Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 8 February 2018
Kearney Man Sentenced to 20 Years for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that two more defendants were sentenced today for their roles in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Elgin Eugene Dothage, also known as “Butch,” 41, of Kearney, Mo., and Jason Lee Kirtley, 45, of Excelsior Springs, Mo., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Dothage was sentenced to 20 years in federal prison without parole. The court ordered today’s sentence to be served consecutively to a nine-year sentence for his conviction in an unrelated state case. Kirtley was sentenced to 12 years and 11 months in federal prison without parole and ordered to forfeit to the government $28,800, which represents the proceeds of drug trafficking.
On June 9, 2017, Dothage pleaded guilty to participating in a conspiracy to distribute methamphetamine, possessing a firearm in furtherance of a drug-trafficking crime and maintaining a drug premises. Kirtley pleaded guilty on June 14, 2017, to his role in the drug-trafficking conspiracy.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Jose Luis Ruiz-Salazar, 39, his brother, Gabriel Ruiz-Salazar, 35, and Gregory Bullock, 48, all of Kansas City, Mo., have pleaded guilty to being the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Co-conspirators then distributed the methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
Gabriel Ruiz-Salazar was sentenced to 15 years and eight months in federal prison without parole. Jose Ruiz-Salazar and Bullock await sentencing.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Dothage is responsible for the distribution of more than five kilograms of methamphetamine. Dothage admitted that he carried firearms in furtherance of the drug-trafficking conspiracy, including a 9mm Hi Point pistol and a Smith & Wesson .22-caliber pistol. Dothage also admitted that he used his residence for storing, distributing or using methamphetamine.
According to court documents, Kirtley is responsible for the distribution of 680.4 grams of methamphetamine.
Dothage and Kirtley are among 18 co-defendants who have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine.
Jason Daniel Davis, 44, of Liberty, Mo., was sentenced to 15 years and eight months in federal prison without parole. Jackie R. Love, 60, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole. Anthony Ray Stevenson, 46, of Excelsior Springs, was sentenced to 22 years and six months in federal prison without parole. Taylor Lee Syas, 25, of Polo, Mo., was sentenced to eight years and four months in federal prison without parole. Paula Rae Scott, 48, of Excelsior Springs, four years and 11 months in federal prison without parole. Bryan D. Carroll, 29, of Kansas City, Mo., was sentenced to six years and six months in federal prison without parole. Ryan A. Battagler, 39, of Kearney, Mo., was sentenced to 12 years in federal prison without parole. Franklin Charles Carter, also known as “Frankie,” 28, of Grandview, Mo., was sentenced to eight years in federal prison without parole. Marion Eugene Brammer, 53, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole.
Brian Michael Bowers, 35, of Richmond, Mo., was sentenced to 12 years and six months in federal prison without parole. Gary Dewayne Brown, 37, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Ronald Louis Roberts, 54, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole. Brittney James Brehm, 39, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole. Rodney Earl King, 52, of Excelsior Springs, was sentenced to five years and two months in federal prison without parole. Darin Gene Berry, 52, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Eight co-defendants have pleaded guilty and await sentencing. In addition to Jose Ruiz-Salazar and Bullock, co-defendants Steven Lee Schreier, Jr., 33, and William Dean Campbell, 37, both of Excelsior Springs; Joshua Keith Bowers, 34, of Polo; Sabrena Lynn Morgan, 40, of Kearney; and Caleb Dean Hayes, 36, of Kansas City, Mo., are among 26 defendants indicted in this case who have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
KC Man Pleads Guilty to Jimmy John's Robbery, CarjackingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to the armed robbery of a Jimmy John’s restaurant and a carjacking.
Terry K. Rayford, 54, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of armed robbery, one count of carjacking and one count of being a felon in possession of a firearm.
The charges stem from two incidents that occurred on April 26, 2017. Rayford brandished a Witness-P .45-caliber semi-automatic handgun when he robbed the Jimmy John’s restaurant, located at 3900 Broadway Blvd., Kansas City, Mo. Rayford was armed with a Witness-P .45-caliber semi-automatic handgun and a Jimenez 9mm semi-automatic handgun when he carjacked a 1998 Ford Econoline E350 van earlier the same day.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Rayford has 13 felony convictions for robbery and he was on parole at the time of the thefts.
Both of the firearms were found in Rayford’s vehicle after he was stopped by Independence, Mo., police officers on April 27, 2017. Officers received information about a person matching the description of the suspect in the Jimmy John’s restaurant the day before. A retired major with the Kansas City, Mo., Police Department had seen video of the robbery broadcast on the news and saw Rayford – who appeared to be the robbery suspect – driving in the area of 40 Highway and Crysler in Independence.
Independence police officers responded to the area and stopped Rayford’s vehicle. When they ordered him to get out of his vehicle, officers found the Witness-P .45-caliber semi-automatic handgun lying on the driver’s side floorboard. Rayford was arrested and his vehicle towed. During an inventory of the vehicle, the Jimenez 9mm semi-automatic handgun was found in the back pouch of the front passenger seat.
Rayford told investigators he had stolen both of the handguns from his source for crack cocaine, to whom he owed money. Rayford told investigators he violated the conditions of his parole so he could go back to prison and do the remaining time of his sentence because his parole conditions were hard to follow.
Under the terms of today’s plea agreement, Rayford will be sentenced to a minimum of 20 years in federal prison without parole, up to a maximum of 30 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Kane County Man for Bank Fraud, Aggravated Identity TheftRead the Press Release
SPRINGFIELD, Ill. – A jury deliberated for approximately two hours this afternoon before returning guilty verdicts on all charges against a Carpentersville, Ill., man, Keith JD Offord, 24, for bank fraud and aggravated identity theft. U.S. District Judge Sue E. Myerscough presided over the trial which began Feb. 6. Sentencing is scheduled on June 18, 2018.
At trial, the government presented evidence to show that from December 2013 to August 2015, Offord used others’ identities to create false identification documents which were used at retail stores to obtain credit accounts and to buy merchandise and gift cards. Offord added photographs of a co-schemer to the fraudulent IDs, and took the co-schemer to various retail businesses. The defendant defrauded several Springfield area stores, including Bergner’s, approximately $2500; Game Stop $1500; and Sam’s Club $2170; as well as stores in the St. Louis, Mo., area in July and August 2015.
The Illinois State Police conducted the investigation. Assistant U.S. Attorneys Gregory M. Gilmore and Matthew Z. Weir represented the government at trial.
At sentencing, for the offense of bank fraud, the statutory penalty is up to 30 years in prison and for aggravated identity theft (three counts), the penalty is a mandatory two-year prison term to be served consecutive to the sentence ordered for the related fraud offense.
Houston-based fraudsters Plead GuiltyRead the Press Release
HOUSTON – Two fraud conspirators have entered guilty pleas to participating in a mortgage fraud conspiracy that fraudulently obtained mortgage loans to purchase homes in Houston and Surfside, announced U.S. Attorney Ryan K. Patrick.
David Lee Morris, 55, and Derwin Jerome Blackshear, 50, pleaded guilty to one count each of conspiracy to commit wire fraud and bank fraud, while Blackshear pleaded to bank fraud and also admitted to operating a tax preparation business at various locations throughout the Houston area that prepared fraudulent tax returns.
The mortgage fraud scheme ran from 2005 to 2009. Morris, Blackshear and others associated with the A. Cole Realty Group in Houston caused mortgage lenders to loan excessive amounts of money for the purchase of residential real estate in the Houston and Surfside areas. The scheme focused primarily on the purchase of Beach homes in Surfside. Mortgage lenders were induced to loan far more money than the properties were actually worth. The conspirators then skimmed the excess loan funds from the real estate transactions.
Morris and Blackshear’s primary role in the scheme was to recruit and pay individuals known as “straw buyers” to sign mortgage loan documents. However, the loan applications contained numerous misrepresentations about the straw buyers’ financial status and ability to repay the loans. Co-conspirators obtained inflated appraisals of the properties to be purchased that supported the excessive lending. Once the loans funded, Morris and Blackshear pocketed a portion of the fraudulently obtained loan funds themselves and then distributed the rest of the funds to other participants in the scheme, including the straw buyers. Ultimately, all the homes purchased through the scheme went into foreclosure, resulting in millions of dollars of losses to the mortgage lenders.
In addition to the mortgage fraud scheme, Blackshear engaged in tax fraud. He owned and operated a tax return preparation business under the name “Level One Tax Services” during 2012 through 2015. Blackshear admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds. As part of his plea, Blackshear admitted he prepared dozens of fraudulent tax returns, causing a loss of $251,323.
Sentencing has been set before Chief U.S. District Judge Lee Rosenthal for May 17, 2018. At that time, each faces up to 30 years in prison as well as a $1 million maximum fine. Blackshear also faces another three years for the tax fraud and a $250,000 fine.
As part of their plea agreements, both have agreed to pay restitution and forfeiture. Morris agreed to pay $4,468,151 in restitution to the defrauded banks and agreed to forfeit $1,460,170.51 in proceeds he earned from the scheme. Blackshear agreed to pay $251,323 in restitution to the U.S. Treasury, $1,995,273 restitution to the defrauded banks and $629,774 in forfeiture of illegal proceeds.
The FBI and the Texas Department of Public Safety conducted the mortgage fraud investigation. Assistant U.S. Attorney (AUSA) Robert S. Johnson is prosecuting the case. IRS – Criminal Investigation conducted the criminal tax investigation. AUSA Attorney Jimmy Sledge Jr. is prosecuting that case.
Hospice Company and Owner Agree to Pay $1.24 Million to Settle Two False Claims Act Whistleblower LawsuitsRead the Press Release
PITTSBURGH – A privately owned for-profit hospice company and its owner and Chief Executive Officer agreed to pay the United States $1,240,000 to resolve allegations that the company had fraudulently billed Medicare and Medicaid for hospice services for patients who were ineligible for hospice, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations in two whistleblower lawsuits filed in federal court in Pittsburgh, Pennsylvania against Horizons Hospice, LLC and its owner and Chief Executive Officer John C. Rezk ("Defendants"). The settled claims contend that from June 27, 2007 to August 1, 2012, Defendants submitted or caused to be submitted false claims to Medicare and Medicaid for patients who did not qualify for hospice because they did not have a life expectancy prognosis of six months or less. Typically, federal health care programs only pay for hospice care when patients have terminal illnesses with a life expectancy of less than six months. The settled claims also contend that Defendants falsified records to support the false claims. Horizons Hospice, LLC later changed its name to 365 Hospice, LLC. The alleged fraud occurred while the company operated as Horizons Hospice.
"Medicaid and Medicare are programs intended to provide care and assistance to the most vulnerable members of our communities, including seniors," said U.S. Attorney Brady. "Those who seek to defraud these programs will be vigorously pursued by my office. This settlement is another step forward in that fight."
This matter was investigated by the Office of Inspector General of the United States Department of Health and Human Services with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys Paul E. Skirtich and Rachael L. Mamula handled the investigation that led to this settlement on behalf of the United States.
The cases are captioned United States ex rel. Thomas v. Horizons Hospice LLC (No. 12-cv-315) and United States ex rel. Mizak, et al. v. Horizons Hospice LLC, et al., (No. 13-cv-1688).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Holyoke Man Pleads Guilty to Dealing CocaineRead the Press Release
BOSTON – A Holyoke man pleaded guilty today in federal court in Springfield to dealing cocaine.
Raul Ramos, 43, pleaded guilty to one count of distribution and possession with intent to distribute cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 3, 2018.
On Nov. 8, 2016, Ramos distributed 27.712 grams of cocaine in exchange for $1,300. The charges are a result of a federal, state, and local law enforcement investigation into drug trafficking in Springfield and Holyoke.
The charging statute provides for a sentence of no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of $2 million dollars. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Health Care Business Owners Sentenced to Prison for Multi-Million Dollar Fraud and Tax ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of three defendants for their involvement in a years-long, multi-million dollar heath care fraud and tax conspiracy. THURLEE BELFREY, 52, ROYLEE BELFREY, 52, and LANORE BELFREY, 43, each entered guilty pleas on September 14, 2017, and were sentenced yesterday before Senior U.S. District Judge Ann D. Montgomery in Minneapolis, Minn.
“For more than a decade, these three defendants each played a role in a scheme that garnered millions in illicit profits by cheating government health care programs that were funded by honest taxpayers and intended for the needy,” said Assistant U.S. Attorney Robert Lewis. “The sentences handed down are appropriate and just consequences.”
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said IRS Criminal Investigation Acting Special Agent in Charge Hubbard Burgess, Saint Paul Field Office. “Because of employers like Thurlee Belfrey and Roylee Belfrey not complying with the tax laws, failing to turn over their employee’s withheld taxes results in a loss of tax revenue to the United States government but more importantly, it affects the loss of future social security or Medicare benefits for their employees.”
According to the defendants’ guilty pleas and documents filed in court, brothers THURLEE and ROYLEE BELFREY ran multiple health care businesses that received funds from the Medicaid and Medicare programs funded by the federal government and the State of Minnesota. In 2003, following an investigation by the Minnesota Attorney General’s Office into Royal Health Care, a business they started together in the 1990s, THURLEE BELFREY was convicted of felony theft by false representation. Based on his conviction, in 2004 the Minnesota Department of Human Services (DHS) and the United States Department of Health and Human Services (DHHS) excluded THURLEE BELFREY indefinitely from participating in state and federal health care programs, with no right to seek reinstatement for up to 20 years.
Despite this, and as he admitted in his guilty plea, THURLEE BELFREY conspired with his wife LANORE BELFREY to incorporate a new health care company, Model Health Care (Model), to continue the business operations and conceal THURLEE BELFREY’S involvement therein. To do this, and part of the scheme, LANORE BELFREY was named the owner of Model and intentionally failed to disclose THURLEE BELFREY’S involvement in managing the business. Despite being excluded, THURLEE BELFREY continued to manage Model. Government payment records show Model received more than $18,000,000 from Medicaid that would not have been paid but for the fraudulent misrepresentations made about THURLEE BELFREY’S lack of involvement in the businesses. According to the investigation, THURLEE and LANORE BELFREY received millions of dollars from Model during the scheme.
While THURLEE BELFREY ran Model, ROYLEE BELFREY operated several health care businesses as well. According to the defendants’ guilty pleas, between 2007 and 2013, THURLEE and ROYLEE BELFREY deducted and collected money from their employees’ wages, ostensibly for the payment of federal payroll taxes and Federal Insurance Contribution Act (FICA) taxes. However, they intentionally failed to pay the withheld taxes over to the IRS over the course of many years and, instead, used the money for other purposes, including attempts to develop a reality show based on their lives, high-end housing, a Caribbean cruise, luxury retail purchases, and thousands of dollars in cash withdrawals. In total, THURLEE and ROYLEE BELFREY admitted deducting and unlawfully using for their own benefit more than $3,960,000 in withheld taxes between 2007 and 2014.
This case is the result of an investigation conducted by the Minnesota Attorney General’s Office, the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and the Office of the Inspector General, United States Department of Health and Human Services.
Assistant U.S. Attorneys Robert Lewis and David Maria prosecuted the case.
Defendant Information:
THURLEE BELFREY, 52
Saint Paul, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Failure truthfully to account for and pay over withheld taxes, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
- $8,944,036.82 in restitution
ROYLEE BELFREY, 52
Saint Paul, Minn.
Convicted:
- Failure truthfully to account for and pay over withheld taxes, 2 counts
Sentenced:
- 60 months in prison
- Three years of supervised release
- $4,592,593.74 in restitution
LANORE BELFREY, 43
Minnetonka, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
Sentenced:
- 15 months in prison
- Two years of supervised release
- $402,158.00 in restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Hartford Man Arrested for Sex Trafficking a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut announced that CHRISTOPHER HAMLETT, also known as “Cadi” and “Cadillac Black,” 24, of Hartford, was arrested today on a criminal complaint charging him with sex trafficking of a minor.
HAMLETT appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford. He is detained pending a detention hearing that is scheduled for February 15.
As alleged in court documents, between August and November 2017, HAMLETT coerced a minor victim to engage in prostitution at Hartford area hotels. In an interview with law enforcement, the victim stated that, in the beginning, HAMLETT gave the victim a percentage of the money she earned through prostitution. After that, she stated, “he took all of my money” and, if she complained, he said “It’s business. I have things that cost money. Just do as you’re told or I can make you disappear. No one is going to look for you.”
It is further alleged that HAMLETT advertised the victim’s prostitution services on online websites, including Backpage.com.
If convicted of the charge of sex trafficking of a minor, HAMLETT faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Hartford Police Department, through the Connecticut Human Trafficking Task Force, and the Federal Bureau of Investigation. The case is being prosecuted by AUSAs Sarala V. Nagala and Nancy V. Gifford.
Ghanaian Man Pleads Guilty to His Role in Internet Romance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Adams Amen, 32, a citizen of Ghana, who resides in Detroit, Michigan, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that between March 28, 2015, and June 15, 2017, the defendant conspired with Jason Osei Bonsu and other Ghanaian nationals to devise an internet romance scheme to defraud victims and obtain money.
In furtherance of the scheme, Amen’s co-conspirators utilized a dating website, MillionaireMatch.com, to engage victims in communications online and over the phone to develop a rapport with victims and convince victims that they were developing romantic relationships via the internet. Victims received alleged pictures of the co-conspirators that were actually photographs of others downloaded from the internet. For example, Victim 1, who resides in the Western District of New York, received images of a person known to her as “Marvin Roecker,” but the image actually depicted a real estate agent from Texas, whose name is not “Marvin Roecker.”
After successfully building rapport, victims were asked to wire money to assist with fictitious business ventures, family emergencies, or inheritances. Victims did so, wiring funds to accounts in Ghana, the United Kingdom, and to accounts in the United States controlled by Ghanaian nationals, including Amen.
On March 2, 2016, Victim 1 wired $65,000 to Amen’s TD Bank account. Text messages between the defendant and co-defendant Jason Osei Bonsu demonstrate that both were participants in the scheme to defraud Victim 1. For instance, Amen and Bonsu discussed quickly withdrawing Victim 1’s money to prevent the bank from becoming suspicious. Subsequently, on March 21, 2017, following a request by “Marvin Roecker,” Victim 1 wired another $180,000 to a bank account located in the United Kingdom, which was controlled by a co-conspirator.
Between March 28, 2015, and June 15, 2017, victims wired $881,656 directly to accounts controlled by the defendant. One victim deposited $27,990 cash directly into Amen’s account. Victims lost a total of $909,646.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for May 23, 2018, at 1 p.m. before Judge Arcara.
Germantown Man Exiled to 10 Years in Prison on Drug and Gun ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –United States District Judge George J. Hazel sentenced Andrew Dean Bailey, age 32, of Germantown, Maryland, today to 10 years in prison, followed by three years of supervised release, for possession with intent to distribute cocaine and being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark P. Sroka of the Gaithersburg Police Department.
According to his plea agreement, on March 23, 2017, law enforcement officers executed a search warrant at Bailey’s residence in Germantown, Maryland, where they located a firearm, ammunition, narcotics, narcotics paraphernalia, and cash. Among other things, officers seized a loaded .40 caliber handgun, additional .40 caliber rounds of Winchester ammunition, and approximately 96 grams of cocaine, 3 grams of alprazolam, and 1 gram of morphine pills. Officers also seized $15,900 in drug-trafficking proceeds.
Bailey admitted that he intended to sell the cocaine found in his apartment, and that he possessed that loaded .40 caliber handgun in order to protect his drugs and drug-trafficking proceeds.
Prior to March 23, 2017, Bailey had been convicted of a crime punishable by more than one year of imprisonment (and his civil rights had not been restored), which prohibited him from legally possessing firearms or ammunition.
Judge Hazel ordered the forfeiture of the $15,900, the handgun and the ammunition.
Acting United States Attorney Stephen M. Schenning praised the DEA, Montgomery County Police and Gaithersburg Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Michael Packard and Timothy Hagan who prosecuted the case.
Gainesville Man Convicted of Sex Trafficking CrimesRead the Press Release
GAINESVILLE, FLORIDA – After a three-day trial, Arthur Larange Lee Jr., 34, of Gainesville, was convicted late yesterday in the U.S. District Court in Gainesville of sex trafficking by force and use of a facility of interstate commerce to promote prostitution. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Lee abducted a drug-addicted woman from the parking lot of a Gainesville church where she was attending a Narcotics Anonymous meeting. After taking the victim’s phone, he ordered her to drive to a nearby hotel where he took photographs of her for use in a Backpage.com advertisement. Lee told the victim he would “break her in,” after which he raped her, burned her, and committed other acts of violence against her. Lee then fed the victim small amounts of cocaine and instructed her that she had to pay off her “debt.” Over the span of two days, Lee forced and coerced the victim to engage in sexual acts with numerous “johns.” He kept all the money derived from the sex acts that took place at local hotels and private residences. While at one hotel, the victim texted a “john” who agreed to help her escape by picking her up outside the hotel. The victim then fled with Lee’s phone and called police. Responding officers were able to quickly locate and arrest Lee, who was still inside the hotel.
For the sex trafficking charges, Lee faces a minimum of 15 years and a maximum of life in prison. For using a facility of interstate commerce to promote prostitution, Lee faces a maximum of 5 years in prison. The sentencing hearing is scheduled for April 23, 2018, at 10:00 a.m. at the United States Courthouse in Gainesville.
The case was investigated by the Alachua County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Defendants Sentenced for Participating in Stolen Identity Refund Fraud SchemeRead the Press Release
Four defendants were sentenced for their participation in a stolen identity refund fraud scheme.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Masoniek Stinfort, 32, of Belle Glade, was sentenced to 144 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $409,968. Eric L. Clemons, Jr., 25, formerly of Belle Glade, was sentenced to 48 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $409,968. James Craig, 29, of Orlando, FL was sentenced to 34 months in prison, to be followed by two years of supervised release. Robert Nero, 30, Belle Glade, was sentenced to 27 months in prison, to be followed by 3 years of supervised release.
Stinfort, Clemons, and Clorinda Walker, of Belle Glade previously pled guilty to one count of conspiracy to commit wire fraud and theft of government funds, in violation of Title 18, United States Code, Section 371. Stinfort also pled guilty to five counts of wire fraud, in violation of Title 18, United States Code, Section 1343; and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Clemons, Craig, Nero and Walker also pled guilty to one count of wire fraud and one count of aggravated identity theft.
According to court documents, the defendants participated in a scheme where fraudulent federal income tax returns were filed with the IRS using unauthorized personal identifying information (PII), consisting of names and social security numbers, of real persons. Stinfort recruited numerous individuals including, among others, Clemons, Walker, Nero, and Craig to open bank accounts to be used to receive the fraudulent tax refunds obtained by the submission of the false federal income tax returns. The defendants sought $1,118,000 in fraudulent refunds from the IRS, and the government sustained an actual loss of $409,968 attributable to the fraud.
Defendant Walker was employed by a medical center where she had access to the PII of individual patients. Specifically, Walker had access to the patients’ names, respective social security numbers and respective dates of birth. A number of PII stolen from the medical center were used in the stolen identity refund fraud conspiracy. Walker was the source of some, but not all, of the stolen PII used in the conspiracy to defraud the United States. Walker is scheduled to be sentenced before U.S. District Judge Robin L. Rosenberg on Friday, February 16, 2018, at 1:30 p.m.
Defendant Makia Henderson was found not guilty at trial.
“The U.S. Attorney’s Office in the Southern District of Florida is committed to combatting identity theft fraud schemes that compromise local and national taxpayer identities,” said U.S. Attorney Benjamin G. Greenberg. “Prosecuting the offenders who unlawfully steal and possess the personal identification information of others in an attempt to steal our tax dollars remains a top priority for the Office and our law enforcement partners.”
“Tax filing season has begun, and today’s announcement should serve as a stern warning to anyone thinking about using stolen identities to file false tax returns with the IRS. IRS Criminal Investigation takes these crimes very seriously, and we will continue to work with the U.S. Attorney’s office to identify, investigate and prosecute individuals who participate in stolen identity refund fraud schemes. As a reminder, taxpayers must stay vigilant in protecting their personal identification information (PII) to help avoid being a victim of these crimes,” stated Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI).
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant United States Attorney Stephen Carlton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former High School Principal Sentenced to 108 Months in Prison for Transporting Child PornographyRead the Press Release
Admitted he transferred images from phones confiscated from students, to his personal thumb drive, without their consent or knowledge and shared the images on a Russian website
LOUISVILLE, Ky. – A former Larue County, Kentucky, High School Principal was sentenced today in United States District Court, by U.S. District Judge David J. Hale, to 108 months in prison, followed by a ten year period of supervised release, for transporting child pornography and possessing child pornography that had been transported in interstate commerce announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Parents must be able to place their trust in educators to provide a safe learning environment for our kids,” stated United States Attorney Russell Coleman. “Mr. Goodlett not only violated this trust but exploited students for his own foul gratification. His significant punishment is well-earned”
Stephen Kyle Goodlett, 37, of Elizabethtown, Kentucky, remains in federal custody and faces additional State charges in the Commonwealth of Kentucky in Hardin County. Goodlett was initially charged by federal criminal complaint on December 19, 2016, and by federal grand jury indictment on January 4, 2017.
On September 2, 2016, Elizabethtown police received a child sexual exploitation complaint from a female who discovered nude photographs of her that had been uploaded to a website that allowed users to anonymously post sexually explicit images and videos of people and identified the geographic area where the depicted person lived. The photographs are often accompanied by the first and last initial of the person in the photographs. The complainant viewed the images from the website and told police she was 15 years old when the nude photographs were created with a cell phone.
Elizabethtown Police requested and received the detailed IP address information for the person responsible for uploading the images. The IP address was registered to Kyle Goodlett of Elizabethtown, Kentucky. The defendant was the Assistant Principal at Larue County High School from July 4, 2012, until he was promoted to Principal on July 1, 2013, and held that position until he was terminated on October 19, 2016. Goodlett was principal while the complainant was a student there and had access to her nude images when he confiscated her cell phone. The complainant was a student at Larue County High School during that time.
On October 13, 2016, the Kentucky State Police executed a search warrant at Goodlett’s Elizabethtown residence and a preview of his electronic devices, including his iPhone and an eternal hard drive, yielded 60 files of child sexual exploitation.
Further, on December 12, 2016, KSP received a report from the National Center for Missing and Exploited Children stating that several images discovered in Goodlett’s Dropbox account contained images of known minor victims including the complainant and five images from an identified minor female.
Goodlett signed a waiver of his rights and agreed to a recorded interview with KSP Detectives. Goodlett admitted to KSP that he was addicted to pornography and that he transferred images from phones confiscated from students to his personal thumb drive without their consent or knowledge. Goodlett stated he would take the images and share them to a Russian website with the intent of trading for more images. Goodlett told KSP he used his iPhone and laptop to view the images. A forensic review of Goodlett’s electronic devices revealed he possessed 436 images and 11 videos of child pornography as defined by 18 USC Section 2256(8).
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Department of Homeland Security, Homeland Securities Investigations with assistance from Kentucky State Police and the Elizabethtown, Kentucky, Police Department.
***
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Final Defendant in San Antonio-Based Synthetic Marijuana Distribution Ring Sentenced to Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 33-year-old Ashak Victor Nasief Wesa to 150 months in federal prison followed by three years of supervised release for his role in a synthetic marijuana distribution scheme based in San Antonio, announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
On October 31, 2017, Wesa, an Egyptian National who was residing in Houston at the time of the offense, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues. By pleading guilty, Wesa admitted that from March 2013 to June 2013, he and others comprised the San Antonio-based Jaffer Drug Trafficking Organization (Jaffer DTO) that was responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, and Dallas as well as Tulsa, Oklahoma City, and Kansas City. During the course of the enterprise, the Jaffer DTO manufactured, caused to be manufactured, attempted to manufacture, distributed and possessed with intent to distribute over 40,000 pounds (or 18,500 kilograms) of synthetic cannabinoids.
In June 2017, Wesa was extradited from Germany to the Western District of Texas. He since has remained in federal custody.
Wesa is the last of 16 defendants to be convicted and sentenced in connection with this federal grand jury indictment. In April 2017, ringleader Muhammed Jaffer Ali was sentenced to 16 years in federal prison. Other sentences imposed ranged from five months incarceration to 150 months incarceration.
This prosecution resulted from the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration and the San Antonio Police Department together with the Internal Revenue Service-Criminal Investigation, the Immigration and Customs Enforcement - Homeland Security Investigations, the U.S. Border Patrol, the Texas Department of Public Safety, and the Live Oak Police Department. Assistant United States Attorney Mark Roomberg is prosecuting this case.
Federal Inmate Indicted for Escaping from Prison and Returning with ContrabandRead the Press Release
BEAUMONT, Texas – A 27-year-old federal prison inmate has been indicted for escaping from prison and returning with contraband announced U.S. Attorney Alan R. Jackson today.
Joshua Randall Hansen was charged in the two-count indictment with escape from a federal facility and possession with intent to distribute a controlled substance. The indictment was returned by a federal grand jury on Feb. 7, 2018.
According to the indictment, on Jan. 24, 2018, law enforcement officers arrested Hansen outside the perimeter of the prison camp at the Federal Correctional Complex in Beaumont, Texas. Hansen is a federal inmate and was not authorized to be outside the facility. At the time of his arrest, it is alleged that Hansen was on his way back to the prison camp and was in possession of marijuana and alcohol that he intended to distribute within the compound.
If convicted, Hansen faces up to an additional five years in federal prison.
This case is being investigated by the U.S. Marshals Service, the Jefferson County Sheriff’s Office and the Bureau of Prisons. This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Inmate Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport indicted a prisoner at the Federal Correctional Institute Allenwood (FCI Allenwood) on the charge of possessing a weapon in prison.
According to United States Attorney David J. Freed, Lavon Caldwell, age 36, was found in possession of two improvised shanks during a search conducted on March 7, 2017.
The charges stem from an investigation by officers at FCI Allenwood and agents of the Federal Bureau of Investigation. Special Assistant United States Attorney Michael P. FiggsGanter is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendant is facing a maximum of five years of incarceration and a $250,000 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.
# # #
Federal Felon Pleads Guilty to Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to possessing a large quantity of methamphetamine that was discovered by probation officers while conducting a residence check.
Michelle L. Stevens, 47, of Kansas City, pleaded guilty before U.S. District judge Brian C. Wimes to possession with intent to distribute methamphetamine.
Stevens was a federal felon on supervised release for a 2010 conviction for distributing methamphetamine when numerous U.S. Probation officers conducted a residence check on March 14, 2017. As officers conducted a security sweep of her apartment, they noticed a door adjacent to the entry door to Stevens’s apartment. She claimed that the room was used for storage. When officers opened the door, however, they learned the “storage space” was in fact another apartment, where they discovered a large amount of contraband.
According to today’s plea agreement, officers seized 3.5 kilograms of methamphetamine (stored in various places, the bulk of it in a laundry bag in the corner of the living room, which also contained a plastic bag with about 55 grams of marijuana), a loaded Browning .25-caliber handgun, $8,866 and several items of drug paraphernalia. Stevens was placed under arrest.
Under federal statutes, Stevens is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Probation Office, and the Kansas City, Mo., Police Department.
Father and Son Convicted of Million-Dollar FraudRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak and Andrew J. Galvin (619) 546-9709 and (619) 546-9721
NEWS RELEASE SUMMARY – February 8, 2018
SAN DIEGO – A father and son fraud team that won over $4 million of federal contracts using false financial statements and other lies pleaded guilty in federal court today. The father—a long-time self-described government contracting consultant—also admitted to stealing over a half million dollars from his consulting clients.
At a hearing today before U.S. Magistrate Judge Barbara Lynn Major, Joseph Glenn Osborne, Sr., 68, pleaded guilty to wire fraud and participating in a wire fraud conspiracy with his son, Joseph Glenn Osborne, II, 31. Osborne, II pleaded guilty to falsely making a writing to obtain money from the United States.
In his plea agreement, Osborne, Sr. admitted that he stole $588,489 from three different small businesses that retained him as a government contracting consultant. According to court documents and his admissions, Osborne, Sr. promised to represent the victims in obtaining and fulfilling contracts with the U.S. Department of Agriculture (USDA). Instead, he used his position as the sole holder of their web passwords to change their banking information in the online federal system controlling where their contract payments would be sent. When USDA paid on his clients’ contracts, the money was diverted to Osborne, Sr. instead of the victims.
Osborne, Sr. also admitted to lying to his clients when they questioned the missing payments. For example, when one client repeatedly pressed him to attend a conference call to explain the missing money and passwords, Osborne, Sr. repeatedly told the client he couldn’t take the client’s calls because he had been seated on a state court jury for a multiple murder trial. In fact, according to court filings, Osborne, Sr. has never reported for jury duty.
According to the plea agreement, Osborne, Sr. used a portion of the stolen money to put a down payment on a $2.7 million mansion in Rancho Santa Fe, California. Osborne, Sr. forged further emails to conceal the source of the money by falsely claiming that it was an early retirement withdrawal from a benefits account at an agency where he had never worked.
In 2013, after Osborne, Sr. was terminated by his clients, the Osbornes agreed to submit fraudulent financial statements to qualify Osborne, II’s new business—Worldwide Connect LLC (WWC)—as an approved USDA contractor. As set out in their guilty pleas, the Osbornes recruited Osborne, II’s friend and bookkeeper to prepare false financial statements which substantially overstated WWC’s financial health. For example, the statements fraudulently converted WWC’s 2013 year-end cash position from a $5,546 deficit to a $37,954 surplus.
The Osbornes also admitted to falsely certifying to the USDA that none of WWC’s principals was suspended or debarred from federal contracting. In fact, according to documents filed in the case, Osborne, Sr. was suspended and debarred from November 2013 to October 2016 for conduct associated with his prior business, Global Health & Safety.
As a result of these fraudulent submissions, WWC was approved for federal contracting and won over $4 million of USDA food supply contracts. Four of the five contracts were terminated for contractor default, after WWC failed to deliver over 100,000 cases of fruit juice and raisins to community food banks and lunch programs. The Osbornes admitted that WWC caused its suppliers and financing company over $1.5 million in losses. Meanwhile, as set out in the plea agreements and court filings, the Osbornes paid themselves approximately $285,245 of WWC funds in little more than a year. They also used other company money for personal expenses—including almost $10,000 of nightclub charges, luxury hotel stays, and over $9,000 of new flooring in Osborne, Sr.’s personal residence.
After their contracts were terminated, the plea documents explain that the Osbornes applied to the Small Business Administration (SBA) to be readmitted to federal contracting. As part of that application, Osborne II misstated Osborne, Sr.’s military history, telling the SBA he was a retired colonel in the Marine Corps when in fact Osborne, Sr. had retired as a first lieutenant. Osborne II also supplied a variety of falsified tax returns to the SBA for himself and WWC, including an altered (signed) tax return that converted his real $14,870 tax liability into a fake $5,427 tax overpayment.
In addition to pleading guilty, each defendant agreed to pay restitution to their victims in the amounts of approximately $1.7 million for Osborne, Sr. and $1.5 million for Osborne II.
A sentencing hearing for both defendants is scheduled for May 7, 2018 at 9:00 a.m. before Judge Roger T. Benitez.
“Businesspeople who lie, cheat and steal have no place in federal contracting systems funded with American tax dollars,” said U.S. Attorney Adam L. Braverman. “We will be sure that white collar criminals manipulating the system from behind the scenes are held accountable.”
Special Agent-in-Charge Lori Chan, United States Department of Agriculture (USDA), Office of Inspector General (OIG), Western Region, stated, “The USDA OIG has the responsibility for protecting the integrity of the Agriculture Marketing Service, Commodity Procurement Program. OIG conducts investigations in each region of the U.S. to deter and uncover criminal activity that undermines the Commodity Procurement Program. Contractors who engage in financial fraud exploit the public’s trust. The OIG at USDA works to ensure the integrity of USDA programs.”
FBI Special Agent in Charge John Brown commented, “This comprehensive investigation revealed a continued pattern of theft, deceit, and fraud—all for personal greed and self-promotion. Working closely with our law enforcement partners, the FBI will continue to pursue and bring to justice those who seek to perpetrate these fraudulent financial schemes and take advantage of victim clients, the federal contracting process, and the American tax payers."
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Andrew J. Galvin.
DEFENDANT Case Number 16CR2546-BEN
Joseph Glenn Osborne, Sr. Age: 68 Carlsbad, California
Joseph Glenn Osborne, II Age: 31 Carlsbad, California
SUMMARY OF CHARGES
Wire Fraud, in violation of Title 18 U.S.C. § 1343; term of custody including 20 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution.
Wire Fraud Conspiracy, in violation of Title 18 U.S.C. § 1349; term of custody including 20 years in prison, $250,000 fine, and 3 years of supervised release, and mandatory restitution.
Falsely Making a Writing to Obtain Money From the United States, in violation of Title 18 U.S.C. § 495; term of custody including 10 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution.
AGENCIES
U.S. Department of Agriculture, Office of Inspector General
Federal Bureau of Investigation
Eight Individuals with Ute Mountain Ute Tribe Plead Guilty to Embezzlement and Money LaunderingRead the Press Release
DENVER – As part of an ongoing investigation, eight individuals pled guilty this week to various charges involving funds embezzled from the Ute Mountain Ute Tribe announced U.S. Attorney Bob Troyer, FBI Denver Field Office Special Agent in Charge Calvin A. Shivers, and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne.
According to information contained in court documents, from at least 2011 through October 2015, Ute Mountain Ute (UMU) tribal members were entitled to receive utility benefits from the tribe to pay their utility expenses in annual amounts from $1,200 to $1,500. Bills or other documentation were required to be submitted along with the application to the tribe’s Financial Services Department for processing and payment to the tribal members. Additionally during the same time period, UMU tribal members had family plan accounts established when the tribal member was a child and from which the member could start spending the funds once they reached 18 years of age. The funds in the family plan accounts, with accrued interest, usually reached approximately $10,000 by the time the member reached 18 years old. These funds could be used to purchase things such as vehicles, home furnishings, and computers. As with the utility benefits, the tribal member was required to provide invoices or other documentation to UMU’s Financial Services Department in order to request payment from the family plan account.
Beginning in at least 2011, certain employees of the tribe’s Financial Services Department caused fraudulent tribal checks to be generated in the names of people selected by the employees. The people receiving the checks cashed the checks and usually shared the cash with the Financial Services Department employee who provided the check. Initially, these fraudulent checks were falsely attributed to the utility benefits or family plan accounts of tribal members who did not request or receive the fraudulent checks. Later, the fraudulent checks were generated without being attributed to any tribal member. Several of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits.
In other instances, the Financial Service Department employees caused embezzled tribal funds to be sent via Western Union to selected recipients who would in turn provide a portion of the money back to the employee who sent the wire. In some instances, embezzled tribal funds were wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.
The eight individuals who pled guilty before Magistrate Judge David L. West are:
- Oraleigh Jaramillo aka Oraleigh Hammond – one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering with restitution of $309,537;
- Classia Rose Hammond – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $65,508.56;
- Loia K. House – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $22,190;
- Darrell Jonah Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $142,411;
- Kevin Ryan Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $89,132;
- Myreon Lehi – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $23,280;
- Ladelda Lopez aka Ladelda Box – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $34,823; and
- Jennifer Ann Pioche – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $106,497.
Additionally, Gloria Lee aka Gloria Rouillard, aka Gloria Lopez made her initial appearance on an Information charging one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering.
Embezzlement, Conversion or Misapplication of Property from an Indian Tribal government receiving federal funds carries a penalty of not more than 10 years imprisonment, three years of supervised release and a fine of up to $250,000. Money laundering carries a penalty of not more than 20 years imprisonment, three years of supervised release and a fine of up to $500,000. Receipt of funds belonging to an Indian tribal organization that has been converted or willfully misapplied carries a penalty of not more than five years of imprisonment, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.
Eagle Butte Man Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Larceny was sentenced on February 5, 2018, by, U.S. District Judge, Roberto A. Lange.
Bradlee One Feather, age 28, was sentenced to time served, 3 years of supervised release, $4,077.99 due in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Feather was indicted by a federal grand jury on August 16, 2017. He pled guilty on November 15, 2017.
The conviction stemmed from an incident on February 5, 2017, in Dewey County, South Dakota when One Feather took a Dodge pickup from an individual knowing that the vehicle had been stolen. One Feather then drove the pickup from Eagle Butte to Little Eagle, South Dakota. From there, One Feather drove the pickup to McLaughlin, South Dakota to visit people and buy beer. One Feather then drove the pickup back to Little Eagle to drop people off and while in the process, he got the pickup stuck.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
One Feather was immediately turned over to the custody of the U.S. Marshals Service.
Doraville, Georgia, 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 Marcos Antonio Lopez, age 27, of Doraville, Georgia, 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 December 12, 2017, within the Eastern District of Oklahoma, the Defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.The charges arose from an investigation by the Sequoyah County Sheriff’s Office, 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 Kristin Harrington represented the United States.
Dominican National Sentenced for Narcotics TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for trafficking heroin, fentanyl and cocaine.
Luis Jose Mejia Arias, 24, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 16 months in prison and three years of supervised release. Mejia Arias will be subject to deportation upon completion of his sentence. In August 2017, Mejia Arias pleaded guilty to eight counts of possession with intent to distribute heroin, cocaine and fentanyl.
On eight occasions between September 2015 and May 2016, Mejia Arias distributed heroin, cocaine and/or fentanyl to an undercover officer in Waltham.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Felipe Rodolfo Baez-Romero, 46, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight months in prison. Baez-Romero will be subject to deportation proceedings upon completion of his sentence. In December 2017, Baez-Romero pleaded guilty to one count of illegal reentry of a deported alien.
On Sept, 29, 2017, law enforcement in Boston encountered Baez-Romero and determined that he was unlawfully present in the United States. Baez-Romero was previously deported on May 7, 2013, and in June 2011.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Convicted Heroin Dealer Sentenced to 10 Years in Prison for Trafficking Heroin and Deadly FentanylRead the Press Release
PITTSBURGH – Henry T. Little-Proctor a/k/a "Bundles", of McKeesport, Pennsylvania, was sentenced in federal court to 10 years in prison as a result of his conviction on multiple charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Little-Proctor, age 27, previously pleaded guilty to five counts before United States District Judge Cathy Bissoon.
The court was advised that Little-Proctor conspired to distribute and possessed with intent to distribute both heroin and the even more potent synthetic opiate fentanyl, from late 2015 through July 20, 2016. Specifically, the federal investigation revealed that Little-Proctor was involved with a fentanyl sale on July 13, 2016, and a heroin sale on July 18, 2016. DEA then executed a federal search warrant on July 20, 2016 at a residence utilized by Little-Proctor. There, federal agents located Full Metal Jacketed ammunition for a .223 Rem caliber assault-style rifle and .22 caliber ammunition, as well as 25 "bundles" (250 stamp bags) of heroin. A receipt for the purchase of the .223 Rem caliber ammunition from Gander Mountain was located in the residence and showed that it was purchased on May 14, 2016, along with two extended length magazines for a AR-15 assault-style rifle and a $100 tactical light. The firearms themselves have yet to be located.
Federal law prohibits a person convicted of a prior felony offense from possessing either a firearm or ammunition and the Court was advised that Little-Proctor had been convicted of multiple crimes, including two prior convictions for heroin dealing.
The defendant specifically admitted to selling the fentanyl that caused the July 2016 death of a young woman.
Judge Cathy Bissoon sentenced the defendant to 10 years in prison, followed by six years of supervision by the United States Probation Office and restitution to the victim’s family, after considering the defendant’s criminal, family, educational and work histories.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration (DEA) and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office conducted the investigation that led to the prosecution of Little-Proctor.
United States Attorney Brady noted that 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, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Cleveland man sentenced to more than a decade in prison after armed carjacking of a grandmother on Mother's DayRead the Press Release
A Cleveland man was sentenced to more than a decade in prison after an armed carjacking of a Cleveland grandmother last Mother’s Day, law enforcement officials said.
Shairon Motley-Lipscomb, 21, was sentenced to 10 years and four months in federal prison after pleading guilty to carjacking and using a firearm during a crime of violence.
On May 14, 2017 – Mother’s Day – Motley-Lipscomb approached a 67-year-old woman while she stood in her driveway talking on her cell phone to her daughter. The victim had recently returned from church services when Motley-Lipscomb brandished a firearm and stole the victim’s 2008 Buick Enclave, according to court documents.
The victim dropped her cell phone. Her daughter, still on the phone, heard Motley-Lipscomb saying to another: “Yeah, I got the car. Meet me at Mom’s,” according to court documents.
“A grandmother on her way home from church on Mother’s Day was talking to her daughter on the telephone,” U.S. Attorney Justin E. Herdman said. “That is when this defendant pointed a gun at her and stole her car. We remain committed to getting defendants like this off our streets and making our communities safer.”
“There is no place for an individual like this in our community,” stated Trevor Velinor, ATF’s Special Agent in Charge for the Columbus Field Division. “A person who is so willing to violate our laws and societal norms, against a mother on Mothers’ Day no less, needs to be removed from our community so he can do no further harm.”
This case was prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco and Firearms.
Citizen of Dominican Republic Sentenced to 36 Months in Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Maria Miguelina Lara Lara, a/k/a Maribel Santiago-Ramos, a/k/a La Cuna, a/k/a Miguelina, 33, of the Dominican Republic was sentenced to 36 months in federal prison for participating in a heroin trafficking conspiracy.
Documents filed with the court established that Lara Lara participated in a drug trafficking organization (DTO) between October 2015 and October 2016 during which time she delivered drugs to customers of the DTO on a daily basis. The Lawrence-based organization distributed heroin to customers from Massachusetts and New Hampshire.
The defendant pleaded guilty on July 24, 2017, to conspiracy to distribute, and possess with intent to distribute, heroin.
The investigation and prosecution of Lara Lara was part of a Drug Enforcement Administration (DEA) effort to address heroin distribution in New Hampshire. In addition to Lara Lara’s prosecution, Alberto Guerrero Marte, 38, was sentenced to 15 years in prison, his brother Toribio Guerrero Marte was sentenced to 10 years in prison, Allison DeJesus, 19, was sentenced to five years of probation, Jonaly DeJesus, 22, was sentenced to time served and five years of supervised release, Allan Raymond Pimentel, 21, was sentenced to 57 months in prison, and Jose De la Altagracia Pimental Lara a/k/a Luis Colon, 26, was sentenced to 63 months in prison. Michell DeJesus, 34, Santo Rodolfo Garcia Mendez, 33, Wilkin Andres Beltre Arias, 39, and Edward Garcia, 31, are all awaiting sentencing. In a related case, Mark Gagnon, 54, of Candia, was sentenced to 48 months.
“Members of the law enforcement community are working together to stop the flow of heroin and other deadly drugs into New Hampshire,” said Acting U.S. Attorney Farley. “While we strongly support access to treatment for those suffering from addiction, those who profit from the distribution of these substances will be prosecuted aggressively.”
"The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before," said DEA Special Agent in Charge Michael J. Ferguson. "Those suffering from fentanyl and heroin addiction need treatment and recovery, but those that distribute and profit from spreading this misery need to be held accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal partners and our strong relationship with the U.S. Attorney's Office."
“This case is a great example of how close cooperation among federal, state and local law enforcement can successfully complement the overall fight against the devastating opioid epidemic which has tragically destroyed so many lives nationwide and throughout our region,” said Acting Special Agent in Charge Mike Shea, Homeland Security Investigations (HSI).
This matter was investigated by the DEA; HSI; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant U.S Attorney Donald Feith.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
###
Cincinnati Woman Sentenced for Embezzling from Employer, Defrauding IRSRead the Press Release
CINCINNATI – Angelia Zwick, also known as Angelia Strunk, 47, of Cincinnati, was sentenced to 21 months in prison for defrauding her employer.
Zwick, who was convicted of one count of wire fraud and one count of willfully filing a false income tax return with the IRS, was also ordered to pay nearly $329,000 in restitution to Sheakley Group, Inc. and its insurers and nearly $122,000 in restitution to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Yvonne Dicristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, from approximately July 2009 through May 2013, Angelia Zwick worked for Sheakley Group, Inc. and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC, a company owned by Zwick.
As a result, Zwick took more than $328,000 of refunds and other payments intended for her employer and diverted those funds into bank accounts that she controlled.
In addition, Zwick filed false income tax returns with the IRS for the 2010, 2011 and 2012 income tax years, for which she owes $121,810 in additional income taxes. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.
“We are early in this year’s tax filing season and this case should serve as a reminder that no matter what the source of income, all income is taxable, even stolen money,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.
# # #
California Man Sentenced to Life Imprisonment for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
U.S. Attorney Duane A. Evans announced that, DAN PIZARRO, age 48, a resident of California, was sentenced today for his role in conspiring to distribute methamphetamine and heroin in the New Orleans area. Following a 4-day trial in August 2017, a federal jury found PIZARRO guilty of the sole count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and a quantity of heroin.
According to the evidence presented at trial, in June 2014, St. Bernard Parish Sheriff’s Office (SBSO) deputies investigating methamphetamine distribution in Arabi, Louisiana, arrested two men who were selling methamphetamine on West Judge Perez Drive. Through their investigation, deputies learned that their source of methamphetamine was a resident of California and that PIZARRO had introduced them to the source, thereby setting the conspiracy into motion.
According to the evidence presented at trial, even after leaving the New Orleans area, PIZARRO continued to direct and supervise the conspiracy. SBSO deputies coordinated with agents from the Drug Enforcement Administration (DEA) New Orleans Field Office, and between June 26th and 27th, 2014, federal agents and SBSO deputies intercepted four packages containing methamphetamine being mailed through Federal Express to Arabi, Louisiana. In total, the four packages contained over one kilogram of methamphetamine. According to DEA laboratory analysts, the methamphetamine in all four packages had a purity level of over 99%, with one shipment testing as 100% pure methamphetamine.
U.S. District Judge Martin L.C. Feldman sentenced PIZARRO to life imprisonment and ten year of supervised release.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and St. Bernard Parish Sheriff’s Office, and he thanked the Los Angeles Police Department for their assistance in this investigation. Assistant United States Attorneys Shirin Hakimzadeh and Matthew Payne were responsible for the prosecution.
California Man Pleads Guilty to His Role in Illegal Immigration SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Marguin Sanchez, 23, of California, pleaded guilty to conspiracy to employ unlawful aliens before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant, along with co-defendant Jose Sanchez-Ocampo, assisted co-defendant Sergio Ramses Mucino, in hiring illegal aliens to work at four Mexican restaurants including Don Tequila on Allen Street in Buffalo, El Agave on Union Road in Cheektowaga, Agave on Elmwood Avenue in Buffalo, and La Divina on Delaware Avenue in Kenmore. The defendant was responsible for paying wages to the workers in cash and purchasing homes in his name where the illegal aliens who worked in the restaurants resided.
Jose Sanchez-Ocampo has been convicted and is scheduled to be sentenced on March 5, 2018. Charges are pending against Sergio Ramses Mucino. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Marguin Sanchez is scheduled to be sentenced on June 7, 2018, at 2:30 p.m. before Chief Judge Geraci.
California Couple Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
LEXINGTON, Ky. - A couple from Fresno, Cal. has been sentenced to federal prison for drug and firearm offenses. Chief U.S. District Judge Karen K. Caldwell formally sentenced the couple on Wednesday, February 7, 2018.
Jessica Acosta, 29, and Luis R. Morales-Montanez, 27, were each sentenced to 15 years in prison, for possession with the intent to distribute 500 grams or more of methamphetamine, cocaine, and marijuana. Both were also convicted of possessing nine firearms, during and in furtherance of the drug crimes. Both forfeited ownership of the firearms, $42,507 in cash, and a 2013 Chevy pickup truck.
In their guilty pleas, Acosta and Morales-Montanez previously admitted that they traveled from Fresno, to Lexington and established a residence on Larkin Road in early 2017. They then possessed with intent to distribute marijuana and cocaine from the residence. They also admitted that the cash found was proceeds of the distribution of drugs and that the 2013 truck and nine firearms were used in furtherance of the distribution of drugs. Additionally, on October 25, 2017, a federal jury convicted both of possessing with the intent to distribute more than half a kilogram of crystal methamphetamine, which they had concealed in another apartment near their Larkin Road address.
Under federal law, both Acosta and Morales-Montanez must serve 85 percent of their prison sentences; and upon release, they will each be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, DEA; and Acting Chief of Police Ron Compton, Lexington Police Department, jointly announced the sentences.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Buffalo Man Sentenced for Obstructing JusticeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Jeffrey Mills, 47, of Buffalo, NY, who was convicted of obstruction of justice, was sentenced to 65 months in prison by U.S. District Judge Richard J. Arcara.
“Our entire adversarial system of justice is dependent upon the truthful testimony of witnesses in a court of law,” stated U.S. Attorney Kennedy. “However, when the greatest fear perceived by a witness is that such witness will face retaliation in the event that they provide truthful testimony, the entire system breaks down. We cannot and will not allow that to happen. Truth is the voice of justice. Hopefully, this prosecution and today’s sentencing sends a loud and clear message to the community that the men and women of my Office, together with our law enforcement partners, will do all that we can to protect the rule of law and to ensure that the truth is never silenced.”
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on May 21, 2015, the defendant provided information to his parole officer, law enforcement officers and a prosecutor regarding two homicides and a robbery/kidnapping. Mills stated that he saw his cousin, Thamud Eldridge, run from the area where Sam Jones, Jr., aka Smokey, was murdered. The night Smokey was killed, Mills said that he was riding a bicycle on Bissell Avenue when he heard gunshots. The defendant then saw his cousin Eldridge run through the “cut” from Goodyear Avenue to Bissell Avenue, and get into a vehicle that was driven by Kevin Allen and depart the area. Mills also stated that he spoke with an individual who was also on Bissell Avenue and saw Eldridge toss a gun to the individual after the shooting and heard Eldridge ask that individual to “put that joint up,” meaning to hide the firearm. After the murder, the defendant said Eldridge left Buffalo and traveled to Atlanta, Georgia. After returning to Buffalo, Mills said Eldridge told him that he intended to rob Smokey and “everything went wrong,” meaning the defendant killed Smokey. The defendant also gave information about other criminal activity committed by Eldridge. At the conclusion of the interview, the prosecutor told the defendant that he would be called as a witness in the trial against his cousin Thamud Eldridge.
On January 6, 2016, the defendant met with the prosecutor and two law enforcement for pretrial preparation at which time he again recounted hearing gunshots and seeing his cousin Eldridge run through the “cut” from Goodyear Avenue to Bissell Avenue the night Smokey was killed. At the conclusion of the pretrial preparation, the prosecutor once again told Mills he would be called as a trial witness.
On February 3, 2016, the prosecution called the defendant as a witness in United States v. Eldridge, et al. As U.S. Marshals Service deputies escorted Mills into the courtroom, the defendant walked by his cousin Eldridge and winked his eye at Eldridge and then sat on the witness stand. Mills refused to be sworn and told the Court that, “it wasn’t going to happen.” The Judge cautioned the defendant about criminal contempt and Mills was assigned counsel.
The following day, on February 4, 2016, the defendant took the stand again and agreed to take the oath. The prosecutor questioned Mills regarding the murder of Smokey but the defendant stated he could not remember. When confronted with information he previously gave, Mills testified falsely and feigned memory loss by repeatedly stating that he said he did not recall, did not remember and that he had no recollection of that day. The defendant willfully answered questions this way to impede the due administration of justice.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict; and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci.
Brooklyn Man Charged with Demanding and Receiving Kickbacks on Federally Funded Construction ContractRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter Nozka, the Acting Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced today that ERRON STRACHAN, a former foreman on a federally funded residential housing construction project in Harlem, was arrested this morning and charged in Manhattan federal court with soliciting and receiving kickbacks from workers on the project. STRACHAN was arrested this morning and will be presented this afternoon in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, a foreman on a federally funded construction project abused his position by demanding kickbacks from workers who were legally entitled to a prevailing wage. Allegedly, when workers spoke up, he fired them. Together with our partners at the Department of Labor, Office of Inspector General, we will pursue those who deliberately and criminally take advantage of hard-working New Yorkers.”
DOL-OIG Acting Special Agent-in-Charge Peter Nozka said: “An important mission of the Office of Inspector General is to investigate allegations regarding employees being forced to kickback portions of their wages. We will continue to work with our law enforcement partners to investigate these types of allegations.
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:
From at least November 2014 to December 2015, ERRON STRACHAN was a foreman for a construction company (“Contractor-1”) that provided construction services at the Randolph Houses, a public housing project located in the Harlem neighborhood of Manhattan (the “Construction Project”). STRACHAN’s responsibilities on the Construction Project included supervising the workers on site, hiring and firing employees, and disbursing checks to workers. Because the Construction Project received funding from the U.S. Department of Housing and Urban Development, pursuant to the Davis-Bacon and Related Acts, Contractor-1 was required to pay its laborers a prevailing wage.
STRACHAN demanded and received kickbacks from numerous employees of Contractor-1 who worked on the Construction Project, thus denying these employees the prevailing wage to which they were entitled. STRACHAN would instruct employees to negotiate their paychecks and then return with cash, sometimes up to almost a third of an employee’s weekly paycheck, for himself. STRACHAN brazenly attempted to justify the kickback requests to employees by suggesting that the prevailing wage salary was “too much” money and falsely stating that he provided the kickbacks to Contractor-1 in order to offset the financial burden on Contractor-1 of having to pay prevailing wages on the Construction Project. When workers refused to pay kickbacks, STRACHAN reduced their work schedules and fired them.
* * *
STRACHAN, 53, of Brooklyn, New York, is charged with one count of violating the Copeland Anti-Kickback Act, which carries a maximum penalty of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the investigative work of the DOL-OIG and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitutes only allegations, and every fact described should be treated as an allegation.
Brazilian National Sentenced for Scheme to Launder $20 Million in Proceeds from the TelexFree FraudRead the Press Release
BOSTON – A Brazilian national was sentenced today in federal court in Boston for conspiring to launder approximately $20 million in proceeds from the TelexFree pyramid scheme.
Cleber Rene Rizerio Rocha, 28, was sentenced by U.S. District Court Judge Leo T. Sorokin to 33 months in prison and one year of supervised release. In October 2017, Rocha pleaded guilty to one count of conspiring to commit money laundering and one count of money laundering.
In April 2014, a search warrant was executed at the headquarters of TelexFree Inc., a massive pyramid scheme based in Marlborough, Mass., that caused billions of dollars in losses to nearly two million victims worldwide. Later that same day, Carlos Wanzeler, one of the founders of the company, fled first to Canada and then to Brazil, his native country. In his haste to flee the United States, however, Wanzeler left millions of dollars hidden in the greater Boston area.
In mid-2015, an intermediary working on Wanzeler’s behalf contacted an associate for help transferring the money from the United States to Brazil. The associate, who later cooperated with federal authorities, arranged with Wanzeler’s representative in Brazil to launder cash through Hong Kong, convert it to Brazilian Reals, and then transfer it to Brazilian accounts. In January 2017, Rocha, working as a courier for Wanzeler’s representative in Brazil, flew from Brazil to New York City. Rocha later met the cooperating witness in Hudson, Mass., where Rocha gave him a suitcase containing $2.2 million of Wanzeler’s hidden TelexFree money, intending that the cooperating witness help launder the cash out of the United States. After the meeting, agents followed Rocha to an apartment in Westborough, Mass., and he was later arrested. A search of the apartment resulted in the seizure of approximately $20 million in cash found hidden in a mattress box spring.
Wanzeler and TelexFree co-founder James Merrill were indicted in July 2014 on charges that they operated TelexFree as a massive pyramid scheme. Merrill pleaded guilty to those charges and was sentenced in March 2017 to six years in prison. Wanzeler remains a fugitive.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. U.S. Attorney Lelling and Assistant U.S. Attorney Neil J. Gallagher Jr. of the Economic Crimes Unit prosecuted the case.
Bradenton Man Sentenced to Fifteen Years for Firearm and Drug Trafficking Related OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Travis Marcel Hickman (32, Bradenton) to 15 years and 1 day in federal prison for possessing a firearm as a convicted felon and for possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on June 13, 2017.
According to court documents, on November 17, 2017, deputies from the Manatee County Sherriff’s Office initiated a traffic stop on Hickman’s car. He fled, leading the deputies on a chase that resulted in him colliding with another vehicle in a residential neighborhood. Hickman emerged from his car with a backpack containing various narcotics, including morphine and crack cocaine. Law enforcement officers recovered a loaded .40 caliber pistol from his disabled vehicle, and a subsequent search of Hickman’s motel room revealed a loaded 9mm pistol, ammunition, and various narcotics, including opioids, cocaine, and crack cocaine. At the time, Hickman was a convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Bradenton Felon Convicted of Drug Trafficking and Possessing Five FirearmsRead the Press Release
Tampa, Florida– United States Attorney Maria Chapa Lopez announces that a federal jury has found Woodrow Pressey, Jr. (47, Bradenton) guilty of possessing cocaine with the intent to distribute it, and possessing five firearms and several rounds of ammunition as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison.
Pressey was indicted on September 6, 2017.
According to testimony and evidence presented at trial, on June 12, 2017, the Manatee County Sheriff’s Office and the Federal Bureau of Investigation executed a search warrant at Pressey’s home and found crack cocaine, fentanyl, a razorblade used for cutting crack cocaine, and two digital scales in his bedroom. In a locked shed in the backyard, investigators found a .38 caliber revolver, a .357 magnum caliber revolver, a 12-gauge shotgun, a .30-06 caliber rifle, a 7.62 caliber assault rifle, five rounds of 12-gauge shotgun ammunition, five rounds of .357 magnum caliber ammunition, and two rounds of .38 caliber ammunition. Pressey had two keys in his possession that unlocked the shed.
Following his arrest, Pressey told investigators that he had been released from Florida state prison on April 29, 2017, and began selling heroin and crack cocaine two days later. He said he had hidden the firearms in the shed while he was in prison and was planning to find a buyer for the guns.
Pressey has prior felony convictions for trafficking heroin, possessing cocaine with the intent to sell it, and aggravated assault and is therefore prohibited from possessing firearms or ammunition under federal law.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Hot Batch.” It was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Manatee County Sheriff’s Office and it is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.
It is also part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Bobby Willis Sentenced to Two Years in Federal Prison for Wire Fraud Conviction Arising Out of Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – Bobby Willis, 45, a resident of Kirtland, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 24 months in prison followed by three years of supervised release for his conviction on wire fraud charges. The court will be scheduling a hearing to determine the amount of restitution Willis will be required to pay to the victims of his fraudulent conduct.
Willis was charged in a two-count indictment filed on Oct. 20, 2015, alleging that, from March 2010 through Aug. 2011, he executed an illegal scheme to defraud two victims out of a $1,000,000.00. According to the indictment, Willis offered the victims an opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000.00 with the understanding that he and other individuals had also invested millions of dollars in the company. Willis then spent the victims’ money instead of investing the funds.
Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000.00 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account. Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account.
On July 12, 2017, Willis pled guilty to the two-count indictment. In entering the guilty plea, Willis admitted meeting the victims in 2010 and devising a plan to cause the victims to give him $1,000,000.00 to invest in a real estate LLC created by Willis. Willis further admitted directing the victims to work with his associates to invest the money in a real estate company. That same real estate company transferred $995,000.00 into an account held by Willis and his wife on Oct. 25, 2010 and Nov. 18, 2010.
In his plea agreement, Willis admitted that he and his wife spent the victims’ money. Willis also admitted that he did not invest the victims’ money in any real estate, and when the victims inquired about the status of their investment, he had associates falsely assure the victims that their investment had grown in value.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney C. Paige Messec.
Berkeley County man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Bunker Hill, West Virginia man has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
David Smeltzer, of Bunker Hill, West Virginia, age 36, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin.” Smeltzer admitted to selling heroin in Berkeley County in January 2017.
Smeltzer faces up to 20 months incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belmont County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Phillip Weir, of Bridgeport, Ohio, was sentenced today to 51 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Weir, age 32 pled guilty to one count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school” in November 2017. Weir admitted to working with another to sell crack cocaine near Madison Elementary School in Wheeling, WV on September 22, 2016.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U. S. District Judge John Preston Bailey presided.
Bank Robber SentencedRead the Press Release
U.S. Attorney Duane A. Evans announced that KRISTEN WILLIAMS, age 44, was sentenced today after previously pleading guilty to one count of bank robbery, in violation of 18 U.S.C § 2113(a).
U.S. District Judge Susie Morgan sentenced WILLIAMS to a term of imprisonment of 70 months, 3 years of supervised release, and a $100 mandatory special assessment.
According to court documents, WILLIAMS robbed the Gulf Coast Bank and Trust located at 201 North Carrollton Avenue in New Orleans on November 5, 2016. WILLIAMS, whose actions were recorded by surveillance video, robbed the bank of $4,983.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Maria Carboni and J. Ryan McLaren were in charge of the prosecution.
Arvada Man Sentenced to Federal Prison for Mailing MarijuanaRead the Press Release
DENVER – Mark Herbert Koenig, age 36, of Arvada, Colorado, was recently sentenced by U.S. District Court Judge R. Brooke Jackson to serve one year and a day in federal prison for possession of a controlled substance with the intent to distribute, U.S. Attorney Bob Troyer and U.S. Postal Inspector in Charge Dana Carter announced. Koenig was sentenced on January 25, 2018, following his entering a guilty plea on October 27, 2017.
According to the stipulated facts contained in the plea agreement, in four separate times, October 5, 2015, November 17, 2015, December 16, 2015, and January 6, 2016, Koenig was observed mailing a package. U.S. Postal Inspectors seized each package after a drug dog alerted to it. A warrant was obtained in each instance, and the packages opened, containing between 950 grams to 1.600 kilograms of marijuana. On January 13, 2016, a search warrant was obtained for the defendant’s residence. Inside Postal Inspectors found 123 mature marijuana plants. For purposes of sentencing, both the prosecution and defense agreed in the plea agreement that the total amount of marijuana that was considered for relevant conduct was 18,672 grams.
“U.S. Postal Inspectors continue to aggressively target individuals who use the postal service to distribute controlled substances,” said Dana Carter, Inspector in Charge of the U.S. Postal Inspection Service, Denver Division. “Our efforts to protect the nation’s mail, and postal customers, from illegal drug shipments are highlighted in cases such as these, where repeat offenders are sent to federal prison.”
This case was investigated by the U.S. Postal Inspection Service, along with the Arvada Police Department and the West Metro Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Armed Career Criminal Sentenced to 20-Year Federal Prison Term for Possession of a Firearm by a Convicted FelonRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that Chief U.S. District Court Judge Brian A. Jackson has sentenced DERRICK SHELBIA, age 40, of Baton Rouge, Louisiana, to serve 20 years in federal prison for possession of a firearm by a convicted felon. SHELBIA will also be required to serve a five-year term of supervised release upon his release from prison.
In July 2017, SHELBIA pleaded guilty to being a felon in possession of a firearm. SHELBIA was apprehended for possessing a firearm after a spree of violent crimes in Ascension and East Baton Rouge Parishes during a one-month period in October and November of 2016. SHELBIA’s crime spree ultimately ended after he was caught in a stolen car that he acquired during one of the armed robberies, through the cooperation of local police and the ATF.
SHELBIA was previously convicted of multiple armed robberies and was prohibited from possessing a firearm.
Acting U.S. Attorney Corey Amundson stated, “Defendant Shelbia is a violent predator who deserves every minute of his 20-year prison term. This is yet another illustration of how the federal firearms laws can be excellent tools in our collective fight against violent crime. I commend the agents, officers, and prosecutors who worked together on this important case, and I look forward to continuing to bring the fight to those who seek to victimize our community.”
ATF-Baton Rouge Resident Agent-in-Charge Antonio L. Pittman stated, "Through partnerships with our federal, state and local partners, ATF is able to contribute to the safety of our communities. The conviction and sentencing of DERRICK SHELBIA displays the commitment all law enforcement agencies have for the citizens of Louisiana.”
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Department, Ascension Parish Sherriff’s Office, and the Louisiana State Police. It was prosecuted by Assistant United States Attorney Cal Leipold.
Antitrust Division Establishes the “Jackson-Nash Address” and Announces Professor Alvin Roth as Inaugural SpeakerRead the Press Release
The Antitrust Division is pleased to announce the establishment of the Jackson-Nash Address, and to announce that Professor Alvin Roth, the McCaw Professor of Economics at Stanford University, will be the inaugural speaker. Professor Roth is the 2012 winner of the Nobel Prize for Economics for the theory of stable allocations and the practice of market design, and the author of “Who Gets What and Why.” He will deliver his address on February 26, 2018, at The Great Hall, The Robert F. Kennedy Building, Department of Justice, 950 Pennsylvania Avenue NW, Washington, DC, at 2:00 p.m.
“The goals of the Jackson-Nash Address series are to recognize the contributions of former Supreme Court Justice Robert H. Jackson and Nobel Laureate economist John Nash, and to honor the speaker, recognizing and celebrating the role of economics in the mission of the Division,” said Assistant Attorney General Makan Delrahim. “Professor Roth’s important contributions to game theory and market design make him an exemplary inaugural speaker.”
Justice Jackson served as Assistant Attorney General of the Antitrust Division prior to his appointment to the Supreme Court. During his tenure at the Division, he set the stage for the expanded role of economics in antitrust, replacing vague legal standards with the “protection of competition” as the goal of antitrust law.
Professor John Nash’s research has provided the Division’s economists with the analytic tools necessary to protect competition. In particular, Professor Nash’s strategic theory of games and his axiomatic bargaining model have had a profound effect on the Division’s enforcement mission. The Division’s economists commonly rely on these theories to guide investigations and to help evaluate the effects of mergers, monopolization, and collusion.Non-Division attendees must enter through the entrance between 10th and Constitution Avenue, NW, and clear building security. Any inquiries regarding security and logistics should be directed to Jeremy Edwards in the Office of Public Affairs at (202) 514-2007 or [email protected].
Albany Felon Sentenced on Firearms ConvictionsRead the Press Release
ALBANY, NEW YORK – Shawn Faircloth, age 46, of Albany, was sentenced today to 68 months in prison following his guilty plea to possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his guilty plea, Faircloth admitted that in early 2013, in downtown Albany, he traded heroin to a drug addict in exchange for a loaded Smith & Wesson .38-caliber revolver. On August 9, 2013, while executing a search warrant at Faircloth’s apartment, police found the revolver hidden inside a bathroom. The gun was loaded. Also in the bathroom, police found a digital scale and supply of Ziploc bags that Faircloth admitted he used to package heroin and crack cocaine, which he sold in Albany.
Senior United States District Judge Frederick J. Scullin Jr. also ordered Faircloth to serve 3 years of supervised release upon Faircloth’s release from prison.
This case was investigated by ATF and the Albany Police Department, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Wayne A. Myers.
25 Defendants of the “Major Stackz Entertainment” Street Gang have been Indicted on Federal Drug Trafficking ChargesRead the Press Release
Memphis, TN – Twenty-five members and associates of an armed drug trafficking organization, Major Stackz Entertainment, have been indicted for conspiring to distribute large quantities of cocaine, methamphetamine, heroin and marijuana throughout West Tennessee. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
On January 10, 2018, a federal grand jury returned the indictment, which remained sealed until the defendants’ arrest. On Wednesday, February 7, 2018, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Members and associates of Major Stackz used firearms to protect their supply of drugs, supply routes, profits and distribution territory from competing drug trafficking organizations. The members and associates are from different, traditional street gangs, including the Young Mob, Vice Lords, Gangster Disciples, Kitchen Crip, and Bloods that have joined together to make money through criminal activity.
Symbolism played a large role in Major Stack culture. The primary symbol with which the gang associated was the acronym "MSE" for "Major Stackz Entertainment." Shirts and social media posts containing words like "MSE," "Major Stack," or "Stackz," were also known as gang identifiers.
Major Stackz started in and primarily operated out of the East Memphis area near the intersection of Kerr and Pillow Street in an area known to the locals as "DHG" or "Dope, hoes and guns." This area is located in the Western District of Tennessee.
The eighteen defendants listed are currently in custody:
Jarvis Cooper, a/k/a/ "J-Bo" "J-Bizzle," 31, Memphis, Tennessee
Terence Harper, a/k/a/ "Red," 44, Memphis, Tennessee
Jackie Arnold, a/k/a "Jackie Red," 47, Memphis, Tennessee
Joseph Newberry, 40, Memphis, Tennessee
Pamela Perkins, 28, Memphis, Tennessee
Anthony Jones, a/k/a "Squirt," 24, Memphis, Tennessee
Calvin Myers, a/k/a "CJ," 20, Memphis, Tennessee
Antonio Worles, a/k/a "Joe," 19, Memphis, Tennessee
Sandreka Wright, 34, Memphis, Tennessee
Delbert Harrison, a/k/a "Clay," 30, Henning, Tennessee
Sanitory Campbell, a/k/a "Toe," 43, Memphis, Tennessee
Antwan Miles, a/k/a "Twan," 20, Memphis, Tennessee
Darnell Ward, a/k/a "D," 37, Memphis, Tennessee
Amanda Harrison, 35, Henning, Tennessee
Alberto Chavoya, 34, Memphis, Tennessee
Daryl Mason, a/k/a/ "D," 28, Memphis, Tennessee
Tim Scotto, 53, Cordova, Tennessee
Sergio Lopez, 34, Compton, California
Count 1 charges Jarvis Cooper; Terence Harper; Jackie Arnold; Pamela Perkins; Joseph Newberry; Anthony Jones; Calvin Myers; Antonio Worles; Darnell Ward; Antwan Miles; Sandreka Wright; Amanda Harrison; and Sanitory Campbell with knowingly possessing firearms in furtherance of drug trafficking crimes; knowingly using and carrying firearms during and in relation to drug trafficking crimes.
Count 2 charges Jarvis Cooper; Terence Harper; Darnell Ward; Joseph Newberry; Anthony Jones; Calvin Myers; Antonio Worles; Antwan Miles; Amanda Harrison; Sandreka Wright; Delbert Harrison; Alberto Chavoya; Daryl Mason; Tim Scott; Sergio Lopez and Sanitory Campbell with the intent to distribute over 50 grams of methamphetamine, a Schedule II controlled substance.
Count 3 charges Terence Harper; Darnell Ward; Sergio Lopez; Sanitory Campbell and others with the intent to distribute over one kilogram of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Count 4 charges Terence Harper; and Jackie Arnold with the intent to distribute over 5 kilograms of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
Count 5 charges Terence Harper, Jackie Arnold and Sanitory Campbell with the intent to distribute over 50 kilograms of marijuana.
Count 6 is redacted at this time as the defendant is not in custody.
Count 7 is redacted at this time as the defendant is not in custody.
Count 8 charges Darnell Ward with knowingly possessing in and affecting interstate commerce a firearm, Taurus Millennium 9mm pistol.
Count 9 charges Terence Harper with knowingly possessing in and affecting interstate commerce a firearm, Ruger SR9C 9mm pistol and a Beretta PX4 Storm .45-caliber pistol.
Count 10 charges Jackie Arnold with knowingly possessing in and affect interstate commerce a firearm, FNS .40 caliber pistol.
Count 11 is redacted at this time as the defendant is not in custody.
Count 12 charges Jarvis Cooper; Antonio Worles; Joseph Newberry and Antwan Miles and others with knowingly and intentionally carrying a firearm, that is: a .380 caliber pistol, during and in relation to a drug trafficking crime; conspiracy to possess with the intent to manufacture and distribute a controlled substance.
Count 13 charges Darnell Ward with knowingly possessing a firearm in furtherance of and in relation to a drug trafficking crime with intent to distribute a controlled substance.
Count 14 charges Terrence Harper and Jackie Arnold with conspiracy to possess with intent to distribute a controlled substance.
Count 15 charges Terrence Harper with intentionally possessing a firearm, Beretta PX4 Storm .45 caliber pistol, which had transported in interstate commerce.
Count 16 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 17 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 18 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 19 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 20 charges Jarvis Cooper; Darnell Ward; Calvin Myers and Anthony Jones with intent to distribute and distribution ofa mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 21 charges Jarvis Cooper; Darnell Ward; Calvin Myers and Anthony Jones with knowingly possessing a firearm in furtherance of and in relation to a drug trafficking crime, with intent to distribute a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 22 charges Sandreka Wright and Darnell Ward with the intent to promote the carrying on of specified unlawful activity that is knowing that the property involved in the financial transaction represented the proceeds of some form of unlawful activity, in violation of Title 18.
Currently 7 defendants indicted remain at large and are not listed in this release.
The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Jarvis Cooper; Pamela Perkins; Terence Harper; Jackie Arnold; Darnell Ward; Joseph Newberry; Antwan Miles; Amanda Harrison; Anthony Jones; Calvin Myers; Antonio Worles; Sandreka Wright; Delbert Harrison; Alberto Chavoya; Sanitory Campbell; Daryl Mason; Tim Scott and Sergio Lopez.
During this investigation, agents seized approximately $90,000 in U.S. currency, 40 pounds of methamphetamine, two kilograms of heroin, four kilograms of cocaine, 11 ounces of crack cocaine, over 150 pounds of marijuana and 22 firearms. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Memphis Police Department, Multi Agency Gang Unit and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proved guilty.
###
18 Members of Mexican Drug Trafficking Organization Sentenced for Smuggling Marijuana Through the Tohono O’odham ReservationRead the Press Release
PHOENIX – Yesterday, Arturo Tellez-Berrelleza, 32, a citizen of Mexico, was sentenced by U.S. District Judge James A. Soto to 21 months’ imprisonment. Tellez-Berrelleza, who previously pleaded guilty to a drug trafficking offense, is the final defendant to be sentenced in a multi-agency investigation into a marijuana smuggling network.
“Our office is committed to prosecuting transnational criminal organizations that seek to smuggle drugs through Arizona,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “Homeland Security Investigations and the United States Border Patrol deserve particular commendation for their painstaking efforts to apprehend the smugglers who were brought to justice during this investigation.”
“Members of this drug trafficking organization will no longer plague the southern border with their illicit criminal activity and flood our community with large quantities of drugs,” said Scott Brown, special agent in charge of Homeland Security Investigations (HSI) Phoenix. “HSI, along with our law enforcement partners, will continue to work tirelessly to target and dismantle organizations who seek to operate in the dessert undetected.”
In October 2015, federal law enforcement officials initiated an investigation into the smuggling activities of a Mexican drug trafficking organization (“DTO”) operating on the Tohono O’odham Nation. This DTO placed heavy reliance on so-called “scouts,” who are individuals who remain on high ground for extended periods of time in order to guide marijuana backpacking groups past law enforcement, and “resuppliers,” who are responsible for providing scouts with food, water, binoculars, cellphones, camping equipment, cold and hot weather clothing, and communications equipment. During the course of the investigation, law enforcement officials seized approximately 5,478 kilograms of marijuana and successfully prosecuted at least 18 members of the DTO, who received sentences ranging up to 37 months’ imprisonment. On one occasion, a DTO member attempted to hide near a cliff with a 15- to 20-foot drop, then assaulted a law enforcement agent who was attempting to arrest him by striking the agent, grabbing the agent’s radio, and damaging the radio so it could not be used to call for backup. During the course of the struggle, the agent was pushed close to the edge of the cliff.
The investigation in this case was conducted by Homeland Security Investigations under the NATIVE Task Force and the U.S. Border Patrol Casa Grande Station. These prosecutions were handled by Assistant U.S. Attorneys Adam Rossi and Susanna Martinez, District of Arizona, Tucson.
CASE NUMBERS: 4:17-CR-00480-JAS-BPV;4:17-CR-00291-RCC-LAB;4:17-CR-00480- JAS-BPV; 4:17-CR-00557-JAS-EJM;4:17-CR-00509-JGZ-BPV;4:17-CR-00508-RCC-BPV
RELEASE NUMBER: 2018-011_ Tellez-Berrelleza et al.
# # #
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.
14 New Defendants Added to Federal Racketeering Indictment Against Chicago Gang Members; New Charges Allege Multiple Murders and Acts of ViolenceRead the Press Release
CHICAGO — A federal indictment unsealed this week charges 34 alleged members of the Latin Kings street gang with participating in a criminal organization that murdered its rivals and violently protected its drug-dealing territories in Chicago and the suburbs.
Authorities uncovered the criminal activity through an investigation conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). During the course of the probe, law enforcement agents confiscated 18 firearms.
Original charges in the case were filed in 2016 against 20 alleged members of the Latin Kings. The superseding indictment unsealed this week adds 14 more defendants and charges numerous acts of violence, including six murders, three attempted murders, and three arsons. Thirty three of the defendants are charged with racketeering conspiracy, while the 34th defendant faces a firearm charge.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie T. Johnson, Superintendent of the Chicago Police Department. Substantial investigative assistance was provided by the Cook County Sheriff's Police Department and Hammond (Ind.) Police Department. The FBI Task Force investigating the case was comprised of agents and task force officers from the Joliet Police Department, Evergreen Park Police Department, Bolingbrook Police Department, Orland Park Police Department, Cook County Sheriff's Police Department, Will County Sheriff’s Office, and the Internal Revenue Service Criminal Investigation Division. Additional support was provided by the Merrillville (Ind.) FBI office, and the U.S. Attorney’s Office for the Northern District of Indiana.
The superseding indictment was returned on Feb. 1, 2018, and ordered unsealed this week. Several of the new defendants were arrested this week, and arraignments for most of the defendants have been held in federal court in Chicago.
The superseding indictment alleges that members of the Latin Kings violently enforced discipline within their ranks and retaliated against rivals and former members to prevent cooperation with law enforcement. The charges accuse nine defendants of committing six murders in furtherance of the gang’s activities:
ALONZO HORTA, 20, of Hammond, Ind., and GEOVANNI LOPEZ, 28, of Oak Forest, allegedly murdered Alfonso Calderon on April 9, 2017, in Chicago.
DEAN TREVINO, 25, of Chicago, and EMANUEL MENDEZ, 29, of Hammond, Ind., allegedly murdered Ismael Perez on Nov. 3, 2012, in Chicago.
GERONIA FORD, 23, of Chicago, and WILLIAM HAYSLETTE, 24, of Chicago, allegedly murdered Sergio Hernandez on May 15, 2012, in Chicago.
JUAN JIMENEZ, 35, of Blue Island, allegedly murdered Isiah Cintron on Jan. 18, 2007, in Hammond, Ind.
THOMAS LUCZAK, 44, of Chicago, allegedly murdered Juan Serratos on June 11, 2000, in Chicago.
JOSE JARAMILLO, 35, of Hammond, Ind., allegedly murdered Jeremy Ward on Nov. 15, 1999, in Chicago.
Mendez and two other defendants – ORLANDO MARIN, 29, of Chicago, and ROY VEGA, 35, of Chicago – are also charged with committing attempted murders.
The defendants participated in the Southeast Region of the Latin Kings, which contains more than a dozen chapters answering to a regional structure of leadership, according to the indictment. Each chapter is typically named after the city in which it operates, or by a street or streets that run through the chapter. Among the Chicago chapters in the Southeast Region are 82nd Street, 88th and 89th Streets, 97th Street, 99th Street, 102nd Street, 104th Street, and the Roseland neighborhood. Other regional chapters operated in the south suburbs of Blue Island, Dolton, Harvey and Chicago Heights, as well as in Kankakee and communities across the border in Indiana, according to the indictment.
The indictment charges defendants who serve in various high-ranking positions of the Latin Kings. These positions include “Regional Enforcers,” who violently instill discipline within the ranks; “Incas,” who serve as chapter leaders; “Caciques,” who are second in command behind the Incas; “Soldiers,” who often carry dangerous weapons to carry out the gang’s activities; and “Regional Treasurer,” who collects dues from Latin King chapters to finance the gang’s activities.
Several firearm offenses are also charged in the indictment, including unlawful possession of guns, assault with a dangerous weapon, illegal dealing of guns, and multiple counts of witness intimidation.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Racketeering conspiracy generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities, including certain murders charged in the indictment. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Brian Wallach, Derek Owens and Vikas Didwania are representing the government.
Wednesday 7 February 2018
Youngstown man sentenced to 14 years in prison for trafficking heroin and cocaineRead the Press Release
A Youngstown man was sentenced to more than 14 years in prison for drug trafficking, said U.S. Attorney Justin E. Herdman and ATF Special Agent in Charge Trevor Velinor.
Michael Williams, 32, was sentenced to 174 months in prison after pleading guilty to possession with intent to distribute heroin, cocaine and crack cocaine.
Williams possessed cocaine, crack cocaine, heroin, tramadol, alprazolam and clonazepam on July 1, 2016, with the intent to sell the drugs, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys David M. Toepfer and Elliot Morrison following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force.
Young Undocumented Alien Sentenced for Smuggling DrugsRead the Press Release
LAREDO, Texas – A 26-year-old undocumented alien from Nuevo Laredo, Tamaulipas, Mexico, has been ordered to prison following his conviction of conspiracy to import methamphetamine, announced U.S. Attorney Ryan K. Patrick. Eduardo Sanchez-Obregon pleaded guilty Oct. 3, 2017, to one count each of conspiracy to import more than 50 grams of methamphetamine and more than 500 grams of a mixture of methamphetamine.
Today, U.S. District Judge Marina Garcia-Marmolejo sentenced him to 70 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his prison term.
On July 28, 2017, Sanchez-Obregon took part in a conspiracy to smuggle 7.5 kilograms of methamphetamine. He was traveling from Mexico on a Turimex commercial passenger bus with the drugs contained inside a small suitcase in the luggage compartment. Authorities searched the bus as it arrived at the IH-35 U.S. Border Patrol Checkpoint. He was arrested shortly thereafter.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Young Local Man Sentenced for Trafficking Nearly Five Kilograms of MethRead the Press Release
BROWNSVILLE, Texas – A 21 year old Brownsville resident has been ordered to federal prison for methamphetamine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Ernesto Alonso Valdez pleaded guilty Aug. 31, 2017.
Today, U.S. District Judge Andrew Hanen sentenced Valdez to a total of 132 months imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, Judge Hanen stated “So take this to heart. Try to turn this into a positive. You have one advantage that you are young.”
On Nov. 24, 2016, Ernesto Alonso Valdez arrived at the Gateway port of entry in Brownsville driving a Chevrolet HHR. At the time, he claimed to be en route to visit his girlfriend at the hospital. However, agents soon discovered 4.28 kilograms of methamphetamine concealed in the back seats and rear bumper of the vehicle. A small quantity of narcotics was also found in his shoe during a personal search. Valdez admitted knowing the personal use in his shoe was cocaine or methamphetamine.
Valdez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Wilmington Man Sentenced to More Than 17 Years for Drug Distribution ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced JERMAINE DALE ROGERS, 39, of Wilmington, to 210 months of imprisonment followed by 6 years of supervised release.
ROGERS was named in an Indictment filed on July 19, 2017. On October 25, 2017, ROGERS pled guilty to Distribution of a Quantity of Heroin.
In February 2017, a Confidential Informant (informant) advised law enforcement in New Hanover County that ROGERS was actively selling heroin. At the time, ROGERS was residing in a Federal halfway house in Wilmington following his release from the Bureau of Prisons. The informant admitted to purchasing 2 clips or 2 grams of heroin from ROGERS approximately 15 times over the course of three months. In April 2017, under the direction of law enforcement, the informant made arrangements to conduct a controlled purchase of heroin from ROGERS. On April 18, 2017, the informant purchased approximately 2 grams of heroin from ROGERS in exchange for $600 in United States currency.
On June 21, 2017, ROGERS was subsequently arrested and the defendant admitted to selling heroin to the CI.
The New Hanover County Sheriff’s Office and the FBI conducted the criminal investigation of this case. Assistant United States Attorney Bradford Knott handled the prosecution of this case for the government. At the sentencing, Judge Dever highlighted, among other reasons, ROGERS’ persistent involvement in drug trafficking as a motivating factor for the sentence imposed.