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Wednesday 14 February 2018
Bridgeport Man Pleads Guilty to Heroin Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that TYEVHON KING, also known as “Twin,” 30, of Bridgeport, pleaded guilty yesterday in Hartford federal court to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin.
According to court documents and statements made in court, KING was a member of a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico, and then distributed the drug in the Bridgeport area. The investigation, which included multiple controlled purchases of heroin from KING, revealed that KING regularly received a total of more than three kilograms of heroin, which he distributed to his own customers.
During the investigation, investigators seized vehicles owned by KING that contained “traps,” typically used to conceal narcotics and other contraband.
On March 16, 2017, a grand jury in Hartford returned an indictment charging KING and six other individuals with heroin trafficking and related offenses.
KING has been detained since his arrest on March 24, 2017. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 10, at which time he faces a mandatory minimum term of imprisonment of 10 years maximum term of imprisonment of life.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Billings Man Nets 15 Years in Prison on Meth ChargesRead the Press Release
BILLINGS—Rocky Rollin Bettin, a 39-year old resident of Billings, Montana, was sentenced today to 180 months in prison and 5 years of supervised release after pleading guilty to conspiracy to possess with the intent to distribute and to distribute methamphetamine. United States District Judge Susan P. Watters presided over the sentencing.
Beginning in December 2016, drug task force agents were investigating a group of individuals responsible for the distribution of methamphetamine in the Billings area, including Bettin. Over the next several months, they received information from multiple individuals who identified Bettin as their source of supply. On June 2, 2017, a Missoula County Sheriff’s deputy patrolling near Frenchtown performed a traffic stop on a vehicle that Bettin was driving. Eventually, law enforcement officers searched the vehicle. Inside of a backpack found in the vehicle, officers discovered approximately 1.5 kilograms, or 3.3 pounds, of pure methamphetamine.
The case was investigated by the FBI Transnational Organized Crime Western Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Bettendorf Man Sentenced to Five Years in Prison for Bomb ThreatRead the Press Release
DAVENPORT, Iowa-- On February 13, 2018, America Yegile Haileselassie, age 39, of Bettendorf, was sentenced by United States District Court Chief Judge John A. Jarvey to 60 months in prison following his guilty plea to interstate communication of a bomb threat, according to United States Attorney Marc Krickbaum. Haileselassie was ordered to serve one year of supervised release following his prison term and pay $100 to the Crime Victims’ Fund.
According to the plea agreement, on November 4, 2015, Scott County Sheriff’s Office deputies were called to Scott Community College (SCC) in Davenport and observed a stack of printed papers from the Student Success Center, each with a printed message: “There is a bomb at Scott Community College. It will explode at noon today.” The bomb threat was discovered when a SCC employee who was working in the Student Success Center noticed a large stack of papers being printed and cancelled the print job. A specific email address identified to America Haileselassie was observed on the printer as the printing was cancelled. SCC personnel initiated bomb threat protocol and searched the premises for a bomb. No bomb or explosive was found at SCC. Law enforcement officers later learned Haileselassie had been verbally advised the week prior to the threat he was going to be suspended from school for stealing a book. Haileselassie admitted he sent the bomb threat by accessing the Internet, causing a message to be sent to a printer at SCC.
At sentencing, the Court applied sentencing enhancements for causing a substantial disruption to SCC, and obstruction of justice. The obstruction enhancement was based on Haileselassie sending false anonymous tips to law enforcement naming someone else as making the bomb threats.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Scott County Sheriff’s Office; and Bettendorf Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Ardmore Woman Sentenced to 36 Months Probation, $21,000 Restitution for Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Denise Taylor, age 55, of Ardmore, Oklahoma, was sentenced to three years of probation and ordered to pay restitution in the amount of $21,798.00 for Embezzlement and Theft from an Indian Tribal Organization, in violation of Title 18, United States Code, Section 1163. The charge arose from an investigation by the Bureau of Indian Affairs.
The Indictment alleged that from on or about March 19, 2017, to on or about March 29, 2017, in the Eastern District of Oklahoma, the defendant, did steal, embezzle and knowingly and willfully convert to her own use goods, assets, and other property, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Chickasaw Nation’s Ardmore Smoke Shop # 1, an Indian tribal organization.
United States Attorney Brian J. Kuester said, “The defendant has been prosecuted and is being held accountable for her criminal conduct due to the thorough investigation submitted to this office by the Bureau of Indian Affairs and the work of the members of the United States Attorney’s Office. She will be supervised and monitored during her probationary period by the United States Probation Office that diligently serves the Eastern District of Oklahoma. That office will hold the defendant accountable and ensure that she complies with the conditions ordered by the Court.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States.
Alton, Illinois Man Pleads Guilty to Credit Card FraudRead the Press Release
St. Louis, MO – Thomas Vogt, 60, of Alton, Illinois pleaded guilty to defrauding his former employer of more than $140,000 through a double reimbursement scheme whereby he sought reimbursement for expenses his employer had already directly paid. Vogt pleaded guilty to one count of interstate transportation of stolen property and agreed to a forfeiture allegation as to the proceeds of the scheme. Vogt admitted taking the proceeds of the scheme from his employer in Missouri to his bank in Illinois.
Vogt faces up to 10 years’ imprisonment, a fine of up to $250,000 or both. Restitution to the victims is also mandatory. Vogt appeared in St. Louis today before Judge Audrey G. Fleissig who accepted his plea and scheduled sentencing for May 22, 2018.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Tuesday 13 February 2018
York Gang Member Who Stabbed A Witness While Awaiting Sentencing Gets Life in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Yvette Kane sentenced Maurice Atkinson, a/k/a “Mo,” age 30, a member of a gang that has operated for a decade or more in the City of York, to life imprisonment on February 12, 2018, for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, Atkinson, who was identified as a member of the “Southside” street gang and the “Bloods,” was the fourth gang member from the “Southside” case that Judge Kane sentenced to life imprisonment.
At the sentencing hearing, the United States presented evidence of Atkinson’s involvement in the violent gang activity that was the subject of the two-month long trial and how Atkinson did not stop acting for the gang, even as he awaited sentencing.
Judge Kane also heard testimony from a cooperating Blood gang member, who was housed in Dauphin County Prison with Atkinson and other Blood/Southside gang members. The cooperating gang member testified that in September 2017, Atkinson and some of his fellow gang members suspected that he was an informant working with the police and suspected that he was disclosing how the gang was smuggling drugs and phones into the prison. On September 9, 2017, Atkinson and other gang members assaulted and repeatedly stabbed him in the back while he was in the prison shower. Video footage from the prison corroborated the attack.
The government noted that at the time of this prison assault, Atkinson was already facing a life sentence for being involved in the gang conspiracy. The government highlighted that evidence at trial included a video of a Southside gang melee with a rivals from “Parkway.” In the video footage, Atkinson can be seen repeatedly kicking, beating, and stomping a rival gang member.
Judge Kane noted that the violence associated with the gang was extraordinary. It included numerous killings, including the deaths of rival gang members, fellow gang members, innocent bystanders, and children. Prior attempts by state officials had “failed” to reform him. Even with the prospect of a life sentence pending before him in this federal case, Atkinson continued with his violent gang activities. With this backdrop, Judge Kane said that there is “very little to suggest that [Atkinson] would turn his back on this life.” Judge Kane indicated that Atkinson’s “life sentence was well-earned.”
In November 2015, a jury convicted Atkinson of racketeering conspiracy, drug trafficking conspiracy, and drug trafficking after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury also convicted the other 11 men who went to trial with Atkinson.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges. The individual defendants and the charges on which they were sentenced:
- Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life imprisonment;
- Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life imprisonment;
- Douglas Kelly, a/k/a “Killer,” age 39; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 12, 2017, to life imprisonment;
- Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on November 15, 2017, to 25 years’ imprisonment;
- Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 7, 2017, to 200 months’ imprisonment;
- Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 21, 2017, to 165 months’ imprisonment;
- Richard Nolden, age 28; racketeering conspiracy was sentenced on December 21, 2017, to 25 years’ imprisonment;
- Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced on June 5, 2017, to 33 months’ imprisonment;
- Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced on November 10, 2016 to 34 months’ imprisonment;
- Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced on May 15, 2017, to 60 months’ imprisonment.
The individual defendants and the charges on which they are awaiting sentencing:
- Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver;
- Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver.
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
- James Abney, a/k/a “Doocs,” age 31.
- Malik Sturdivant, a/k/a “Base,” age 25.
- Jahkeem Abney, a/k/a “Foo,” age 27.
- Ronald Payton, a/k/a “Ron Ron,” age 25.
- Cordaress Rogers, a/k/a “Tank,” age 31.
- Marquis Williams, a/k/a “Quis,” age 29.
- Jerrod Brown, a/k/a “Boogie,” age 28.
- Quintez Hall, a/k/a “Q,” age 25.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz 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.
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Williamson County Man Sentenced on Charges Relating to Unlawful Dealing of FirearmsRead the Press Release
On February 13, 2018, Austin K. Sims was sentenced in United States District Court in Benton, Illinois on three charges relating to the unlawful possession and sale of firearms, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sims, who was charged in a three-count indictment on July 12, 2017, was sentenced to 60 months of imprisonment and two years of supervised release. Sims previously pled guilty to all three counts.
Count One charged Sims with engaging in the business of dealing firearms without a license, Count Two charged that Sims knowingly possessed a firearm while being an unlawful user of a controlled substances and Count Three charged Sims with making materially false, fictitious, and fraudulent statements to law enforcement agents during the investigation into his criminal conduct.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Marion, Illinois Police Department. The case was prosecuted by Assistant United States Attorneys Liam Coonan and Amanda Robertson.
Wasilla Man Convicted of Attempting to Sexually Molest 8-Year-OldRead the Press Release
Anchorage, Alaska - U.S. Attorney Bryan Schroder announced today that a federal jury in Anchorage convicted Justin Raymond Nekeferoff, 33, of attempted enticement of a minor and possession of child pornography. The jury found the defendant not guilty of distribution of child pornography.
Nekeferoff was found guilty after a six-day trial before U.S. District Judge Timothy M. Burgess of the District of Alaska. Sentencing is scheduled for May 9, 2018, at 11:00 a.m. in Anchorage, Alaska. The maximum penalty for attempted enticement of a minor is not less than 10 years’ imprisonment and up to life. The maximum punishment for possession of child pornography is up to 10 years’ imprisonment. Both convictions carry maximum fines of up to $250,000, terms of supervised release of five years to life, and a $100 special assessment.
According to evidence presented at trial, in 2015 a witness told law enforcement that Nekeferoff expressed desire to have sex with children and spoke frequently about prior acts of molestation that he had committed against others, including a five- and 15-year-old girl. The witness provided law enforcement with multiple text messages from Nekeferoff in which he stated that he liked to look at “lil girls in the stores,” and expressed his desire to perform sex acts with a “young girl” between the ages of “4-8.” Nekeferoff was arrested when he arrived at a Wasilla motel in order to meet a mother and her eight-year-old daughter for the purpose of having sex with the child. In truth, the “mother” was an FBI agent and the child was fictional. Nekeferoff brought icing and other items to the motel room to use as sex objects with the child. Located in the defendant’s wallet at the time of his arrest was an SD card that contained multiple images of child pornography.
In a statement to police at the time of his arrest, the defendant said that he went to the motel to have sex with the fictional mother and her daughter, he thought about having sex with kids “all the time,” and molested other children previously. The defendant said that he searched for and downloaded child pornography in an effort to control his attraction to children.
This case was investigated by the Federal Bureau of Investigation, and the Anchorage Police Department, Crimes Against Children Unit (CACU).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Unsealed Indictment Charges Floridian in Complex Fraud SchemeRead the Press Release
PITTSBURGH - Today, the Court unsealed the indictment of a Florida man charging him conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced.
The one-count indictment, returned on December 12, 2017, named Garri Shihman, 46, of Parkland, Fla., as the sole defendant.
According to the indictment presented to the court, Shihman was involved in a complex fraud that involved fraudulently processing credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs and of products violating trademark infringement laws. Shihman participated in a conspiracy designed to conceal from the credit card companies the fact that Shihman and his co-conspirators used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity. The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold a product other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service 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.
Two Men Sentenced to Lengthy Prison Sentences for Their Roles in a Methamphetamine Distribution ConspiracyRead the Press Release
AMARILLO, Texas — Miguel Angel Bravo-Farias, 41, an illegal immigrant, and Hector Terrazas, 25, of Amarillo, Texas, were sentenced yesterday by U.S. District Judge Sidney A. Fitzwater to 180 months and 156 months in federal prison, respectively, for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Both defendants pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. They have both been in custody since their arrest in June 2017 on a related federal criminal complaint.
Co-defendant Rogelio Xochitl Amparan, 29, pleaded guilty to his role in the conspiracy and was sentenced to 189 months in federal prison in December 2017.
According to the plea agreement factual resume, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine from Bravo-Farias and Terrazas. When law enforcement agents met with Bravo-Farias and Terrazas they were in possession of a box containing a large amount of methamphetamine and were arrested at the scene.
During the operation, Amparan was observed leaving Terrazas’ residence. He was stopped by law enforcement and arrested for having a suspended registration.
A search of Terrazas’ residence revealed 2 containers with crystal like residue and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were multiple containers containing a total of approximately 5,498 grams of liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
During an interview, according to the plea agreement factual resume, Amparan admitted that he was involved in the methamphetamine operation. Amparan stated that he received all the money from the sale of methamphetamine and transported the money back to his brother, who lives in Juarez, Mexico.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, Potter County Sheriff’s Office, Texas Department of Public Safety and Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell prosecuted.
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Two Men Arrested for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
St. Thomas, USVI – Tommy Ramirez, 29, of the Dominican Republic and Ramon Clavel, 55, of Haiti, were arrested Monday on a criminal complaint charging them with possession with intent to distribute a controlled substance, United States Attorney Gretchen C.F. Shappert announced. Ramirez and Clavel made their initial appearance before U.S. Magistrate Judge Ruth Miller and were detained pending further proceedings.
According to the complaint, on Monday, Ramirez and Clavel presented themselves at the post office to claim a package that contained one kilogram of cocaine, a controlled substance.
If convicted of possession with the intent to distribute a controlled substance, Ramirez and Clavel face a minimum sentence of five years and a fine of $250,000.00.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilty. Every defendant is presumed innocent until and unless proven guilty.
The case was investigated by the Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), Department of Homeland Security Investigations, U.S. Customs and Border Protection, and the Federal Bureau of Investigations. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Two Baltimore City Police Officers Convicted in Federal Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – On February 12, 2018 a federal jury has convicted Detective Daniel Thomas Hersl, age 47, of Joppa, Maryland and Detective Marcus Roosevelt Taylor, age 30, of Glen Burnie, Maryland for racketeering conspiracy and racketeering offenses, including robbery and overtime fraud.
The conviction was announced by Acting United States Attorney Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Sheriff Jeffrey R. Gahler Harford County Sheriff’s Department.
Hersl and Taylor were convicted of racketeering conspiracy, racketeering, and Hobbs Act Robbery. The two defendants were acquitted of possession of a firearm in furtherance of a crime of violence.
According to evidence presented at the three-week trial, Hersl and Taylor stole money, property and narcotics from victims, some of whom had not committed crimes; swore out false affidavits; submitted false official incident reports; and engaged in large-scale over time and attendance fraud.
In some cases, there was no evidence of criminal conduct by the victims; the officers stole money that had been earned lawfully. In other instances, narcotics and firearms were recovered from arrestees. In several instances, the defendants did not file any police reports. The amounts stolen ranged from $200 to $200,000.
Count One, racketeering conspiracy, charged 14 acts of robbery and extortion violations committed by Hersl and Taylor in 2015 and 2016 when they were officers in the police department’s Gun Trace Task Force, a specialized unit created to investigate firearms crimes.
Count Two, a substantive racketeering charge, alleged those crimes as well as 16 acts of robbery and extortion committed by Hersl and Taylor beginning in 2015, before they joined the task force.
Count Three and Five, charged Taylor and Hersl, respectively with Hobbs Act Robbery and Extortion.
Count Four and Six, charged Taylor and Hersl, respectively with Possession of a Firearm in Furtherance of a Crime of Violence
It was proven at trial that Hersl and Taylor stole money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, the defendants prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents.
The following six co-defendants had all previously pleaded guilty to federal racketeering charges;
Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland
Detective Momodu Bondeva Kenton Gondo, a/k/a GMoney and Mike, age 36,
of Owings Mills, Maryland;
Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland;
Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland;
Detective Jemell Lamar Rayam, age 37, of Owings Mills;
Detective Maurice Kilpatrick Ward, age 37, of Middle River.
Hersl and Taylor each face 20 years in prison for racketeering conspiracy, 20 years in prison for racketeering, and 20 years in prison for Hobbs Act Robbery.
Sentencing dates for Hersl and Taylor have not yet been scheduled.
Acting United States Attorney Stephen M. Schenning commended the FBI, DEA, Baltimore County Police Department, and Harford County Sheriff’s Department for their work in the investigation. Acting U.S. Attorney Schenning also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Three Indicted for Conspiracy to Distribute Oxycodone Resulting in DeathRead the Press Release
Today, United States Attorney Trent Shores announced that a federal grand jury returned an indictment against three defendants, charging them with Conspiracy to Distribute Oxycodone Resulting in Death and Distribution of Oxycodone Resulting in Death. The defendants charged are Jennifer Elizabeth Boyce, 36, of Pryor, Michael Allen Miers, 30, of Pryor, and Christina Ann Dempsey, 39, of Chouteau.
The indictment alleges that the opioid conspiracy began in March 2014 and continued until February 2015. According to the indictment, Dempsey supplied Boyce with timed-release 80mg oxycodone pills (“Oxy80s”), then Boyce and Miers acted as partners in selling Oxy80s to customers. The indictment further alleges that on October 24, 2014, Miers provided Boyce’s name and cell phone number to a customer so that the customer could buy pills. The customer negotiated with Boyce by text messaging about the sale of four Oxy80s for a “friend,” and then purchased the Oxy80s from Boyce at her residence. The indictment alleges that the distribution of Oxy80s on October 24, 2014, resulted in the death of Jennifer Blake McNulty from acute oxycodone intoxication on October 25, 2014.
“The opioid epidemic has reached our community with devastating impact. The United States Attorney’s Office will use every tool at its disposal to combat the illegal distribution and use of opioids. The loss of life due to an opioid overdose is tragic and unacceptable,” U.S. Attorney Shores said.
As recently noted by United States Deputy Attorney General Rod Rosenstein, there were about 8,000 overdose deaths in America in 1990, but an estimated 64,000 drug overdose deaths in 2016. To put that total into perspective, the United States lost more Americans in 2016 to drug overdoses than in battle during the entire Vietnam War. Drug overdose is now the leading cause of death for Americans under the age of 50.
Assistant United States Attorney Timothy Faerber - who also serves as Deputy Criminal Chief – represents the United States as lead prosecutor in this matter. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pryor Police Department, and the Mayes County District Attorney’s Office.”
The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Texas Man Arraigned on Wire Fraud ChargeRead the Press Release
ALBANY, NEW YORK – Xavier Walton, age 26, of San Antonio, Texas, was arraigned today on an indictment charging him with fraudulently soliciting and receiving payments from timeshare owners, including a resident of Saratoga Springs, New York.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, Walton participated in a scheme to defraud timeshare owners by soliciting “tax” and “fee” payments under false pretenses. The scheme involved offering to pay a timeshare owner in exchange for renting their timeshare property, and then instructing the owner to send payment to Walton’s company, AB Transfer, Inc., for fees and taxes that the victim was told needed to be paid in order for the rental to occur. Timeshare owners who sent payments to AB Transfer, Inc. received nothing in return.
As a result of the scheme, Walton received a total of more than $285,000 from at least 23 individuals, including a resident of Saratoga Springs, New York. Other victims reside in Florida, Pennsylvania, and Ontario, Canada. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Walton was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released with conditions pending a trial.
If convicted of wire fraud, Walton faces up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Steubenville, Ohio man admits to firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Steubenville, Ohio man has admitted to unlawful possession on a firearm, United States Attorney Bill Powell announced.
Thomas Bennett, age 41, pled guilty to one count of “Unlawful Possession of a Firearm.” Bennett, having previously been convicted of drug possession in Commons Pleas Court in Jefferson County, Ohio in 2017, admitted to possessing a 9mm pistol in Ohio County on August 12, 2017.
Bennett faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
South San Francisco Man Convicted of Selling MethamphetamineRead the Press Release
SAN FRANCISCO – On February 12, 2018, a federal jury convicted Jose Alejandro Vasquez Robledo of conspiracy to distribute methamphetamine and distribution of methamphetamine, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill Snyder. The guilty verdict followed a three-day jury trial before the Honorable Vince Chhabria, U.S. District Judge.
Evidence at trial showed that on November 16 and 17, 2015, Robledo, 32, of South San Francisco, and a co-defendant sold two ounces of methamphetamine in South San Francisco. At trial, the jury saw video and audio recordings from the drug transaction as captured by the ATF, as well as audio recordings of the phone conversations that led up to the deal. A federal grand jury indicted Robledo and his co-defendant on July 18, 2017, charging each with one count of conspiracy to distribute methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B)(viii), and one count of distribution of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii).
The investigation that led to the prosecution of the defendants was part of a larger ATF operation targeting criminal activity in the area of South San Francisco where the drug deal occurred.
Judge Chhabria ordered Robledo remanded to federal custody pending his sentencing hearing, which is scheduled for May 15, 2018. The counts of conviction carry a statutory mandatory minimum sentence of five years’ imprisonment, a statutory maximum sentence of 40 years’ imprisonment, and a maximum fine of $5,000,000 for each count. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Julie Garcia and Randall Leonard are prosecuting the case, with the assistance of Alycee Lane and Tong Zhang. The prosecution is the result of an investigation by the ATF.
Shavertown Bookkeeper Sentenced to 38 Months’ Imprisonment for Embezzling Nearly $450,000 and for Obstructing the IRSRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard J. Morgan, age 54, of Shavertown, Pennsylvania, was sentenced by United States District Court Judge James M. Munley to 38 months’ imprisonment and five years of supervised release, for committing bank fraud and interfering with the administration of the internal revenue laws. Morgan was also ordered to pay $494,618.85 in restitution to his victims and the IRS.
According to United States Attorney David J. Freed, Morgan owned and operated Wilkes-Barre Bookkeeping LLC, a Shavertown, Pennsylvania-based business that provided payroll services to its clients. Local businesses contracted Morgan to pay employee payroll and salary expenses, to file IRS Form 941 Employer Quarterly Federal Tax Returns, and to remit employment tax liabilities to federal, state and local taxation authorities. For three of his clients, Morgan failed to file the IRS Forms 941 and remit the employment taxes to the appropriate authorities, instead embezzling the funds for his own personal use. Between March 2010 and October 2016, Morgan embezzled $376,224.85 from those clients, all while lying to them about his activities.
Morgan also served as a Treasurer for a non-profit corporation and was tasked with selling its assets and winding up its operations when it closed in February 2010. Instead, after paying the non-profit corporation’s outstanding liabilities, Morgan embezzled the remaining residual sales proceeds of $68,172.
When the IRS commenced an investigation of Morgan’s activities, he took steps to impede the revenue agents and conceal his embezzlements. Morgan claimed to be working with fictitious IRS employees to resolve the matter, and provided the IRS with altered bank statements and accounting records. Morgan owes the IRS approximately $50,222 for unpaid taxes on his embezzled funds.
In pronouncing the sentence, Judge Munley highlighted Morgan’s attempts to conceal his activities from the IRS, and that Morgan continued embezzling funds from one of his clients even after becoming aware of the federal criminal investigation into his activities. Judge Munley also focused on Morgan’s use of the embezzled money to fund life luxuries, and the damages he inflicted on local small businesses and non-profit organizations.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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San Diego Rancher Sentenced for Possession and Distribution of Child PornographyRead the Press Release
Assistant U. S. Attorney Renee Green (619) 546-6775
NEWS RELEASE SUMMARY – February 13, 2018
SAN DIEGO – Christian Clews, the operator of a Carmel Valley horse ranch, was sentenced in federal court today to 210 months in prison for possessing and distributing photographs and videos that depicted children engaged in sexually explicit activity with adults and dogs.
Clews, who pleaded guilty in July but remained free on bond, was immediately taken into custody at the conclusion of the hearing. U.S. District Judge Dana M. Sabraw also sentenced Clews to 25 years of supervised release upon completion of his prison term.
During today’s hearing, Special Assistant U.S. Attorney Renee Green told the court that during a search of the defendant’s computer, federal agents recovered over 800 images and 600 videos of children engaged in sexually explicit conduct. As detailed in the plea agreement, the images and videos included prepubescent boys and girls engaged in a variety of sexual acts. SAUSA Green said Clews’ conduct was not limited to only possession and distribution of child pornography but included repeated sexual victimization of minors for over two decades. SAUSA Green noted that the victims were intimidated for years and finally found the strength to come forward and talk to law enforcement about Clews.
Judge Sabraw described the case as “extraordinary” because Clews’ pattern of activity involved the abuse and exploitation of minors over the course of 25 years. The Court noted that individuals writing letters of support for Clews were likely “not informed” as to Clews’ true conduct in this case. The Court described Clews as having “another side that’s very dark, very predatory, plain and simple.” Judge Sabraw described Clews’ behavior as a “longstanding campaign of predatory conduct,” wherein Clews used his position at the ranch to abuse vulnerable victims. In pronouncing his judgment, Judge Sabraw stated, “There has to be a consequence to that conduct; there has to be a day of accounting.”
“The production of child pornography creates a permanent record of a child’s sexual abuse, and these victims often suffer a lifetime of re-victimization in knowing the images of their worst nightmare are forever memorialized on the Internet,” said U.S. Attorney Adam L. Braverman. “We are heartened by today’s strong sentence because it ensures that a man who contributed to the victimization of children is out of commission for many years.”
“Today’s sentencing of Christian Clews sends a very strong message to child predators who seek to exploit young victims. HSI is committed to working with the San Diego Internet Crimes Against Children Task Force and federal prosecutors to protect children from sexual predators. Investigating these crimes requires a local, national and international commitment and a multi-agency approach of dedicated law enforcement personnel,” said James Plitt, Deputy Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI will continue to assist our law enforcement partners, in particular bringing our transnational investigative authorities to these investigations and prosecutions.”
This case was investigated by the San Diego Internet Crimes Against Children Task Force and Homeland Security Investigations. The Internet Crimes Against Children Task Force Program is a national network representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies, all working to combat the sexual exploitation of children through the internet.
DEFENDANT Criminal Case No. 17CR0145-DMS
Christian Clews Age: 52 San Diego, CA
SUMMARY OF CHARGE
Title 18, United States Code, Section 2252(a)(2), Distribution of Images of Minors Engaged in Sexually Explicit Conduct
Title 18, United States Code, Section 2252(a)(4), Possession of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 20 years in prison (with a mandatory 5 years’ prison for the Distribution count); $250,000 fine; Mandatory Special Assessments of $100 and $5,000 per count; Restitution; Forfeiture
INVESTIGATING AGENCIES
San Diego Internet Crimes Against Children Task Force
Homeland Security Investigations
Rochester Man Pleads Guilty to Fentanyl and Carfentanil Trafficking ChargesRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that John Furber, 45, formerly of Rochester, New Hampshire, pleaded guilty to fentanyl and carfentanil trafficking charges.
Court documents and statements made in court showed that during a vehicle stop in Rochester on March 29, 2017, Furber was found in possession of nearly 10 grams of fentanyl. On April 26, 2017, officers encountered Furber at a hotel in Rochester where he was found with over nine grams of fentanyl and over 28 grams of carfentanil, as well as over $2,000 in cash. On May 24, 2017, Furber was arrested by the United States Marshals-led New Hampshire Joint Fugitive Task Force at an apartment in North Conway, New Hampshire. An additional quantity of fentanyl was recovered from the defendant at that time.
Furber pleaded guilty to two counts of possession of a controlled substance with intent to distribute. Under the terms of the plea agreement, Furber will forfeit $2,105 in drug proceeds to the United States. Furber’s sentencing is scheduled for May 29, 2018.
“The aggressive investigation and prosecution of individuals engaged in heroin, fentanyl and carfentanil trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state and federal level,” said Acting U.S. Attorney Farley. “The recent presence of carfentanil in New Hampshire, a drug that is hundreds of times more powerful than fentanyl, will result in an even greater number of overdose deaths and presents unprecedented public safety concerns for law enforcement and first responders. The United States Attorney’s Office will continue to work tirelessly with our law enforcement partners to prosecute those who are responsible for distributing these dangerous drugs in our state.”
This investigation was conducted by the Drug Enforcement Administration, the United States Marshals-led New Hampshire Joint Fugitive Task Force, and the Rochester and Conway Police Departments. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Registry of Motor Vehicles Clerk Sentenced for Role in Identity Theft SchemeRead the Press Release
BOSTON – A Massachusetts Registry of Motor Vehicles clerk was sentenced yesterday in federal court in Boston for her role in a scheme to produce false identification documents.
David Brimage, 46, of Boston, was sentenced by U.S. District Court Judge Leo T. Sorokin to eight months in prison and two years of supervised release. In October 2017, Brimage and co-conspirators Evelyn Medina, 56; Annette Gracia, 37, both of Boston; Kimberly Jordan, 33, of Randolph; and Bivian Yohanny Brea, 41, of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. All of the defendants have now been sentenced.
“The conduct in this case was egregious. We will always hold accountable those who violate the public trust,” said United States Attorney Andrew E. Lelling. “While these defendants tried to profit by thwarting legal safeguards they were entrusted with enforcing, the crime was more than that – the defendants engaged in a scheme that made U.S. identity documents – and accompanying benefits – available to illegal immigrants who were not entitled to them.”
“Today’s sentencing highlights the HSI Document and Benefit Fraud Task Force’s continued vigilance against corruption schemes that damage the trust the public places in our government intuitions” said Michael Shea, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations Boston office. “This case is another excellent example of federal, state and local cooperation to combat this criminal enterprise.”
“Today’s sentencing sends a strong message: Diplomatic Security is committed to making sure that those who commit identity theft face consequences for their criminal actions,” said William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State's Diplomatic Security Service. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and other law enforcement agencies continues to be essential in the pursuit of justice.”
In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed. In January 2018, Medina and Gracia were sentenced to 15 months in prison and one year and one day in prison, respectively. In February 2018, Jordan was also sentenced to eight months in prison and Brea was sentenced to six months of home confinement and three years of supervised release.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
U.S. Attorney Lelling, HSI Acting SAC Shea, DSS SAC Gannon, and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the cases.
Registered Sex Offenders Indicted on Child Pornography ChargesRead the Press Release
PROVIDENCE, RI – A federal grand jury today returned indictments charging two registered sex offenders living in Providence with child pornography charges.
The grand jury returned separate indictments charging Robert L. MacGregor, 55, with possession child pornography, and Michael Llorca, 47, with two counts of distribution and one count of possession of child pornography.
The indictments are announced by United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to court documents, it is alleged that in October 2017, the National Center for Missing and Exploited Children provided information to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that an individual, later identified by the task force as Michael Llorca, allegedly sent sexually explicit text messages and illicit images to a minor female via an online application. Subsequently, a member of the ICAC Task Force observed a computer or other device allegedly using the same IP address sharing files of suspected child pornography on a peer-to-peer file-sharing network.
On January 18, 2018, members of the ICAC Task Force executed a federal court-authorized search of Llorca’s Providence residence and seized seven laptop computers, six smartphones, two Apple iPods and two SD cards. A forensic review of the devices is currently underway.
According to court records, Llorca, who has been detained since his arrest on January 18, is a registered sex offender, having been convicted of rape of a child in Massachusetts in August 1997.
In a separate matter, according to court documents, during a routine home visit on January 24, 2018, a United States Probation Officer allegedly observed inappropriate materials on Robert L. MacGregor’s cell phone. A subsequent forensic examination of the phone by members of the ICAC task force allegedly revealed approximately 100 images of child pornography.
MacGregor, in federal custody since his arrest by HSI agents and members of ICAC task force on February 7, 2018, is a registered sex offender currently serving lifetime federal supervised release, having been convicted of possession and distribution of child pornography in 2011. His most recent arrest occurred less than 5 months after completing an 84 month term of incarceration.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Philadelphia Man Conspired to Distribute Fentanyl-Laced HeroinRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philadelphia, Pa., pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Kareem Jamal Jones, 28, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Aug. 25, 2016, through Sept. 14, 2016, Jones conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin laced with fentanyl.
Judge Gibson scheduled sentencing for June 12, 2018, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Jones.
Ohio County man admits to drug distribution and firearms possession chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Dorian Devon Banks, age 27, pled guilty to one count of “Possession with the Intent to Distribute Cocaine” and one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” Banks admitted to possessing cocaine and a 9mm caliber pistol during a drug crime in May 2017 in Ohio County.
Banks faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count and up to five years incarceration and a fine of up to $250,000 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 Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.New York Man Charged with Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Bronx, New York, man who was arrested with 24 kilograms of narcotics stored in the trunk of a taxi made his initial appearance today in Newark federal court, U.S. Attorney Craig Carpenito announced.
Franklin Grullon, 43, is charged by complaint with one count of conspiracy to distribute five kilograms or more of cocaine. He appeared this afternoon before U.S. Magistrate Judge James B. Clark III and was released on $200,000 unsecured bond.
According to the complaint:
During a Drug Enforcement Administration (DEA) investigation of a drug trafficking ring operating in New Jersey, New York, and elsewhere, law enforcement officers learned that Grullon was supposed to collect a shipment of narcotics in the area.
On Feb. 11, 2018, law enforcement officers observed Grullon drive a New York taxi to meet with an individual at a gas station and truck stop in Pennsylvania. After the two met, Grullon drove away and checked into a hotel in White Haven, Pennsylvania.
Shortly thereafter, law enforcement officers spoke to Grullon, who said that he traveled to the area to drop off a passenger at a nearby mall. However, a search of the taxi’s trunk revealed two bags containing a total of 24 kilograms of a substance that tested positive for cocaine.
The cocaine distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, as well as the DEA Scranton Resident Office, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender
Nevada Return Preparer Pleads Guilty to Filing More Than $2.7 Million in Fraudulent Tax ReturnsRead the Press Release
A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled. Ronquillo admitted that she caused a tax loss of more than $2.7 million.
U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17. Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
dditional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Return Preparer Pleads Guilty to Filing More Than $2.7 Million in Fraudulent Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled. Ronquillo admitted that she caused a tax loss of more than $2.7 million.
U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17. Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Netherlands Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Federico Avendano, age 53, of the Netherlands was sentenced before South Bend District Court Judge Jon E. DeGuilio for aggravated identity theft.
Avendano was sentenced to 48 months imprisonment and he was ordered to pay restitution in the amount of $605,468.81.
According to documents in this case, in April and September of 2011, Mr. Avendano used the taxpayer identification number of another person to commit wire fraud by filing fraudulent tax returns with the Internal Revenue Service. He obtained the individual taxpayer identification numbers (ITINs) while working as a tax preparer in South Bend, then used those numbers to file returns without the taxpayers’ knowledge. The returns contained false information about the taxpayers’ employment and falsely claimed they were entitled to refunds that were to be deposited into bank accounts he controlled.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being handled by Assistant United States Attorney Jesse Barrett.
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Navajo Woman from Navajo, N.M., Pleads Guilty to Federal Assault and Child Abuse ChargesRead the Press Release
ALBUQUERQUE – Elmira Curley, 22, an enrolled member of the Navajo Nation who resides in Navajo, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault and child abuse charges. Curley entered her guilty plea under a plea agreement that recommends a sentence of 120 months of imprisonment followed by a term of supervised release to be determined by the court.
The FBI and Navajo Nation Division of Public Safety arrested Curley on July 6, 2016, on an indictment charging her with abusing a child resulting in great bodily harm. The indictment alleged that Curley committed the crime on the Navajo Indian Reservation in McKinley County on March 14, 2016.
During today’s change of plea hearing, Curley pled guilty to a two-count felony information charging her with assault resulting in serious bodily harm and child abuse. In her plea agreement, Curley admitted that on March 14, 2016, she committed the crimes of assault and child abuse in Navajo, N.M., which is on the Navajo Indian Reservation. Curley admitted committing these crimes by putting the legs and feet of a nine-month-old infant into a bathtub of scalding hot water and causing the infant to sustain severe burns. Curley acknowledged that the infant-victim was hospitalized for several weeks for medical treatment and received skin grafts to repair some of the second- and third-degree burns she sustained as the result of the assault and abuse.
Curley is in federal custody and remains detained pending her sentencing hearing, which has yet to be scheduled.
The Gallup, N.M., and Phoenix, Ariz., offices of the FBI and the Window Rock, Ariz., office of the Navajo Nation Division of Public Safety investigated this case, which is being prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
National Consumer Bankruptcy Law Firm Sanctioned for Harming Financially Distressed Consumers and Auto LendersRead the Press Release
After a four-day trial, a national consumer bankruptcy law firm and its local partner attorneys were sanctioned and enjoined by the U.S. Bankruptcy Court for the Western District of Virginia for causing “unconscionable” harm to their clients. The court found that the law firm and its attorneys, among other things, systematically engaged in the unauthorized practice of law, provided inadequate representation to consumer debtor clients, and promoted and participated in a scheme to convert auto lenders’ collateral and then misrepresented the nature of that scheme, Director Cliff White of the Executive Office for U.S. Trustees announced today.
On Feb. 12, the U.S. Bankruptcy Court for the Western District of Virginia entered orders in two actions brought by the U.S. Trustee. The court sanctioned Law Solutions Chicago, doing business as “UpRight Law” (UpRight), and its principals $250,000; imposed additional sanctions of $50,000 against UpRight’s managing partner Kevin Chern, and $5,000 each against UpRight’s affiliated partner attorneys Darren Delafield and John C. Morgan Jr.; and ordered UpRight to disgorge all fees collected from the consumer debtors in both bankruptcy cases. The court also revoked UpRight’s bankruptcy filing privileges in the Western District of Virginia for not less than five years, and those of its local partners for 12 and 18 months, respectively. The bankruptcy court also sanctioned Sperro LLC (Sperro), an Indiana towing company that did not respond to the U.S. Trustee Program’s complaints, and ordered the turnover of all funds it received in connection with bankruptcy cases in the district.
“Lawyers who inadequately represent consumer debtors harm not only their clients, but also creditors and the integrity of the bankruptcy system,” said Director White. “The damage caused increases exponentially when they operate nationally, like UpRight. This case is demonstrative of the vigorous enforcement actions that the U.S. Trustee Program can and will take to protect all stakeholders in the bankruptcy process.”
According to trial testimony and evidence presented in court, UpRight operates a website offering legal services to consumers in financial distress. Prospective clients contact UpRight via the Internet and are routed to UpRight’s sales agents. These non-attorney “client consultants” were trained to “close” prospective clients by using high-pressure sales tactics and improperly provided legal advice to encourage them to file for bankruptcy relief. In many instances, UpRight arranged payment plans for its prospective clients to pay bankruptcy-related attorney’s fees and costs over time, and refused to refund fees it collected from its clients for whom UpRight did not file a bankruptcy case. The bankruptcy court found that UpRight had “serious oversight issues” in failing to adequately supervise its salespeople to prevent their unauthorized practice of law, and that UpRight demonstrated a “focus on cash flow over professional responsibility.”
Additionally, UpRight worked in concert with Sperro to implement a program through which UpRight’s clients could have their bankruptcy legal fees paid through a “New Car Custody Program.” The bankruptcy court described the New Car Custody Program as “a scam from the start.” UpRight’s salespeople and attorneys counseled bankruptcy clients to “surrender” vehicles fully encumbered by auto lenders’ liens to Sperro without the lienholders’ consent, and enter into an agreement obligating the clients to pay Sperro the costs of towing the vehicle, transporting it across state lines – often over a long distance – and storing it. UpRight assured its debtor clients that they would not have to pay any fees to Sperro, and in some instances advised its clients to hide their vehicles from lenders looking to repossess them until Sperro could pick up the vehicles.
After Sperro took a vehicle, it asserted a statutory “warehouseman’s lien,” claiming the right to keep the vehicle until the sham towing, transportation, and storage fees were paid. Then it offered the vehicle for sale at auction, despite the auto lender’s continuing security interest. Out of the sale proceeds, Sperro paid the debtor client’s bankruptcy fees directly to UpRight. Sperro kept the rest of the sale proceeds. In some cases, UpRight prepared bankruptcy court filings omitting the debtor clients’ transactions with Sperro.
The “New Car Custody Program” harmed auto lenders by converting collateral in which they had valid security interests. And the bankruptcy court found that UpRight “preyed upon some of the most vulnerable in our society” – its debtor clients – “while they were under great stress” by providing “unconscionable” advice to participate in the Sperro scheme, exposing them to undue risk by causing them to possibly violate the terms of their contracts with their auto lenders as well as state laws.
The cases discussed above are captioned Robbins v. Delafield et al., Adv. No. 16-07024 (Bankr. W.D. Va. Feb. 12, 2018), and Robbins v. Morgan et al., Adv. No. 16-05014 (Bankr. W.D. Va. Feb. 12, 2018).
Director White commended the trial team of Assistant U.S. Trustee Margaret Garber and Trial Attorneys Joel Charboneau, Nick Foster and Joan Swyers for their handling of these matters.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 92 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Mt. Pleasant Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
PITTSBURGH - A former resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to 60 months’ imprisonment, followed by 10 years’ supervised release, on a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Charles Kaper, age 53, of Mt. Pleasant, Pennsylvania.
According to information presented to the court, the court was advised that from June 2016 to July 2016, Kaper received videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the United States.
U.S. Attorney Brady commended the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Kaper.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mingo County woman sentenced to federal prison for conspiracy to engage in sex trafficking of a minorRead the Press Release
CHARLESTON, W.Va. – A Mingo County woman was sentenced today to six years in federal prison, to be followed by 20 years of supervised release, for a sex trafficking crime involving a minor, announced United States Attorney Mike Stuart. Misty Dawn Baisden, 40, of Delbarton, previously pled guilty to conspiracy to engage in sex trafficking of a minor. Baisden was also ordered to register as a sex offender.
U.S. Attorney Stuart commended the investigative efforts of the FBI Violent Crimes Against Children Task Force, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Ashland Police Department, and the Boyd County Sheriff’s Department.
“The facts of this case are appalling and disgusting, and this case should send a strong message that there is absolutely no tolerance for sex trafficking of children. We will continue working tirelessly with our law enforcement partners to aggressively investigate and prosecute these predators,” said U.S. Attorney Stuart. “We will never shy away from our duty to hold those accountable who seek to harm our children and commit these despicable crimes.”
Baisden admitted that in March 2017, she conspired with her codefendant, David Wayne Young, using her cell phone to engage a minor in commercial sex. The communication involved photographs of a minor and the discussion of exchanging money, items, or other things of value for sexually explicit photographs or sexual activity. Baisden admitted that she understood from the entire conversation that Young would be providing her with assistance in engaging in commercial sexual activity with a minor. Young pled guilty to sex trafficking of a minor, and faces at least 15 years and up to life in federal prison when he is sentenced on May 1, 2018.
Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Milwaukee Man Pleads Guilty to Falsely Labeling Illegal Wildlife PartsRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 29, 2018, Chao Thao (age 37) of Milwaukee pleaded guilty to falsely labeling illegal wildlife parts that he imported from the United Kingdom in violation of the Lacey Act, Title 16, United States Code, Sections 3372(d)(1) and 3373(d)(3)(A)(i). Under the terms of the plea agreement, Thao acknowledged that he sought out and imported into the United States three taxidermized feet of black rhinoceros. Thao arranged with the shipper to falsely label the package containing the rhinoceros feet as “antique ornaments” in an effort to avoid detection by U.S. authorities.
Black rhinoceros is one of the most endangered species in the world. They are protected under United States and international law. Trade in rhinoceros parts is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Thao’s offense carries a maximum penalty of up to 5 years imprisonment and a $250,000 fine. The sentencing hearing is set for April 26, 2018 before United States District Judge Lynn Adelman. This case was investigated by the United States Fish & Wildlife Service. The case is being prosecuted by Assistant United States Attorney Benjamin W. Proctor.
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Michaels Stores Agrees to Pay $1.5 Million to Settle CPSC Delayed Reporting ClaimRead the Press Release
Michaels Stores Inc. and Michaels Stores Procurement Co. Inc. (Michaels) agreed to enter into a consent decree and pay $1.5 million, the Justice Department announced today. The decree resolves allegations that Michaels failed timely to report to the Consumer Product Safety Commission (CPSC) information regarding a large glass vase that injured consumers between 2007 and 2009.
“This settlement underscores the importance of reporting product safety issues immediately,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to prioritize consumer safety by enforcing product safety obligations.”
Between 2006 and 2010, Michaels sold approximately 200,000 of the vases in the United States and Canada. In February 2010, Michaels reported safety issues related to the vases to the CPSC. The Department of Justice’s April 2017 Amended Complaint alleged that Michaels violated the Consumer Product Safety Act (CPSA) by not reporting the vases’ safety issues earlier, as Michaels possessed information that the vases had injured one consumer in 2007 and at least four customers in the first half of 2009.
The consent decree requires Michaels to maintain a compliance program to ensure that it complies with the CPSA and to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC.
“I’m pleased that the Department of Justice and Michaels were able to reach this agreement,” said CPSC Acting Chairman Ann Marie Buerkle. “We greatly appreciate DOJ’s efforts on behalf of consumers.”
In agreeing to settle the case, Michaels has not admitted that it violated the law.
The United States is represented by Trial Attorneys Kerala Cowart, Claude Scott, and Lisa Hsiao of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Lisa Hasday of the U.S. Attorney’s Office for the Northern District of Texas, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel. For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Manhattan U.S. Attorney Announces Bank Fraud Charges Against NYPD DetectiveRead 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 James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that MICHAEL BONANNO was arrested and charged in Manhattan federal court with bank fraud, conspiracy to commit bank fraud, and aggravated identity theft, in connection with a scheme to use stolen bank account numbers to make payments on BONANNO’s credit card and home mortgage accounts. BONANNO was arrested at his home this morning and will be presented today before Magistrate Judge Debra Freeman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Michael Bonanno, who was at the time a detective in the NYPD’s Crime Stoppers unit, and his co-conspirator used victims’ bank account numbers in a scheme to steal hundreds of thousands of dollars from New Yorkers. In so doing, Bonanno betrayed the public that he swore to protect. I commend the FBI and the Internal Affairs Bureau of the NYPD for their outstanding work in this investigation.”
FBI Assistant Director William F. Sweeney Jr. said: “Plain and simple, Michael Bonanno allegedly used other people’s money to pay off his debts while simultaneously serving as a police officer, charged with investigating criminal wrongdoing. We don’t allow the general public to get away with these types of crimes, and we won’t allow members of the law enforcement community to get away with them either.”
NYPD Commissioner James P. O’Neill said: “I want to commend the dedicated investigators in the NYPD Internal Affairs Bureau and the FBI as well as the prosecutors in the Southern District whose tireless efforts on this corruption case exposed the criminal activity alleged in this arrest.”
According to the allegations in the Complaints unsealed today in Manhattan federal court: [[1]]
BONANNO is a NYPD detective and was a member of the NYPD Crime Stoppers unit, which receives and investigates anonymous tips about criminal activity from members of the community.
From November 2016 to March 2017, BONANNO and a co-conspirator stole and attempted to steal money from the bank accounts of multiple New York residents by making unauthorized wire transfers from victims’ bank accounts to accounts controlled by BONANNO, and by cashing fraudulent checks written from victims’ accounts into an account controlled by BONANNO.
In total, BONANNO and his co-conspirator attempted approximately $1,457,642 in fraudulent wire transfers from victims’ accounts to BONANNO’s accounts, and deposited approximately $68,900 worth of forged checks into BONANNO’s accounts.
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BONANNO, 44, of Staten Island, New York, has been charged with one count of bank fraud and one count of conspiracy to commit bank fraud, each of which carries a sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI and NYPD Internal Affairs Bureau in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Nicolas Roos and Danielle R. Sassoon are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced for Throwing Molotov Cocktails at Apartment BuildingRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 15 years in prison for arson after throwing Molotov cocktails and setting fire to an apartment building in Alexandria in June 2016.
According to court records and evidence presented at trial, Josepha Kasai, 24, smashed a Molotov cocktail at the door of a third floor apartment unit, setting fire to the doorway and trapping nine individuals on the third floor. Kasai then went outside and threw another Molotov cocktail at the third floor apartment unit, breaking through the bedroom window. The entire building was evacuated due to the fire. A victim inside the third floor apartment jumped from his balcony and Kasai chased the victim with what appeared to be a knife. After Kasai’s arrest, he informed law enforcement he intended to kill the victim who jumped from the balcony and claimed the victim had previously stolen his iPhone.
Kasai was found guilty by U.S. District Judge Anthony J. Trenga after a bench trial on Oct. 25, 2017.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Robert C. Dubé, Chief of Alexandria Fire Department, and Michael L. Brown, Chief of Alexandria Police Department, made the announcement after sentencing by Judge Trenga. Assistant U.S. Attorneys Maureen C. Cain and Nicholas U. Murphy II prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-268.
Man Sentenced for Stealing Identity of Deceased ChildRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to four years in prison for stealing the identity of a deceased child, stealing approximately $33,000 from his employer, and unlawfully purchasing a firearm.
According to court documents, in 2013, Shawn D. Gover, 47, changed his name to Aaron Garth Roberts, who was a born in 1974 in Denton, Texas, but died as a young child. In an attempt to hide a previous felony conviction, Gover also stole the social security number and date of birth of Roberts.
In March 2016, using the personal identifying information of Roberts, Gover was hired as the Director of Finance for the Independence Golf Club in Powhatan. In that position, he had control over financial records, including the operating account checkbook and corporate credit card. From the fall of 2016 to the summer of 2017, Gover stole approximately $33,557 from Independence Golf Club.
Additionally, on Nov. 13, 2016, using the name, social security number and date of birth of Roberts, Gover purchased a Sig Sauer .45 semiautomatic pistol. Having been previously convicted of felony Grand Theft and sentenced to 16 months in prison, Gover was prohibited from lawfully possessing a firearm.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney David T. Maguire prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-133.
Man Sentenced to Eight Years in Prison for Conspiracy to Distribute Ecstasy and MethamphetamineRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 97 months in prison for his role in a conspiracy to distribute 7,000 pills of MDMA, a synthetic drug commonly known as Ecstasy, and methamphetamine, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jordan Raeshaun Cambridge, 26, pleaded guilty on Sept. 6, 2017, to one count of conspiracy to distribute MDMA and methamphetamine. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to four years of supervised release.
According to the plea agreement, Cambridge admitted that he joined a conspiracy with others to distribute MDMA and methamphetamine for financial gain. He sold approximately 7,000 MDMA pills for $21,000. At the time of his arrest during a drug transaction, Cambridge had approximately 5,600 transformer-shaped MDMA pills and 1.5 grams of marijuana in his possession. During the execution of a search warrant of Cambridge’s residence in North Las Vegas, law enforcement found 4,997 MDMA pills, 267 grams of MDMA residue, 221.9 grams of methamphetamine, 201.4 grams of marijuana, a Rossi .38 caliber revolver, and a Raikal semi-automatic .380 handgun.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Brandon Jaroch.
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Louisville Business Owner Sentenced to 33 Months for Food Stamp FraudRead the Press Release
Former owner of the Meat Store also ordered to pay $545,000 restitution
LOUISVILLE, Ky. – The former owner of a Louisville specialty food store was sentenced today in United States District Court, by Senior Judge Thomas B. Russell, to 33 months in prison, three years of supervised release, and ordered to pay $545,000 restitution for committing Food Stamp fraud, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Today’s nearly three year prison sentence and $545,000 returned to victims, underscores our commitment to investigating and prosecuting criminals who steal from federal programs,” stated United States Attorney Russell Coleman. “This is a crime against tax payers – we will seek to restore every stolen dime that was meant to help those in need.”
Elias Estephane was convicted of defrauding a United States Department of Agriculture Program on November 9, 2017, following a four-day jury trial.
Estephane was the owner of the Meat Store located at 1066 South 28th Street and the Meat Store 2 located at 4835 Poplar Level Road. Both were specialty food stores focusing on meats and both were accepted as Supplemental Nutrition Assistance Program (SNAP), or Food Stamp retailers. SNAP is a program administered by the United States Department of Agriculture (USDA) to provide food-purchasing assistance to low-income individuals through the issue of (EBT) cards to recipients. Evidence at trial showed that on multiple occasions Estephane traded cash for SNAP benefits, in violation of program rules that only permit benefits to be exchanged for eligible food items. Estephane generally paid customers fifty cents on the dollar for their benefits.
In 2015, the USDA and the Federal Bureau of Investigation (FBI) began investigating the Meat Store’s redemption of SNAP benefits. They targeted the Meat Store because it had a significantly higher level of redemption of SNAP benefits compared to similar stores in the area. Specifically, the Meat Store’s month-to-month SNAP redemptions in 2015 were around 20 times the average redemptions from similar stores in the same geographic area.
During the course of the investigation, USDA and FBI sent two individuals into the Meat Store to attempt to sell SNAP benefits for cash. Between September 1, 2015, and July 12, 2016, the two individuals exchanged SNAP benefits for cash with defendant Estephane at the Meat Store on nine different occasions, eight of which were captured on video. Sometimes the individuals would present multiple SNAP EBT cards in different names during the undercover transactions and request cash from all of them.
During the trial, the United States submitted surveillance video of the Meat Store from four different days then compared transaction data with the video, flagging instances in which people spent $100 or more but left the store holding only one bag. Further the United States had five customer witnesses and one former employee testify.
The case was prosecuted by Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl, with the assistance of paralegal Mary Kennedy, and was investigated by U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation (FBI).
Las Vegas Doctor Arrested and Charged with 29-Counts of Unlawful Distribution of Fentanyl and Health Care FraudRead the Press Release
LAS VEGAS, Nev. – A pain management doctor practicing in Las Vegas was arrested today and charged with 29-counts of unlawful distribution of fentanyl and for committing health care fraud, announced Attorney General Jeff Sessions, U.S. Attorney Dayle Elieson of the District of Nevada, Assistant Special Agent in Charge Dan Neill for the DEA’s Las Vegas field office, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Christian J. Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Steven A. Holper, 66, is charged in an indictment with seven-counts of distribution of Fentanyl, a controlled substance, and 22-counts of providing a false statement relating to a health benefit program.
Fentanyl is a powerful synthetic opioid painkiller that is 100 times more potent than morphine and 40 to 60 times more potent than 100% pure heroin. Fentanyl is available in various forms, including Subsys. Subsys is only available through the Transmucosal Immediate-Release Fentanyl (TIRF) Risk Evaluation and Mitigation Strategy (REMS) Access program. The only FDA-approved indication for TIRF medicines are for use to manage breakthrough pain in adults with cancer. Dr. Holper routinely prescribed Subsys for his patients without cancer.
According to allegations contained in the indictment, which was unsealed today, from about July 19, 2015 through March 12, 2016, Holper allegedly prescribed Subsys to a patient without a legitimate medical purpose and outside the usual course of professional practice. The indictment further alleges that, from about November 21, 2013 through March 24, 2017, Holper knowingly made false statements to Medicare and private health insurance companies. Dr. Holper prescribed Subsys for patients without cancer and falsely represented 22 patients were cancer patients with breakthrough cancer pain, who were opioid tolerant and eligible for Subsys.
"Our great country has never before seen the levels of addiction and overdose deaths that we are suffering today. Sadly, some trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and exploit this crisis for cash—with devastating consequences. Our goals at the Department of Justice for 2018 are to reduce the number of opioid prescriptions, the number of overdose deaths, and violent crime—which is often drug-related. That's why I created the Opioid Fraud and Abuse Detection Unit and sent 12 top prosecutors to opioid hotspots around the country: to help us find the medical fraudsters who are flooding our streets with drugs. These prosecutors are already issuing indictments from Pittsburgh to Las Vegas. I want to thank the DEA, FBI, the Department of Health and Human Services, and the Henderson, Nevada Police Department, and Assistant U.S. Attorney Kilby Macfadden for their hard work on this case. I am convinced that these efforts make drugs less available on the streets, send a message to criminals, and ultimately make our communities much safer," said Attorney General Sessions.
“This indictment is another example of the U.S. Attorney’s Office commitment to hold doctors accountable when they violate federal laws designed to protect the health and safety of patients. The U.S. Attorney’s Office will continue to work with law enforcement partners to safeguard the public from prescription drug and opioid abuse and to ensure medical doctors are prioritizing patients’ health above their personal financial gain,” said U.S. Attorney Elieson.
“The individual arrested today wholly neglected the public’s trust - he violated the Hippocratic Oath that all healthcare professionals vow to uphold when the respect of the profession is bestowed upon them,” said Assistant Special Agent in Charge Neill. “Deliberately prescribing addictive and dangerous opioids outside the course of legitimate medical practice is drug dealing, and DEA is committed to holding drug dealers accountable.”
“The accessibility of fentanyl and other deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who are consciously contributing to the appalling opioid crisis that is inflicting mayhem in neighborhoods all over the state of Nevada.”
“Dr. Holper is charged with needlessly prescribing one of the deadliest forms of opioids and defrauding U.S. taxpayers,” said Special Agent in Charge Schrank. “With our law enforcement partners we will continue our fight to bring these suspected criminals to justice and protect our communities.”
The statutory maximum penalty for distribution of a controlled substance is 20 years in prison and the maximum penalty for health care fraud is 10 years in prison.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.
If you have a tip or information about illegal sales or distribution of prescription opioids, including fentanyl, oxycodone, hydrocodone, etc., by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873). For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Jackson Man Sentenced to Federal Prison for Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Monyet Davell Johnson, 43, of Jackson, was sentenced today by Senior United States District Judge William H. Barbour, Jr. to serve 120 months in federal prison, followed by 5 years supervised release and a fine of $1500.00 for his role in a conspiracy to distribute cocaine, announced U.S. Attorney Mike Hurst.
On June 27, 2017, agents served a federal arrest warrant on Johnson at his home in Jackson. Following a search of his home, Johnson was found to be in possession of approximately 7 kilograms of cocaine and 3 firearms.
On September 7, 2017, a federal grand jury indicted Johnson for conspiracy to possess with intent to distribute more than 5 kilograms of cocaine hydrochloride and possession with intent to distribute 5 kilograms of more of cocaine hydrochloride. On November 30, 2017, Johnson pled guilty to the conspiracy.
This case is the result of an extensive investigation, dubbed AOperation Pipeline,@ which began as an operation targeting illegal narcotics distribution in central Mississippi involving cocaine and marijuana. The distribution network encompasses the States of California, Texas and Mississippi.
The case was a joint investigation by the United States Immigration, Customs Enforcement, Homeland Security Investigations and Mississippi Bureau of Narcotics, with assistance from US Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mississippi Highway Patrol, Jackson Police Department, and the Hinds County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Illinois Man Sentenced to Three Years’ Prison After Distributing Heroin that Caused Overdose in DubuqueRead the Press Release
A man who distributed heroin to a customer who overdosed was sentenced today to three years in federal prison.
Derrick Devale White, age 25, from Markham, Illinois, received the prison term after an August 9, 2017 guilty plea to possessing with intent to distribute heroin within 1,000 feet of a playground and two schools.
Evidence at sentencing showed that White distributed approximately 1 gram of heroin to a man on July 17, 2017. The man used the heroin and then lost consciousness. The man’s father called 911 and reported that his son was suffering from a heroin overdose, and that he was not breathing well. Emergency responders arrived at the scene and found the man unconscious, with labored breathing. When police officers attempted to move the man, he became responsive and sat up. White admitted in a plea agreement that, the day after the overdose, an undercover officer sent him a text message and ordered another gram of heroin. Shortly thereafter, White arrived at the proposed meeting location, which was within 1,000 feet of a playground, an elementary school, and a middle school. He was arrested in possession of approximately .6 gram of heroin.
White was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. White was sentenced to 36 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
White is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-10310LRR.
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Georgia Prisoner Pleads Guilty to Phone ScamRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jay Byron Wright, age 42, of the Calhoun State Prison in Morgan, Georgia, pled guilty to Conspiracy to Commit Wire Fraud, a violation of Title 18, United States Code, § 1349. Judge Mary Geiger Lewis accepted the plea and will sentence Wright at a later date.
Evidence presented at the hearing established that Jay Byron Wright and other prisoners called citizens of Oregon using a cell phone smuggled into their prison, told the Oregonians they were in contempt of court for not showing up for jury duty, and that they owed the court money. The Oregonians could pay this money by obtaining Money Pak Green Dot cards for the specified value and providing the numbers on the cards to the callers. The numbers gave the callers access to the value on the card, which could then be transferred onto other Green Dot cards. At least three people in Oregon fell for this scam, and they transferred values slightly less than $1,000 to cards used by various co-conspirators in South Carolina.
The maximum penalty faced by Wright is imprisonment for twenty years, with a potential fine up to $250,000.
The Deschutes County (Oregon) Sheriff’s Office and SLED (South Carolina) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Four Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Four Maryland men have been indicted in connection with a conspiracy to commit murder in aid of racketeering and murder in aid of racketeering:
Daniel Flores-Ventura, a/k/a “Necio,” age 24, of Aspen Hill, Maryland;
Vilas Sail Argueta-Bermudez, a/k/a “Happy,” a/k/a “Little Happy,” a/k/a “Enchilada,” age 31, of Aspen Hill , Maryland;
Willians Ernesto Lovos-Ayala, a/k/a “Tigre,” age 25, of Woodbridge, Virginia; and
Michael Campos-Lemus, a/k/a “Humilde,” age 24, of Aspen Hill, Maryland.
All of the defendants are in custody.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigrations and Customs Enforcement – Homeland Security Investigations, Baltimore Field Office; Special Agent in Charge Gordon Johnson of FBI, Baltimore Field Office; Chief Barry M. Barnard of Prince William County, Virginia Police; and Chief Edward Hargis of the Frederick Police Department.
According to the indictment, the defendants allegedly engaged in murder conspiracy and committed a murder on July 16, 2015 in Montgomery County, Maryland. The victim had been reported missing on July 18, 2015 and his body was found on September 29, 2015 in Woodbridge, Virginia.
MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. The defendants were allegedly members of the Uniones and Molinos Clique of MS-13. The two count indictment alleges that from at least 2015 through September 2017, the defendants were members and associates of MS-13 who planned and committed murders, drug trafficking and extortions.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning thanked HSI, the FBI, the Prince William Police Department and the Frederick Police Department. Mr. Schenning also commended Assistant United States Attorneys Kenneth Clark and Clinton Fuchs and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section who are prosecuting this case.
Forty-Four Arrested on Federal and State Charges in Coordinated Law Enforcement TakedownRead the Press Release
CHARLOTTE, N.C. – Multiple teams of federal, state and local law enforcement agents and officers arrested 44 individuals over the course of the past two days, in a coordinated takedown that began early Monday morning, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Of those arrested, 12 face federal gun and drug charges and 32 are charged with state offenses. Federal arrest warrants have been issued for three more individuals, bringing the total number of those who will be prosecuted federally to 15.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; North Carolina Secretary of Public Safety Eric A. Hooks; and Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.
“This morning’s arrests are the result of a joint eight month investigation into repeat offenders who disregard public safety, violate our nation’s gun and drug laws, and pose a threat to the community,” said U.S. Attorney Murray. “U.S. Attorney General Jeff Sessions directed U.S. Attorneys’ Offices across the country to reinvigorate Project Safe Neighborhoods (PSN), a program that has been historically successful in reducing violent crime. Today’s coordinated action is one component of my office’s comprehensive PSN strategy, which focuses on bringing together all levels of law enforcement to address violent crime, and partnering with our local communities to create an environment where all citizens can safely live, work and prosper.”
“This operation is a great example of the ATF/CMPD Violent Crime Task Force working with our investigative partners to remove violent individuals and career criminals from our communities,” said ATF Special Agent in Charge Dixie.
“These operations play an important role in keeping our community safe. Crime fighting and prevention is more than a strategy, it’s a priority. As we work to engage young people in positive ways, we also will continue to focus on violent, repeat offenders who bring illegal drugs and guns into our neighborhoods,” said Charlotte-Mecklenburg Police Chief Putney. “We will continue to work together with our state and federal partners, along with our formal and informal community leaders, to identify and remove dangerous criminals from our community.”
“This collaboration between federal, state, and local law enforcement sends a clear message that our state has zero tolerance for those committing violent crimes,” said Public Safety Secretary Hooks. “If you choose to engage in this kind of criminal activity, you will be arrested and brought to justice.”
The 12 arrested today on federal charges are:
- Abdul Nafir Barilford, 35, residence unknown.
- Mark Jefferson Belton, 29, of Charlotte.
- Amos Lamar Burch, 34, of Charlotte.
- Rodney Funderburk, 38, residence unknown.
- Elontrae Ali Glenn, 23, of Rock Hill, S.C.
- Rodriquez Harris, 43, of Charlotte.
- Rakeem McCullough, 28, of Charlotte.
- David DeAngelo McNeil, 37, of Charlotte (in federal custody).
- Rodriquez Neal, 23, of Charlotte. Rashad Taylor, 26, of Charlotte.
- Jimmy Ward, 42, of Cherryville, N.C. (previously in state custody)
- Montique Williams, 30, of Charlotte.
Daryl Brown, 49, Carlos Massey, 34, and Ishmerai Hem Ef Muhammad El, 37, of Charlotte, are still wanted by law enforcement. (Table below lists charge(s) for each defendant)
The ATF/CMPD Violent Crime Task Force worked jointly with CMPD’s Vice & Narcotics unit, the U.S. Marshals Service, the North Carolina Department of Public Safety, and federal and state prosecutors to identify violent and repeat offenders in the Charlotte-Mecklenburg area engaging in illegal firearm activity, drug sales, and other criminal acts.
Over the course of the investigation, law enforcement recovered more than 27 firearms and illegal substances, including heroin, cocaine, crack cocaine, methamphetamine, marijuana, and MDMA (ecstasy) pills. Law enforcement seized more firearms and controlled substances while executing arrest and search warrants over the past two days.
The charges contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commends the ATF and CMPD for their investigative efforts, and thanks the U.S. Marshals Service, the North Carolina Department of Public Safety’s Adult Correction and Juvenile Justice, Special Operations and Intelligence Unit, and the Mecklenburg County District Attorney’s Office for their invaluable assistance throughout this investigation.
Assistant U.S. Attorney Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, is in charge of the federal prosecutions.
Name
Charge(s)
Abdul Nafir Barilford 3:18-cr-36
Felon in possession of a firearm
Mark Jefferson Belton 3:18-cr-48
Distribution and possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime
Daryl Brown 3:18-cr-44
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Amos Lamar Burch 3:18-cr-40
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Rodney Funderburk 3:18-cr-47
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Elontrae Ali Glenn 3:18-cr-42
Distribution and possession with intent to distribute heroin and felon in possession of a firearm
Rodriguez Harris 3:18-cr-38
Felon in possession of a firearm
Carlos Massey 3:18-cr-37
Felon in possession of a firearm
Rakeem McCullough 3:18-cr-50
Distribution and possession with intent to distribute cocaine and crack cocaine, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime
David DeAngelo McNeil 3:18-cr-45
Distribution and possession with intent to distribute crack cocaine
Ishmerai Hem Ef Muhhammad El 3:18-cr-41
Distribution and possession with intent to distribute cocaine and crack cocaine and felon in possession of a firearm
Name
Charge(s)
Rodriquez Neal 3:18-cr-43
Distribution and possession with intent to distribute cocaine and crack cocaine and felon in possession of a firearm
Rashad Taylor 3:18-cr-49
Distribution and possession with intent to distribute cocaine
Jimmy Ward 3:18-cr-46
Distribution and possession with intent to distribute 50 grams or more of methamphetamine
Montique Williams 3:18-cr-39
Felon in possession of a firearm
Former Wisconsin Produce Vendor Executive Pleads Guilty to Tax EvasionRead the Press Release
The former corporate officer of a produce vendor in Johnson Creek, Wisconsin, pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
According to the indictment and information provided to the court, Thomas G. Paine, 64, was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company. Paine was responsible for the finance and tax aspects of the business, but failed to file corporate tax returns for tax years 2010 through 2012 and concealed the business’ income from the Internal Revenue Service (IRS) by structuring cash bank deposits in amounts less than $10,000 to evade bank reporting requirements. Paine admitted to causing a tax loss between $250,000 and $550,000.
U.S. District Court Judge James D. Peterson scheduled sentencing for May 8. Paine faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Owner of Investment Firms Sentenced for $10 Million FraudRead the Press Release
RICHMOND, Va. – A Blackstone man was sentenced today to 12 years in prison for his role in an investment fraud scheme that caused more than $10 million in losses to over 50 investors.
According to court documents, Sherman Carl Vaughn, 46, and co-conspirator Merrill Robertson, Jr., 38, of Chesterfield, started Cavalier Union Investments, LLC in 2009. From 2009-2016, Vaughn and Robertson solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and the National Football League, while Vaughn focused on developing investment opportunities.
According to the statement of facts, Vaughn and Robertson led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.
As a result of this conspiracy, Vaughn and Robertson fraudulently obtained more than $10 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
On Aug. 24, 2017, a federal jury convicted Robertson of fifteen offenses, including conspiracy to commit mail and wire fraud, conspiracy to commit bank fraud, five counts of mail fraud, two counts of wire fraud, four counts of bank fraud, and two counts of money laundering. Robertson was sentenced on Dec. 6, 2017, to 40 years in prison.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the sentencing by U.S. District Judge John A. Gibney, Jr. The case was prosecuted by Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony.
The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-33.
Former Mail Carrier Admits Accepting Bribes for Delivering Parcels Containing DrugsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) mail carrier today admitted that he accepted cash bribes in return for intercepting and delivering parcels containing illegal narcotics, U.S. Attorney Craig Carpenito announced.
Leonard Gresham, 50, of Rahway, New Jersey, pleaded guilty before U.S. District Judge Esther D. Salas in Newark federal court to an information charging him with one count of accepting bribes. He was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
Gresham was a mail carrier at the USPS Springfield Station in Newark. From October 2014 through September 2017, Gresham accepted cash bribes from two individuals who were receiving parcels containing illegal narcotics through the mail.
While on duty, Gresham intercepted these parcels and personally delivered them to various locations in Newark other than to the recipient address noted on the parcels. Gresham received payments of between $50 and $200 from the individuals for each delivery.
Gresham received a total of $14,900 in cash payments in exchange for delivering parcels containing illegal narcotics.
The bribery charge is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 30, 2018.
U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Eileen Neff, Northeast Area Field Office, and 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 guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Former It Employee of Transcontinental Railroad Sentenced to Prison for Damaging Ex-Employer’s Computer NetworkRead the Press Release
WASHINGTON – A former IT employee for the Canadian Pacific Railway was sentenced today to one year and one day in prison for causing intentional damage to critical portions of Canadian Pacific’s computer network.
Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
CHRISTOPHER VICTOR GRUPE, 46, was sentenced by U.S. District Judge Patrick J. Schiltz of the District of Minnesota. GRUPE was convicted of one count of intentional damage to a protected computer on Oct. 6, 2017, following a five-day jury trial in Minneapolis, Minnesota.
“The defendant in this case, a former IT professional, has been convicted of a felony, is going to prison, has lost his IT job and will likely never work in the IT industry again, and had to resign from the Army after losing his security clearance,” said Special Agent in Charge Thornton. “These are real consequences. The FBI, along with our law enforcement partners, will continue to aggressively pursue cases such as this to ensure that those with technical skills and trusted access to computer systems like Christopher Grupe who then betray that trust and commit computer crimes will be caught and punished.”
“Christopher Grupe chose to seek revenge on his employer by abusing company assets and insider knowledge that was entrusted to him to make the railroad safer, not more dangerous,” said Assistant U.S. Attorney Tim Rank. “Today’s sentence is an appropriate consequence for the defendant’s deliberate and malicious actions.”
As proven through evidence presented at the trial, from September 2013 until December 2015, GRUPE was employed as an IT professional by Canadian Pacific Railway (CPR), a transcontinental railroad company headquartered in Alberta, Canada, with U.S. headquarters in Minneapolis. On Dec. 15, 2015, following a 12-day suspension, GRUPE was notified by CPR management that he was going to be fired due to insubordination. However, at his request, GRUPE was instead allowed to resign, effective that same day. In his resignation letter, GRUPE indicated that he would return all company property, including his laptop, remote access device, and access badges, to the CPR office.
The evidence presented at the trial proved that on Dec. 17, 2015, before returning his laptop and remote access device, GRUPE used both to gain access to the CPR computer network’s core “switches” – high-powered computers through which critical data in the CPR network flowed. Once inside, GRUPE strategically deleted files, removed administrative-level accounts, and changed passwords on the remaining administrative-level accounts, thereby locking CPR out of these network switches. GRUPE then attempted to conceal his activity by wiping the laptop’s hard drive before returning it to CPR.
The evidence presented further showed that on Jan. 6, 2016, while trying to address a networking problem, the CPR network staff discovered that they were unable to access the main network switches. After CPR IT staff was able to regain access to the switches through a risky, but successful, rebooting procedure, they discovered evidence in logging data stored in the memory of the switches connecting the damage to GRUPE. CPR hired an outside computer security company to identify the source and scope of the intrusion as well as conduct an incident analysis, which also connected the damage to GRUPE.
This case is the result of an investigation conducted by the FBI, with assistance from the Digital Forensic Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section.
Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Defendant Information:
CHRISTOPHER VICTOR GRUPE, 46
Minneapolis, Minn.
Convicted:
- Intentional damage to a protected computer, 1 count
Sentenced:
- One year and one day in prison
###
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Former IT Employee of Transcontinental Railroad Sentenced to Prison for Damaging Ex-Employer’s Computer NetworkRead the Press Release
A former IT employee for the Canadian Pacific Railway was sentenced today to one year and one day in prison for causing intentional damage to critical portions of Canadian Pacific’s computer network.
Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
Christopher Victor Grupe, 46, was sentenced by U.S. District Judge Patrick J. Schiltz of the District of Minnesota. Grupe was convicted of one count of intentional damage to a protected computer on Oct. 6, 2017, following a five-day jury trial in Minneapolis, Minnesota.
As proven through evidence presented at the trial, from September 2013 until December 2015, Grupe was employed as an IT professional by Canadian Pacific Railway (CPR), a transcontinental railroad company headquartered in Alberta, Canada, with U.S. headquarters in Minneapolis. On Dec. 15, 2015, following a 12-day suspension, Grupe was notified by CPR management that he was going to be fired due to insubordination. However, at his request, Grupe was instead allowed to resign, effective that same day. In his resignation letter, Grupe indicated that he would return all company property, including his laptop, remote access device, and access badges, to the CPR office.
The evidence presented at the trial proved that on Dec. 17, 2015, before returning his laptop and remote access device, Grupe used both to gain access to the CPR computer network’s core “switches” – high-powered computers through which critical data in the CPR network flowed. Once inside, Grupe strategically deleted files, removed administrative-level accounts, and changed passwords on the remaining administrative-level accounts, thereby locking CPR out of these network switches. Grupe then attempted to conceal his activity by wiping the laptop’s hard drive before returning it to CPR.
The evidence presented further showed that on Jan. 6, 2016, while trying to address a networking problem, the CPR network staff discovered that they were unable to access the main network switches. After CPR IT staff was able to regain access to the switches through a risky, but successful, rebooting procedure, they discovered evidence in logging data stored in the memory of the switches connecting the damage to Grupe. CPR hired an outside computer security company to identify the source and scope of the intrusion as well as conduct an incident analysis, which also connected the damage to Grupe.
This case is the result of an investigation conducted by the FBI, with assistance from the Digital Forensic Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section.
Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota are prosecuting the case.
Former Director of Arts Center Charged with Wire Fraud and Filing False Tax ReturnsRead the Press Release
PANAMA CITY, FLORIDA – Vicki Dyer Middlemas, 48, of Panama City, was arraigned today in the U.S. District Court in Panama City after a federal grand jury returned an indictment charging her with five counts of wire fraud and four counts of filing false tax returns. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that between May 2010 and May 2015, Middlemas used her position as Executive Director of the Visual Arts Center of Northwest Florida (“the VAC”) in Panama City to fraudulently obtain money by writing herself checks on the VAC bank account and by making unauthorized charges for personal expenses on the VAC debit card. The indictment further alleges that Middlemas falsified invoices and VAC records to conceal her thefts. In addition, Middlemas is charged with filing false federal income tax returns that underreported her income and tax owed.
The maximum penalty for wire fraud is 20 years in prison. The maximum penalty for filing false tax returns is 3 years in prison. The trial is scheduled for April 16, 2018, at 8:15 a.m. at the United States Courthouse in Panama City.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation and the Panama City Police Department. Assistant United States Attorney Aine Ahmed is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.