of the drug trafficking organization that he intended to distribute in the southern district of West Virginia.
Rashaun Carter, aka “Show,” admitted that between August 2016 and June 28, 2017, he assisted Velarian Carter, James Rodney Staples, and others in operating a drug trafficking organization that distributed more than 28 grams of cocaine base, or “crack,” more than 100 grams of heroin, and quantities of cocaine and fentanyl, in and around Beckley, Raleigh County, West Virginia. Carter admitted to distributing cocaine base and over 100 grams of heroin to another member of the drug trafficking organization. Carter also admitted to assisting other members of the drug trafficking organization in cooking cocaine into cocaine base, or “crack,” and distributing the same in Raleigh County.
Brockman, Coleman, and Carter each face at least five years and up to 40 years in federal prison when they are sentenced on July 24, 2018.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Two defendants, Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, have been sentenced by United States District Judge Irene Berger. Cheyenne Fragale received a sentence of 12 years in federal prison while Macon Fragale will serve 16 years and 8 months. Velarian Carter, of Beckley, faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on April 17, 2018. Dominic Copney, of Beckley, faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on April 24, 2018. Donald Scalise, of Montgomery, faces up to 20 years in federal prison when he is sentenced on April 25, 2018. Tiffany Ramsey, of Boomer, faces at least five years and up to 40 years in federal prison when she is sentenced on May 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on May 29, 2018. Rory White, of Montgomery, faces at least five years and up to 40 years in federal prison when he is sentenced on June 6, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on May 29, 2018.
Shaun Jones has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on May 29, 2018.
Corey Larkin previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on June 5, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on May 30, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on May 30, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. Charles Hill, aka “Unc,” of Beckley, entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, and a quantity of cocaine. They both face at least five years and up to 40 years in federal prison when they are sentenced on June 5, 2018.
Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The Brockman, Coleman, and Carter plea hearings were held before Senior United States District Judge David A. Faber.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Three Men Charged with Violent Robbery of Hinsdale Jewelry StoreRead the Press Release
CHICAGO — A federal grand jury has indicted three men on robbery and weapons offenses for allegedly stealing expensive watches and jewelry at gunpoint from a Hinsdale store.
The robbers brandished firearms during the heist at Razny Jewelers, 37 S. Washington St., in the western suburb, on March 17, 2017, according to the indictment. They took more than $200,000 in merchandise, including watches by luxury brands Frederique Constant, Patek Phillipe, and Tudor, the indictment states. They allegedly sold or disposed of some of the stolen items in the Chicago area and Atlanta, Ga.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges TOBIAS DIGGS, 24, of Chicago, MARVON HAMBERLIN, 39, of Chicago, and JOSHUA MCCLELLAN, 29, of Oak Lawn, with robbery and robbery conspiracy; transportation of stolen goods; and using, carrying, and brandishing firearms during a crime of violence.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Hinsdale Police Department and Oak Lawn Police Department provided valuable assistance.
According to the charges, the defendants conducted surveillance of the store in advance of the robbery. They brought hoods, masks and other items to the store to conceal their identities, the indictment states. The robbers used actual and threatened force against store employees to take the watches and jewelry, before escaping in a Lexus sport-utility vehicle.
McClellan was arrested Friday, and he pleaded not guilty at a Friday afternoon arraignment before U.S. Magistrate Judge Sidney I. Schenkier. A detention hearing is set for Tuesday at 11:45 a.m. before Judge Schenkier.
Diggs is currently in state custody in DuPage County. His arraignment on the federal charges has not yet been scheduled.
Hamberlin is not in custody, and a warrant has been issued for his arrest.
The charge of using and brandishing a firearm carries a maximum sentence of life in prison. The conspiracy and robbery counts each carry maximum sentences of 20 years in prison. Transportation of stolen goods is punishable by up to ten years.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 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 Albert Berry III and Lindsay Jenkins.
Three Individuals Arrested for Elder Fraud ConspiracyRead the Press Release
A complaint was unsealed today, in federal court in Brooklyn, charging Kimberly Rojas Orozco, Alexander Brown, also known as “AJ Brown,” and Troy Stanley with conspiracy to commit wire and mail fraud in connection with a lottery telephone scam targeting elderly victims. The defendants and their co-conspirators allegedly received approximately $260,000 in fraudulently obtained payments from their victims through bank wires or the mail system. The defendants were arrested today and they will make their initial appearances this afternoon at the federal courthouse in Baltimore, Maryland.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Gurbir S. Grewal, Attorney General of the State of New Jersey, announced the arrests.
“As alleged in the complaint, the defendants defrauded elderly and vulnerable victims by making false promises of life-changing prizes and deceiving the hopeful victims into paying upfront fees,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will vigorously pursue the perpetrators of these fraudulent schemes wherever they are located, and hold them accountable.”
“These alleged fraudsters preyed on senior citizens, swindling them out of more than a quarter million dollars,” said HSI Special Agent-in-Charge Melendez. “Instead of showing respect to elders, these individuals chose to cheat them out of their savings; and, now they will be held responsible for their actions.”
“Law enforcement must go the extra mile to protect the elderly, who cannot always protect themselves, and our investigators have done that in this collaborative investigation,” said New Jersey Attorney General Grewal. “These defendants allegedly placed themselves in the lowest ranks of con artists by preying on seniors and callously targeting their life savings.”
According to the complaint, between January 2014 and November 2017, the defendants and others engaged in a telephone scam through which callers convinced seniors that they had won a cash lottery or sweepstakes, and that a large fee or taxes must be paid before the senior could receive their lottery winnings. The defendants, together with others, received the purported “fees,” approximately $260,000 identified to date, in the form of bank wires, money orders mailed to Brooklyn, or personal checks, and deposited the funds into their personal bank accounts.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a statutory maximum of 20 years’ imprisonment for wire and mail fraud conspiracy.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elizabeth Losey Macchiaverna is in charge of the prosecution.
The Defendants:
KIMBERLY ROJAS OROZCO
Age: 28
Rockville, MarylandALEXANDER BROWN (also known as “AJ Brown”)
Age: 28
Rockville, MarylandTROY STANLEY
Age: 33
Randallstown, MarylandE.D.N.Y. Docket No. 18-MJ-249
The Founder of “Nxivm,” a Purported Self-Help Organization Based in Albany, N.Y., Arrested for Sex Trafficking and Forced Labor ConspiracyRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging Keith Raniere, also known as “The Vanguard,” with sex trafficking, sex trafficking conspiracy and forced labor conspiracy. Raniere was deported by Mexican authorities after he was found Sunday outside Puerto Vallarta, Mexico in a luxury villa. Raniere’s initial appearance is scheduled for tomorrow afternoon at the federal courthouse in Fort Worth, Texas.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the complaint, Keith Raniere created a secret society of women whom he had sex with and branded with his initials, coercing them with the threat of releasing their highly personal information and taking their assets,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are committed to the prosecution of those who break the law by preying upon and violating members of our community.” Mr. Donoghue expressed his grateful appreciation to the FBI for leading the investigation, and thanked the New York State Police, the FBI Albany Field Office, the FBI’s Mexican Legat, the Mexican Federal Police, the New York State Office of the Attorney General, the New York State Department of Health and the United States Attorney’s Office for the Northern District of New York for their assistance.
“As alleged, Keith Raniere displayed a disgusting abuse of power in his efforts to denigrate and manipulate women he considered his sex slaves,” FBI Assistant Director-in-Charge Sweeney stated. “He allegedly participated in horrifying acts of branding and burning them, with the cooperation of other women operating within this unorthodox pyramid scheme. These serious crimes against humanity are not only shocking, but disconcerting to say the least, and we are putting an end to this torture today.”
Defendant’s Founding of Nxivm
According to the complaint, during the past 20 years, Raniere established a series of purported self-help workshops called “Executive Success Programs” (“ESP”) within his umbrella organization “Nxivm” (pronounced NEX-i-um). Nxivm is based in Albany, New York and has operated centers in the United States, Mexico, Canada and South America. Nxivm maintains features of a pyramid scheme, as its courses cost thousands of dollars each and participants (“Nxians”) are encouraged to pay for additional classes, and to recruit others to take classes, in order to rise within the ranks of Nxivm. A number of Nxians were residents of the Eastern District of New York when they were recruited, and Nxivm has held promotional recruiting events in Brooklyn. Since Nxivm’s creation, Raniere has maintained poly-amorous relations with its members.
According to the complaint, in 2015, Raniere created a secret society within Nxivm called “DOS,” which loosely translated to “Lord/Master of the Obedient Female Companions,” or “The Vow.” DOS operated with levels of women “slaves” headed by “masters.” Slaves were expected to recruit slaves of their own (thus becoming masters themselves), who in turn owed service not only to their own masters but also to masters above them in the DOS pyramid. Raniere stood alone at the top of the pyramid. Other than the Raniere, all members of DOS were women.
Most DOS slaves were recruited from within Nxivm’s ranks. When new DOS slaves were recruited, they were explicitly told that the organization was women-only, and that the organization would empower them and eradicate weaknesses that the Nxivm curriculum taught were common in women. Raniere’s status at the top of the structure was concealed from new recruits.
As a pre-condition to joining DOS, women were required to provide “collateral,” which included highly damaging information about friends and family members, nude photographs and/or rights to the recruit’s assets. DOS slaves feared that their collateral could be released for any number of reasons, including telling anyone about DOS’s existence or leaving DOS. Many DOS slaves were branded on their pelvic areas using a cauterizing pen with a symbol which, unbeknownst to them, incorporated Raniere’s initials. During the branding ceremonies, slaves were required to be fully naked, and a master would order one slave to film the branding while the others restrained the slave being branded.
As detailed in the complaint, some DOS masters gave their slaves, including Jane Does 1 and 2 as described in the complaint, work which directly or implicitly required the slaves to have sex with Raniere. These DOS masters received financial benefits from Raniere. According to the complaint, both Jane Doe 1 and Jane Doe 2 believed that if they did not have sex with the defendant, their collateral could be released.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the crimes charged, Raniere faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Moira Kim Penza and Tanya Hajjar are in charge of the prosecution.
The Defendant:
KEITH RANIERE (also known as “The Vanguard”)
Age: 57
Residence: Waterford, New YorkE.D.N.Y. Docket No. 18-MJ-132