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Friday 9 February 2018
Arcadia-Based Methamphetamine Trafficker Sentenced to over Seventeen Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Antonio Chavez (34, Arcadia), a/k/a “Cino,” to 17 ½ years in federal prison for conspiracy to distribute more than 500 grams of methamphetamine and for possessing over 500 grams of methamphetamine with the intent to distribute it. The Court also ordered him to forfeit a Ford F250 truck that had been used to facilitate the offenses. In addition, $37,182 in cash was administratively forfeited as proceeds of the conspiracy.
Chavez pleaded guilty on May 4, 2017. His co-defendants, Johnny Carter and Adam McCumber, were previously sentenced to 15 years and 3 years and 10 months in prison, respectively.
According to court documents, Chavez was a supplier of methamphetamine in DeSoto and Manatee counties. In the fall of 2015, he arranged for the sale of methamphetamine to a confidential source on two occasions. Carter delivered the methamphetamine in the first sale, and McCumber made the delivery in the second sale. After a third deal to deliver a pound of methamphetamine in Myakka City (Manatee County) was agreed upon, law enforcement obtained a search warrant for Chavez’s house in Arcadia. Inside, agents found over 700 grams of methamphetamine and $37,000 in cash.
This case was investigated by the Drug Enforcement Administration, U.S. Customs and Border Patrol, the Lakeland Police Department, the Hardee County Sheriff’s Office, and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Dan Baeza.
Alabama Man Convicted of Sex Trafficking of a MinorRead the Press Release
A federal jury convicted an Alabama man of sex trafficking of a minor and conspiracy to commit sex trafficking of a minor, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Louis V. Franklin Jr. of the Middle District of Alabama.
Michael Graham Lowe, 25, of Prattville, Alabama, was found guilty yesterday after a four-day trial before U.S. District Judge L. Scott Coogler of the Northern District of Alabama. A sentencing date has not yet been scheduled.
“These defendants manipulated and sexually exploited a child in order to feed their own illegal drug habit,” said Acting Assistant Attorney General Cronan. “Thanks to the hard work and dedication of our prosecutors and federal, state and local law enforcement partners, they will be held to account for their crimes. This case is representative of the Department’s commitment to ending the sex trafficking of children, which all too commonly is facilitated by online advertisements, and bringing their traffickers to justice.”
According to evidence presented at trial, in or about May 2016, Lowe and co-defendant Joshua Rose conspired to sex traffic a minor victim at the Stay Lodge motel in Montgomery, Alabama. Rose advertised the underage victim on Backpage, and with the assistance of Lowe, arranged meetings for the victim to engage in commercial sex acts, and stood outside of the motel room while the victim engaged in commercial sex acts. Lowe also transported the minor victim to another location to engage in commercial sex acts. Lowe and Rose used the money earned from the victim’s commercial sex acts to purchase illegal narcotics.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Prattville, Alabama Police Department, with assistance from the Montgomery, Alabama Police Department, the U.S. Marshals Service and Alabama Attorney General’s Office. The case is being prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Hollie Reed of the Middle District of Alabama.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Thursday 8 February 2018
Zia Pueblo Man Sentenced to Prison for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Terrence Shije, 37, an enrolled member and resident of Zia Pueblo, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to a year and a day in prison for his conviction on a domestic assault by a habitual offender charge. Shije will be on supervised release for three years after completing his prison sentence.
Shije was arrested on June 2, 2017, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on May 16, 2017. According to the complaint, Shije caused the victim to suffer bruising and swelling to her face.
Shije was indicted on June 28, 2017, and was charged with assault of an intimate partner resulting in substantial bodily injury and domestic assault by a habitual offender. According to the indictment, Shije committed the crime on May 16, 2017, on Zia Pueblo in Sandoval County, N.M. Shije was charged as a habitual offender based on his two prior domestic violence convictions in the Pueblo of Zia Tribal Court in June 2015 and Aug. 2016.
On Oct. 6, 2017, Shije pled guilty to Count 2 of the indictment charging him with domestic assault by a habitual offender. In entering the guilty plea, Shije admitted that on May 16, 2017, he assaulted the victim by slapping her face and punching her eye because he did not want her to leave the residence. Shije further admitted that as the result of the assault, the victim, who was then pregnant, suffered swelling, bumps and bruising near her eye and eye socket. Shije also admitted that he previously had been convicted on battery on a household member charges in Zia Tribal Court in June 2015 and Aug. 2016.
This case was investigated by the Southern Pueblos Agency of the BIA, Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Kyle T. Nayback and Special Assistant U.S. Attorney Lucy B. Solimon pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was driven largely by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Winner Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Winner, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on February 8, 2018, by U.S. District Judge Roberto A. Lange.
Anthony Martinez, age 37, was sentenced to 1 month in custody, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Martinez was indicted by a federal grand jury on September 12, 2017. He pled guilty on November 15, 2017.
The conviction stemmed from an incident on April 1, 2015, wherein Martinez was outside a residence firing a shotgun. Martinez having previously been convicted of a felony, was in possession of a 12-gauge shotgun at the time of his arrest.
This case was investigated by the Federal Bureau of Investigation, the Tripp County Sheriff’s Office, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.
Martinez is required to self-report to the U.S. Marshals Service on February 22, 2018 at 2:00 pm.
Wheeling man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Timothy E. Billups, of Wheeling, West Virginia, has admitted to distributing cocaine near a playground, United States Attorney Bill Powell announced.
Billups, age 25, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Billups admitted to selling cocaine near the Jensen playground in June 2017 in Ohio County.
Billups faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.United States Files Complaint Against Precision Lens, Paul Ehlen for Alleged Kickback SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced that the United States has filed a Complaint-in-Intervention against the Cameron-Ehlen Group, Inc. d/b/a Precision Lens (“Precision Lens”) and Precision Lens’ owner PAUL EHLEN, and that DR. JITENDRA SWARUP has agreed to pay more than $2.9 million to resolve kickback allegations under the False Claims Act (“FCA”).
The United States previously announced a $12 million settlement with Sightpath Medical, Inc. and TLC Vision Corporation (collectively “Sightpath”) and their former CEO, JAMES TIFFANY.
As part of the FCA Agreement and in exchange for a release of OIG’s permissive exclusion authority, DR. SWARUP has agreed to enter into a three-year integrity agreement with OIG.
“Federal health care beneficiaries should have confidence that the health care they receive is unaffected by kickbacks provided to their medical providers,” said United States Attorney Gregory Brooker. “Companies are not permitted to use expensive trips and other remuneration in order to persuade physicians to use products supplied by those companies, and physicians may not accept such remuneration in exchange for patient referrals.”
The United States’ Complaint against Precision Lens and EHLEN alleges that Precision Lens provided kickbacks to physicians in various forms, including travel and entertainment. The Complaint identifies multiple examples of trips, including luxury skiing vacations, and high-end fishing, golfing and hunting vacations. For many of the trips, Precision Lens and EHLEN transported physicians to exclusive luxury vacation destinations on private jets. Precision Lens and EHLEN also sold frequent flyer miles to their physician customers at a steep discount, enabling the physicians to take trips at well below fair market value.
The Complaint-in-Intervention alleges that Precision Lens maintained a slush fund, also referred to internally at Precision Lens as a secret fund. Precision Lens used money from the slush fund to finance trips with key physician customers and sales targets.
In the settlement agreement with DR. SWARUP, the United States contends that from January 1, 2006, through January 1, 2015, DR. SWARUP received unlawful remuneration from Sightpath, Precision Lens and EHLEN, which resulted in the submission of false claims to the United States for ophthalmological products and services. Specifically, DR. SWARUP received various trips, including hunting and international fishing trips, which were used to induce, and attempt to induce, DR. SWARUP to use products and services distributed by these companies. DR. SWARUP also received consulting agreements with Sightpath in excess of $100,000 per year, where the services were allegedly either not fully performed or not properly tracked, which resulted in remuneration in excess of fair market value.
The $2.9 million settlement with DR. SWARUP resolves allegations filed in a civil lawsuit originally brought by a Relator, or whistleblower, under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government for false claims and to share in any recovery. The government often relies on whistleblowers to bring fraud schemes to light that might otherwise go undetected. The whistleblower in this matter, Kipp Fesenmaier, will receive 19.5% of the amounts recovered in connection with the settlement agreement.
The claims resolved by these settlements are allegations only; there has been no determination of liability or wrongdoing.
The case was handled by the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Appoints Opioid CoordinatorsRead the Press Release
Executive Assistant U. S. Attorney Linda Frakes (619) 546-6793 and Assistant U.S. Attorney Dylan Aste (619) 546-7621
NEWS RELEASE SUMMARY – February 8, 2018
SAN DIEGO – U.S. Attorney Adam Braverman has appointed two Opioid Coordinators – one to handle criminal matters and the other civil – to manage the office’s strategy for combatting the deadly opioid epidemic in the Southern District of California.
The criminal coordinator, Linda Frakes, will focus on stopping the illegal importation of heroin, fentanyl and fentanyl analogues as well as targeting dark web vendors who distribute illicit opioids. The civil coordinator, Dylan Aste, will focus on the unlawful prescribing and illegal diversion of these highly addictive drugs.
“This multifaceted approach to enforcing our drug laws will save lives by keeping drugs off our streets and help prevent Americans from becoming addicted to prescription drugs,” Braverman said. “The ongoing opioid epidemic in our district is destroying lives and communities and I’m committed to combatting this crisis with every available asset.”
Attorney General Jeff Sessions issued a directive to all U.S. Attorneys to designate an Opioid Coordinator to work closely with prosecutors, and with other federal, state, tribal, and local law enforcement to coordinate and optimize federal opioid prosecutions in every district.
Braverman took the unique approach of adding an opioid coordinator for civil as well as criminal matters.
As a part of the U.S. Attorney’s strategy to combat the opioid epidemic, the newly designated Opioid Coordinators will make prosecution of all prescription opioids, heroin and fentanyl a top priority, including civil cases involving illegal diversion and unlawful prescribing of these drugs.
Frakes, a 27-year veteran who also serves as the third-highest-ranking prosecutor in the office, was previously supervisor of the Criminal Enterprises section. Her job involved overseeing prosecutions of transnational criminal organizations, including major Mexican drug cartels.
“Our strategy is to hit the opioid crisis hard with every tool we have - from prevention, education and treatment to enforcement,” Frakes said. “We will investigate and prosecute criminals who import fentanyl, distribute fentanyl, or cause death resulting from fentanyl distribution. If you possess chemicals intending to illegally manufacture fentanyl, you will be prosecuted. Our law enforcement partners are fighting alongside our prosecutors to investigate criminal organizations, here and abroad, who traffic in fentanyl. We will use our federal resources to bring you to justice.”
Aste, a civil litigator in the U.S. Attorney’s Office, specializes in investigating and prosecuting allegations of fraud against the United States. He has recovered over $11 million on behalf of the United States.
“Opioid addiction often begins with overprescribing by health care providers and illegal dispensing by pharmacies, and this needs to stop,” Aste said. “I will use the full force of the law to prosecute the prescribers and pharmacies that are contributing to the opioid epidemic.”
Aste has managed several complex opioid-related investigations. He recently settled two cases involving pharmacies. Medical Center Pharmacy paid $750,000 to resolve allegations under the Controlled Substances Act that included diversion of a significant amount of oxycodone and hydrocodone, failure to control the pharmacies’ inventory of controlled substances, and failure to maintain required records of the pharmacies’ distribution of controlled substances. Sixth Avenue Pharmacy in downtown San Diego paid $147,500 to resolve similar allegations.
Opioids are drugs that include illegally obtained heroin and fentanyl and pain relievers available legally by prescription, such as fentanyl, oxycodone (OxyContin), hydrocodone (Vicodin), codeine, morphine, etc. Opioid pain relievers are generally safe when taken for a short time as prescribed by a doctor, but because they produce euphoria, they can be misused. Regular use—even as prescribed by a doctor—can lead to dependence and, when misused, opioid pain relievers can lead to addiction, overdose incidents and deaths.
Opioids have become a significant and growing problem in this district and throughout the nation. In FY 2017, fentanyl seizures at the California ports of entry increased 266 percent in just one year – from 260 kilograms in FY 2016 to 952.
In April 2017, the U.S. Attorney’s Office and its law enforcement partners created a local Fentanyl Working Group. This multi-dimensional group includes local, state and federal investigative agencies, toxicologists, the Medical Examiner’s Office, DEA Lab chemists and first responders, plus local, county and federal prosecutors.
The Fentanyl Working Group has held two educational Fentanyl Forums, one in June of 2017 and one in November 2017. More than 200 local and federal law enforcement officers attended each meeting where they learned about the dangers of encountering fentanyl in the field; the local smuggling trends from Mexico and China to the U.S.; parcel interdiction cases, prosecution of overdose cases in state and federal courts; and prosecution collaboration with our office and that of the District Attorney.
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Two Women Sentenced for Federal Drug Trafficking Convictions Arising Out of Seizure of Five Pounds of HeroinRead the Press Release
ALBUQUERQUE – Today in federal court in Albuquerque, N.M., two women were sentenced for their convictions on drug trafficking charges arising out of the seizure of five pounds of heroin. Tabitha Marie Ochoa, 30, of Merced, Calif., was sentenced to 36 months in prison followed by three years of supervised release, and Maryhelen Princess Ochoa, 32, a U.S. citizen residing in Sonora, Mexico, was also sentenced to 36 months in prison followed by three years of supervised release.
Tabitha Marie Ochoa and co-defendant Maryhelen Princess Ochoa, were arrested in Feb. 2017, after law enforcement officers found nine bundles of heroin weighing approximately 2387 grams (5.26 pounds) in their vehicle during a routine traffic stop. According to the complaint, the traffic stop took place on Jan. 30 and 31, 2017, in Cibola County, N.M.
On May 19, 2017, Tabitha Marie Ochoa pled guilty, and on Aug. 24, 2017, Maryhelen Princess Ochoa pled guilty. Both entered guilty pleas to felony informations charging them with possession of heroin with intent to distribute. In entering the guilty pleas, Tabitha Marie Ochoa and Maryhelen Princess Ochoa admitted possessing approximately 2,387 grams (5.26 pounds) of heroin in a safe that was seized from the vehicle in which they were traveling on Jan. 31, 2017. Tabitha Marie Ochoa and Maryhelen Princess Ochoa further admitted that they were being paid to deliver the heroin to another person.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Two Wheeling men admit to firearm chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Wheeling, West Virginia men have admitted to unlawful possession of a firearm, United States Attorney Bill Powell announced.
Eban Joseph Keith Beyah, age 45, pled guilty to one count of “Unlawful Possession of a Firearm.” Beyah, having previously been convicted of burglary and several drug-related charges in Commons Pleas Court in Cuyahoga County, Ohio, admitted to possessing a 9mm pistol in Ohio County on June 2017.
Charles C. Ansley, Jr., age 37, pled guilty to one count of “Unlawful Possession of a Firearm.” Ansley, having previously been convicted of burglary in Commons Pleas Court in Lucas County, Ohio, admitted to possessing a .22 caliber revolver in Ohio County on August 2017.
Beyah and Ansley each face up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting both cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated both cases.
U.S. Magistrate Judge James E. Seibert presided.
Two New Orleans-Area Psychiatrists and a Health Care Marketer Charged for Roles in Kickback Scheme; Psychiatrists Also Charged with Health Care FraudRead the Press Release
Two New Orleans, Louisiana-area psychiatrists and a third individual were charged in an indictment filed today for their alleged participation in a health care kickback scheme. The two psychiatrists were also charged for their roles in a home health care fraud scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Muhammad Kaleem Arshad, M.D., 62, of New Orleans, Louisiana, Padmini Nagaraj, M.D., 60, of Kenner, Louisiana, and Joseph A. Haynes, 61, of New Orleans, were each charged with one count of conspiracy to receive illegal health care kickbacks and three counts of receiving illegal health care kickbacks. Arshad and Nagaraj were also charged with one count of conspiracy to commit health care fraud and five counts of health care fraud.
The indictment alleges that the defendants, who were affiliated with a company that provides outpatient psychiatric services, conspired with the owner of a New Orleans home health agency to take bribes in exchange for referring psychiatric patients for medically unnecessary home health services. Haynes, who worked at the company as a marketer, allegedly helped to negotiate and enforce the bribes and kickbacks for the doctors. The indictment further alleges that the New Orleans home health agency then submitted the fraudulent claims to Medicare to receive payment.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and HHS-OIG. Trial Attorney Kate Payerle of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Two Men Sentenced to Lengthy Sentences for Child Pornography Charges Involving Two Minor Victims, One a Three-Year-Old ChildRead the Press Release
DALLAS — Javier Giovanni Araujo, 34, of Austin, Texas, and Garrett Alexander Mack, 29, of Dallas, Texas, were sentenced today by Chief U.S. District Judge Barbara M. G. Lynn to lengthy prison sentences for child pornography offenses, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Araujo previously pled guilty to one count of conspiracy to produce child pornography and one count of transportation of child pornography. Chief Judge Lynn sentenced Araujo to 40 years in federal prison and a lifetime of supervised release.
Mack previously pleaded guilty to one count of conspiracy to produce child pornography. Chief Judge Lynn sentenced Mack to 30 years in federal prison and a lifetime of supervised release.
According to the factual resumes filed in the case and information presented at the sentencing hearing, from at least September 26, 2016 through October 7, 2016, Araujo and Mack discussed sexually abusing children and exchanged photos and videos of child pornography. Araujo produced videos and images of child pornography by using a three-year-old boy to which he had access. Araujo and Mack discussed the logistics of how they could gain access to this boy and the ways that Araujo could sexually abuse him. Araujo then sent some of those child pornography images and videos involving the boy to other men on the internet, including to Mack.
According to information presented at the sentencing hearing, Araujo, pretending to be a church youth group leader, gained access to another minor child and coerced him into engaging in sexual acts with Araujo. Araujo recorded this sexual abuse and sent at least one child pornography video of the abuse to Mack.
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, the Dallas Police Department, and the Austin Police Department investigated. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Two Men Charged with Armed Robbery of an Inver Grove Heights BusinessRead the Press Release
United States Attorney Gregory G. Brooker today announced a superseding indictment charging JAMAAL MARQUIE MAYS, 33, and JAQUON KESHAWN MOMAN, 25, with robbery and firearms charges.
According to the indictment, on August 17, 2017, MAYS and MOMAN attempted to rob a Verizon Wireless store in Inver Grove Heights, Minn. while brandishing a firearm in the presence of a store employee. On July 10, 2017, MOMAN and another individual stole cash from a Metro PCS store in Minneapolis, Minn.
Because he is a felon, MAYS is prohibited under federal law from possessing any type of firearm at any time.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Inver Grove Heights Police Department.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
JAMAAL MARQUIE MAYS, 33
Unknown
Charges:
- Interference with commerce by robbery, 1 count
- Using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence, 1 count
- Felon in possession of a firearm, 1 count
JAQUON KESHAWN MOMAN, 25
Unknown
Charges:- Interference with commerce by robbery, 2 counts
- Using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence, 1 count
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The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Costa Rican Residents Found Guilty for Roles in $10 Million International Telemarketing SchemeRead the Press Release
Two individuals were found guilty yesterday for their roles in a $10 million telemarketing scheme that defrauded primarily elderly victims in the United States from call centers in Costa Rica.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina made the announcement.
Following a three-day jury trial, Andrew Smith, 45, of San Jose, Costa Rica, and Christopher Lee Griffin, 44, a U.S. citizen who previously resided in San Jose, Costa Rica, were convicted of one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering and seven counts of international money laundering. Sentencing has not yet been set by U.S. District Court Judge Robert J. Conrad of the Western District of North Carolina, who presided over the trial.
“Andrew Smith and Christopher Lee Griffin orchestrated a brazen telemarketing scheme from Costa Rica and stole more than $10 million,” said Acting Assistant Attorney General Cronan. “But what makes their crimes especially reprehensible is the harm they caused to a significant number of elderly victims. Attorney General Jeff Sessions has called those who exploit our senior citizens ‘cowards,’ and these convictions demonstrate that the Department of Justice will aggressively pursue cowards like these, no matter where they reside.”
According to the evidence presented at trial, both Smith and Griffin worked in a call center in Costa Rica in which conspirators, who posed as representatives of the Securities and Exchange Commission and the Federal Trade Commission (FTC), contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial reward, the conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items like insurance fees, taxes and customs duties. Conspirators used a variety of means to conceal their true identities, such as Voice over Internet Protocols, which made it appear that they were calling from Washington, D.C., and other places in the United States. According to trial testimony, one elderly victim who indicated she was going to stop paying was warned by a conspirator that they knew where she and her family lived.
Smith and Griffin arranged for victims to transmit payments through international wire transfers directly to Costa Rica or through “runners” who collected money from victims in the United States and forwarded payment to Smith, Griffin and others in Costa Rica, according to the evidence presented at trial. Runners dispatched by Smith and his conspirators sometimes met elderly victims at their homes to collect bags of cash, which they in turn remitted to Costa Rica, the evidence showed.
Smith, Griffin and their conspirators stole more than $10 million from victims, the evidence showed.
This case was investigated by the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and the FBI, with assistance from the FTC and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Criminal Division’s Office of International Affairs, U.S. State Department’s Diplomatic Security Service (DSS) and Bureau of Consular Affairs, along with government authorities in Costa Rica provided critical assistance with the extradition of these defendants. The case is being prosecuted by Trial Attorneys William Bowne, Jennifer Farer and Anna Kaminska of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the Western District of North Carolina provided substantial assistance with this matter.
Tulsa Woman Sentenced for Sexual Exploitation of a ChildRead the Press Release
United States Attorney Trent Shores announced today that District Judge Claire V. Eagan sentenced Jerrica Ann Renee Teehee Lackey, 30, of Tulsa, to serve 300 months in federal prison for Sexual Exploitation of a Child.
Lackey used a minor child to engage in sexually explicit conduct while she took pictures and videos. She then distributed the sexually explicit images and videos by cell phone.
United States Attorney Shores stated, “This case is an excellent example of state and federal law enforcement working together to identify those who exploit children. We will hold those who prey on the most vulnerable in our society, and who choose to manufacture child pornography, accountable for their actions.”
The prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, the Tulsa Police Department, and the Tulsa County Sheriff’s Office. Assistant United States Attorney Shannon B. Cozzoni handled the prosecution of this case.
Three Individuals Indicted for Visa Fraud Scheme for ProfitRead the Press Release
A 15-count indictment was unsealed yesterday in federal court in Brooklyn charging Stella Boyadjian, Hrachya Atoyan and Diana Grigoryan, also known as “Dina Akopovna,” for their roles in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit. The defendants are charged with multiple counts of visa fraud and with conspiring to defraud the United States, commit visa fraud and illegally bring aliens into the United States. Boyadjian and Grigoryan are also charged with related money laundering charges, and Boyadjian is charged with aggravated identity theft. Boyadjian was arraigned yesterday before United States Magistrate Judge James Orenstein. Atoyan’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today, in the Central District of California.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the United States Justice Department’s Criminal Division, and Christian J. Schurman, Principal Deputy Assistant Secretary for Diplomatic Security and Director for Diplomatic Security Service, United States Department of State, announced the charges.
“As alleged in the indictment, the defendants choreographed their fraud scheme by dressing visa applicants in traditional dance costumes and creating fake concert flyers in order to deceive a government program that allows foreign nationals to temporarily enter the United States as artistic performers,” stated United States Attorney Donoghue. “As a result of outstanding investigative work and commitment to protecting the integrity of the immigration process by this Office and our law enforcement partners, the defendants will now face the music for their alleged crimes.”
“Fraudsters who undermine our immigration system threaten our public safety and our national security,” said Acting Assistant Attorney General Cronan. “The Justice Department will not tolerate abuses of our nation’s immigration laws like those alleged in the indictment unsealed today. We will root out immigration fraud and bring those responsible to justice.”
“The Diplomatic Security Service is firmly committed to protecting the integrity of all U.S. visas and travel documents – especially those, like the P-3 visa, which allow for entertainers to visit the U.S. to perform in culturally unique events and deepen our understanding of different cultures,” stated Principal Deputy Assistant Secretary Schurman. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes and stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign workers.”
As alleged in the indictment, the defendants were engaged in a widespread visa fraud scheme to illegally bring foreign nationals (“Aliens”) into the United States by fraudulently claiming to the United States Citizenship and Immigration Services (“USCIS”) that they were members of traditional Armenian performance groups and thus qualified for P-3 visas as “culturally unique” artists or entertainers.
The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique. A United States employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation Inc. (“BAMA”), based in Rego Park, New York, which she and her co-conspirators used to further their visa fraud scheme. As part of the scheme, the defendants and their co-conspirators solicited Aliens and charged them fees ranging from $3,000 to $15,000 per Alien applicant to fraudulently obtain P-3 visas by submitting false Forms I-129 and supporting documents to the USCIS. Upon approval of the Form I-129 petitions, the defendants and their co-conspirators acquired fraudulent dance certificates and organized staged photo sessions where foreign nationals wore Armenian dance costumes to make it appear as though they were traditional Armenian musicians, singers and performers. After being trained how to falsely answer questions during visa interviews, the P-3 visa applicants presented these fake certificates and photos during their P-3 visa interviews. Once in the United States, some beneficiaries of the P-3 visas paid the defendants an additional fee to be included in applications for extensions of their fraudulently obtained visas. The defendants furthered their visa fraud scheme by creating flyers and other documents purporting to hold BAMA-sponsored concerts and events in the United States.
The charges announced today are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case is a joint investigation by the Diplomatic Security Service’s Criminal Investigations Division and Overseas Criminal Investigations Divisions, with assistance from the U.S. Citizenship and Immigration Services Fraud Detection and National Security Directorate.
The government’s case is being prosecuted by Assistant United States Attorney David Gopstein and Trial Attorney Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section.
The Defendants:
STELLA BOYADJIAN
Age: 47
Rego Park, New YorkHRACHYA ATOYAN
Age: 30
Glendale, CaliforniaDIANA GRIGORYAN (also known as “Dina Akopovna”)
Age: 41
Yerevan, ArmeniaE.D.N.Y. Docket No. 18-CR-57 (MKB)
Three Individuals Indicted for Visa Fraud Scheme for ProfitRead the Press Release
Three individuals were indicted in the Eastern District of New York for their alleged roles in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Principal Deputy Assistant Secretary Christian J. Schurman for U.S. Department of State Diplomatic Security and Director for Diplomatic Security Service (DSS), made the announcement.
Stella Boyadjian, 47, of Rego Park, New York; Hrachya Atoyan, 30, of Glendale, California; and Diana Grigoryan aka “Dina Akopovna,” 41, of the Republic of Armenia, were charged in a 15-count indictment unsealed yesterday in federal court in Brooklyn with multiple counts of visa fraud and with conspiracy to defraud the United States, commit visa fraud, and illegally bring aliens into the United States. Boyadjian and Grigoryan are also charged with related money laundering charges, and Boyadjian is charged with aggravated identity theft. Boyadjian was arraigned yesterday before U.S. Magistrate Judge James Orenstein. Atoyan’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today, in the Central District of California.
“Fraudsters who undermine our immigration system threaten our public safety and our national security,” said Acting Assistant Attorney General John P. Cronan. “The Justice Department will not tolerate abuses of our nation’s immigration laws like those alleged in the indictment unsealed today. We will root out immigration fraud and bring those responsible to justice.”
“As alleged in the indictment, the defendants choreographed their fraud scheme by dressing visa applicants in traditional dance costumes and creating fake concert flyers in order to deceive a government program that allows foreign nationals to temporarily enter the United States as artistic performers,” said U.S. Attorney Donoghue. “As a result of outstanding investigative work and commitment to protecting the integrity of the immigration process by this Office and our law enforcement partners, the defendants will now face the music for their alleged crimes.”
“The Diplomatic Security Service is firmly committed to protecting the integrity of all U.S. visas and travel documents -- especially those, like the P-3 visa, which allow for entertainers to visit the United States to perform in culturally unique events and deepen our understanding of different cultures,” said Principal Deputy Assistant Secretary Schurman. “This case is the result of a strong partnership among federal law enforcement agencies and DSS’ global network of special agents working together to stop visa and passport crimes and stop criminals from earning illegal income by exploiting U.S. visas, passports, and foreign workers.”
According to the indictment, unsealed today upon the arrest of Boyadjian and Atoyan, Boyadjian led a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of folk performance groups, and thus qualified for P-3 “Culturally Unique Artist” visas. The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique. A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.
As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation, based in Rego Park, New York. Boyadjian used the Big Apple Music Awards Foundation as well as formal and informal Armenian music industry contacts in the United States and Armenia to perpetuate the scheme. Boyadjian and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $15,000 to be included on the Form I-129 Petitions. Boyadjian and other associates in Armenia acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to make it appear as though they were traditional Armenian performers. After being trained how to defeat U.S. visa interviews, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews. Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions. Some aliens have overstayed their visas and remain unlawfully in the United States.
This case was a joint investigation by the DSS’s Criminal Fraud Investigations and Overseas Criminal Investigations Divisions with assistance from the USCIS Fraud Detection and National Security, Center Fraud Detection Operations in Vermont. Trial Attorney Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David Gopstein of the Eastern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sulphur man pleads guilty to illegal possession of a silencerRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that a Sulphur man pleaded guilty Wednesday to possessing a silencer.
Robert Reid Taylor, 46, of Sulphur, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of possession of an unregistered firearm silencer. According to the guilty plea, Taylor was found with an unregistered firearm silencer on September 7, 2017. The silencer had no manufacturer’s markings or serial number. It was also not registered in the National Firearms and Transfer Record.
Taylor faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
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 safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
State Contractor Indicted for FraudRead the Press Release
ALBANY, NEW YORK – Nathaniel P. Lorenz, age 46, of Holley, New York, was arraigned today on charges that he submitted fake invoices to the New York State Department of Transportation (NYSDOT) in order to conceal that he was not buying the materials needed to perform contracts for which his company was ultimately paid more than $1 million.
The announcement was made by United States Attorney Grant C. Jaquith; Todd A. Damiani, Special Agent in Charge of the New England Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Catherine Leahy Scott; and Robert L. Keihm, Chief Investigator for the NYSDOT Investigations Bureau.
Lorenz is charged with 8 counts of wire fraud and 1 count of mail fraud. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
According to the indictment, Lorenz’s company, ACME Powerwashing Inc. (ACME) of Holley, New York, contracted with NYSDOT in 2015 and 2016 to clean and seal the road portions of bridges, known as concrete bridge decks. The work involved powerwashing bridge decks with water and then sealing them with a chemical that makes the concrete more resistant to penetration by water, chlorides and waterborne contaminants, which might cause the deterioration of the bridge deck. The Federal Highway Administration, part of the United States Department of Transportation, provided most of the money for these contracts.
Each of these contracts required ACME to purchase a certain amount of sealing chemical, based on how many square feet of concrete bridge deck was sealed. According to the indictment, on 3 contracts in 2015 and 2016, Lorenz submitted fraudulent invoices to NYSDOT in order to conceal that he was not buying the amount of the sealing chemical required by the contracts. Lorenz falsely claimed that he was buying sealing chemicals from S.E. Brett, Inc., another company that he owned that does not sell anything.
On these 3 contracts alone, NYSDOT paid ACME a total of $1,139,119.74 for bridge sealing work, and an additional $759,002.64 for bridge washing and other work. ACME has been a NYSDOT contractor since 2010.
Lorenz appeared today in Albany before United States Magistrate Judge Christian F. Hummel, and was released pending a trial scheduled before Senior United States District Judge Norman A. Mordue in Syracuse. If convicted, Lorenz faces up to 20 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release. He may also be ordered to pay restitution to one or more government agencies. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by USDOT-OIG, NYSDOT’s Investigations Bureau, and the Office of the New York State Inspector General, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
St. Peters, MO Woman Pleads Guilty to Fraudulent Preparation of Bankruptcy PetitionsRead the Press Release
This morning, in Federal Court in East St. Louis, IL, Phebe Ibrahim, formerly known as "Phebe Khan," 50, of St. Peters, MO, pled guilty to 21 counts of bankruptcy fraud and related charges, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Ibrahim was indicted on October 3, 2017, as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
In pleading guilty today, Ibrahim, a non-lawyer, admitted that she worked as a bankruptcy petition preparer, preparing bankruptcy petitions and other documents for debtors who wished to file bankruptcy in the Southern District of Illinois. The Bankruptcy Code imposes certain restrictions on bankruptcy petition preparers, including requiring them to disclose their names on any documents they prepare, and allowing the Bankruptcy Courts to set maximum fees that they can charge their customers. The practice in the U.S. Bankruptcy Court for the Southern District of Illinois is that bankruptcy petition preparers are not allowed to charge fees of more than $150.
Ibrahim admitted that she defrauded the debtors for whom she prepared bankruptcy petitions by routinely charging fees that exceeded the maximum allowable amount. Ibrahim also acknowledged that she attempted to conceal her fraud by not disclosing her name on the documents she prepared, and by instructing her customers not to mention her name during their bankruptcy cases.
The Bankruptcy Code also requires that debtors attend a credit counselling briefing prior to filing a bankruptcy case. Ibrahim admitted that she circumvented and defeated this provision of the Bankruptcy Code by causing false "Certificates of Counselling" to be filed on behalf of her customers. These Certificates represented that Ibrahim’s customers had attended the required credit counselling briefing.
"The U.S. Trustee Program works with other law enforcement agencies to track down and pursue bankruptcy petition preparers who fail to comply with the requirements of the Bankruptcy Code, circumvent its provisions and prey on consumers in financial distress," stated Nancy J. Gargula, United States Trustee for Southern and Central Illinois and Indiana (Region 10). "We
appreciate the commitment of U.S. Attorney Boyce and our law enforcement partners to address fraud and abuse in the bankruptcy system. We welcome information that will help detect unscrupulous bankruptcy petition preparers and we encourage citizens to report suspected bankruptcy fraud through our Internet hotline at [email protected]."
Ibrahim pled guilty to seven counts each of bankruptcy fraud, causing false statements to be made under penalty of perjury in a bankruptcy case, and falsifying records in a bankruptcy case. Each of the bankruptcy fraud and false statements under penalty of perjury counts carries a maximum sentence of five years in prison and a fine of up to $250,000. Each of the falsification of records charges carries a maximum sentence of twenty years in prison and a maximum fine of $250,000.
Ibrahim will be sentenced on May 10, 2018, at 9:30 A.M. at the Federal Courthouse in Benton, IL.
The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"), in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Sprindale Man Sentenced to 10 Years in Federal Prison for Burglarizing A Federal Firearms LicenseeRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Chad Sales, age 31, of Springdale, was sentenced today to 120 months in federal prison followed by three years of supervised release and was ordered to pay a $2,900.00 fine and $1,000.00 in restitution on one count of theft of firearms from a federal firearms licensee. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on June 13, 2017, Springdale law enforcement responded to a burglary at Springdale armory in which 45 different firearms were stolen. During the investigation, officers observed Sales’ vehicle on the surveillance footage. Officers subsequently located and searched Sales’ vehicle and found six stolen guns and a suppressor. After the search, officers Mirandized Sales and he agreed to make a statement in which he admitted to stealing firearms from an armory. Law enforcement was able to recover and return the majority of the stolen firearms to the armory.
Sales was indicted by a federal grand jury in July 2017 and entered a guilty plea in September 2017.
This case was investigated by the Springdale Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney David Harris prosecuted the case for the United States.
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.
Smuggler Sent to Prison for Transporting Aliens in Wooden BoxesRead the Press Release
LAREDO, Texas – A 27-year-old man has been sent to federal prison for his participation in a smuggling scheme that involved dangerous and life-threatening conditions, announced U.S. Attorney Ryan K. Patrick. Zachery Steven Blizzard pleaded guilty Sept. 5, 2017.
Today, U.S. District Judge Hilda G. Tagle sentenced Blizzard, of Kingport, Tennessee, to 48 months in prison, followed by a three-year-term of supervised release.
On June 15, 2017, Blizzard instructed three undocumented aliens - one of whom was a minor - to hide themselves in two aftermarket wooden boxes built into the back of his white 2008 Chevrolet work van. Authorities discovered the aliens as Blizzard attempted to pass through a U.S. Border Patrol Checkpoint on Highway 59 approximately 15 miles west of Laredo.
Blizzard is one of eight defendants apprehended since April 2017 for transporting undocumented aliens in wooden boxes built into the back of vehicles. In some instances, the boxes were nailed or screwed shut with temperatures inside often reaching more than 100 degrees.
Yesterday, Judge Tagle sentenced Ricky Lee Parker, 51, of Calhoun, Georgia, to 24 months in prison for transporting eight undocumented aliens - found sweating and thirsty - in two cramped wooden boxes. In addition, U.S. District Judge Diana Saldana previously sentenced Jason Allen North, 39, of Ashland, Kentucky; Richard Jordan Lamar Defoor, 32, of Calhoun, Georgia; Allan Ray Collins, 32, of Isom, Kentucky; and Donna Lynn Williams, 46, of Chatsworth, Georgia, while U.S. District Judge Marina Garcia Marmolejo ordered Sean Michael McKinney, 46, of Steger, Illinois, to prison for transporting between 5-10 undocumented aliens each in the same manner. North and Collins each received 24 month, while Defoor and Collins were sentenced to 18 months. McKinney received a 30-month-term of imprisonment.
Travis Dean McKelroy, 48, of San Antonio, pleaded guilty last week and is awaiting sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigations with the assistance of U.S. Border Patrol. Special Assistant U.S. Attorney Lisa M. Ezra prosecuted the cases.
Shreveport felon pleads guilty to possessing pistol found at residenceRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man previously convicted of a felony pleaded guilty Wednesday to possessing a pistol found in his residence.
Kenneth D. Mayweather, 20, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to the guilty plea, the Caddo-Shreveport Narcotics Street Level Investigative Unit searched a Shreveport residence on August 3, 2017 as part of a drug investigation. Three males were taken into custody during the search with two of them apprehended in the backyard after attempting to flee the residence. Also during the search, law enforcement agents found a Glock, model 23, .40 caliber pistol and 11 rounds of ammunition. Mayweather admitted to owning the firearm and that he was not allowed to have one as he has a prior felony conviction.
Mayweather faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of May 30, 2018.
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 safe 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 Session announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and Caddo-Shreveport Narcotics Unit conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
Seneca Falls Man Sentenced for Filing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that James LaRock, II, 43, Seneca Falls, NY, who was convicted of filing a false tax return, was sentenced to three years probation and ordered to pay restitution to the Internal Revenue Service in the amount of $107,000 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Richard A. Resnick and Tiffany H. Lee, who handled the case, stated that for the tax years 2010-2013, the defendant, who is self-employed in the logging and firewood business, filed false personal income tax returns. Among other things, LaRock understated his gross receipts and omitted the cost of goods. In total, the defendant omitted approximately $280,470.72 in taxable income, resulting in a tax loss of $107,749 to the Internal Revenue Service.
The sentencing is the culmination of an investigation on the part of the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.
Saugus Man Pleads Guilty to Role in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Saugus man pleaded guilty yesterday in federal court in Boston to his role in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone.
Brian Petzke, 49, of Saugus, pleaded guilty to one count of conspiracy to distribute controlled substances. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 8, 2018. Petzke and five others, including Tyler Bauman, a/k/a “musclehead 320,” were arrested and charged in April 2017 with operating a counterfeit steroid operation on the North Shore.
From approximately May 2015 until April 12, 2017, the defendants manufactured steroid products - made from raw materials purchased overseas - and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., was a legitimate pharmaceutical company that did not manufacture steroids.
The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business located in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
Petzke is the final defendant to plead guilty in connection with the conspiracy. In August 2017, Bauman pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on March 15, 2018.
The charge of conspiracy to distribute controlled substances provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit are prosecuting the case.
Santa Barbara County Man Arrested on Federal Charges that Allege Investment Fraud Schemes, One of Which Promised Twitter StockRead the Press Release
LOS ANGELES – A Montecito resident has been arrested pursuant to a federal grand jury indictment that accuses him of running two fraudulent investment schemes and violating a court order prohibiting him from selling securities.
Efstratios “Elias” Argyropoulos, 71, was arrested at his office in Santa Barbara Wednesday morning by federal agents.
At his arraignment Wednesday afternoon in United States District Court, Argyropoulos pleaded not guilty, was ordered released on a $300,000 bond, and was ordered to stand trial on March 20.
According to the 21-count indictment unsealed after his arrest, Argyropoulos operated two Santa Barbara investment services firms – Prima Capital and Prima Ventures – and engaged in two fraudulent schemes by soliciting investments in companies such as Facebook and Twitter, as well as investments in a fictitious estate settlement.
In the first alleged scheme, Argyropoulos faces six fraud charges related to false promises to use investor funds to purchase securities, including pre-IPO shares of Facebook and Twitter. Instead of purchasing the stocks, Argyropoulos allegedly diverted the investor funds for other uses, such as day-trading in stocks unrelated to the promised investments and personal expenses, such as his mortgage, car payments and casino debts. According to the indictment, from October 2010 through October 2015, Argyropoulos solicited $4,947,360 from investors victimized in this scheme.
In the second scheme, Argyropoulos faces seven fraud charges for allegedly marketing shares in an investment known as the “Laurence Miles Giant Estate Settlement,” which was also called the “Laurence Miles Trust.” According to the indictment, Argyropoulos falsely told investors that the beneficiary of the Trust was a very ill woman who needed medical treatments and was the heir to a large estate, which was worth more than $1 billion. According to the bogus story, the estate was tied up in probate proceedings, and money was needed to cover the heir’s medical expenses. Once the probate proceedings were finished, Argyropoulos allegedly told victims, the assets would become available for transfer, at which point, investors would receive a large return – as much as 1,000 percent. In truth, there was no estate to be settled and no “ill woman” with large medical bills. According to the indictment, Argyropoulos’ investors lost over $760,000 in the scam.
The final eight counts of the indictment charge Argyropoulos with criminal contempt. These counts allege that Argyropoulos’ solicitation of investments in the Laurence Miles Trust violated the terms of an injunction that Argyropoulos consented to in a suit brought by the Securities and Exchange Commission, which was based on the fraudulent Facebook and Twitter scheme. The injunction prohibited Argyropoulos from selling fraudulent investments and acting as an unlicensed broker.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the 13 fraud charges in the indictment, Argyropoulos would face a statutory maximum sentence of 20 years in federal prison for each count. There is no statutory maximum sentence for the eight contempt charges.
The case against Argyropoulos is being investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Scott Paetty of the Major Frauds Section.
San Ildefonso Pueblo Man Sentenced to Prison for Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Jordan Roybal, 26, an enrolled member of the San Ildefonso Pueblo who resides in Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in prison for assaulting a federal officer. Roybal will be on supervised release for three years after completing his prison sentence.
Roybal was arrested on March 3, 2017, on a criminal complaint charging him with assaulting a federal officer. According to the criminal complaint, Roybal was arrested on tribal charges on Nov. 21, 2016, after he assaulted a law enforcement officer of the Bureau of Indian Affairs (BIA). Roybal committed the assault on San Ildefonso Pueblo in Santa Fe County, N.M., by resisting arrest and challenging the officer to fight. During the assault, Roybal bit the officer on the wrist. The officer also sustained skinned knees, a scrape on his left hand, swelling of his right knee and soreness to his left wrist as the result of the assault.
Roybal was subsequently charged in a two-count indictment on March 28, 2017, with assaulting a federal officer on Nov. 21, 2016 in Santa Fe County, and assaulting a federal officer on Jan. 26, 2017, in Rio Arriba County, N.M.
On July 18, 2017, Roybal pled guilty to Count 1 of the indictment charging him with assaulting a federal officer. In entering the guilty plea, Roybal admitted that on Nov. 21, 2016, he assaulted a BIA officer while the officer was attempting to arrest him on tribal offenses by lying about his identity, cursing at the officer, resisting arrest, throwing his elbow into the officer, biting the officer, and verbally threatening the officer.
This case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Elisa Dimas prosecuted the case.
Repeat Drug Trafficker Sentenced to 14 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Pedro Carrasco, Jr., a 35 year-old resident of Billings, Montana, was sentenced to 168 months in prison, 5 years of supervised release, and a $100 special assessment. Carrasco was convicted of conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, and conspiracy to commit money laundering, in violation of 21 U.S.C. § 1956(h). The sentence also includes the forfeiture of a Glock, model 23, .40 caliber, semi-automatic pistol; a Smith & Wesson, model Bodyguard, .380 auto caliber semi-automatic pistol; 80 rounds of .40 caliber ammunition; 11 rounds of .380 ACP ammunition; and $4,655 in United States Currency.
In February 2016, a Montana State Highway Patrol Trooper pulled over a vehicle traveling eastbound on I-90 near Missoula for a traffic violation. During a consent search of the vehicle, the trooper seized 1,056.3 grams of pure methamphetamine concealed within a speaker box stored in the trunk of the vehicle. Drug Enforcement Administration agents later determined that the occupants of the vehicle intended to deliver the methamphetamine to Carrasco in Billings. Agents next executed a search warrant at Carrasco’s residence in Billings and recovered additional methamphetamine, two firearms, drug paraphernalia, digital scales, body armor, and $4,655 in US Currency. Agents also noted that Carrasco had surveillance cameras outside of his residence. After the search of his residence, Carrasco admitted to agents that he had been distributing methamphetamine in Billings from 2011 through February 2016.
In 2003, Carrasco was convicted in United States District Court, District of Montana, of conspiracy to possess with intent to distribute methamphetamine in violation of 21 U.S.C. § 846.
The Carrasco case was investigated by the Drug Enforcement Administration; Internal Revenue Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Eastern Montana High Intensity Drug Trafficking Area Task Force; Montana Highway Patrol; and multiple other federal, state, and local agencies.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Queensbury Oncologist and Spouse to Pay $500,000 for Submitting False Claims to Medicare for the Administration of Unapproved Cancer DrugsRead the Press Release
ALBANY, NEW YORK – Dr. Vincent Koh and his wife and office manager, Milly Koh, have agreed to pay $500,000 for violating the False Claims Act by knowingly submitting false claims to Medicare for unapproved chemotherapy drugs, announced United States Attorney Grant C. Jaquith. On November 20, 2017, the Kohs pled guilty to receiving and delivering misbranded drugs, a misdemeanor, and are scheduled to be sentenced on March 20, 2018 by United States Magistrate Judge Daniel J. Stewart.
The Kohs own and operate a medical practice, with offices in Poughkeepsie and Glens Falls, New York, that specializes in the treatment of patients suffering from various forms of cancer. From mid-2010 to early 2012, the practice purchased various drugs purporting to contain the same active ingredients as drugs sold in the United States from a Canadian drug distributor who had obtained these drugs from foreign sources. The drugs, some of which contained labeling in foreign languages, were not approved by the U.S. Food and Drug Administration (FDA) as required for them to be distributed in the United States and were therefore not reimbursable by Medicare.
Dr. Koh’s practice purchased the foreign drugs at substantially lower prices than those charged for drugs from legitimate U.S. drug manufacturers and distributors. Dr. Koh administered these drugs to his patients, and caused his staff to submit false claims for the drugs to Medicare.
“Unlike prescription drugs picked up at a pharmacy, chemotherapeutic drugs generally are administered without any opportunity for patients to see the labeling, so cancer patients are particularly vulnerable to this sort of conduct,” said United States Attorney Jaquith. “This settlement reflects our ongoing commitment to safeguarding patients and the federal fisc by ensuring that people do not unknowingly receive and taxpayers do not pay for foreign drugs that the FDA has not approved.”
“Patients deserve the security of knowing that the medication being prescribed to them is unadulterated, safeguarded, and properly manufactured,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG). “This settlement is another example of HHS-OIG’s commitment to protecting quality of care and the federal health care programs intended for our most vulnerable Americans.”
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, HHS-OIG, FDA’s Office of Chief Counsel, and FDA’s Office of Criminal Investigations. The United States was represented in the civil investigation by Assistant U.S. Attorney Adam J. Katz.
Ponca City Woman Pleads Guilty to Possessing RicinRead the Press Release
Oklahoma City, Oklahoma – DANIELLE DANA LAYMAN, 37, of Ponca City, Oklahoma, has pleaded guilty to possessing the toxin ricin, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to a complaint filed on July 1, 2017, Layman used craigslist to locate someone interested in a "10 day gig overseas." On May 9, 2017, she met in Ponca City with a person who responded to the craigslist post. According to the affidavit, Layman gave that person written instructions on traveling to Tel Aviv, Israel, and using ricin to poison a specific taxi driver in exchange for $4,000 plus expenses. The affidavit states that Layman also gave the person a baggie that she claimed contained the ricin to be used in the murder. Ricin is an extremely hazardous substance derived from castor beans.
On June 30, 2017, the FBI executed a search warrant at Layman’s residence in Ponca City and found castor beans in the kitchen. The complaint alleges agents also found a mortar and pestle with residue that could be remnants of ground castor beans, along with instructions on how to make ricin. Layman was arrested later that day.
On August 1, 2017, a grand jury indicted Layman on one count of using interstate communications with the intent to hire someone to commit murder. On October 3, a grand jury returned a superseding indictment that added one count of possessing ricin without the required registration.
Today Layman pleaded guilty to possessing ricin illegally. The government has agreed to dismiss the murder-for-hire count at sentencing.
As a result of today’s guilty plea, Layman faces a maximum sentence of five years in prison, three years of supervised release, and a fine of $250,000.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and David P. Petermann.
Reference is made to court records for further information.
Pittsburgh Man Sentenced to Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 19 months’ imprisonment, followed by six months’ community confinement and lifetime supervised release on his conviction for failure to update his registration in accordance with the Sex Offender Notification Act (SORNA), United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Kenneth Patrick Jeffries, 34, of Pittsburgh, Pennsylvania.
According to information presented to the court, Jeffries, who had previously been convicted of receiving child pornography, a conviction that required him to register as a sex offender, violated the provisions of SORNA when he failed to properly update his registration in January and February 2017, to reflect his current residential address. Contrary to the conditions of his supervised release, he had been living with his girlfriend, also a previously convicted felon, and her minor children.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Jeffries.
Pennsylvania Couple Charged with Distributing Fake Oxycodone Pills Containing HeroinRead the Press Release
NEWARK, N.J. – A man and woman from Hazleton, Pennsylvania, were charged today with conspiring to distribute heroin pills that were made to look like 30-milligram tablets of oxycodone, U.S. Attorney Craig Carpenito announced.
Francisco Perez, 31, and Nadia Moronta Pena, 33, are charged by criminal complaint with conspiring to distribute more than 100 grams of heroin. The defendants appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Perez was detained. Pena was released on $150,000 unsecured bond.
According to the complaint:
During the course of an investigation into the illegal manufacturing and distribution of opioids and other narcotics in New Jersey, an undercover law enforcement agent received information that Perez was illegally distributing oxycodone.
On Jan. 23, 2018, Perez allegedly met the undercover agent in Paterson, New Jersey, and sold the undercover agent approximately 1,000 pills that were similar in size, shape, color, and physical markings to 30-milligram oxycodone tablets manufactured by pharmaceutical companies. However, when the pills were tested in a lab, they were found to contain a mixture of Tramadol, a Schedule IV synthetic opioid, and heroin.
On Feb. 7, 2018, the undercover agent again met with Perez in Paterson, this time to purchase up to 40,000 pills. During the meeting, Perez motioned to Pena, who brought over a white bag containing thousands of pills for the undercover agent to examine before the deal. Perez and Pena were then arrested at the scene, and law enforcement agents recovered more than 20,000 additional pills that were similar in appearance to the heroin pills that Perez sold the undercover agent on Jan. 23, 2018.
Around the time Perez and Pena were arrested, law enforcement officers conducted a search of their residence in Pennsylvania. They recovered numerous other pills, approximately one kilogram of a powdery substance believed to be heroin, pill-press materials, and a box containing several bottles of liquid labeled “Fentanyl.” A firearm was recovered from inside a compartment in the wall of the residence.
U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, as well as the DEA Scranton Resident Office, the Hazleton Police Department, and the Passaic County Sheriff’s Office with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense Counsel:
Perez: John Yauch Esq.
Pena: Paulette Pitt Esq.Orwell Man Sentenced to 84 months of Imprisonment for Armed Robbery of Fair Haven Maplefields Store in September 2015Read the Press Release
The Office of the United States Attorney for the District of Vermont stated that Matthew Hinton, 28, most recently of Orwell, Vermont, has been sentenced by U.S. District Court Judge Christina Reiss to 84 months of imprisonment for an armed robbery of the Maplefields convenience store in Fair Haven, which occurred on September 30, 2015. The defendant previously pled guilty to this robbery, as well as possessing a stolen firearm, which he stole during a burglary in Orwell, Vermont, a couple days prior to the robbery.
Judge Reiss also sentenced Hinton to three years of supervised release, which will follow his prison sentence. Finally, Judge Reiss ordered Hinton to pay $2,150 in restitution to the Orwell burglary victims and $200 in restitution to Maplefields.
According to the facts stipulated to by Hinton, on September 28, 2015, Hinton burglarized a home on Daigneault Hill Road in Orwell, Vermont and stole, among other items, a Ruger .357 caliber revolver. On September 30, 2015, at about 2:30 A.M., the defendant entered the Maplefields convenience store in Fair Haven, Vermont and pointed the Ruger revolver at the store clerk in a threatening manner and demanded that she open the cash register drawer, which she did. The defendant then took $80 of cash from the cash register. The defendant ordered the store clerk to hand him two cartons of cigarettes from behind the counter and she complied. The defendant then told her to get on the floor and stay down on the floor or there would be problems. According to court records, the store clerk still suffers from PTSD from the armed robbery.
Hinton was initially arrested on September 30, 2015 on state charges. The state charges against him include charges brought by the Addison County State’s Attorney for three other burglaries in the Orwell and Shoreham area committed by Hinton on September 28, 2015. Hinton recently pled guilty to these charges and was sentenced to 4-10 years of incarceration. In addition, Hinton has a pending state charge for escape from custody (furlough) in Rutland County brought by the Rutland County State’s Attorney.
Hinton will not receive credit on the federal sentence for the prior time he has spent in state custody, which has been continuous since September 30, 2015. In other words, Hinton did not start receiving credit for his 84-month federal sentence until February 6, 2018, the day of his federal sentencing. At that point, his federal sentence and state sentences will run concurrently.
U.S. Attorney Christina Nolan noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.projectsafeneighborhoods.gov
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fair Haven Police Department, and the Vermont State Police. The case was prosecuted by Assistant U.S. Attorney Joseph Perella. Hinton is represented by David McColgin of the Federal Public Defender’s Office.
Olney Man Pleads Guilty to Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – Mehlek Dawveed, age 51, of Olney, Maryland, pleaded guilty today to wire fraud stemming from the filing of fraudulent tax returns, in which he received one fraudulent refund of more than $970,000.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation.
According to his plea agreement, from 2011 through 2014 Dawveed filed fraudulent Income Tax Returns for 2010 and 2011 that resulted in him receiving a refund in the amount of $977,558. Upon receipt of the funds, Dawveed wired the money from a bank in Kansas City, Missouri to his account in Maryland.
Using part of the fraudulently obtained funds, Dawveed paid the remaining $83,837 balance on the mortgage for his residence in Olney, Maryland and deposited a $250,000 check into a bank account controlled by Dawveed’s wife. Dawveed wrote several other checks into accounts controlled by him or close associates and wrote checks to various individuals and family members and for his own personal expenses.
On February 18, 2012, Dawveed filed a fraudulent Income Tax Return for 2011 in which he requested a refund in the amount of $1,324,961. This falsely requested refund was not issued. On February 27, 2012, Dawveed then filed a 2010 Form 1040X, Amended U.S. Individual Income Tax Return, where he changed his taxable interest income from $1,486,902 to $0 and stated: “we now beckon you to accept our humblest apology for the ‘Unintentional Errors’ made during our 1040 filing for Tax Year 2010 for they were not done with ‘Malicious Intent.’” The form falsely stated: “In ‘Good Faith’ we submitted a Payment of $5,000,000 Million Dollars to the IRS on January 31, 2012 in hopes of settling the remaining ‘Debt’ from our 1040 Tax Filing for Year 2010.” No such $5,000,000 payment was ever made.
As part of the plea agreement, the Court will enter a forfeiture order for the fraudulently received funds as well as his Olney residence, which he paid off with the fraudulent tax refund money.
Dawveed faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 21, 2018 at 2 p.m.
Acting United States Attorney Stephen M. Schenning commended the IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney’s Kelly O. Hayes and Sean R. Delaney who are prosecuting the case.
Oklahoma Man Pleads Guilty to Child Pornography PossessionRead the Press Release
An Oklahoma man pleaded guilty today to possession of child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney R. Trent Shores of the Northern District of Oklahoma.
Thaddus Caves, 40, of Tulsa, Oklahoma, pleaded guilty to one count of possession of child pornography before U.S. District Judge John E. Dowdell. Sentencing is set for May 8.
“This prosecution is another example of law enforcement working together to protect the most vulnerable among us--our children,” said U.S. Attorney Shores. “Predators will be pursued, investigated, prosecuted, and most importantly, held accountable by my office.”
According to admissions made in connection with the plea agreement, in October 2016, Caves knowingly possessed visual depictions of minors engaging in sexually explicit conduct. The depictions included at least one prepubescent minor under the age of 12-years-old.
The charges are the result of an investigation by the FBI’s Internet Crimes Against Children Task Force. The matter is being prosecuted by Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeff A. Gallant of the Northern District of Oklahoma.
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 CEOS, 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.justice.gov/psc.
Oakdale prisoner pleads guilty to assaulting fellow inmateRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that an Oakdale inmate pleaded guilty Wednesday to assaulting another inmate.
Frank Quinton Gaitor, 49, an inmate at the Federal Correctional Center, Oakdale, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of assault within maritime and territorial jurisdiction. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Gaitor assaulted and intentionally struck a fellow inmate on January 2, 2016 at the Federal Correctional Center in Oakdale. The assault left the inmate with serious bodily injuries.
Gaitor faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of April 17, 2018.
The FBI and U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorneys David J. Ayo and Jamilla A. Bynog are prosecuting the case.
North Versailles Man Pleads Guilty in Cocaine and Fentanyl Distribution ConspiracyRead the Press Release
PITTSBURGH - A resident of North Versailles, Pennsylvania, pleaded guilty yesterday in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Dawndre Bivins, 30, pleaded guilty to one count of conspiracy, between March and August 2017, to distribute cocaine and fentanyl. In connection with the guilty plea, the court was advised that Bivins was responsible for the distribution of 1.9 kilograms of cocaine and 40 grams of fentanyl, which he purchased from his codefendant, Skyler Carter, in the Clairton, Pennsylvania area. He is the fourth of 21 defendants charged to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for June 26, 2018, at 10 a.m. Bivins has a prior felony drug conviction, and as such, he is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bivins remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
New York City Correction Officers Charged with Smuggling Narcotics into City Prison FacilitiesRead the Press Release
A six-count indictment was unsealed today in federal court in Brooklyn charging seven defendants with conspiring to bribe correction officers employed by the New York City Department of Corrections (“DOC”) as part of a narcotics smuggling conspiracy. The defendants’ arraignment is scheduled for this afternoon before United States Magistrate Judge James Orenstein.
As alleged in the indictment, the defendants conspired to smuggle marijuana and other contraband into DOC prison facilities with the assistance of New York City Department of Correction Officers Christian Mizell and Carl Noel. Defendants Warren Green and Patrick Johnson, both incarcerated on unrelated felony offenses, arranged for marijuana and other contraband to be packaged and delivered covertly to the correction officers by defendants Robert Martino, Malik Holloway and Asha Patterson. The Correction Officers received thousands of dollars in bribes to smuggle the contraband past DOC security for eventual distribution inside the prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George P. Beach, Superintendent, New York State Police, announced the charges.
“The honesty and integrity of correction officers is critical to the orderly running of a prison,” stated United States Attorney Donoghue. “When the defendant correction officers betrayed the trust placed in them by the City of New York, they not only committed serious crimes but also potentially jeopardized the safety of staff and inmates. This Office and our law enforcement partners are committed to identifying and prosecuting corrupt correction officers who accept bribes to smuggle contraband into prison facilities.”
“Drug traffickers are notorious for their smuggling methods, but this case demonstrated the defendants’ ability to bypass security altogether,” stated DEA Special Agent-in-Charge Hunt. “With two correction officers as members of the organization, the defendants allegedly pushed contraband into prison for resale to inmates. Today’s arrests are a result of law enforcement partnerships and hard work.”
“This investigation demonstrates again a pattern of misconduct in our City’s jails: outside civilians working with Correction Officers and DOC employees to smuggle narcotics and other contraband to inmates on the inside,” stated DOI Commissioner Peters. “DOI and its partners, including the U.S. Attorney for the Eastern District, have been cracking down on these illegal operations to stem the flow of contraband, while also working towards critical reforms in DOC’s front-gate screening protocols to shore up security at these facilities.”
“Due to the hard work and cooperation between law enforcement partners at all levels, this smuggling conspiracy was uncovered and shut down,” stated NYSP Superintendent Beach. “This sends a strong message that we will not tolerate such crimes, especially when they are perpetuated by individuals in a place of authority who have been entrusted with upholding the law. Such criminals will be prosecuted to the fullest.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of five years imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.
The Defendants:
Christian MIzell
Age: 48
Queens, New YorkCARL NOEL
Age: 32
New York, New YorkWARREN GREEN
Age: 40
Pine City, New YorkPATRICK JOHNSON
Age: 27
Bronx, New YorkROBERT MARTINO
Age: 37
Queens, New YorkMALIK HOLLOWAY
Age: 22
Bronx, New YorkASHA PATTERSON
Age: 43
Queens, New YorkE.D.N.Y. Docket No. 18-CR-60 (PKC)
New Orleans Man Pleads Guilty to Embezzling over $437,000 from Local EmployerRead the Press Release
U.S. Attorney Duane A. Evans announced that WAYNE SONIAT, age 61, of New Orleans, pled guilty today after previously being charged with a two-count Bill of Information for wire fraud and making false statements on federal income tax returns.
According to court documents, SONIAT was employed as a warehouse manager for a New Orleans-based food production company headquartered in Metairie, Louisiana, which also operated a manufacturing plant in Reserve, Louisiana (“Company A”). SONIAT was responsible for, among other things, ensuring that employees followed appropriate procedures, keeping track of when temporary employees worked, and submitting the requisite paperwork, including time sheets, to ensure that Company A paid the temporary employees and the staffing agency through whom the temporary employees were acquired for the time the temporary employees worked. Between about November 2009 and October 2014, SONIAT embezzled approximately $437,346 from Company A in a series of approximately 200 wire transfers, without Company A’s knowledge or authorization. SONIAT did so by signing and submitting paperwork, including time sheets, indicating that temporary, contract employees (“ghost employees”) had performed work for Company A when, in fact, they had not. SONIAT obtained debit cards in the names of the ghost employees onto which payments were made for the time they allegedly worked. SONIAT then used the money to pay for personal expenses to withdraw cash at area ATMs. Additionally, SONIAT failed to report the income from his scheme on his federal income tax returns, which resulted in a loss to the United States Government in the form of tax due and owing in the amount of approximately $43,885.
SONIAT faces up to twenty-three (23) years imprisonment. Sentencing before Judge Feldman has been scheduled for May 16, 2018.
U.S. Attorney Evans praised the work of the Internal Revenue Service – Criminal Investigations in investigating this matter, with assistance from the United States Secret Service, the St. John the Baptist Sheriff’s Office, and the Louisiana Financial Crime Task Force. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
Navajo Man Sentenced to Federal Prison for Robbery of Community StoreRead the Press Release
PHOENIX – This week, Antonio Yazzie, 25, of Lukachukai, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Stephen M. McNamee to 46 months in prison followed by a term of 3 years of supervised release. Yazzie had previously pleaded guilty to robbery.
On Jan. 18, 2017, Yazzie entered the Totsoh Trading Post on the Navajo Nation Indian Reservation and brandished a box cutter. Yazzie threatened a store employee and demanded the employee give him money from the cash register. The victim complied with Yazzie’s demands. The victim is also a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police and Criminal Investigations. The prosecution was handled by Tracy Van Buskirk, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08037-PCT-SMM
RELEASE NUMBER: 2018-012_Yazzie
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Monroe County Man Guilty of Heroin Trafficking and Gun ChargesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Laurence Cadogan, age 33, of Stroudsburg, pleaded guilty today to charges of heroin trafficking and unlawfully possessing a firearm in furtherance of drug trafficking, before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, Cadogan, admitted to possessing with intent to distribute between 60 grams and 80 grams of heroin and unlawfully possessing two firearms in furtherance of drug trafficking. The crimes allegedly occurred on October 26, 2016, in Tannersville. Police and federal agents seized more than 3000 bags of heroin and two firearms during the investigation. Cadogan also agreed to forfeit the two firearms seized by agent.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled after the submission of a pre-sentence report to the court.
Cadogan was indicted by a grand jury in February 2017.
The charges against the Cadogan resulted from an investigation by the Drug Enforcement Administration (DEA) and the Stroud Area Regional Police Department. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The maximum penalty under federal law for the gun offense is life in prison, a term of supervised release following imprisonment, and a fine. That charge also carries a mandatory minimum penalty of five years in prison. The maximum penalty under federal law for the drug offense is 20 years in prison, 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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Monongalia County woman sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anna May Martin, of Westover, West Virginia, was sentenced today to 12 months incarceration for drug distribution, United States Attorney Bill Powell announced.
Martin, age 32, pled guilty to one count of “Unlawful Use of Communication Facility” in October 2017. Martin admitted to using a phone to distribute and assist in a conspiracy to distribute oxycodone. The crime occurred in Monongalia County in March 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Mission Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Simple Assault was sentenced on February 7, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Tristan Lee Kills The Enemy, age 21, was sentenced to 6 months in custody and a special assessment to the Federal Crime Victims Fund in the amount of $10.
Kills The Enemy was indicted by a federal grand jury on November 14, 2017. He pled guilty on February 7, 2018.
The conviction stemmed from an incident on October 28, 2017, when Kills The Enemy committed a Domestic Assault on his spouse and intimate partner.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.
Kills The Enemy was immediately turned over to the custody of the U.S. Marshals Service.
Mesa, Arizona, Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carlos Daniel Chavez-Lozano, age 27, of Mesa, Arizona, pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about March 9, 2017, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, 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 a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Memphis Man Sentenced on Marjiuana ChargesRead the Press Release
Jackson, Miss. – Eddie Lee Hunt, 48, of Memphis, Tennessee, was sentenced today by U.S. District Judge Henry T. Wingate to 14 months in federal prison followed by two years of supervised release and a $1,500 fine for possession with intent to distribute marijuana, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. He pled guilty to the charge on October 19, 2017.
Hunt traveled from Memphis, Tennessee, to Jackson, Mississippi, to purchase over 17 pounds of Marijuana. Following a traffic stop of the vehicle Hunt was driving, the marijuana was discovered in the trunk.
This case is the result of an extensive investigation, dubbed AOperation Pipeline@, which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of Methamphetamine and Marijuana. The distribution network encompasses the States of California, Texas and Mississippi.
The investigation was led by ICE Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Erin Chalk.
Man Who Wanted to Commit Jihad Attempted to Join U.S. MilitaryRead the Press Release
NORFOLK, Va. – A Williamsburg man who told an undercover agent that he wanted to commit jihad, pleaded guilty today to passport fraud and to making false statements in his application to join the United States military.
According to court documents, Shivam Patel, 28, was working in China in the summer of 2016 when he flew to the Kingdom of Jordan, was arrested, detained, and then returned to the United States. Patel is alleged to have told an undercover agent and a confidential source that he wanted to join a “Muslim army” and commit jihad. After returning to the United States, he applied to join the Army and Air Force. When asked about his prior foreign travel as part of his applications, Patel did not disclose his trips to China or Jordan. After he was asked to show an Army recruiter his passport, which would have revealed his prior travel to the recruiter, he filed an application for a new passport, falsely claiming that he had accidentally thrown his old passport away. Special agents from the FBI recovered that passport, which documented his undisclosed travel, when they arrested him in July 2017.
Patel pleaded guilty to false statements and passport application fraud. He faces a maximum penalty of 15 years in prison when sentenced on June 4. 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, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence Leonard accepted the plea. Assistant U.S. Attorney Andrew C. Bosse and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are 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. 2:17-cr-120.
Man Sentenced for Receiving Images of Child Sexual AbuseRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to eight years in prison and 10 years of supervised release for receiving images of child sexual abuse.
According to court documents, Charles Tiffit Ellis, Jr., 37, responded to an ad placed on Craigslist by an undercover officer, which read in part, “Looking to meet other taboo Dads/moms to chat n more….” Ellis communicated with the undercover via Kik Messenger and after confirming that they were on the same page regarding the term “taboo,” Ellis sent the undercover officer links to his Dropbox account for several child pornography videos involving prepubescent children. Ellis also sent the undercover a video of someone Ellis claimed was a 14-year-old girl he met online and filmed performing oral sex on him. A search warrant on Ellis’s home yielded corroborating evidence on his phone.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Members of FBI Richmond’s Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Brian R. Hood prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-108.
Media NotificatonRead the Press Release
WHAT: D. Michael Dunavant, United States Attorney for the Western District of Tennessee, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, will make an announcement regarding the Department of Justice’s investigation into a Drug Trafficking Organization. DATE: Thursday, February 8, 2018 TIME: 2:00 p.m. WHERE:United States Attorney’s Office – Main Conference Room
NOTE:
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 1:15 p.m. Everything must be pre-set by 1:30p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Louisiana Men Sentenced After Pleading Guilty to Methamphetamine Conspiracy ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that U.S. District Judge Jane Triche Milazzo sentenced JEREMY DORMAN, age 31, of Baton Rouge, Louisiana, and JUSTIN SWANK, age 37, of New Orleans, Louisiana, to 65 months and 40 months imprisonment, respectively, after pleading guilty to one count of conspiracy to distribute and possess with intent to distribute a quantity of methamphetamine.
According to court documents, on September 24, 2015, a confidential source informed Jefferson Parish law enforcement officers that DORMAN was traveling eastbound on Interstate 10 near Kenner, Louisiana with a large quantity of methamphetamine. A stop and search of the vehicle revealed that DORMAN was in possession of 912 grams of methamphetamine. In a post-arrest statement, DORMAN acknowledged possession of the methamphetamine and identified SWANK, a New Orleans resident, as his drug trafficking associate who was also in possession of methamphetamine. Special Agents from the Drug Enforcement Administration went to SWANK’S residence at 2410 Daneel Street and arrested him on an outstanding warrant. During a search of SWANK’S residence, agents recovered 19 grams of methamphetamine from SWANK’S pocket and recovered another 421 grams of methamphetamine from a safe in SWANK’S bedroom.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney André Jones was in charge of the prosecution.
Local Bingo Operators Convicted of Conspiracy, Illegal Gambling Operation, and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – After an eight-day jury trial, Larry L. Masino, 67, of Gulf Breeze, and Dixie L. Masino, 65, of Pensacola, were convicted late yesterday in the U.S. District Court in Pensacola of wire fraud conspiracy, operating an illegal gambling business, and money laundering conspiracy. In addition, Larry L. Masino was convicted of 18 counts of money laundering, and Dixie L. Masino was convicted of 20 counts of money laundering. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Larry and Dixie Masino owned and operated Racetrack Bingo Inc. in Fort Walton Beach, which purported to conduct bingo games and provide the proceeds to a group of local charities in Okaloosa County. Between 2006 and 2015, the Masinos conspired to defraud the charities out of more than $8 million dollars. The Masinos specifically falsely assured the charities they were complying with provisions of the Florida statute. In fact, the Masinos were unlawfully paying themselves and their employees to conduct bingo games and were charging the charities a lease fee based on inflated expenses. Racetrack Bingo was an illegal gambling business because it was conducting bingo games and unlawfully retaining profit, rather than returning the net proceeds of the bingo games back to the players in the form of prizes. The Masinos conspired to launder more than $5.8 million of the bingo proceeds through profit distribution checks that the Masinos and their three children received as shareholders of Racetrack Bingo.
For the wire fraud conspiracy, the Masinos face a maximum of 20 years in prison. For the money laundering conspiracy and money laundering charges, the Masinos face a maximum of 10 years in prison. For operating an illegal gambling business, they face a maximum of 5 years in prison. The sentencing hearing is scheduled for May 25, 2018, at 1:00 p.m. at the Arnow Federal Building in Pensacola.
This case resulted from a joint investigation by the Florida Department of Law Enforcement, the Internal Revenue Service—Criminal Investigation, the Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
The U.S. 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 U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Last of Six Defendants Sentenced for Gun and Drug Trade in Great FallsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that the last of six co-defendants was sentenced today for her role in a methamphetamine for guns trade that took place in Great Falls. 31-year old Monica Hulit of Great Falls was sentenced to 24 months in prison, 2 years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing. Dawn Evans of Kevin, Montana, was previously sentenced to 24 months for her role in this offense. Marty Krominga of Great Falls was previously sentenced to 28 months for his role in this offense. Alvin Roe of Lewistown, Montana, was previously sentenced to 33 months for his role in this offense. Richard Stampka of Great Falls was previously sentenced to 12 months and one day for his role in this offense. Story Wood of Livingston, Montana, was previously sentenced to 54 months for his role in this offense.
In the summer of 2015, various methamphetamine dealers became acquainted with each other at a local methamphetamine supplier’s home in Great Falls, Montana. During this time, various members of this group, including Monica Hulit and Story Wood, made drug runs to Washington and Idaho, in order to bring methamphetamine back to Great Falls for redistribution in the area, as well as to local Indian reservations. This group also discussed trading firearms in exchange for methamphetamine.
Following one late summer gathering at this Great Falls home, Hulit, Wood, and another male, left to go on an out-of-state drug run. A few days later, on August 23, 2015, the Shoshone County Sheriff’s Office in Smelterville, Idaho, responded to a shoplifting report at the local Walmart. A deputy identified the suspects involved in the shoplifting as Hulit, Wood, and the other male. The deputy issued various citations to the Hulit, Wood, and the male, and observed they were all traveling together in a gold car with Montana license plates.
Two days later, on August 25, 2015, a Montana Highway Patrol Trooper stopped this same gold car for speeding on Highway 200 in Lewis and Clark County. The trooper identified Wood as the driver, Hulit as the front passenger, and the male as the rear passenger. All three individuals provided various inconsistent statements to the trooper, and Wood appeared to be extremely nervous and fidgety. Based on the behavior of Hulit, Wood, and the male, the trooper believed there may be illegal drugs in the car and requested consent to search the car. Wood denied consent, and the trooper impounded the car pending a search warrant. The trooper arrested the male on an outstanding warrant, and Hulit and Wood began to walk down Highway 200. The trooper called a towing company out of Wolf Creek to secure the car. The towing company arrived and towed the gold car, identified as a Honda Accord, to a secure impound lot in Wolf Creek pending the execution of a search warrant.
The following day, August 26, 2015, troopers went to find the car in Wolf Creek and discovered the fence to the secure storage lot had been damaged. They discovered that someone had tampered with the evidence tape adhered to the gold Honda Accord, and it appeared someone had entered the car since it had been towed to the lot. Subsequently, the troopers found drug-related paraphernalia in the car, and reported the suspicious incident to the local drug task force offices.
Meanwhile, on September 2, 2015, Great Falls police responded to a report that numerous storage units had been burglarized at a local storage unit complex in Great Falls. Officers went to the business and found someone had cut through the fence behind one of the storage buildings and had entered the property. The business had no surveillance equipment, but the officers noted that someone had cut the locks off three of the storage units, although it appeared that only one of the units had been burglarized. The owner of the burglarized unit arrived to speak with police, and subsequently observed that numerous firearms were missing from the unit.
On September 9, 2015, Great Falls police received a call from an employee at a local bar concerning a suspicious car in the parking lot. Great Falls police found the car, and identified the occupants of the car as Hulit, Wood, and the other male. Wood told the officers he had borrowed the car. The officers contacted the registered owner of the car who consented to a search of the car. As Hulit, Wood, and the other male got out of the car, Wood mentioned there might be a firearm in the car. Officers looked under the driver’s seat of the car and removed a loaded semi-automatic pistol.
Detectives obtained a search warrant for the car and found additional firearms and ammunition in the trunk. Specifically, detectives found two bags in the trunk of the car that contained ammunition addressed to the father of the storage unit owner whose unit had been burglarized. Detectives also found four additional firearms in the trunk of the car, which included three rifles and a shotgun.
Detectives subsequently confirmed that the owner of the storage unit reported that all four of these firearms had been stolen from his unit during the September 2, 2015, burglary. The owner of the storage unit also positively identified that all four of the firearms had previously been stored in his storage unit. During further investigation, detectives learned that Marty Krominga and Dawn Evans were responsible for breaking into the storage unit and stealing the firearms that were recovered from the trunk of the car occupied by the defendant. Following the burglary of the storage unit, Krominga and Evans had immediately taken the stolen firearms to Hulit in order to trade the stolen firearms for methamphetamine.
Detectives also learned that Krominga and Evans had stolen a 12-gauge pump action shotgun from the storage unit, and subsequently provided it to a woman to pawn at a local pawnshop. Based on this information, detectives went to a Great Falls pawnshop and recovered the pump action shotgun, which had been pawned by the woman. Detectives contacted the storage unit owner, who identified the shotgun by its serial number, and confirmed it was one of the firearms stolen from his storage unit. Lastly, detectives learned that Hulit, Wood, Stampka and Roe were responsible for breaking into the secure impound lot in Wolf Creek in order to retrieve methamphetamine and a firearm from the car.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.