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26 March 2018
Brooklyn Gang Member Sentenced to 10 Years’ Imprisonment for Firearms Offenses and Drug TraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, Jason Soto, a member of the “Cypress Gangster Crips” street gang, was sentenced by United States District Judge I. Leo Glasser to 10 years’ imprisonment following his conviction at trial for selling a firearm to a convicted felon, unlawfully possessing a firearm and drug trafficking. In January 2018, following an evidentiary hearing, the Court found that Soto had killed Shakim Rivera in February 2015, and also that Soto had intended to poison an elderly woman in April 2016.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Soto has been held to account for the myriad crimes he committed at the Cypress Hills Houses, including the murder of a gang rival,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will be relentless in protecting the residents of communities plagued by gang violence from criminals like the defendant who has demonstrated a callous disregard for human life.”
“It is truly astonishing to see how the deadly actions of a few impact a majority of members in a community,” stated FBI Assistant Director-in-Charge Sweeney. “These gang members use threats and actual violence to sow fear, creating their own turf of criminal activity in a place where people just want be safe. The FBI New York Metro Safe Streets Task Force won’t slow down or ease off our pursuit of these violent gangs.”
As proven at trial, in May 2016, Soto sold a .44 caliber Taurus Special revolver to a confidential informant whom Soto knew to be a convicted felon. Two months earlier, Soto sold the same informant 28 bags of crack cocaine. Soto, who has prior felony convictions for assault and robbery, committed the charged crimes while under investigation by the FBI and the NYPD, which conducted a long-term investigation into crime and violence plaguing the residents of the Cypress Hills Houses, a New York City Housing Authority complex in the East New York neighborhood of Brooklyn.
A court-authorized wiretap of Soto’s phone revealed evidence of other crimes, including Soto discussing the planning and commission of robberies, assaults and murders.
At a hearing held prior to sentencing, the government presented evidence that Soto lured Shakim Rivera to Canarsie where he shot him in the back of the head because he believed Rivera was responsible for the murder of another member of the Cypress Gangsta Crips, Demetrius Graham, three days earlier. The government also proved that Soto had discussed his intent to poison an elderly woman with narcotics because she asked his family about a $100 debt he owed. Soto, in his words, said he was going to “put pain on some 80-year-old chick.” Members of the FBI and the NYPD were able to prevent the planned attack.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy, Andrey Spektor and David N. Gopstein are in charge of the prosecution.
The Defendant:
Jason Soto
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-298 (S-1) (ILG)
Bronx Man Charged in Connection with Shooting of Livery Cab DriverRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced the arrest of MARIO POWELL for the armed robbery and shooting of a livery cab driver on March 17, 2018. POWELL was arrested on Friday, March 23, 2018, by the ATF and the NYPD, and was presented before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court on March 24, 2018.
According to the allegations in the Complaint:[1]
On March 17, 2018, POWELL called a livery cab in the Bronx, and directed the driver to a particular destination. After arriving at the drop-off location, POWELL threatened the driver with a gun and demanded cash. The driver handed over $23 in cash. POWELL exited the cab and then shot the driver seven times.
* * *
POWELL, 27, of the Bronx, New York, is charged with one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison, and one count of discharging a firearm during a Hobbs Act robbery, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the efforts of the ATF and NYPD in this case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Mollie Bracewell is in charge of the prosecution.
[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.
Baldwin County Man Receives 29 Month Sentence for Illegal Possession of a FirearmRead the Press Release
The United States Attorney, Richard W. Moore, announces that Donald W. Bruggeman, a 49 year old, resident of Robertsdale, Alabama was sentenced to 29 months of incarceration followed by three years of supervised release for possession of a firearm after being convicted of a felony.
On July 22, 2017, Baldwin County, Alabama deputies went to Bruggeman’s residence to arrest him for outstanding felony warrants that included one for domestic abuse of his wife. He was not home, but his wife was and she said Bruggeman might be armed. Deputies located Bruggeman by tracking his cell phone. As they approached the area where his cell phone indicated he was, deputies saw Bruggeman headed in the direction of his residence. Deputies attempted to conduct a traffic stop by activating the blue lights. Bruggeman did not stop and instead sped up, pulled into his driveway, stopped the vehicle, jumped out and fled on foot into the woods by his residence. Officers did not give chase because they believed he might be armed. Instead, they secured the area and the vehicle. Inside the vehicle deputies saw and seized a Savage, model Stevens 15A, .22 caliber rifle. Deputies seized the firearm based on his wife’s complaint.
Two days later, Bruggeman was arrested and after Miranda warnings, confessed to possession of the firearm. At that time, Bruggeman had been convicted of one felony, namely, Forgery, Making or Altering a Writing, on February 16, 1999, in the Circuit Court of Jefferson County, Missouri. Bruggeman pled guilty on December 20, 2017.
The Federal Bureau of Investigation along with the Baldwin County Sheriff’s Office investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Assistant School Band Director Convicted of Distribution of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old Corpus Christi man has admitted he distributed child pornography, announced U.S. Attorney Ryan K. Patrick.
In November 2017, an electronic chat room company notified the National Center for Missing and Exploited Children (NCMEC) that a known image of child pornography had been uploaded to an internet chat room. Authorities were able to link the specific IP address associated with a user known as “jack” to Parker J. Pendergraph.
Law enforcement determined Pendergraph was employed as an assistant band director for a local high school and middle school and obtained a search warrant for his residence. At that time, authorities seized several digital devices that led to the discovery of the known image of child pornography uploaded to the chat room. In addition, law enforcement also located more than 500 images and 390 images of child erotica.
The image uploaded to the chat room was located on one of Pendergraph’s digital devices. The image depicted a minor female approximately 14 years of age that is nude and sitting on a chair with her knees bent exposing her vagina to the camera. Pendergraph was shown the image, after which he admitted to uploading it.
Pendergraph also acknowledged going to chat sites and wanting to trade pictures of nude girls. He further stated he had seen images of child pornography on his computer for almost a year.
Today, Pendergraph admitted he knew the image he distributed was child pornography.
Sentencing is set before U.S. District Judge Nelva Gonzalez Ramos on July 19, 2018. At that time, Pendergraph faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Pendergraph also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation with the assistance of NCMEC.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Armed career criminal sentenced to 25 years for violent carjackingRead the Press Release
ATLANTA – Jeff North, a previously convicted felon, has been sentenced to 25 years in federal prison for committing a violent carjacking and shooting the victim, and for unlawfully possessing a firearm.
“North callously shot the carjacking victim at close range when he refused to surrender his vehicle,” said U.S. Attorney Byung J. “BJay” Pak. “As a felon, with several prior convictions for violent crimes and drug offenses, North shows no regard for the rule of law, and contempt for law abiding citizens. This sentence will remove him from our streets and put him in federal prison where he will serve a lengthy sentence.”
“Jeff North is a convicted felon who will be off of our streets and unable to victimize anyone for a long time,” said Acting Special Agent in Charge John Schmidt. “He will no longer be in a position to possess or use firearms. The sentence imposed by the court guarantees that our community will be safe from Mr. North for a very long time.”
According to U.S. Attorney Pak, the charges and other information presented in court: On March 23, 2015, an Atlanta Police officer was on routine patrol when a person, who was later identified as the victim of a carjacking, flagged him down. The victim, whose shirt was soaked in blood, reported that someone had just shot him and stolen his van. The victim then pointed toward the van as it was fleeing the scene. The police officer stopped the van, and arrested North, who was driving the van at the time. Inside the vehicle, the officer found a revolver along with the victim’s wallet and identification.
At the time of the carjacking, North was a six-time convicted felon, with prior convictions for robbery, aggravated assault, aggravated battery, possession with intent to distribute heroin and cocaine, and possession of a firearm during the commission of a felony.
Jeff North, 54, of Atlanta, Georgia was sentenced to 25 years in prison to be followed by three years of supervised release. The court also ordered North to pay $36,010.71, in restitution. After a trial, a jury convicted North on December 7, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department.
Assistant U.S. Attorney Ryan J. Huschka prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Albuquerque Man Sentenced to Twelve Years for Brandishing Short-Barreled Shotgun During Armed Robbery of Convenience StoreRead the Press Release
ALBUQUERQUE – William L. Thrash, 51, of Albuquerque, N.M., was sentenced today in federal court to 144 months in prison for violating the federal firearms laws by brandishing a short-barreled shotgun during the armed robbery of an Albuquerque-area convenience store in March 2017. Thrash will be on supervised release for three years after completing his prison sentence.
Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Thrash in Sept. 2017, on a criminal complaint. The criminal complaint charged Thrash with violating the Hobbs Act by robbing two businesses engaged in interstate commerce at gunpoint, brandishing a firearm during crimes of violence, and being a felon in possession of a firearm. According to the criminal complaint, Thrash committed one of the Hobbs Act robberies by robbing an Albuquerque-area convenience store on March 14, 2017, and the second robbery by robbing a medical marijuana dispensary located in Bernalillo County, N.M., on April 15, 2017.
On April 19, 2017, officers of the Albuquerque Police Department (APD) arrested Thrash on state charges, which have since been dismissed in favor of federal prosecution, while executing a state search warrant at a hotel room in which Thrash was residing. During the search, the officers seized a firearm and ammunition. At the time, Thrash was prohibited from possessing firearms or ammunition because he previously had been convicted on numerous felony offenses, including being a felon in possession of a firearm, auto burglary, escape, child abuse or abandonment, battery on a peace officer, and possession of a deadly weapon or an explosive by a prisoner.
On Dec. 13, 2017, Thrash pled guilty to a felony information charging him with using and brandishing a firearm during a crime of violence. In entering the guilty plea, Thrash admitted brandishing a short-barreled shotgun at store employees when he robbed an Albuquerque-area convenience store on March 14, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney George C. Kraehe as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of removing them from communities in New Mexico for as long as possible.
"Operation Juggernaut": Six Cherokee County Individuals Plead Guilty to Drug or Firearm ChargesRead the Press Release
“OPERATION JUGGERNAUT”
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that:
Dave Ellis Wilson, aka Jughead, age 44, of Tahlequah, Oklahoma pled guilty to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than potentially 30 years imprisonment, and up to a $2,000,000.00 fine or both.
Gary Edward Scott, age 39, of Tahlequah, Oklahoma pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5, not more than 40 years imprisonment, not less than 4 years supervised release, and up to a $5,000,000.00 fine or both.
Mary Ann Scott, age 42, of Tahlequah, Oklahoma pled guilty to Possession Of Methamphetamine With Intent To Distribute, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years, not more than 40 years imprisonment, not less than 4 years supervised release, and up to a $5,000,000.00 fine or both; however, should the court determine she has a prior qualifying drug conviction, it is punishable by not less than 10 years, not more than life imprisonment, and up to a $8,000,000.00 fine or both.
Jason Fred Fortner, age 43, of Hulbert, Oklahoma pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5, not more than 40 years imprisonment, not less than 4 years supervised release, and up to a $5,000,000.00 fine or both.
Anthony Lewayne Byfield, age 29, of Tahlequah, Oklahoma pled guilty to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
Christopher Andrew Loveall, age 25, of Tahlequah, Oklahoma pled guilty to Illegal Receipt Of A Firearm By A Person Under Indictment Or Information, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D), punishable by not more than 60 months imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about November 7, 2017, within the Eastern District of Oklahoma, the defendant, DAVE ELLIS WILSON, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment alleged that on or about September 30, 2017, within the Eastern District of Oklahoma, the defendant, GARY EDWARD SCOTT, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment alleged that on or about January 31, 2017, within the Eastern District of Oklahoma, the defendant, MARY ANN SCOTT, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment alleged that on or about January 25, 2017, within the Eastern District of Oklahoma, the defendant, JASON FRED FORTNER, did knowingly and intentionally possess with intent to distribute, 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment alleged that on or about January 3, 2018, within the Eastern District of Oklahoma, the defendant, ANTHONY LEWAYNE BYFIELD, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Mossberg, Model 500C, 20 gauge pump action shotgun, serial number J483782, which had been shipped and transported in interstate commerce.
The Indictment alleged that on or about December 9, 2017, within the Eastern District of Oklahoma, the defendant, CHRISTOPHER ANDREW LOVEALL, who was then under Indictment or Information for a crime punishable by imprisonment for a term exceeding one year, did willfully receive firearms to wit: One (1) Ruger, Blackhawk, .45 caliber revolver, serial number 46-54431, which had been shipped and transported in interstate commerce.
The charges arose from a joint investigation entitled “Operation Juggernaut” coordinated as part of the Project Safe Neighborhoods effort in the Eastern District of Oklahoma to reduce gun and related drug crime. Project Safe Neighborhoods is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were, the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Cherokee Nation Marshal Service, the District 27 District Attorney’s Office, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of presentence investigation reports.
Assistant United States Attorney Dean Burris represented the United States.
23 March 2018
Zuni Pueblo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Raylan Reano, 25, an enrolled member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.
Reano was arrested in Dec. 2017, on an indictment charging him with killing a woman on Oct. 23, 2016, on the Zuni Pueblo in McKinley County, N.M. According to the indictment, Reano killed the victim while driving under the influence of alcohol.
During today’s proceedings, Reano pled guilty to the indictment charging him with involuntary manslaughter and admitted killing the victim while driving recklessly while under the influence of alcohol. Reano acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
At sentencing, Reano faces a maximum statutory penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department and Assistant U.S. Attorney Sarah Mease is prosecuting the case.
Wyoming Military Department Found Liable for Subjecting Employee to Sexual HarassmentRead the Press Release
WASHINGTON –The Justice Department today announced that on March 21, 2018, a federal district court in Casper, Wyoming, found that the Wyoming Military Department (WMD) discriminated against former employee Amanda Dykes by subjecting her to sexual harassment and constructively discharging her. The verdict was returned after a July 2017 bench trial during which the Justice Department produced evidence that the defendant violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex, and religion.
The evidence produced at trial showed that Dykes was subjected to sexual harassment by her direct supervisor, former employee Don Smith, when both worked at WMD’s Wyoming Youth Challenge Program. Smith subjected Dykes to persistent, unwelcomed conduct including poems, songs, and emails professing his affection and love for her as well as constant visits to her office. These intensified to such a degree that Dykes asked her subordinates to help her avoid being left alone with her supervisor.
Dykes reported the supervisor’s conduct to her employer’s human resources department as well as to his direct supervisor, but received no assistance in remedying the harassment. The court found that harassing behavior persisted for over 18 months despite Dykes’ numerous complaints, that no reasonable employee could be expected to remain in her job under these circumstances, and that Dykes had no choice but to resign her position in September 2011 to avoid the continued harassment.
The district court ordered WMD to pay $221,030.62 to Dykes for the salary and benefits she lost as a result of her constructive discharge.
This judgment represents the first successful sexual harassment trial verdict obtained in a Title VII case since the launch of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative (SHWI), which focuses on workplace sexual harassment in the public sector.
As part of the Initiative, the Justice Department will continue to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The Department will also work to develop effective remedial measures that can be used to hold public sector employers accountable where Title VII violations have been found, including identifying changes to existing employer practices and policies that will result in safe work environments. More information about the Civil Rights’ Division’s Sexual Harassment in the Workplace Initiative can be found here.
“The Justice Department vigorously enforces Title VII to ensure that people can work free from sexual harassment and retaliation,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The verdict sends the clear message that this Justice Department will continue to effectively combat sexbased discrimination whenever it occurs in a public sector workplace.”
Dykes originally filed her sexual harassment charge against the WMD with the Denver Field Office of the Equal Employment Opportunity Commission (EEOC), which investigated and determined that there was reasonable cause to believe that discrimination had occurred and referred the matters to the Department of Justice.
More information about Title VII and other federal employment laws is available at the division’s Employment Litigation Section website. The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on the division website.
EEOC enforces federal laws prohibiting employment discrimination. Further information about EEOC is available on its website. The United States was represented in this case by Robert Galbreath, Torie Atkinson, Brian McEntire, and Patty Stasco.
Wyoming Military Department Found Liable for Subjecting Employee to Sexual HarassmentRead the Press Release
The Justice Department today announced that on March 21, 2018, a federal district court in Casper, Wyoming, found that the Wyoming Military Department (WMD) discriminated against former employee Amanda Dykes by subjecting her to sexual harassment and constructively discharging her. The verdict was returned after a July 2017 bench trial during which the Justice Department produced evidence that the defendant violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex, and religion.
The evidence produced at trial showed that Dykes was subjected to sexual harassment by her direct supervisor, former employee Don Smith, when both worked at WMD’s Wyoming Youth Challenge Program. Smith subjected Dykes to persistent, unwelcomed conduct including poems, songs, and emails professing his affection and love for her as well as constant visits to her office. These intensified to such a degree that Dykes asked her subordinates to help her avoid being left alone with her supervisor.
Dykes reported the supervisor’s conduct to her employer’s human resources department as well as to his direct supervisor, but received no assistance in remedying the harassment. The court found that harassing behavior persisted for over 18 months despite Dykes’ numerous complaints, that no reasonable employee could be expected to remain in her job under these circumstances, and that Dykes had no choice but to resign her position in September 2011 to avoid the continued harassment.
The district court ordered WMD to pay $221,030.62 to Dykes for the salary and benefits she lost as a result of her constructive discharge.
This judgment represents the first successful sexual harassment trial verdict obtained in a Title VII case since the launch of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative (SHWI), which focuses on workplace sexual harassment in the public sector.
As part of the Initiative, the Justice Department will continue to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The Department will also work to develop effective remedial measures that can be used to hold public sector employers accountable where Title VII violations have been found, including identifying changes to existing employer practices and policies that will result in safe work environments. More information about the Civil Rights’ Division’s Sexual Harassment in the Workplace Initiative can be found here.
“The Justice Department vigorously enforces Title VII to ensure that people can work free from sexual harassment and retaliation,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The verdict sends the clear message that this Justice Department will continue to effectively combat sex-based discrimination whenever it occurs in a public sector workplace.”
Dykes originally filed her sexual harassment charge against the WMD with the Denver Field Office of the Equal Employment Opportunity Commission (EEOC), which investigated and determined that there was reasonable cause to believe that discrimination had occurred and referred the matters to the Department of Justice.
More information about Title VII and other federal employment laws is available at the division’s Employment Litigation Section website. The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on the division website.
EEOC enforces federal laws prohibiting employment discrimination. Further information about EEOC is available on its website.
The United States was represented in this case by Robert Galbreath, Torie Atkinson, Brian McEntire, and Patty Stasco.
Warrenton Man Accused of Making False Distress Calls Prompting Coast Guard Rescue ResponsesRead the Press Release
PORTLAND, Ore. – Bud O’Neil Burkleo, 35, of Warrenton, Oregon made an initial appearance today in federal court before U.S. Magistrate Judge John V. Acosta.
The court unsealed a five-count indictment alleging Burkleo made four hoax distress calls to the U.S. Coast Guard between April and November of 2016. In response to each call, the Coast Guard dispatched rescue personnel in an attempt to protect life and property. Burkleo is also alleged to have lied to federal investigators.
Burkleo was released pending trial. A two-day jury trial is scheduled for May 29, 2018 before U.S. District Court Judge Michael W. Mosman.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Virginia Beach Man Arrested for Threatening a Member of CongressRead the Press Release
NORFOLK, Va. – A Virginia Beach man was arrested today on charges of threatening to murder and assault a member of Congress.
According to court documents, Wallace Grove Godwin, 69, visited the Virginia Beach Office of Congressman Scott Taylor yesterday. After apparently becoming frustrated during a discussion about marijuana policy, Godwin made the following statement to a staff member for the Congressman: “Scott is having an event this Saturday. I am going to get my shotgun and do something about this. I will just handle this myself.” Godwin then pointed at two staffers in the room and stated, “You two are next.”
According to court documents, these recent threats follow two aggressive interactions that Godwin had in 2017, one in which Godwin visited Congressman Taylor’s private residence and interacted directly with Congressman Taylor outside his home. During another incident Godwin visited the Virginia Beach office and yelled at congressional staff members.
Godwin is scheduled to make his initial appearance today at the federal courthouse in Norfolk at 2:30 p.m.
Godwin has been charged with threatening to murder and assault a United States official, and faces a maximum penalty of 10 years in prison, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Matthew R. Verderosa, Chief of Police of the U.S. Capitol Police, made the announcement. Assistant U.S. Attorney Daniel T. Young is prosecuting 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. 2:18-mj-166.
United States Intervenes in Lawsuit Against Oviedo Company and Local Businessman Alleging Medicare FraudRead the Press Release
Orlando, Florida – The United States filed a civil lawsuit today against Central Medical Systems, LLC (CMS) and Alan Trent Harley alleging that they had falsely billed Medicare for wound care supplies during a six-year period. The complaint alleges that CMS and its owner, Harley, violated the federal False Claims Act by seeking and receiving inflated Medicare payments for more expensive products than had been provided to patients or for products that were never sent.
According to the government’s allegations, multiple former employees reported that Harley routinely changed quantities of items while billing and manipulated orders in CMS’s billing software. The government’s suit also alleges that CMS billed Medicare for thousands more products than it had purchased.
The lawsuit was filed under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. Jael Cancel, the office manager of CMS, filed the whistleblower lawsuit in 2014. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover treble damages plus civil penalties ranging from $5,500 to $11,000 for each false claim the defendants submitted.
The claims asserted against CMS and Harley are allegations only, and there has been no determination of liability.
This case was investigated by the Department of Justice and the U.S. Department of Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy Bloor.
Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
United States Attorney Announces Charges Against More Than Two Dozen Felons in Law Enforcement Surge to Reduce Violent CrimeRead the Press Release
Several charged in a conspiracy with stealing nearly one-hundred firearms from licensed dealers in Kentucky
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced that the Louisville Federal Grand Jury returned 21 felony indictments charging 23 individuals this week with multiple counts, including firearms violations, possession and distribution of scheduled drugs as well as the filing of an additional criminal complaint of two Tennessee residents charged in a conspiracy of stealing nearly one-hundred firearms from dealers licensed in the Commonwealth of Kentucky.
“These arrests are yet another significant deposit on our promise to reduce violence in this Commonwealth,” stated United States Attorney Coleman. “Working together with our law enforcement partners, we will not concede one block of our city to drug traffickers, gang members, or, as we demonstrated today, felons with firearms. Stay tuned.”
U.S. Attorney Coleman was joined in today’s announcement by the Jefferson County Commonwealth’s Attorney Thomas Wine, ATF Special Agent in Charge Stuart Lowery, and LMPD Chief Steve Conrad, who stood shoulder to shoulder with numerous prosecutors from the United States Attorney’s Office, in a committed effort and shared partnership to reduce violent crime. These charges were developed through an ongoing partnership of multiple law enforcement agencies to maximize penalties for the most violent repeat offenders.
This week, Kashma Floyd Dardy, Jr. of Nashville, Tennessee, and Marvin Dale Johnson, of Madison Tennessee, were charged with conspiring and stealing firearms from licensed dealers located in Bowling Green and Owensboro, Kentucky. Dardy was charged with the burglary of Wheeler’s Fastway Gun and Pawn located at 4848 Scottsville Road in Bowling Green. Johnson was charged with the burglary of Wheeler’s as well as another burglary of Whittaker Guns, LLC, located at 6980 West Louisville Lane in Owensboro. According to the affidavit attached to the criminal complaint, firearms stolen from the dealers were recovered from both defendants.
The crimes of others charged include being a felon in possession of a firearm, possession with intent to distribute Schedule I controlled substances, using a firearm in furtherance of a drug trafficking crime, and being an unlawful user of a controlled substance while in possession of a firearm. Three defendants were also charged with discharge of a firearm during, and in relation to, a drug trafficking crime resulting in murder, one defendant is currently charged in the shooting death of 7-year-old DeQuante Hobbs, Jr., and two other defendants have prior manslaughter convictions.
Among those charged and arrested are Philquan Acuff, 33; Gary Burse, 27; Dakoven Ford, 20; Isiah Tamele Fugett, 36; Keith Alan Haggard, 46; Demetris Dion Johnson, 36; Treyshawn Jones, 25; Byron K. King, Jr., 21; Benjamin Schildknect, 33; Philip Stivers, 31; Wyatt Williams, 23; Javier Rodriguez and co-defendants Dwayne Castle, 44, and Charles Cater, 42; all of Louisville.
Defendants Rodriguez, Castle, and Cater are charged with discharge of a firearm during, and in relation to, a drug trafficking crime resulting in murder, and conspiracy to distribute methamphetamine and heroin.
Defendant Acuff is charged with knowingly and intentionally possessing with the intent to distribute heroin and marijuana, both Schedule I controlled substances. Further, Acuff is charged with possession of a firearm, a Smith & Wesson, Model M & P, .40 caliber handgun, in furtherance of a drug crime, and with being a felon in possession of a firearm having been convicted in Jefferson County Circuit Court of trafficking in a controlled substance, facilitation to robbery, and wanton endangerment.
Defendant Burse is charged with being a felon in possession of a firearm having been convicted in Jefferson Circuit Court of Manslaughter II, robbery, tampering with physical evidence, burglary, and intimidating a witness in a legal process. Burse allegedly possessed a Walther, Model PK380, .380 caliber semi-automatic firearm; a Ruger, Model SR22, .22 caliber semi-automatic firearm; and ammunition.
Defendant Ford, is charged with being a felon in possession of a firearm, a Glock 19, 9 millimeter handgun and ammunition, having been convicted of robbery in Jefferson Circuit Court.
Defendant Fugett, a/k/a Isiah Phillip, is charged with being a felon in possession of a firearm, having been convicted in Jefferson Circuit Court of Manslaughter and tampering with physical evidence. Fugett allegedly possessed a Glock Model 23, .40 caliber pistol, and ammunition.
Defendant Haggard is charged with possession with intent to distribute methamphetamine and with being a felon in possession of a firearm, having been convicted in Meade Circuit Court of trafficking in a controlled substance. Haggard allegedly possessed a Xin Shi Dai, Model SKS, 7.62x39mm caliber semi-automatic rifle, and ammunition.
Defendant Johnson is charged with being a felon in possession of a firearm, a Bersa .380 caliber semiautomatic pistol, having been convicted in Jefferson Circuit Court of trafficking in a controlled substance.
Defendant Jones is charged with being a felon in possession of a firearm, a Taurus, model PT1455PRO, .45 caliber semiautomatic pistol, and ammunition, having been convicted of a receiving stolen property and tampering with physical evidence in Jefferson Circuit Court.
Defendant King is charged with felon in possession of a firearm, a Smith & Wesson, Model SD40VE, .40 caliber handgun, having been convicted of receiving a stolen firearm in Jefferson Circuit Court.
Defendant Schildknect is charged with being a felon in possession of a firearm, a Smith & Wesson .38 caliber revolver, an Omega .22 caliber revolver, a Colt PTFA handgun, and ammunition, having been convicted of burglary in Jefferson Circuit Court.
Defendant Stivers is charged with being a felon in possession of a firearm, a Walther, PK380, .380 Caliber semi-automatic firearm, and ammunition, having been convicted of possession of a forged instrument, facilitation to kidnapping, assault, and robbery in Jefferson Circuit Court.
Defendant Williams is charged with being an unlawful user of a controlled substance in possession of a Hi-Point 9 millimeter semi-automatic pistol.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release.
These cases are being prosecuted by Assistant United States Attorneys Robert Bonar, Nute Bonner, Bryan Calhoun, Scott Davis, Tom Dyke, Larry Fentress, Lettricea Jefferson-Webb, Joshua Judd, Corinne Keel, Jessica Malloy, Stephanie Zimdahl, and Michael Bennett. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, and the United States Drug Enforcement Administration (DEA).
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s indictments are part of the Project Safe Neighborhoods program.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent
until and unless proven guilty
Two University of New Hampshire Employees Charged with Theft of Government FundsRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that two employees of the University of New Hampshire (UNH) have been charged with stealing money from federal research grants.
One Indictment alleges that Hailong Zhang, 44, of Nottingham, was a Research Project Manager for the UNH College of Life Sciences and Agriculture. The Indictment alleges that he was authorized to use a credit card provided by UNH for expenses covered by federal research grants that were awarded to UNH, as a prime-grantee or sub-grantee, by the U.S. Department of Health and Human Services, National Institutes of Health (“NIH”). The Indictment alleges that on 31 separate occasions from approximately December 2013 to January 2018, Zhang used his business credit card to purchase gift cards from Amazon.com that totaled more than $82,000, which Zhang used to purchase items for his personal use. The Indictment also alleges that Zhang concealed his unauthorized use of the credit card by submitting a fictitious receipt and a fraudulent written justification for each expense to the College of Life Sciences and Agriculture’s Business Service Center, which caused the University System of New Hampshire to make payments for the unauthorized purchases to Zhang’s credit card account and UNH to obtain reimbursements for the expenses from the NIH grants.
The other Indictment alleges that Jichun Zhang, 45, of Durham, was a Research Assistant Professor for the UNH Institute for the Study of Earth, Oceans, and Space. The Indictment alleges that he was authorized to use a credit card provided by UNH for expenses covered by federal research grants that were awarded to UNH, as the prime-grantee, by the National Aeronautic and Space Administration (“NASA”). The Indictment alleges that on 31 different occasions from approximately January 2016 to December 2017, Zhang used his business credit card to purchase personal items totaling more than $6,900 from Amazon.com, PayPal, and Apple, Inc. This Indictment further alleges that Zhang concealed the unauthorized use of the credit card by submitting a fictitious receipt and a fraudulent written justification for each expense to the UNH Institute for the Study of Earth, Oceans, and Space’s Business Service Center, which caused the University System of New Hampshire to make payments for the unauthorized purchases to Zhang’s credit card account and UNH to seek and obtain reimbursements for each expense from the NASA grants.
Both defendants were arrested on Friday and are scheduled to make their initial appearances in federal court on Friday afternoon.
The cases were investigated by the Federal Bureau of Investigation, the University of New Hampshire Police Department, the U.S. Department of Health and Human Services, Office of Inspector General, and the National Aeronautics and Space Administration, Office of Inspector General, with assistance from the Police Departments in Durham, Nottingham, and Newmarket, New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Robert Kinsella.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
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Two Nigerian Citizens Sentenced for Participating in Wire Fraud Scheme Defrauding U.S. Victims of MillionsRead the Press Release
HOUSTON – Two Nigerian citizens, both of whom reside in Houston, have been ordered to federal prison for perpetuating a wire fraud scheme involving various internet scams, announced U.S. Attorney Ryan K. Patrick. Idowu Olugbenga Temetan aka David Cole, 30, and Adeltilewa Olamigoke Afolabi Ikuejuyone aka Kuffour Duval, 36, previously pleaded guilty to conspiracy to commit wire fraud and three counts of wire fraud. Temetan also admitted to one count of passport forgery.
Today, U.S. District Judge Sim Lake handed Temetan a 51-month sentence, while Ikuejuyone received a 45-month sentence yesterday. Both defendants were also held jointly and severally liable to pay $187,422.60 in restitution. As both are not U.S. citizens, each are expected to face deportation proceedings following their sentences.
At Ikuejuyone’s sentencing, the court heard testimony from a relative of one of the victims who testified about the emotional and financial toll the defendant’s criminal actions had taken on their family. During Temetan’s sentencing hearing today, he acknowledged his mistakes and apologized to the victims for his actions. In handing down the sentences, the court noted the defendants engaged in a series of actions over an extended length of time to defraud multiple victims.
From October 2013 until March 2014, Temetan and Ikuejuyone used counterfeit passports to open bank accounts in the greater Houston area. The passports contained photographs of Temetan and Ikuejuyone but utilized the aliases of David Cole and Kuffour Duval, respectively. Both Temetan and Ikuejuyone then worked with others to lure victims into sending money into various bank accounts under their sole ownership and control. These funds were obtained through a variety of internet scams, including lottery scams and business investment scams. Checks or wire transfers were then sent from the victims’ bank accounts to accounts Temetan and Ikuejuyone controlled. Temetan, Ikuejuyone and their co-conspirators would then use the counterfeit passports to retrieve the fraudulently obtained funds.
Law enforcement has been able to trace at least $4 million to victims, some of whom who reside in Houston, that have been affected by this scheme. The conspiracy resulted in the defrauding of one elderly victim of $3 million alone. After authorities identified this victim, they were able to trace the accounts into which the monies were being deposited.
Temetan and Ikuejuyone will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys Julie N. Searle and Rick Bennett prosecuted the case.
Two Florida Men Sentenced for Credit Card FraudRead the Press Release
Jason Albert Leslie, Jr. 26, of Miami, Florida, and Tafari Shaile Lawrence, 29, also of Miami, Florida, were sentenced in federal court in Casper to prison terms for their roles in a credit card fraud conspiracy, announced United States Attorney Mark A. Klaassen. Mr. Lawrence was sentenced by United States District Court Judge Scott W. Skavdahl on March 21, 2018, to serve 18 months in prison, followed by 2 years supervised release. Judge Skavdahl sentenced Mr. Leslie to serve 30 months in prison, followed by 3 years supervised release. Both men were ordered to pay $222,756.08 in restitution to Citibank.
Leslie and Lawrence had previously pled guilty to conspiracy for their participation in a scheme to use fraudulently obtained Citibank credit cards to purchase prepaid debit cards at Walmart stores in several states. The Citibank cards were fraudulently obtained by unknown persons using made-up and stolen identity information. Leslie and Lawrence were then given the unauthorized credit cards and traveled to Walmart stores to purchase prepaid debit cards in late June and July 2016. The defendants then wired money to other members of the conspiracy. The defendants were discovered and arrested during a traffic stop by Wyoming Highway Patrol troopers south of Laramie on July 30, 2016.
This case was investigated by special agents of the Wyoming Division of Criminal Investigation with assistance from the U.S. Secret Service. The case was prosecuted by Assistant U.S. Attorney Eric Heimann of the U.S. Attorney’s Office for the District of Wyoming.
Todd Delaune Indicted for Violations of the Federal Gun Control ActRead the Press Release
TODD DELAUNE age 53, a resident of Larose, Louisiana, was charged yesterday in a one-count indictment by a Federal Grand Jury for violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to previously filed court documents, DELAUNE was arrested by detectives of the Lafourche Parish Sheriff’s Office’s on February 12, 2018 for simple assault, telecommunications harassment and threatening a public official. Subsequent to his arrest, a search warrant was executed at DELAUNE’s residence and the following ammunition was discovered and seized: one box of Winchester 12 gauge shotgun shells (8 in box); two full boxes of Winchester 12 gauge shotgun shells (50 rounds), one full box of Federal 12 gauge shotgun shells (25); one hundred and eighty .22 caliber Remington bullets; one full box of Eley .22 caliber bullets (50 rounds); one Promag 50 round .22 caliber magazine; two Eagle 35 round .22 caliber magazines. A review of DELAUNE’s criminal history revealed that he pled guilty on August 7, 2013 to simple battery of his ex-wife (a misdemeanor crime of domestic violence), which prohibits him from possessing firearms and ammunition.
If convicted, DELAUNE faces a ten year term of imprisonment, to be followed by a three year term of supervised release, and a fine of up to $250,000.
U. S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Michael E. McMahon.
Third Strike for Armed Drug Trafficker Eutawville Man Convicted of Drug Trafficking ConspiracyRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Joey Lamont Brunson, a/k/a “Solo Flex,” age 42 of Eutawville (Orangeburg County), South Carolina was convicted of all twelve of the charges in his federal indictment after a four day jury trial before Judge Joseph F. Anderson, Jr. After four hours of deliberations, the jury returned verdicts convicting Brunson of being a member of a conspiracy to distribute 5 kilograms or more of cocaine, four counts of use of a cell phone to further drug trafficking, money laundering conspiracy, possession with intent to distribute marijuana and cocaine, felon in possession of a firearm, possession of a firearm in furtherance of drug trafficking, and perjury. Judge Anderson will impose sentence after a presentence report is prepared by the United States Probation Office.
Evidence presented at the trial included numerous wiretap calls between Brunson and his main source of supply Lamario Vincent Wright from June through October of 2013. In the calls, Brunson brazenly discussed beating another conspirator in an effort to recover cocaine that the conspirator had stolen from Wright. Repeatedly in the intercepted calls and texts, Brunson ordered drugs using coded language from his suppliers.
After Brunson was indicted in 2015, agents testified he went on the run and eluded capture by the FBI for almost two years. After receiving a tip from the Navy Federal Credit Union in Summerville, agents learned that Brunson was depositing between $3000.00 and $9000.00 cash regularly at multiple locations in late 2016 and 2017. On March 3, 2017, Summerville Police Officers responded to a call for service from one of the credit unions and arrested Brunson after a brief struggle. Agents searched the silver Suzuki he was driving and located cocaine, crack cocaine, marijuana and two firearms. Bank records proved that Brunson deposited over $90,000.00 in cash in multiple accounts while on the run from the FBI.
Evidence at trial also included testimony and pictures of a $30,000 Escalade truck that Brunson bought at the request of his supplier Lamario Wright. Records showed that Brunson used over $20,000.00 in drug money to purchase the truck and that he placed it in his name to hide the fact that the truck actually belonged to his partner Wright.
Brunson has previously been convicted of federal drug violations in the late 1990s and in 2007, and has previously served two custodial sentences in the Bureau of Prisons. Based on his prior convictions and the fact that he was convicted of multiple felony drug convictions yesterday, Brunson faces a statutory mandatory minimum life sentence without the possibility of parole.
The case was investigated by agents from the Federal Bureau of Investigation with the assistance of the Summerville Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshal’s Office. The case was prosecuted by Assistant U. S. Attorneys Will Lewis and J.D. Rowell.
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Texas Man Sentenced to 2 Years Probation for Making False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
U.S. Attorney Duane A. Evans announced that KENNETH JOHNS, age 46, of Rosharon, Texas, was sentenced yesterday by U.S. District Judge Nannette Jolivette Brown to 2 years probation and $750.00 fine, for making false statements to the Bureau of Safety and Environmental Enforcement’s (BSEE) Safety and Incident Investigation Division (SIID) of the United States Department of Interior in relation to the veracity of blowout preventer testing on an offshore oil and gas platform.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform located at Ship Shoal 225, and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control.
On or about November 28, 2012, JOHNS and another worker created a false blowout preventer test. The next day when BSEE inspectors conducted a routine compliance inspection of the platform, the fabricated blowout preventer pressure test chart was presented to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system. JOHNS signed the fabricated pressure chart and a schematic of the testing sequence as if he had actually been involved in the BOP testing.
During subsequent investigation of the veracity of the blowout preventer test by the Department of Interior, JOHNS lied and told investigators the BOP chart with his signature was pre-signed and that he had been testing a pump when he made the chart.
U.S. Attorney Evans praised the work of the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from BSEE, and the Environmental Protection Agency-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit was in charge of the prosecution.
TDCJ Inmate Receives More Prison Time for Threatening Federal Judge…AgainRead the Press Release
HOUSTON – A 46-year-old inmate who formerly resided in Houston has received another federal sentence for threatening a U.S. District Judge, announced U.S. Attorney Ryan K. Patrick. George Yarbrough pleaded guilty Sept. 8, 2017.
Today, U.S. District Judge Harmon handed Yarbrough a 120- month sentence. In handing down the sentence, the court noted that this was the second time Yarbrough has been convicted of sending a threatening letter to the same federal judge. He was sentenced in that case to 21 months which will be served consecutively to the previous prison term imposed today.
Yarbrough is currently in the custody of the Texas Department of Criminal Justice (TDCJ). While in custody, Yarbrough wrote a letter threatening to kill a Houston federal judge. The U.S. District Court Clerk’s Office in Houston received the letter on April 19, 2017. In the letter, Yarbrough said “So the State of Texas and the Fed. Govt. (illegible), are to Blame: for me killing you, and your family.” It also included that “Everyday I look at your photo, that I got of the internet, and think of many ways to kill you, and your family.”
Yarbrough previously wrote a similar letter in 2014. In that case, Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier. He had stated then that he was going to murder the judge upon his release from TDJC and blamed the judge for all his problems. He added that he had people on the outside that would murder the judge if something happened to him before he got out. Yarbrough also said he was going to murder a judge in San Antonio who took his daughter away.
In the current case, Yarbrough admitted writing the letter, expressing his concern that he is not being taken seriously as the sentence he received the fist time was so short, referring to it as a “slap on the wrist.” During the interview with authorities, he again threatened the judge, a state senator and two prison guards which who were the basis of the original civil lawsuit.
He will be returned to state custody. Upon his release there, he will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future to serve his total 120 month federal prison term. Yarbrough was also ordered to serve a three-year term of supervised release upon his release from federal prison, during which he will participate in mental health counseling.
The U.S. Marshals Service and FBI conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Stapleton Couple Sentenced for Income Tax Evasion and Bankruptcy FraudRead the Press Release
DENVER –Daryl F. Yurek, age 62, and Wendy M. Yurek, age 62, were sentenced by U.S. District Court Judge William J. Martinez on March 22 and 23, 2018. Mr. Yurek was sentenced to 50 months incarceration followed by three years of supervised release and an asset forfeiture money judgment was entered against him in the amount of $132,991.61. Mrs. Yurek was sentenced to 27 months incarceration followed by three years of supervised release. The Yureks and were also ordered to pay $1,614,536.38 in restitution to the IRS. Both were convicted by a Denver Jury on July 27, 2017, of tax evasion and bankruptcy fraud following a two week trial. Daryl Yurek was also convicted of three additional related offenses. Their sentences were announced today by United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to the indictment and evidence presented at trial, Daryl Yurek was a partner in Bolder Venture Partners from 1999 through 2012, and Wendy Yurek was a partner from 2008 through 2012. Daryl Yurek acted as a consultant to start-up and growing companies and provided a variety of services, including temporary management and fundraising. Daryl Yurek also exerted significant control over other companies, including ID Watchdog, and Veracity Credit Consultants. The Yureks reported tax due and owing for tax years 1999 and 2004 of $624,127 and $53,978, respectively. In 2006, the Yureks submitted an Offer in Compromise to the IRS attempting to settle their tax obligation for $75,000. With the Offer in Compromise, the Yureks indicated the reason for the offer was “Doubt as to Collectability – ‘I have insufficient assets and income to pay the full amount.’” Later, in September 2010, the Yureks filed with the United States usBankruptcy Court in the District of Colorado a Voluntary Chapter 7 Bankruptcy Petition. During the bankruptcy proceeding, Daryl Yurek testified that the primary reason for pursuing bankruptcy was "the $1.2 million that the IRS wants."
However, during the period the Yureks claimed to be unable to pay their tax liability, the Yureks caused Bolder Venture Partners and Veracity Credit Consultants to pay substantial personal expenses for the Yureks. In March, 2006, the Yureks purchased a downtown Denver loft as their personal residence for $1.3 million in the name of one of their sons. Between 2006 and 2011, Veracity Credit Consultants made mortgage payments of $526,511.99 for the Yureks’ loft, while Bolder venture Partners paid $43,866 for the loft’s Condo Association Fees. Additionally, between 2006 and 2010, Veracity Credit Consultants made $107,204.36 in rental payments for vacation homes in Tabernash, Colorado used by the Yureks. Daryl Yurek’s Pinehurst Country Club membership and associated expenses paid by Veracity Credit Consultants between 2007 and 2012 totaled approximately $90,810.74.
Furthermore, the Yureks committed numerous affirmative acts of evasion, including submitting false statements to the IRS on IRS Forms 433-A, IRS Collection Information Statement for Wage Earners and Self-Employed Individuals, as well as Daryl Yurek transferring shares he held in ID Watchdog to Veracity Credit Consultants and to his sons while falsely claiming to the IRS that he had not made any transfers for less than full value.
“It’s pretty simple: you’ve got to pay your taxes,” said U.S. Attorney Bob Troyer. “The Yureks were determined not to pay, now they’ll pay with prison.”
“Taxpayers thinking about participating in fraudulent tax schemes, including hiding assets, should stop in their tracks and carefully consider the consequences of taking the next step,” said Steven Osborne, Special Agent in Charge of IRS Criminal Investigation. “Those consequences include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest.”
This case was prosecuted by Assistant United States Attorney Pegeen D. Rhyne with Assistant United States Attorney Laura B. Hurd assisting with asset forfeiture. The case is captioned United States of America v. Yurek, et al., Case No. 15-cr-394.
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South San Francisco Resident Pleads Guilty to Money Transmission and Tax SchemeRead the Press Release
SAN FRANCISCO – Subhash Jay pleaded guilty today to operating an unlicensed money transmitting business and filing a false tax return announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Charles R. Breyer, United States District Judge, in San Francisco.
According to the plea agreement, Jay, 59, of South San Francisco admitted to operating a money transmitting business known as Force Services, Inc., without obtaining required state or federal licenses. Jay admitted that, during 2010 through 2014, he caused two domestic bank accounts held in the name of Force Services to receive international wire transfers on behalf of a client. The wire transfers had an aggregate value of at least $4,515,236. Jay forwarded most of those funds to the client, but retained $817,734 as commissions. Jay willfully filed corporate tax returns for Force Services for the years 2010 through 2014, which failed to report the commissions as gross receipts. Jay also willfully filed individual income tax returns for the years 2010 through 2014, which failed to report the commissions as income.
A federal grand jury indicted Jay on April 6, 2017, charging him with one count of operating an unlicensed money transmitting business, in violation of 18 U.S.C. § 1960; ten counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1); one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2); and one count of structuring financial transactions to evade reporting requirements, in violation of 31 U.S.C. § 5324(a)(3). Today Jay pleaded guilty to one count of operating an unlicensed money transmitting business, and one count of filing false tax returns. Judge Breyer scheduled Jay’s sentencing hearing for July 18, 2018. Jay faces a maximum sentence of five years in prison and a fine of $250,000 for operating an unlicensed money transmitting business, and three years in prison and a fine of $250,000 for filing false tax returns. 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 United States Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
Slidell Couple Charged with Making “Straw Purchases” and Illegal Possession of Firearms and Ammunition in Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRISTOPHER MAZUR, age 32, and REBECCA COMSTOCK, age 36, were charged on March 22, 2018, in a two-count indictment with violations of the Federal Gun Control Act.
According to the indictment, MAZUR and COMSTOCK made false statements to a federally licensed firearms dealer related to three firearms. MAZUR also unlawfully possessed ten firearms and 2,825 rounds of ammunition. If convicted, MAZUR and COMSTOCK face as to each count a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that an indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
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.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
Six from Cherokee County Guilty of Drug Trafficking in East TexasRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced today that six Jacksonville, Texas men have pleaded guilty following a drug trafficking investigation in the Eastern District of Texas.
Lenard Donnell Atkins, 31, pleaded guilty to possession with intent to distribute methamphetamine, cocaine, and other controlled substances.
Keyonta Monquan Johnson, 23, pleaded guilty to distribution of methamphetamine near a playground.
Carlos Brejohn Battle, 33, Carlton Deshan Johnson, 28, Jimendrick Clenon Shedd, 37, and David Lee Williams, 32, each pleaded guilty to possession with intent to distribute methamphetamine before Judge Love.
The plea hearings were held on Mar. 21 and Mar. 22, 2018 before U.S. Magistrate Judge John D. Love.
The defendants were named in an indictment returned by a federal grand jury on Oct. 18, 2017, charging conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and other controlled substances; possession with intent to distribute methamphetamine, cocaine, and other controlled substances; use, carrying, possession of firearms in furtherance of a drug trafficking crime; felon in possession of firearms; distribution of methamphetamine near a playground; possession with intent to distribute methamphetamine and aiding and abetting; possession with intent to distribute methamphetamine on premises where children are present and aiding and abetting.
Under federal statutes, the defendants face sentences ranging from five to 80 years in federal prison. The sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Mary Ann Cozby. The investigating agencies were the Federal Bureau of Investigation, Cherokee County Sheriff's Office, and Texas Department of Public Safety.
Six People Indicted on Federal Drug Conspiracy Charges Following Investigation into Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Nine people have been indicted on federal charges stemming from an ongoing investigation into the trafficking of PCP, crack cocaine and heroin in Southwest Washington, announced U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The defendants are charged in four indictments returned in the U.S. District Court for the District of Columbia. Six were arrested on March 22, 2018, and the others already were in custody. The drug conspiracy indictment – which charges six people, including two brothers – was unsealed today.
The indictments followed an investigation by ATF and the MPD targeting the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District. According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
Six defendants were indicted on March 20, 2018, and charged with conspiring to distribute and possess with the intent to distribute more than 100 grams of PCP, heroin, and crack cocaine. They include Antonio Spencer, 24; his brother, Maurice Spencer, 19; Kione Banks, 20; Raymond Boston, 26; Damion Littman, 32, and Davon Warren, 21. All are from Washington, D.C. The charges cover a time period extending from January 2017 through July of 2017. All but Banks were arrested on March 22; Banks already was in custody.
In a separate indictment returned this week and unsealed today, Morriko Washington, 24, of Washington, D.C., is charged with distributing more than 100 grams of PCP on four separate occasions between August 2017 and November of 2017. Washington was arrested March 22.
Jerome Fuller, 33, of Washington, D.C., was arrested on March 12, 2018, on charges of selling PCP and crack cocaine in July and August of 2017. He has pled not guilty to the charges.
The ninth defendant, Mark Jamahl Stephens, 26, also of Washington, D.C., was indicted on Dec. 14, 2017 on charges of possession with the intent to distribute crack cocaine and possession of a firearm in connection with his arrest in May 2017. He has been in custody.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by ATF and MPD. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Savannah Man Sentenced to Fifteen Years for Possession of a HandgunRead the Press Release
SAVANNAH, GA: Savannah resident Ernest Jackson, 36, was sentenced on March 12, 2018, by Senior District Court Judge William T. Moore, Jr., for his role in a counterfeiting scheme spanning Chatham, Bryan, Bulloch, and McIntosh Counties, as well as for his possession of a firearm. Judge Moore awarded Jackson 60 months’ confinement for the counterfeiting offense, and a concurrent term of 180 months’ confinement for possessing a firearm as a convicted felon.
Evidence during the sentencing hearing emphasized that Jackson possessed the firearm at issue after earning multiple felony convictions for Armed Robbery, Aggravated Assault, Carjacking, and Aggravated Assault upon a Police Officer. Jackson’s violent criminal history placed him in the category of an “Armed Career Criminal,” which designation requires a mandatory minimum 15-year term of confinement. Additionally, ballistics testing linked Jackson’s firearm to multiple unsolved Savannah-area shootings.
The case was investigated and prosecuted with assistance from the United States Secret Service, the Savannah Police Department, the Richmond Hill Police Department, the Bryan County Sheriff’s Office, the Liberty County Sheriff’s Office and the Georgia State Patrol.
Glen Kessler, the Resident Agent in Charge of the U.S. Secret Service said, “The U.S. Secret Service, with its local and state partners, will continue to work towards protecting our communities from gun violence by aggressively targeting those gun carrying felons that come onto our radar for criminal offenses like counterfeiting, credit card fraud or other federal violations.”
United States Attorney Bobby Christine said, “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy sentences in federal prison.”
Assistant United States Attorney Jennifer G. Solari prosecuted the case against Jackson for the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Regional Enforcer of Gangster Disciples Sentenced to 30 Years in Prison for RacketeeringRead the Press Release
A Gangster Disciples gang member was sentenced today to 360 months in prison and five years of supervised release for conspiring to participate in a racketeering enterprise.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U. S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge Michael T. Gavin of the FBI’s Memphis Division, and Acting Special Agent in Charge Jack Webb of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Memphis Field Division, made the announcement.
Henry Cooper, aka Big Hen, 37, of Memphis, Tennessee, was sentenced by U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee. Cooper previously pleaded guilty to conspiracy to participate in racketeering activity.
The Gangster Disciples is a highly organized national gang active in more than 24 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. The Gangster Disciples promotes its enterprise through member-only activities and provides financial and other support to members charged with or incarcerated for gang-related offenses or who are fugitives from law enforcement.
Members and associates of the Gangster Disciples are subject to a strict code of discipline and are routinely fined, beaten, and even murdered for failing to follow the gang’s rules. "Enforcers" within the enterprise ensure that members who violate the strict rules of the enterprise are appropriately punished.
According to statements made at his sentencing hearing, Cooper was a Gangster Disciple from 1992 until the time of his arrest in 2016. Furthermore, he was a high-ranking member of the Gangster Disciples, and at the time of indictment and arrest in this case served as the Regional Enforcer for the State of Tennessee. As the Regional Enforcer, Cooper was responsible for enforcement in Tennessee and six other states, including Arkansas, Illinois, Indiana, Kentucky, Ohio, and Wisconsin. One of Cooper’s responsibilities was to pass along information from the Chief Enforcer for the Gangster Disciples to enforcers in these states. Cooper also oversaw the enforcement of punishments, supervised the criminal activities of other members, issued orders to commit violent offenses against rivals and subordinates, and presided over Gangster Disciple meetings where criminal activity was discussed.
Cooper also participated directly in the activities of the gang, including acts involving murder, kidnapping, assault, witness intimidation, narcotics distribution, and weapons trafficking. Cooper’s participation in the criminal activities of the Gangster Disciples spanned approximately 25 years.
The FBI; ATF; the Memphis Multi-Agency Gang Unit; the Memphis Police Department; the Shelby County, Tennessee Sheriff’s Office; the Jackson Police Department Gang Enforcement Team; the Tennessee Bureau of Investigation; the Madison County, Tennessee Sheriff’s Department; the 28th District West Tennessee Drug Task Force; The Tipton County, Tennessee, Sheriff’s Office; the 26th Judicial District Attorney General’s Office; the 25th Judicial District Attorney General’s Office; the Atascosa County, Tennessee District Attorney’s Office; and the Shelby County District Attorney General’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Beth Boswell of the Western District of Tennessee and Samuel Stringfellow of the Northern District of Mississippi are prosecuting the case.
Raytown Landlord Sentenced for Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man has been sentenced in federal court for engaging in a bankruptcy fraud scheme in order to prevent dozens of rental properties from being sold by the county for failure to pay property taxes.
Kenneth Mabrie, 68, of Raytown, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, March 22, 2018, to five years of probation. The court also ordered Mabrie to pay $92,040 in restitution.
On Sept. 14, 2017, Mabrie pleaded guilty to one count of aiding and abetting bankruptcy fraud.
Mabrie was an intercity landlord who did not pay his Jackson County property taxes nor the city assessments on the properties he owns and rents. When the properties went into foreclosure by Jackson County in 2009 and again in 2011, Mabrie filed a Chapter 13 bankruptcy proceeding shortly before the sale of the properties at the annual August auction. The bankruptcy petitions were soon dismissed for failure to file required information, but prevented the foreclosure and Mabrie continued to collect rent from the properties (including money from the Housing Choice Voucher (HCV) program, also known as the Section 8 tenant-based assistance program).
According to court documents, Mabrie’s conduct had a broader negative impact on the community. In a letter to the court, the Director of Neighborhood Housing Services for the City of Kansas City, Mo., stated that “Kenneth Mabrie, and his associated limited liability companies and business entities, have failed to maintain their properties for many years. His failure to maintain its properties has resulted in both a quantifiable monetary loss to taxpayers and pervasive blight throughout the city.”
Co-defendant Curtis Jones, 55, of Kansas City, Mo., also pleaded guilty to his role in the scheme and was sentenced to three years of probation.
Jones filed for bankruptcy on Aug. 22, 2012, five days before the date of the auction sale. Jones listed 31 tax delinquent properties in his bankruptcy petition. Jones was deeded 17 of those properties from Mabrie one day prior to the filing. Seven of those properties were included in Mabrie’s 2011 bankruptcy petition. An additional two properties listed by Jones were privately owned by Mabrie at the time of the filing. The remaining 12 properties were deeded to Jones one day prior to filing from other persons. The majority of the remaining 12 properties had some sort of nexus to Mabrie; for example, of the remaining 12 properties, Mabrie owned 10 of the properties previously, and one of the properties was deeded from Mabrie’s daughter. Jones’s bankruptcy petition was dismissed on Sept. 7, 2012, for failure to file information.
Jones filed for bankruptcy again on Aug. 23, 2013, the same day of the auction sale. Jones listed 29 tax delinquent properties in his bankruptcy petition. Two of those properties were deeded from Mabrie on the day of the filing and 26 of the properties had been included in the 2012 petition. This bankruptcy petition was dismissed on Sept. 13, 2013, for failure to file information.
The loss amount to Jackson County was $92,040, for which the court ordered Mabrie to pay restitution. This represents only the most recent tax bill as included in the bankruptcy filings (2010 or 2011 or 2012), less any money Mabrie or Jones paid to Jackson County following the bankruptcy filings (as of September 2015).
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Housing and Urban Development – Office of Inspector General.
Prolific Opioid Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Brandon Jerome Randolph (29, Bradenton) to 15 years in federal prison for conspiracy to distribute cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. He pleaded guilty on December 11, 2017.
According to court documents, Randolph and his associates sold drugs out of a house in Bradenton that operated as an open-air drug market. These drugs included cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. Randolph and his associates sold these drugs to undercover detectives on numerous occasions.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
Pittsburgh Man Pleads Guilty to Drug ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Michael King, 37, pleaded guilty to one count before United States District Judge David Stewart Cercone.
In connection with the guilty plea, the court was advised that from in and around April 2016, and continuing thereafter to in and around October 2016, King conspired with others to distribute and possess with intent to distribute a quantity of cocaine, a Schedule II controlled substance. During his plea colloquy, the defendant admitted that on or about September 30, 2016, he possessed approximately four ounces of cocaine and that he sold cocaine for $1,200 per ounce.
Judge Cercone scheduled sentencing for July 25, 2018 at 1 p.m. The law provides for a maximum sentence of 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pennsylvania Man Charged with Illegally Exporting Firearm Parts to IraqRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today the unsealing of an indictment charging Ross Roggio, age 49, of Stroudsburg, Monroe County, Pennsylvania, and Roggio Consulting Company, LLC, a firm with which Ross Roggio was associated, for alleged involvement in a conspiracy to illegally export firearm parts, firearm manufacturing tools, and “defense services,” including items used to manufacture M4 rifles, from the United States to Iraq, in violation of the Arms Export Control Act and the International Emergency Economic Powers Act.
According to U.S. Attorney David J. Freed, the indictment charges Ross Roggio and Roggio Consulting Company, LLC with criminal conspiracy, illegal export of goods, wire fraud, and money laundering. Pursuant to regulations of the U.S. Department of Commerce, a license is required to export certain goods and services from the United States to Iraq for reasons of regional stability and national security. Similarly, defense services and defense articles may not be exported to Iraq without a license from the U.S. Department of State.
The indictment alleges that, beginning in January of 2013 until the date of the indictment, Ross Roggio conspired to export both items and services from the United States to Iraq, without the required U.S. Commerce Department and U.S. State Department licenses. The conspirators allegedly purchased firearms parts and manufacturing tools from the United States, illegally exported the items to Iraq where the items were utilized and incorporated in the manufacture and assembly of complete firearms in a firearms manufacturing plant constructed and operated in part by Ross Roggio. It is alleged that the items illegally exported included: M4 Bolt Gas Rings MIL; Firing Pin Retainers; Rifling Combo Buttons, and “defense services.” The defense services allegedly provided by Ross Roggio and his firm include the furnishing of assistance to foreign persons in the manufacture of firearms.
In addition to the charges relating to export controls violations, the indictment also alleges that Ross Roggio and his firm committed wire fraud on at least three occasions by purchasing items from a United States company and providing said company with false information about the end-user of the items. Finally, the indictment charges Ross Roggio and his firm with 27 counts of money laundering in the form of bank transfers from Iraq to two accounts within the Middle District of Pennsylvania, in furtherance of their unlawful export conspiracy.
“The conduct alleged in this indictment directly violates laws enacted to keep our nation secure,” said United States Attorney Freed. “We commend the FBI, HSI and Department of Commerce for their outstanding efforts in this complicated international case. We will not allow anyone to put profits above our security, at home or abroad.”
“The Office of Export Enforcement vigorously pursues violators of our nation’s export control laws, which are in place to further and protect our national security and foreign policy. As in this instance, we work closely with our colleagues at the FBI and HSI and other agencies in prosecuting this case,” said Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
"U.S. export controls are in place to keep our nation's most sensitive military and defense technologies from falling into the wrong hands," said Marlon V. Miller, special agent in charge of HSI Philadelphia. "One of HSI's highest priorities is to prevent the illicit procurement and proliferation of export-controlled military and defense commodities in violation of United States law."
"As alleged, this defendant brazenly flouted U.S. arms export controls enacted in the interests of our national security, and international stability," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "It suggests an all too familiar attitude: in the face of an illegal, but very lucrative, plan -- laws be damned."
The case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania, and Trial Attorneys Scott Claffee and Heather Alpino, of the National Security Division, Counterintelligence and Export Control Section.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law for these offenses is 705 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pennsylvania Man Charged with Illegally Exporting Firearm Parts to IraqRead the Press Release
An indictment was unsealed today charging Ross Roggio, 49, of Stroudsburg, Pennsylvania, and Roggio Consulting Company, LLC, a firm with which Ross Roggio was associated, for alleged involvement in a conspiracy to illegally export firearm parts, firearm manufacturing tools, and “defense services,” including items used to manufacture M4 rifles, from the United States to Iraq, in violation of the Arms Export Control Act and the International Emergency Economic Powers Act.
Assistant Attorney General for National Security John C. Demers; U.S. Attorney David J. Freed of the Middle District of Pennsylvania; Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office; and said Special Agent in Charge Marlon V. Miller of Homeland Security Investigations Philadelphia Office made the announcement.
The indictment charges Ross Roggio and Roggio Consulting Company, LLC with criminal conspiracy, illegal export of goods, wire fraud and money laundering. Pursuant to regulations of the U.S. Department of Commerce, a license is required to export certain goods and services from the United States to Iraq for reasons of regional stability and national security. Similarly, defense services and defense articles may not be exported to Iraq without a license from the U.S. Department of State.
The indictment alleges that, beginning in January of 2013 until the date of the indictment, Ross Roggio conspired to export both items and services from the United States to Iraq, without the required U.S. Commerce Department and U.S. State Department licenses. The conspirators allegedly purchased firearms parts and manufacturing tools from the United States, illegally exported the items to Iraq where the items were utilized and incorporated in the manufacture and assembly of complete firearms in a firearms manufacturing plant constructed and operated in part by Ross Roggio. It is alleged that the items illegally exported included: M4 Bolt Gas Rings MIL; Firing Pin Retainers; Rifling Combo Buttons, and “defense services.” The defense services allegedly provided by Ross Roggio and his firm include the furnishing of assistance to foreign persons in the manufacture of firearms.
In addition to the charges relating to export controls violations, the indictment also alleges that Ross Roggio and his firm committed wire fraud on at least three occasions by purchasing items from a United States company and providing said company with false information about the end-user of the items. Finally, the indictment charges Ross Roggio and his firm with 27 counts of money laundering in the form of bank transfers from Iraq to two accounts within the Middle District of Pennsylvania, in furtherance of their unlawful export conspiracy.
The combined maximum penalty under federal law for these offenses is 705 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania, and Trial Attorneys Scott Claffee and Heather Alpino of the National Security Division’s Counterintelligence and Export Control Section.
Passaic County Man Indicted for Conspiracy to Distribute Heroin in Paterson, New Jersey, and Suburbs in New York, New JerseyRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment today against an alleged member of a heroin distribution conspiracy that reached from the Bronx, New York, to Paterson and suburban communities in New York and New Jersey, U.S. Attorney Craig Carpenito announced.
Reinaldo Rodriguez, a/k/a “Money,” a/k/a “Mimo,” 29, of Paterson, is charged in a four-count indictment with conspiracy to distribute a kilogram or more of heroin, possession with intent to distribute heroin and marijuana, felony possession a firearm, and possession of a firearm in furtherance of a drug trafficking crime. He was arrested in May 2016 and has been in custody since that time.
Reinaldo Rodriguez was originally charged by complaint with Juan Pablo Goris-Castellano, 27, of the Bronx; Edwin Lopez, 32, of Elmwood Park, New Jersey; Carolina Almonte, 30, of the Bronx; Charlie Rodriguez, 34, of Paterson; Victor Alfonso Alvarez Martinez, 28, of the Bronx; Edward M. Stanel, 27, of Parsippany, New Jersey; and Joseph Trimarco, 30, of Stony Point, New York.
According to documents filed in this case:
From June 2015 through May 2016, the defendants participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations in and around the Bronx and used couriers to deliver large quantities of that heroin to mid-level drug dealers operating in and around Paterson. The heroin was either sold in the Paterson area or re-distributed to street-level drug dealers in suburban areas, including but not limited to, Morris County, New Jersey, and Rockland County, New York.
Goris-Castellano, who was based out of the Bronx, packaged and distributed large quantities of heroin to Lopez, who operated out of Paterson. Goris-Castellano worked with his associates, Almonte and Alvarez Martinez, who brought the heroin to Lopez and returned to Goris-Castellano with Lopez’s payment for the drugs. Lopez then sold portions of that heroin to Charlie Rodriguez, who, working closely with Reinaldo Rodriguez, resold portions of that heroin to street-level drug dealers in Paterson and suburban areas, including Stanel and Trimarco, who operated in Morris County and Rockland County, respectively.
At the time of his arrest, Reinaldo Rodriguez was in a bedroom in which distribution quantities of heroin and marijuana were found on the floor and a gun was found on top of a box of drug paraphernalia in the closet.
Due to his prior felony drug distribution conviction, the drug distribution conspiracy charge in the indictment carries a mandatory minimum penalty of 20 years in prison, a maximum potential penalty of life in prison, and a $20 million fine. The possession with intent to distribute charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison. The possession of a firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum penalty of five years in prison to run consecutively to any term imposed on the drug possession charge.
Almonte, Alvarez Martinez, Goris-Castellano, Lopez, Charlie Rodriguez, Stanel, and Trimarco have all pleaded guilty to their roles in the conspiracy. Almonte was sentenced to 46 months in prison in May 2017. Lopez was sentenced to 162 months in prison in July 2017.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie Nickerson in Newark, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against Reinaldo Rodriguez are merely accusations, and he is considered innocent unless and until proven guilty.
Defense counsel: Elizabeth Smith Esq., Mendham, New Jersey
North Carolina Man Sentenced to 27.5 Years in Prison for Enticing and Traveling to Pensacola for Sex with a MinorRead the Press Release
PENSACOLA, FLORIDA – Nicholas G. Peacock, 34, of Salisbury, North Carolina, was sentenced to 27.5 years in prison today in the U.S. District Court in Pensacola for enticement of a minor and interstate travel for illicit sexual activity. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In April 2016, S.S. reported that her twelve-year-old granddaughter was missing and that she believed the child had met someone online and left with him. When law enforcement visited S.S.’s residence, the child had returned home. The child said she traveled to North Carolina for the weekend with a white male named “Nick,” who was later identified as Peacock.
S.S. later told officers that she found information on a laptop that she had allowed her granddaughter to use that led S.S. to believe the child had been sexually active with Peacock. In interviews with investigators, the victim disclosed that she had been sexually active with Peacock over the weekend while they were in North Carolina, that she had met Peacock online via Skype, and that Peacock had transported her to North Carolina and then back to Florida after Peacock had found a missing person report.
In addition to telephone and hotel records, investigators reviewed thousands of Skype chats on the laptop from the time period of December 2015 through April 2016, which revealed many sexually explicit conversations, images, and videos exchanged between the victim and Peacock. Peacock pled guilty on July 17, 2017.
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, and other members of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
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.
Ninth Defendant Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Luis Lopez, age 40, of North East, Maryland today to five years in prison, followed by four years of supervised release, for Conspiracy To Distribute And Possess With Intent to Distribute Cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service – Washington Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, law enforcement began an investigation in 2015 into a drug conspiracy involving the importation and distribution of cocaine into the northeast Maryland and southern Delaware areas from Puerto Rico. Lopez and his co-defendants conspired with others known and unknown to possess and distribute cocaine.
According to the plea agreement, the investigation revealed a number of suspicious parcels were being sent through the U.S. Postal Service from Puerto Rico to fictitious addressees in Maryland and Delaware. For example, on February 20, 2015, investigators observed a U.S. Postal Service Priority Mail Express parcel was sent from Puerto Rico to an address in North East, Maryland, and that neither occupant at either address was associated to the sending or receiving addressee. Postal Inspectors obtained a search warrant for the parcel and found that it contained approximately 250 grams of cocaine.
Similarly, on May 2, 2015, investigators became aware of a U.S. Postal Service Priority Mail Express parcel that was accepted by a male, who was later identified as Leroy Fuentes, Jr. A traffic stop was conducted on Mr. Fuentes shortly after he left the post office with the parcel. After a K-9 unit gave a positive alert to his vehicle, the vehicle and its contents were searched. A search of the parcel revealed that the parcel contained approximately 135 grams of cocaine. In each instance, these parcels were packaged in a similar fashion.
On September 3, 2016, law enforcement conducted a lawful traffic stop of Luis Lopez. Lopez was searched and found to have a quantity of cocaine with him. Law enforcement subsequently seized and obtained a search warrant for Lopez’s phone. The search warrant revealed photographs sent to him via text message of a parcel similar to those that had been seized. The phone also contained tracking information for a parcel sent to a P.O. Box in Bear, Delaware. In addition to these photos, Lopez’s phone contained text messages between Lopez and his co-conspirators discussing the price of cocaine.
Finally, on September 22, 2016, law enforcement executed a search warrant at the residence of Lopez and found numerous loose pills in plastic baggies and $11,806 in U.S. Currency.
Lopez’s co-conspirators have all pleaded guilty to the conspiracy and been sentenced as follows:
Troy Baker, age 28, of North East, Maryland was sentenced to 38 months;
Leroy Fuentes, age 30, of North East, Maryland was sentenced to 30 months;
Roy Fuentes, Jr., age 26, of Newark, Delaware was sentenced to 24 months
Dahan Lopez, age 37, of Elkton, Maryland was sentenced to 60 months;
Angel Padilla, age 29, of Elkton, Maryland was sentenced to 42 months;
Eileen Perez, age 39, of New Castle, Delaware was sentenced to 18 months;
Fernando Lopez, age 40, of New Castle, Delaware was sentenced to 60 months; and
Nadja Velez, age 31, of Elkton, Maryland was sentenced to 12 months and 1 day.
Acting United States Attorney Stephen M. Schenning praised the FBI, the United States Postal Inspection Service and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Jason D. Medinger who prosecuted this Organized Crime Drug Enforcement Task Force case.
Nine Iranians Charged with Conducting Massive Cyber Theft Campaign on Behalf of the Islamic Revolutionary Guard CorpsRead the Press Release
An Indictment charging Gholamreza Rafatnejad, 38; Ehsan Mohammadi, 37; Abdollah Karima, aka Vahid Karima, 39; Mostafa Sadeghi, 28; Seyed Ali Mirkarimi, 34; Mohammed Reza Sabahi, 26; Roozbeh Sabahi, 24; Abuzar Gohari Moqadam, 37; and Sajjad Tahmasebi, 30, all citizens and residents of Iran, was unsealed today. The defendants were each leaders, contractors, associates, hackers-for-hire or affiliates of the Mabna Institute, an Iran-based company that, since at least 2013, conducted a coordinated campaign of cyber intrusions into computer systems belonging to 144 U.S. universities, 176 universities across 21 foreign countries, 47 domestic and foreign private sector companies, the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund. Through the defendants’ activities, the Mabna Institute stole more than 31 terabytes of academic data and intellectual property from universities, and email accounts of employees at private sector companies, government agencies, and non-governmental organizations. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (Iran) Islamic Revolutionary Guard Corps (IRGC), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients. In addition to these criminal charges, today the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the Mabna Institute and the nine defendants for sanctions for the malicious cyber-enabled activity outlined in the Indictment.
The charges were announced by Deputy Attorney General Rod J. Rosenstein; Assistant Attorney General for National Security John C. Demers; U.S. Attorney Geoffrey S. Berman for the Southern District of New York; FBI Director Christopher A. Wray; Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Division; and Treasury Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker.
“These nine Iranian nationals allegedly stole more than 31 terabytes of documents and data from more than 140 American universities, 30 American companies, five American government agencies, and also more than 176 universities in 21 foreign countries,” said Deputy Attorney General Rosenstein. “For many of these intrusions, the defendants acted at the behest of the Iranian government and, specifically, the Iranian Revolutionary Guard Corps. The Department of Justice will aggressively investigate and prosecute hostile actors who attempt to profit from America’s ideas by infiltrating our computer systems and stealing intellectual property. This case is important because it will disrupt the defendants’ hacking operations and deter similar crimes.”
“Today, in one of the largest state-sponsored hacking campaigns ever prosecuted by the Department of Justice, we have unmasked criminals who normally hide behind the ones and zeros of computer code,” said U.S. Attorney Berman. “As alleged, this massive and brazen cyber-assault on the computer systems of hundreds of universities in 22 countries and dozens of private sector companies and governmental organizations was conducted on behalf of Iran’s Islamic Revolutionary Guard. The hackers targeted innovations and intellectual property from our country’s greatest minds. These defendants are now fugitives from American justice, no longer free to travel outside Iran without risk of arrest. The only way they will see the outside world is through their computer screens, but stripped of their greatest asset – anonymity.”
“This investigation involved a complex threat in a dynamic landscape, but today’s announcement highlights the commitment of the FBI and our partners to vigorously pursue those that threaten U.S. property and security,” said Director Wray. “Today, not only are we publicly identifying the foreign hackers who committed these malicious cyber intrusions, but we are also sending a powerful message to their backers, the Government of the Islamic Republic of Iran: your acts do not go unnoticed. We will protect our innovation, ideas and information, and we will use every tool in our toolbox to expose those who commit these cyber crimes. Our memory is long; we will hold them accountable under the law, no matter where they attempt to hide.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
Background on the Mabna Institute
Gholamreza Rafatnejad and Ehsan Mohammadi, the defendants, founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including Abdollah Karima, aka Vahid Karima, Mostafa Sadeghi, Seyed Ali Mirkarimi, Mohammed Reza Sabahi, Roozbeh Sabahi, Abuzar Gohari Moqadam, and Sajjad Tahmasebi. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.
University Hacking Campaign
The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 176 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities. Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.
The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.
In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper). Megapaper was operated by Falinoos Company, a company controlled by Abdollah Karima, aka Vahid Karima, the defendant, and Gigapaper was affiliated with Karima. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.
Accompanying Mitigation Efforts
Prior to the unsealing of the Indictment, the FBI provided foreign law enforcement partners with detailed information regarding victims within their jurisdictions, so that victims in foreign countries could be notified and foreign partners could assist in remediation efforts.
Also, in connection with the unsealing of the Indictment, today the FBI provided private sector partners detailed information regarding the vulnerabilities targeted and the intrusion vectors used by the Mabna Institute in their campaign against private sector companies. This information will assist the public in its network defense and mitigation efforts.
* * *
Rafatnejad, Mohammadi, Karima, Sadeghi, Mirkarimi, Sabahi, Sabahi, Moqadam and Tahmasebi was each is charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; two counts of unauthorized access of a computer, each of which carries a maximum sentence of five years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
Mr. Rosenstein and Mr. Berman praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and the support of the OFAC. Assistant U.S. Attorneys Timothy T. Howard, Jonathan Cohen and Richard Cooper are in charge of the prosecution, with assistance provided by Trial Attorneys Heather Alpino and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
For the U.S. Department of Treasury’s press release announcing corresponding sanctions click here.
Nine Iranians Charged with Conducting Massive Cyber Theft Campaign on Behalf of the Islamic Revolutionary Guard CorpsRead the Press Release
Rod J. Rosenstein, the Deputy Attorney General of the United States, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and John C. Demers, Assistant Attorney General for National Security, announced today the unsealing of an indictment charging GHOLAMREZA RAFATNEJAD, EHSAN MOHAMMADI, ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI. The defendants were each leaders, contractors, associates, hackers-for-hire, and affiliates of the Mabna Institute, an Iran-based company that was responsible for a coordinated campaign of cyber intrusions that began in at least 2013 into computer systems belonging to 144 U.S.-based universities, 176 universities across 21 foreign countries, 47 domestic and foreign private sector companies, the United States Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund. Through the activities of the defendants, the Mabna Institute conducted these intrusions to steal over 30 terabytes of academic data and intellectual property from universities, and email inboxes from employees of victim private sector companies, government victims, and non-governmental organizations. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (“Iran”) Islamic Revolutionary Guard Corps (“IRGC”), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government clients. In addition to these criminal charges, today the Department of Treasury’s Office of Foreign Assets Control (OFAC) designated the Mabna Institute and the nine defendants for sanctions for the malicious cyber-enabled activity outlined in the Indictment.
Deputy Attorney General Rod J. Rosenstein said: “These nine Iranian nationals allegedly stole more than 31 terabytes of documents and data from more than 140 American universities, 30 American companies, five American government agencies, and also more than 176 universities in 21 foreign countries. For many of these intrusions, the defendants acted at the behest of the Iranian government and, specifically, the Iranian Revolutionary Guard Corps. The Department of Justice will aggressively investigate and prosecute hostile actors who attempt to profit from America’s ideas by infiltrating our computer systems and stealing intellectual property. This case is important because it will disrupt the defendants’ hacking operations and deter similar crimes.”
Manhattan U.S. Attorney Geoffrey S. Berman said: “Today, in one of the largest state-sponsored hacking campaigns ever prosecuted by the Department of Justice, we have unmasked criminals who normally hide behind the ones and zeros of computer code. As alleged, this massive and brazen cyber-assault on the computer systems of hundreds of universities in 22 countries, including the United States, and dozens of private sector companies and governmental organizations was conducted on behalf of Iran’s Islamic Revolutionary Guard. The hackers targeted innovations and intellectual property from our country’s greatest minds. These defendants are now fugitives from American justice, no longer free to travel outside Iran without risk of arrest. The only way they will see the outside world is through their computer screens, but stripped of their greatest asset – anonymity.”
FBI Assistant Director William F. Sweeney Jr. said: “The numbers alone in this case are staggering, over 300 universities and 47 private sector companies both here in the United States and abroad were targeted to gain unauthorized access to online accounts and steal data. An estimated 30 terabytes was removed from universities’ accounts since this attack began, which is roughly equivalent of 8 billion double-sided pages of text. It is hard to quantify the value on the research and information that was taken from victims but it is estimated to be in the billions of dollars. The nine Iranians indicted today now find themselves wanted by the FBI and our partner law enforcement agencies around the globe – and like other cyber criminals they will soon learn their ability to freely move was just limited to the virtual world only.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
Background on the Mabna Institute
GHOLAMREZA RAFATNEJAD and EHSAN MOHAMMADI, the defendants, founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.
University Hacking Campaign
The Mabna Institute, through the activities of the defendants, targeted over 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 176 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. The campaign started in approximately 2013, and has continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities, including, among other things, academic journals, theses, dissertations, and electronic books. Through the course of the conspiracy, U.S.-based universities spent over approximately $3.4 billion to procure and access such data and intellectual property.
The hacking campaign against universities was conducted across multiple stages. First, the defendants conducted online reconnaissance of university professors, including to determine these professors’ research interests and the academic articles they had published. Second, using the information collected during the reconnaissance phase, the defendants created and sent spearphishing emails to targeted professors, which were personalized and created so as to appear to be sent from a professor at another university. In general, those spearphishing emails indicated that the purported sender had read an article the victim professor had recently published, and expressed an interest in several other articles, with links to those additional articles included in the spearphishing email. If the targeted professor clicked on certain links in the email, the professor would be directed to a malicious Internet domain named to appear confusingly similar to the authentic domain of the recipient professor’s university. The malicious domain contained a webpage designed to appear to be the login webpage for the victim professor’s university. It was the defendants’ intent that the victim professor would be led to believe that he or she had inadvertently been logged out of his or her university’s computer system, prompting the victim professor for his or her login credentials. If a professor then entered his or her login credentials, those credentials were then logged and captured by the hackers.
Finally, the members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, through which they then exfiltrated intellectual property, research, and other academic data and documents from the systems of compromised universities, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. At least approximately 31.5 terabytes of academic data and intellectual property from compromised universities were stolen and exfiltrated to servers under the control of members of the conspiracy located in countries outside the United States.
In addition to stealing academic data and login credentials for university professors for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (“Megapaper”) and Gigapaper.ir (“Gigapaper”). Megapaper was operated by Falinoos Company (“Falinoos”), a company controlled by ABDOLLAH KARIMA, a/k/a “Vahid Karima,” the defendant, and Gigapaper was affiliated with KARIMA. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular United States-based and foreign universities.
Prior to the unsealing of the Indictment, the FBI provided foreign law enforcement partners with detailed information regarding victims within their jurisdictions, so that victims in foreign countries could be notified and so that foreign partners could assist in remediation efforts.
Private Sector Hacking Victims
In addition to targeting and compromising universities, the Mabna Institute defendants targeted and compromised employee email accounts for at least approximately 36 United States-based private companies, and at least approximately 11 private companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and exfiltrated entire email mailboxes from compromised employees’ accounts. Among the United States-based private sector victims were three academic publishers, two media and entertainment companies, one law firm, 11 technology companies, five consulting firms, four marketing firms, two banking and/or investment firms, two online car sales companies, one healthcare company, one employee benefits company, one industrial machinery company, one biotechnology company, one food and beverage company, and one stock images company.
In order to compromise accounts of private sector victims, members of the conspiracy used a technique known as “password spraying,” whereby they first collected lists of names and email accounts associated with the intended victim company through open source Internet searches. Then, they attempted to gain access to those accounts with commonly-used passwords, such as frequently used default passwords, in order to attempt to obtain unauthorized access to as many accounts as possible. Once they obtained access to the victim accounts, members of the conspiracy, among other things, exfiltrated entire email mailboxes from the victims. In addition, in many cases, the defendants established automated forwarding rules for compromised accounts that would prospectively forward new outgoing and incoming email messages from the compromised accounts to email accounts controlled by the conspiracy.
U.S. Government and NGO Hacking Victims
In the same time period as the university and private sector hacking campaigns described above, the Mabna Institute also conducted a computer hacking campaign against various governmental and non-governmental organizations within the United States. During the course of that campaign, employee login credentials were stolen by members of the conspiracy through password spraying. Among the victims were the following, all based in the United States: the United States Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the State of Indiana Department of Education, the United Nations, and the United Nations Children’s Fund. As with private sector victims, the defendants targeted for theft email inboxes of employees of these organizations.
* * *
GHOLAMREZA RAFATNEJAD, EHSAN MOHAMMADI, ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI, the defendants, are citizens and residents of Iran. Each is charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; two counts of unauthorized access of a computer, each of which carries a maximum sentence of five years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
Mr. Berman praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and the support of the OFAC. The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Timothy T. Howard, Jonathan Cohen, and Richard Cooper are in charge of the prosecution, with assistance provided by Heather Alpino and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Nigerian Citizen Ordered to Prison for Defrauding US VictimsRead the Press Release
HOUSTON – A 34-year-old Nigerian man who was residing in Houston has been ordered to prison for conspiracy to commit mail fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick. Azeez Abiodun Balogun pleaded guilty Oct. 27, 2017.
Today, U.S. District Judge Ewing Werlein Jr. handed Balogun a 75-month sentence. Not a U.S. citizen, Balogun is expected to face deportation proceedings following the sentence. At the hearing, the court noted that this was a sophisticated scheme that began in 2015 and that he only stopped when he caught.
From on or about Jan. 1, 2015, through April 13, 2017, Balogun was involved in a conspiracy that involved many schemes to defraud via the U.S. mail and using personal identifying information (PII) of individuals without their permission.
He would open bank accounts with counterfeit passports in order to facilitate fraud payments into these accounts. Balogun would then use the stolen PII to apply for credit cards. He opened approximately 30 credit card accounts at Bank of America, Chase Bank and others by using the stolen information.
Additionally, he also engaged in Stolen Identity Refund Fraud (SIRF) in which he would use the stolen PII to apply for tax refunds. The stolen funds were then loaded onto prepaid debit cards and mailed to addresses Balogun or others controlled in the Houston area.
The investigation unraveled approximately 10 different identities and passports Balogun used to open bank accounts and receive fraudulent funds from the various his schemes. The total loss attributed to his conduct is $2,976,265.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation along with Department of State – Diplomatic Security Service. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
New York Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Schenectady, N.Y., man was charged in federal court in Springfield yesterday with failing to register as a sex offender.
Jose Dones was charged in an indictment with one count of failing to register as a sex offender.
According to court documents, Dones was convicted in 1994 of second degree rape and in 2008 of forcible touching. Dones has received many notices of his obligation to register as a sex offender, and he has been convicted four times in New York state court of failure to register as a sex offender. In 2016, Dones was convicted of failing to register as a sex offender in federal court in Massachusetts.
In November 2017, Dones lived in Boston without registering as a sex offender while on supervised release in connection with his 2016 failure to register conviction. Then in December 2017, Dones moved to Schenectady, N.Y., where he again failed to register as a sex offender. On Jan. 10, 2018, Dones was arrested in Schenectady.
The charge provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’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.
Monmouth County, New Jersey, Couple Charged with Conspiring to Evade Personal and Employment TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, couple was arrested this morning by federal agents on charges of conspiracy to defraud the United States by evading the payment of personal and employment taxes, U.S. Attorney Craig Carpenito announced.
Tito Viteri, 39, and, Maria Yepez, 38, of Cream Ridge, New Jersey, are charged by complaint with one count of conspiracy to defraud the IRS of taxes from 2008 through 2016. Viteri and Yepez made their initial appearances today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were released on $300,000 each unsecured bonds.
According to documents filed in this case and statements made in court:
Since 2002, Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services, all of but one of which operated in New Jersey. Yepez was the nominal owner of three of the companies.
Viteri and Yepez allegedly conspired to evade paying personal and business-related taxes by engaging in the following acts: (1) “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities; (2) failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid; (3) receiving unreported kickback income from an employee; and (4) concealing personal income and assets by using nominees and depositing money into their child’s bank account.
In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and he himself owed approximately $315,000 in unpaid personal taxes. Although Viteri began making payments to the IRS in August 2011, he stopped making those payments in December 2013, claiming he was not “bringing enough money home.” Despite his claims, at around the same time (February 2013 to February 2016) Viteri and Yepez made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield where they lived.
Although Viteri and Yepez still had substantial outstanding tax liabilities, in 2016, Viteri and Yepez purchased a home in Cream Ridge for $929,653. To conceal the purchase of the home from the IRS, Viteri and Yepez purchased the home in the name of Viteri’s mother.
As of March 2018, Viteri owed approximately $1.3 million in personal income taxes, and Viteri and Yepez owed an additional approximately $1.3 million in unpaid business-related taxes.
The conspiracy charge carries a maximum potential penalty of five years in prison and a statutory maximum fine equal to the greatest of: (1) $250,000; (2) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (3) twice the gross amount of any pecuniary loss sustained by any victims.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the FBI, Newark Division, under the direction of Acting Special Agent in Charge Bradley W. Cohen; and the U.S. Department of Labor, Office of the Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis, Attorney-in-Charge of the U.S. Attorney’s Office Trenton Branch.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel: Tito Viteri: Darren Gelber Esq., Woodbridge, New Jersey
Maria Yepez: Jerome A. Ballarotto Esq., Hamilton, New JerseyMichigan Man Sentenced to 28 Years for Conspiracy to Distribute OxycodoneRead the Press Release
LEXINGTON, Ky., – Stanford Ray Coleman, 47, of Detroit, Michigan, was sentenced today to 340 months [28 years] in prison by United States District Court Judge Danny C. Reeves for Conspiracy to Distribute Oxycodone. Judge Reeves also ordered Coleman to pay a fine of $15,000.
Coleman was previously found guilty by a jury of the charge. The evidence at trial established that Coleman was the supplier of large amounts of oxycodone 30 mg tablets to street and mid-level dealers in the Mt. Sterling area. Coleman would travel to the Mt. Sterling area from Detroit and Atlanta at regular intervals. Coleman would bring thousands of oxycodone 30 mg tablets to local dealers in and around Mt. Sterling. These local distributors would in turn sell the oxycodone 30 mg tablets to smaller dealers and to users of oxycodone in Mt. Sterling. Coleman used at least five fictitious names to conceal his identity and his presence in this area. Coleman was found to be responsible for 5,000 oxycodone 30 mg tablets pills from May 2015 to July 2015. Coleman has also been convicted of two prior drug trafficking offenses qualifying him as a “Career Offender.” The jury convicted Coleman in December of 2017 after a 4-day trial.
Under federal law, Coleman must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 8 years. Judge Reeves ordered that this federal sentence run be served consecutive to a Fayette County felony offense for drug distribution.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, Stuart Lowery, Special Agent in Charge, ATF, Richard Sanders, Commissioner, Kentucky State Police, Chief David Charles, Mt. Sterling Police Department jointly made the announcement today after the sentencing.
The ATF, Kentucky State Police, Mt. Sterling Police Department conducted the investigation. Assistant United States Attorney Roger W. West represented the United States.
This case were prosecuted 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.
Mexican Man Charged with Illegal ReentryRead the Press Release
United States Attorney Duane A. Evans announced that JOSE ARTEAGA-CENTENO, age 43, a native of Mexico, was charged yesterday in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the Indictment, ARTEAGA-CENTENO was previously removed from the United States on May 24, 2013. He was later found in the Eastern District of Louisiana on March 8, 2018 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, ARTEAGA-CENTENO faces a maximum term of imprisonment of ten years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee.
U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Rigoberto Pacheco-Estefes, age 25, and a citizen of Mexico, was sentenced today to time served (49 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Pacheco-Estefes admitted that he was last removed from the United States to Mexico on November 28, 2015. On February 2, 2018, a Border Patrol Agent arrested Pacheco-Estefes in Champlain, New York. Pacheco-Estefes was also removed to Mexico on October 5, 2015 and October 19, 2015.
Pacheco-Estefes was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Maryland Man Sentenced to 20 years for Drug TraffickingRead the Press Release
RICHMOND, Va. – A Maryland man was sentenced today to 20 years in prison for his participation in a drug trafficking conspiracy responsible for the distribution of kilograms of heroin and fentanyl in the Colonial Beach, Westmoreland County and King George County areas.
According to court documents, Dwayne Proctor, 38, who has ties to Colonial Beach and Westmoreland County, conspired with others to traffic over 1000 grams of heroin and fentanyl from at least January 2015 through May 2017. During the course of the conspiracy, Proctor supplied quantities of heroin ranging from gram to ounce quantities, to others in these areas and utilized several residences for the purposes of selling and storing illegal drugs. Proctor also utilized his mother’s home in Colonial Beach to store over a kilogram of heroin and over a kilogram of fentanyl, which were recovered by law enforcement during a search of the house pursuant to a search warrant on May 2, 2017.
Proctor utilized several individuals to assist and conspired with others in his drug distribution efforts, including the following co-conspirators who were sentenced as follows:
Name, Age
City
Sentencing
Lawrence Buckner, 37
King George
8 years on Oct. 27, 2017
Jeffrey Dudley, 26
Colonial Beach
7 years on Oct. 27, 2017
Clifton Howdershelt, 54
King George
11 years on Nov. 13, 2017
Edward Shupe, 47
King George
11 years on Oct. 20, 2017
Terrell Sylvester Johnson, 28
Westmoreland
12 years on Nov. 20, 2017
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, Steve F. Dempsey, King George County Sheriff, C.O. Balderson, Westmoreland County Sheriff, and Tony Lippa, Jr., Caroline County Sheriff, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia L. Norman 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-57 and the related cases Case Nos. 3:17-cr-55 and 3:17-cr-54.
Martinsburg man appears on illegal ammunition chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Owen Jones, of Martinsburg, West Virginia, appeared today before a federal magistrate judge to face an illegal possession of ammunition charge, United States Attorney Bill Powell announced.
Jones, age 46, was indicted on one count of “Unlawful Possession of Ammunition.” Jones, who was previously convicted of a felony in the Circuit Court of Berkeley County, is accused of possessing more than 1,100 rounds of ammunition in February of 2018 in Berkeley County.
Jones was first charged in Berkeley County Magistrate Court after allegedly threatening the Martinsburg Police Department on social media. In the criminal complaint filed by the West Virginia State Police, he is accused of threatening officers on his Facebook account from July 2017 to February 2018. In one such threat, he allegedly references a firearm. Jones is facing a state charge of “Terroristic Threats,” punishable by one to three years incarceration. The alleged firearm reference prompted a federal investigation, as Jones is a convicted felon, preventing him from legally owning a firearm or ammunition.
“We will not tolerate felons in possession of guns or ammunition. We will act swiftly and harshly in every situation involving threats against law enforcement when federal violations occur,” said Powell.
“Threats to the safety of any law enforcement officer are outrageous and will not be tolerated in Martinsburg. I deeply appreciate and commend the hard work of the Eastern Panhandle Drug and Violent Crime Task Force and the leadership of United States Attorney Bill Powell for the arrest and criminal indictment of this offender,” said Chief Maury Richards, Martinsburg Police Department.
“I thank the Eastern Panhandle Drug & Violent Crime Task Force for taking swift action to combat threats made against our law enforcement. I appreciate the opportunity to work with United States Attorney Bill Powell’s office to ensure that we seek justice on both the federal and state levels when appropriate,” said Cadie Wilkes Delligatti, Berkeley County Prosecuting Attorney.
The state charges against Jones are pending in Magistrate Court.
Jones faces up to 10 years incarceration and a fine of up to $250,000 for the federal charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the federal government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martin County Residents Plead Guilty to Producing and Distributing Child PornographyRead the Press Release
Joshua Lane Rogers, 34, and Richard William Lockley, 34, both of Stuart, pled guilty to producing pornography of a teenage victim.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff's Office (SLCSO), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement.
On March 22, 2018, Rogers pled guilty to two counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and one count of distribution production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, 2252(a)(2) and (b)(1). On January 17, 2018, Lockley pled to one count of production of visual depictions of sexual exploitation of minors. If convicted of the production or distribution charges, Rogers and Lockley face a mandatory minimum sentence of 15 years in prison, a maximum 30 year prison term, a lifetime of supervised release, and will be required to register as sex offenders.
According to the court record, on September 3, 2017, SLCSO deputies responded to a “Missing Person Juvenile/ Runaway” call for a missing 16-year-old minor. On September 27, 2017, Rogers was located with the minor victim. The investigation revealed that Rogers met the victim on-line and had the victim stay at his residence. A forensic analysis of Roger’s cellular smart phone revealed he had recorded sexually explicit activity with the minor victim on numerous occasions. Rogers distributed many of the captured images and videos to other individuals, via MMS text communications, a social media networking program, and in the personal section of a Treasure Coast website.
Rogers and Lockley, together at Rogers’ residence, also produced a video depicting sexually explicit conduct and activity with the minor victim.
Lockley is scheduled to be sentenced on April 20, 2018 at 1 p.m., in Ft. Pierce and Rogers is scheduled to be sentenced on Tuesday, June 5, 2018 at 11 a.m. in Miami, before U.S. District Court Senior Judge Donald L. Graham.
Mr. Greenberg commended the investigative efforts of the FBI, SLCSO and the MCSO for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced to Prison for Dealing Ice in Hampton RoadsRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 15 years in prison for his involvement in a conspiracy to distribute methamphetamine, commonly known as “ice”, in Hampton Roads.
According to court documents, Russell James Kerfoot, 39, conspired with Coy James Mullins, formerly of Palm Springs, California, and others to distribute methamphetamine in Hampton Roads from 2016 until May 2017. During the conspiracy, Mullins shipped parcels containing methamphetamine to Kerfoot in Norfolk through the mail. Kerfoot distributed the methamphetamine he received from Mullins in Hampton Roads.
On May 8, 2017, the Virginia Beach Police Department and Homeland Security Investigations received information that Kerfoot was in route to a location in Virginia Beach to conduct a drug transaction. The police set up surveillance and subsequently observed Kerfoot arrive at the location in a blue SUV. When uniformed police officers attempted to make contact with Kerfoot, he ran into a retail store and into the bathroom before being arrested. Police seized approximately 69 grams of methamphetamine from the glove box of the blue SUV.
On May 10, 2017, Kerfoot returned to the retail store and attempted to retrieve a quantity of methamphetamine he had hidden in the bathroom just two days before. After an employee called the police they located approximately 58 grams of methamphetamine concealed above the ceiling tiles in the bathroom.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Darryl J. Mitchell 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. 2:17-cr-89.
Man Sentenced for Trafficking Enough Fentanyl to Possibly Kill Nearly 6 Million PeopleRead the Press Release
LAREDO, Texas – A 57-year-old man has been ordered to prison following his conviction of trafficking heroin, cocaine and nearly 12 kilograms of fentanyl, announced U.S. States Attorney Ryan K. Patrick. Jeffrey Layne Parker, of Belleville, Illinois, pleaded guilty Aug. 31, 2017.
Today, visiting U.S. Appellate Judge Kimberly Moore ordered Parker to serve a total of 168 months in federal prison to be immediately followed by five years of supervised release. At the hearing, additional evidence was presented including evidence that fentanyl is 30 to 50 times more powerful than heroin and that one gram of fentanyl can result in the deaths of between 300 and 500 people. The fentanyl found in Parker’s car could have caused the deaths of up to 5.8 million people - more than the populations of Dallas, San Antonio and Houston combined. In handing down the sentence, Judge Moore denied Parker’s requests for leniency, noting the quantities of narcotics found in Parker’s possession, his extensive criminal record and the fact that Parker had transported narcotics loads at least four times.
Parker was first arrested March 7, 2017, after authorities found 16 packages of narcotics concealed in the trunk of Parker’s car at the Border Patrol (BP) checkpoint just north of Laredo. The narcotics included 11.77 kilograms of fentanyl, 1.85 kilograms of heroin, 76 grams of cocaine and 1.41 kilograms of marijuana. He was arrested but later released following a medical issue.
Parker was arrested three months later on June 7, 2017. At that time, he approached the same checkpoint and agents found nine bundles containing 11.15 kilograms of heroin hidden behind the speakers in a Ford pickup truck he was driving.
Parker has been in federal custody without bond since his second arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney Mike Eaton is prosecuting the case.
Lubbock Man Sentenced to 20 Years in Federal Prison on Child Porn ConvictionRead the Press Release
LUBBOCK, Texas — Eugene Joseph Martinez, 20, of Lubbock, Texas, was sentenced yesterday by Senior U.S. District Judge Sam R. Cummings to 240 months in federal prison, following his guilty plea in December 2017 to one count of transportation of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Martinez has been in custody since the time of his arrest in November 2017.
According to documents filed in the case, between June 22 and September 6, 2016, Martinez used various electronic devices to transport numerous images and videos depicting minors engaged in sexually explicit conduct. Martinez transported these images by way of the Internet, to a Dropbox account that he used to collect the images and videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Lubbock Police Department Internet Crimes Against Children Unit investigated the case. Assistant U.S. Attorney Jeffrey Haag and Assistant U.S. Attorney (retired) Steve Sucsy were in charge of the prosecution.
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