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20 March 2018
Queens Man Convicted of Enticing Minor for Sexual Acts Sentenced to 10 Years’ ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Christopher Arroyo was sentenced to 10 years’ imprisonment for coercing and enticing a minor to engage in sexually explicit conduct. The sentencing proceeding was held before United States District Judge Jack B. Weinstein, who also imposed a term of five years’ supervised release to follow Arroyo’s prison sentence, during which time he must register as a sex offender, and he will not be allowed unsupervised contact with minors.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Arroyo sexually exploited a child through social media, using threats and harassment to publicly shame the victim with the explicit images he enticed her to create,” stated United States Attorney Donoghue. “Today’s sentence will serve not only to protect the public from the defendant for a significant period of time, but it will also serve as a message to other child predators using the Internet to target victims that they will be found and prosecuted to the full extent of the law.”
“The FBI New York Crimes Against Children Task Force won’t ever stop investigating and arresting every predator we can, but it is incredibly difficult to stop predators before they make initial contact,” stated FBI Assistant Director-in-Charge Sweeney. “Cell phones, computers and social media give sexual criminals easy access to your children that they’ve never had before and that we did not have to contend when we were younger. Parents, guardians, educators, and other adults can help law enforcement create a much stronger line of defense against these predators. Please talk with your children and students about their social media presence, and take the time to both learn and teach our children how to protect themselves online. You can go to https://sos.fbi.gov for ways to start that conversation.”
As set forth in the charging instruments and the defendant’s plea allocution, beginning in 2012, Arroyo, who was 21 at the time, used Facebook and other social media platforms to meet and then entice a 12-year-old victim to take sexually explicit images of herself and engage in other sexual conduct as directed by Arroyo. Arroyo continued to exploit this young victim for years, and when the victim refused to comply with Arroyo’s demands, he threatened and harassed her, stating that he would publicly post images of her across the Internet.
In 2015, Arroyo followed through on those threats, and created multiple fake social media accounts to which he posted explicit images of the victim. After tracing Arroyo’s online activity to his residence in Queens, FBI agents executed a search of his home and seized multiple computers and other electronic devices. A forensic examination of those devices revealed that Arroyo had archived images of the victim in an electronic folder bearing her name.
This prosecution is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant United States Attorneys G. Karthik Srinivasan and Drew G. Rolle are in charge of the prosecution.
The Defendant:
CHRISTOPHER ARROYO
Age: 26
Queens, New YorkE.D.N.Y. Docket No. 16-CR-376 (S-1) (JBW)
Previously Convicted Drug Trafficker Sentenced to 32 YearsRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced James Christopher Gann, 36, of Asheville, to 391 months in prison and five years of supervised release on drug trafficking conspiracy and witness intimidation charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Gann was convicted in 2007 of conspiracy to distribute methamphetamine and was ordered to serve more than six years in prison. Upon his release from prison in late 2016 and continuing through February 2017, Gann trafficked more than 22 kilograms of high-purity methamphetamine into North Carolina from a supply source in Oklahoma. Court records show that Gann recruited his girlfriend and co-defendant, Elizabeth Ann Hollifield, to assist him in the sale of the methamphetamine.
According to court records, during an undercover drug transaction, law enforcement arrested Hollifield, who subsequently agreed to cooperate with the investigation. According to court records, when Gann became aware of Hollifield’s cooperation with law enforcement, he physically assaulted her on two separate occasions to dissuade her from further interaction with the authorities.
Gann pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and assault with intent to hinder, delay and prevent communication to law enforcement.
Hollifield was previously sentenced to 63 months in prison after pleading guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine. All federal sentences are served without the possibility of parole.
HSI led the investigation. Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville prosecuted the case.
Philadelphia-Area Political Consultant Charged in Superseding Indictment with Obstructing Investigation of Federal Election CommissionRead the Press Release
WASHINGTON – A federal grand jury sitting in the Eastern District of Pennsylvania returned a superseding indictment today adding charges in a pending criminal case against a Philadelphia-area political consultant, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
The original indictmenz, returned on Oct. 24, 2017, charged Kenneth Smukler, 57, of Villanova, Pennsylvania, with causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission (FEC), and causing false statements to the Federal Election Commission in connection with a 2012 congressional campaign. The superseding indictment charges Smukler with these same offenses, as well as making conduit contributions to a federal campaign committee and obstructing an FEC investigation in connection with the 2014 congressional campaign of a different candidate.
According to the indictment, Smukler made and caused to be made excess and conduit contributions and engaged in a falsification and obstruction scheme involving a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in 2014. According to the indictment, the excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies. The conduit contributions were routed through another political consultant and the candidate.
As alleged in the indictment, in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses. According to the indictment, Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election. According to the indictment, in or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses. Smukler falsely told the campaign that this money came from a segregated media account, when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution.
As alleged in the indictment, after the campaign lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election. As alleged in the indictment, in order to conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies. As alleged in the indictment, Smukler falsely told the campaign that these payments were refunds of money that had been escrowed in Smukler’s companies for general election expenses, when, in fact, the money had come not from escrow accounts but from Smukler’s associate, and the money could not have been escrowed campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.
According to the indictment, Smukler caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC, which led the FEC to dismiss a pending complaint against the campaign.
In addition, the indictment alleges that Smukler made an unlawful conduit contribution to the campaign in excess of $2,000 through another political consultant. And, according to the indictment, in or about June 2015, Smukler made another unlawful conduit contribution to the campaign, this time in excess of $10,000, through the candidate.
An indictment is not a finding of guilt. An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania are prosecuting the case.
Philadelphia-Area Political Consultant Charged in Superseding Indictment with Obstructing Investigating of Federal Election CommissionRead the Press Release
PHILADELPHIA – A federal grand jury sitting in the Eastern District of Pennsylvania returned a superseding indictment today adding charges in a pending criminal case against a Philadelphia-area political consultant announced U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
The original indictment, returned on Oct. 24, 2017, charged Kenneth Smukler, 57, with causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission (FEC), and causing false statements to the Federal Election Commission in connection with a 2012 congressional campaign. The superseding indictment charges Smukler with these same offenses, as well as making conduit contributions to a federal campaign committee and obstructing an FEC investigation in connection with the 2014 congressional campaign of a different candidate.
According to the indictment, Smukler made and caused to be made excess and conduit contributions and engaged in a falsification and obstruction scheme involving a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in 2014. According to the indictment, the excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies. The conduit contributions were routed through another political consultant and the candidate.
As alleged in the indictment, in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses. According to the indictment, Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election. According to the indictment, in or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses. Smukler falsely told the campaign that this money came from a segregated media account, when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution.
As alleged in the indictment, after the campaign lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election. As alleged in the indictment, in order to conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies. As alleged in the indictment, Smukler falsely told the campaign that these payments were refunds of money that had been escrowed in Smukler’s companies for general election expenses, when, in fact, the money had come not from escrow accounts but from Smukler’s associate, and the money could not have been escrowed campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.
According to the indictment, Smukler caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC, which led the FEC to dismiss a pending complaint against the campaign.
In addition, the indictment alleges that Smukler made an unlawful conduit contribution to the campaign in excess of $2,000 through another political consultant. And, according to the indictment, in or about June 2015, Smukler made another unlawful conduit contribution to the campaign, this time in excess of $10,000, through the candidate.
An indictment is not a finding of guilt. An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania are prosecuting the case.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Payza and Two Canadian Brothers Accused of Operating an Unlicensed Money Service Business and Money LaunderingRead the Press Release
WASHINGTON – Firoz Patel and Ferhan Patel, the founders and operators of Payza.com, AlertPay.com and Egopay.com, have been indicted by a federal grand jury in the District of Columbia on charges alleging they operated an Internet-based unlicensed money service business that processed more than $250 million in transactions.
The announcement was made by U.S. Attorney Jessie K. Liu and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.
The indictment was returned earlier this month and unsealed today in the U.S. District Court for the District of Columbia. Firoz Patel, 43, and Ferhan Patel, 37, who live in the area of Montreal, Québec, are charged with one count of conspiracy to operate an unlicensed money transmitting business and to violate anti-money laundering program requirements, one count of a money laundering conspiracy and one count of operating an unlicensed money transmitting business in the District of Columbia. If convicted, each of the brothers faces a maximum sentence of more than 25 years.
MH Pillars, Ltd., doing business as Payza, is charged with operating an unlicensed money transmitting business.
Ferhan Patel was arrested on March 18, 2018, in Detroit. He made his first appearance on March 19, 2018 in the U.S. District Court for the Eastern District of Michigan. He remains held pending further proceedings in the District of Columbia. His brother remains at large.
“The arrest and indictments in this case demonstrate that we will vigorously enforce laws meant to protect the American consumer,” said U.S. Attorney Liu. “Money transmitting businesses are required to be registered federally and licensed in most states and jurisdictions, including the District of Columbia. Consumers should beware of those that do not follow these laws because they could be acting as a cover for other illegal activity.”
“I am proud of the skilled and professional teams of investigators and attorneys involved in today’s indictment and commend their efforts,” said Special Agent in Charge Lechleitner, special agent in charge of HSI Washington. “Through this type of routine interagency cooperation we ensure our safe, reliable and just society.”
The indictment alleges that the criminal activity took place from in or about March 2012 until the present. The defendants, through Payza.com, are accused of operating a money transmitting business that operated without the necessary state licenses and knowingly transmitting funds that were derived from illegal activity. Despite receiving cease and desist letters from various states, and being told by a consultant that operating a money transmission business without the necessary licenses was a crime, Firoz and Ferhan Patel continued their illegal activity, the indictment alleges.
The indictment alleges that the Patels, together with other co-conspirators, are responsible for transmitting over $250 million throughout the United States and elsewhere. The investigation is continuing.
According to the indictment, Payza’s customers included Ponzi schemes and pyramid schemes. The Patels opened bank accounts in the United States and laundered their illegal proceeds through those accounts.
The indictment also seeks forfeiture of any property involved in these offenses or traceable to these offenses. In addition, the indictment seeks the specific forfeiture of approximately $10 million that has already been seized and frozen.
Further information is available to the public at https://www.justice.gov/usao-dc/victim-witness-assistance/obopay-payza.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, Washington Field office. It is being prosecuted and investigated by Assistant U.S. Attorney Zia Faruqui and Arvind Lal and former Assistant U.S. Attorneys Kate Connelly John Marston, with assistance from Paralegal Specialists C. Rosalind Pressley and Toni Donato; Victim/Witness Advocate Yvonne Bryant; Document Management Analyst Basizette Stribling; Legal Assistant Jessica McCormick; and Thomas Royal and Joshua Ellen from the Litigation Support Section.
Pair of Culpeper Heroin Traffickers Sentenced in Federal CourtRead the Press Release
Charlottesville, VIRGINIA – A pair of defendants who were part of a larger conspiracy to distribute heroin in and around Culpeper were sentenced yesterday in federal court in Charlottesville, United States Attorney Rick A. Mountcastle announced.
April Christine Sherman, 35, of Tidewater, Va., and David Lee Boyce, 38, of Culpeper, Va., were each sentenced to serve 84 months in prison, followed by four years of supervised release. Both pleaded guilty on December 18, 2017, to one count of conspiracy to distribute and to possess with the intent to distribute at least 100 grams of heroin and one count of possession of a firearm in furtherance of a drug trafficking crime. In all, six members of the conspiracy have been prosecuted as a result of an undercover investigation of heroin trafficking in the Culpeper area.
United States Attorney Mountcastle commended the Drug Enforcement Administration, the County of Culpeper Sheriff’s Office and the Virginia State Police Blue Ridge Narcotics and Gang Task Force for the investigation, and Culpeper County Commonwealth’s Attorney Paul Walther for his assistance. Assistant United States Attorney Ronald M. Huber and Special Assistant United States Attorney Rachel Swartz are prosecuting the case for the United States.
Ohio Man Arrested, Charged with Assaulting A CPB OfficerRead 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 Michael White II, 18, of Canton, OH, was arrested and charged by criminal complaint with a misdemeanor count of assaulting a federal officer. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on the morning of March 15, 2018, a charter bus arrived at the Peace Bridge Port of Entry. The defendant was one of the occupants on board the bus attempting to make entry into the United States from Canada. During a routine inspection, Customs and Border Protection officers asked the occupants to exit the bus and make their way into the Customs office for inspection or admission into the United States.
After White exited the bus, he walked directly into a CBP officer who had given a lawful command to the defendant to stop. White ignored the command and attempted to walk past the officer. At that point, the officer raised his arm to his side in order to stop the defendant from walking past him. White then pushed the officer’s arm out of the way. The officer attempted to restrain the defendant by grabbing his sweatshirt and pushing White up against the door. The defendant then swung his right arm in an attempt forcibly to strike the officer, his fist, however, missed the officer and White was restrained.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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.
Odebolt Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced March 20, 2018, to five years in federal prison.
Dennis Yorgensen, 59, from Odebolt, Iowa, received the prison term after an October 31, 2017, guilty plea to conspiracy to distribute methamphetamine. Yorgensen was twice previously convicted of felony drug trafficking.
At the guilty plea, Yorgensen admitted his involvement in a conspiracy that distributed more than 350 grams of mixed methamphetamine from 2012 through March 2015 in the Sac, Ida and Crawford County, Iowa areas. Yorgensen purchased methamphetamine in various quantities, including ounce to multiple ounce quantities from various sources and would then break down the methamphetamine into smaller quantities to distribute to other persons.
Yorgensen was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Yorgensen was sentenced to 60 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Yorgensen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Sac County Sheriff’s Office, and the Iowa DCI Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4043.
Follow us on Twitter @USAO_NDIA.
North Carolina Man Convicted of Attempting and Conspiring to Provide Material Support to ISISRead the Press Release
Erick Jamal Hendricks, 37, of Charlotte, North Carolina, was convicted today by a jury in Akron, Ohio, of attempting and conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
The guilty verdict was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office following a two-week trial before U.S. District Judge John Adams.
“Hendricks used social media to recruit others to plan and carry out attacks on our homeland in the name of ISIS, with the goal of creating a sleeper cell on our soil,” said Assistant Attorney General Demers. “Thanks to the collaborative efforts of law enforcement, Hendricks’ plan was thwarted, and with today’s verdict he is being held accountable for his terrorist activities.”
“This defendant recruited and directed people here in the United States to launch attacks against our citizens, and attempted to recruit others to engage in similar attacks,” said U.S. Attorney Herdman. “Protecting our citizens from terrorist attacks remains our priority and our community will be safer with this defendant behind bars.”
“Erick Jamal Hendricks represents the significant online ISIS threat that we face daily – a US citizen that becomes radicalized online and attempts to recruit and train individuals to commit jihad, all while on American soil,” said Special Agent in Charge Anthony. “The FBI urges the public to report information regarding individuals pledging their allegiance to ISIS or other identified terrorist groups. The FBI is pleased that Hendricks was stopped before he was successful and now will spend a significant amount of time behind bars.”
According to court documents and trial testimony, Hendricks tried to recruit people to train together and conduct terrorist attacks in the United States on behalf of ISIS.
Amir Al-Ghazi was arrested in the Northern District of Ohio in June 2015 after attempting to purchase an AK-47 assault rifle and ammunition from an undercover law enforcement officer. Al-Ghazi had pledged allegiance to ISIS in social media and made statements expressing interest in conducting attacks in the U.S.
Hendricks had contacted Al-Ghazi over social media to recruit him in the spring of 2015. Hendricks allegedly told Al-Ghazi that he “needed people” and wanted to meet in person; that there were several “brothers” located in Texas and Mexico; that he was attempting to “get brothers to meet face to face;” and that he wanted “to get brothers to train together,” according to court documents and trial testimony
Al-Ghazi said Hendricks tested his religious knowledge and commitment, inquiring about his willingness to commit “jihad,” to die as a “martyr” and his desire to enter “jannah” (paradise). Al-Ghazi understood these statements to mean that Hendricks was recruiting people to train together for the purpose of conducting a terrorist attack in the U.S. and to see if Al-Ghazi was suitable for recruitment, according to the allegations. Al-Ghazi believed that Hendricks and the “brothers in Texas and Mexico” may have been responsible for a thwarted terrorist attack in Garland, Texas, on May 3, 2015, and therefore he decided to stay away from social media for a period following the attack to minimize detection by law enforcement.
Hendricks also communicated over social media with several other people, including an undercover FBI employee (UCE-1). Hendricks on April 16, 2015 instructed UCE-1 to download the document “GPS for the Ghuraba in the U.S.”, which included a section entitled “Final Advice” which advocated that “brothers and sisters” should not allow themselves to go to jail. This section also allegedly encouraged Muslims to die as a “Shaheed” (martyr), to “Boobie trap your homes,” to “lay in wait for them” and to “never leave your home without your AK-47 or M16.” Hendricks also directed UCE-1 to communicate online with other people and stated “It’s hard to sift through brothers;” “Allah chooses only the few;” and “Everyday I do this day in and day out,” according to court documents and trial testimony.
Hendricks told another person that his goal was to create a sleeper cell to be trained and housed at a secure compound that would conduct attacks in the U.S. He mentioned that potential targets included military members whose information had been released by ISIS and the woman who organized the “Draw Prophet Mohammad contest,” and he claimed to have 10 members signed up for his group, according court documents and trial testimony.
On April 23, 2015, Hendricks used social media to contact Elton Simpson, who, along with Nadir Hamid Soofi, was inspired by ISIS and launched the attack on the “First Annual Muhammad Art Exhibit and Contest” in Garland. Simpson and Soofi opened fire, wounding a security guard, before Garland police returned fire and killed both Simpson and Soofi. Hendricks also connected UCE-1 with Simpson via social media, communicated with UCE-1 about the contest in Garland, and directed UCE-1 to go to the contest. Hendricks said: “If you see that pig (meaning the organizer of the contest) make your ‘voice’ heard against her.” He also asked UCE-1 a series of questions related to security at the event, including: “How big is the gathering?” “How many ppl?” “How many police/agents?” “Do you see feds there?’ “Do you see snipers?” and “How many media?” Shortly thereafter, Simpson and Soofi committed the attack on the cartoon drawing contest.
Al-Ghazi previously pleaded guilty to attempting to provide material support to a designated terrorist organization and being a felon in possession of firearms. He is awaiting sentencing.
Hendricks’ sentencing has yet to be scheduled.
This case was investigated by the FBI’s offices in Cleveland; Columbia, South Carolina; Baltimore; and Charlotte, with assistance from the U.S. Attorney’s Offices in the District of Maryland, District of South Carolina and the Western District of North Carolina.
This case was prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Mark S. Bennett and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Mountain City Police Lieutenant Sentenced to Serve 37 Months in Federal Prison for Drug and Firearm OffensesRead the Press Release
GREENEVILLE, Tenn. – On March 19, 2018, Ronald Glen Shupe, 44, of Butler, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 37 months in federal prison for possession with the intent to distribute oxycodone, a Schedule II controlled substance, and the use of a firearm during and relation to a drug trafficking offense. Shupe was a lieutenant with the Mountain City Police Department at the time of his offenses. Upon his release from prison, U.S Probation will supervise him for three years.
According to information on file with the U.S. District Court, in 2016 and 2017, while serving as the third-ranking member of the Mountain City Police Department, Shupe bought and sold oxycodone pills, supplied pills to another Mountain City Police Officer, and used controlled substances, including methamphetamine and pain pills. In one incident, a confidential witness reported that in 2017 she gave Mr. Shupe an intravenous injection of methamphetamine while he was in his patrol car and on duty. In November 2017, Mr. Shupe purchased oxycodone pills for distribution from another individual working on behalf of law enforcement. During the transaction, Shupe was in full uniform, driving a Mountain City Police car, and armed with a department-issued Glock pistol and ammunition.
“Law enforcement officers are sworn to protect the public and uphold the law. The U.S Attorney’s office will prosecute vigorously those that choose to violate that trust by committing crimes, especially while on duty and in uniform,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
Renae McDermott, FBI Special Agent in Charge, Knoxville Division commented, “Citizens have the right to expect that law enforcement officers act legally and in accordance with the law. The FBI is committed to ensuring that all violations of the law are aggressively investigated.”
Agencies involved in this investigation included the Tennessee Bureau of Investigation, Federal Bureau of Investigation, First Judicial District Attorney’s Office, and Johnson County Sheriff’s Department. Assistant U.S. Attorney David Gunn represented the United States in court proceedings.
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Monmouth Beach, New Jersey, Man Admits Robbing Investors BankRead the Press Release
TRENTON, N.J. – A Monmouth Beach, New Jersey, man today admitted robbing an Investors Bank branch in Navesink, New Jersey, U.S. Attorney Craig Carpenito announced.
Martin Racioppi, 52, pleaded guilty before U.S. District Court Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court:
On July 20, 2017, Racioppi entered an Investors Bank in Navesink and approached a bank teller. He told the teller, “Give me all of your money.” When the teller said, “Excuse me?” Racioppi again demanded all the teller’s money and told the teller to “make it quick.” The bank teller handed Racioppi cash, and Racioppi left the bank. The FBI arrested Racioppi in Middletown one day later.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a fine of either $250,000 or twice gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for July 10, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Enterprise Task Force (which includes representatives from Bradley Beach Police Department, Brick Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, and Toms River Police Department), under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Middletown Township Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Monmouth Beach Police Department, under the direction of Chief Thomas C. Walsh; the Atlantic Highlands Police Department, under the direction of Chief Jerry Vasto; and the Eatontown Police Department, under the direction of Chief Michael D. Goldfarb with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis, Attorney-in-Charge of the U.S. Attorney’s Office Trenton Branch.
Mississippi County Sheriff Indicted on Charges of Identity TheftRead the Press Release
Cape Girardeau, MO – Cory Hutcheson, 34, of East Prairie, MO, appeared today in United States District Court in Cape Girardeau, Missouri, following his indictment on eleven felony counts of Identity Theft in violation of Title 18, United States Code, Section 1028(a)(7). The indictment charges Hutcheson with illegally possessing and transferring the means of identification of others, in this case mobile telephone numbers, without lawful authority, and in connection with the commission of the state felony crime of Forgery.
Mr. Hutcheson has pleaded not guilty to all of the charges and was released on bond. If convicted, Mr. Hutcheson faces a maximum punishment of five years’ imprisonment on each count, and a maximum fine of up to $250,000.
United States Attorney Jeff Jensen stated, “This office will prosecute people who violate federal law regardless of their positions.”
This case is being investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol. Assistant United States Attorney Keith Sorrell is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Mexican Man Sentenced to Prison for Importing Counterfeit DrugsRead the Press Release
Charleston, South Carolina---- United States Attorney Beth Drake stated today that Arturo Rafael Salazar Cruz, age 38, of Matamoros, Mexico, was sentenced in United States District Court in Charleston for conspiracy to traffic in counterfeit goods, in violation of 18 U.S.C. §§ 371 & 2320. United States District Judge P. Michael Duffy, of Charleston, sentenced Cruz to the maximum of 60 months imprisonment and 3 years supervised release.
Evidence presented in this case established that from 2011 through 2017, Cruz conspired with others in foreign countries to import counterfeit pharmaceuticals from China and India into the United States. Cruz had a Non-Immigrant Visa, and he misused his Visa to transport the counterfeit pharmaceuticals from Mexico to Texas where he shipped the drugs through the United States Postal Service. Cruz and others sold these counterfeit pharmaceuticals to persons without prescriptions in the United States. Some of the counterfeit pharmaceuticals were highly addictive controlled substances, including Xanax and OxyContin. During the investigation, agents executed a search warrant at Cruz’s office in Texas and seized 360,000 pills. The retail value of these seized pharmaceuticals exceeded $8 million.
The case was investigated by agents from the Department of Homeland Security. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.
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Medical Doctor Pleads Guilty to Unlawful Distribution of OxycodoneRead the Press Release
SAN FRANCISCO –Christopher Owens pleaded guilty in federal court in San Francisco today to unlawfully prescribing oxycodone hydrochloride without a medical purpose, announced Acting United States Attorney Alex G. Tse and U.S. Drug Enforcement Administration (DEA) Acting Special Agent in Charge Jerry Miller. The plea was accepted by the Honorable William Alsup, U.S. District Judge.
According to his open plea application, Owens, 50, of Indianapolis, Ind., was a medical doctor when he prescribed oxycodone hydrochloride, a Schedule II controlled substance, to an individual. Owens acknowledged he prescribed the drugs without a legitimate medical need and outside of the course of medical practice. On July 11, 2017, a federal grand jury indicted Owens charging him with 36 counts of distributing oxycodone without a medical need, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). Owens pleaded guilty to Count 36 of the indictment in open court today, but the court may consider evidence relating to Counts 1 through 35 at sentencing.
Judge Alsup scheduled Owens’s sentencing hearing for July 17, 2018, at 2:00 pm. The maximum statutory penalty for the violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C) is 20 years’ imprisonment and a fine of $1,000,000 plus restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sheila A.G. Armbrust is prosecuting the case with the assistance of Linda Love. The prosecution is the result of an investigation by the DEA with assistance from the University of California San Francisco Police Department.
Medford Man Sentenced to 12 Years in Prison for Armed Robbery and Illegal Firearm PossessionRead the Press Release
MEDFORD, Ore. – Justin Douglas Jones, 42, of Medford was sentenced today to 155 months in federal prison and five years of supervised release for armed robbery and being a felon in possession of a firearm.
According to court documents, on June 30, 2015, Jones walked into a Purple Parrot restaurant in Medford with a gun and told an employee, "don’t move, do what I say or I will shoot." Jones took the employee at gunpoint to a back room and stole $500 in cash. The robbery was captured on video by the restaurant’s surveillance system. The Medford Police Department identified Jones from the video and later arrested him at a campground. Officers recovered a Ruger .22 caliber semi-automatic pistol in Jones’ backpack.
Jones has prior felony convictions for robbery, burglary, illegal possession of a firearm and unauthorized use of a vehicle. He previously pleaded guilty before U.S. District Court Judge Michael J. McShane to one count each of being a felon in possession of a firearm, interfering with commerce by robbery, and using, carrying and brandishing a firearm during and in relation to a crime of violence on November 6, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Medford Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
Jones holds a victim's arm while conducting an armed robbery at the Purple Parrot in Medford. Jones collects money during armed robbery at the Purple Parrot in Medford.Maryland man indicted on charges involving transporting a minor across state lines for sexRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kenneth Earle Ewing, of Hagerstown, Maryland, was indicted today by a federal grand jury on charges involving transporting a 12-year-old across state lines for sex, United States Attorney Bill Powell announced.
Ewing, age 37, was indicted on one count of “Travel with Intent to Engage in Illicit Sexual Conduct,” one count of “Transportation of a Minor with Intent to Engage in Criminal Sexual Activity,” and one count of "Kidnapping." Ewing is accused of transporting a 12-year-old girl from Ranson, West Virginia, to Hagerstown, Maryland, to engage in sexual conduct.
Ewing faces up to 10 years incarceration and a fine of up to $250,000 for the first count, and faces up to 30 years and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Martinsburg man indicted on illegal ammunition chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Owen Jones, of Martinsburg, West Virginia, was indicted today by a federal grand jury on an illegal possession of ammunition charge, United States Attorney Bill Powell announced.
Jones, age 46, was indicted on one count of “Unlawful Possession of Ammunition.” Jones, who was previously convicted of a felony in the Circuit Court of Berkeley County, is accused of possessing more than 1,100 rounds of ammunition in February of 2018 in Berkeley County.
Jones faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Sentenced to Prison for Lying about Murder to FBIRead the Press Release
NEWPORT NEWS, Va. – A James City County man was sentenced today to five years in prison for lying to federal agent about a 2017 murder.
According to court documents, in October 2017, Malik Corey Brown, 29, invited gang members to the Burnt Orange Ordinary neighborhood in James City County. When the gang members arrived at Burnt Orange Ordinary, an altercation occurred with two rival individuals who were present. During the altercation, one of the rival individuals was shot and killed and the other was wounded. When investigators arrived and questioned Brown about having contact with one of the gang members at the shooting, Brown lied to the agent and denied any such contact.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-114.
Man Collected Thousands of Images of Child Sexual AbuseRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to receipt of images of minors engaging in sexually explicit conduct.
According to court documents, undercover law enforcement officers found Michael Amit, 30, sharing images of child abuse using peer-to-peer file-sharing technology. During the execution of a search warrant at Amit’s residence in Chesapeake, law enforcement found and seized numerous items of electronic media. A forensic analysis found that Amit had collected thousands of images and videos depicting minors being sexually abused. At that time, Amit was employed by Old Dominion University in Information Technology Services.
Amit pleaded guilty to receipt of child pornography and faces a mandatory minimum of five years in prison and maximum penalty of 20 years in prison when sentenced on June 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after Senior U.S. District Judge Henry Coke Morgan, Jr. accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-25.
Lebanon, Virginia Psychiatrist Indicted on Federal Drug Trafficking, Healthcare Fraud ChargesRead the Press Release
Abingdon, VIRGINIA – A psychiatrist, whose practice is based in Lebanon, Virginia, faces 25 federal drug trafficking and healthcare fraud charges following the return of an indictment by a federal grand jury in Abingdon. United States Attorney Rick A. Mountcastle, Virginia Attorney General Mark Herring and HHS-OIG Special Agent in Charge Maureen Dixon made the announcement.
Alfredo Cervantes, 61, of Abingdon, Va., is charged in an indictment returned last week following his arrest on 23 counts of unlawfully distributing a Schedule IV controlled substance, one count of healthcare fraud and one count of wire fraud.
The Indictment alleges that Cervantes, a psychiatrist who provides treatment on an outpatient basis, engaged in sexual relations with one of his patients while prescribing her with Schedule IV controlled substances without legitimate medical purpose. The substances included Alprazolam (commonly referred to by the brand name Xanax), Clonazepam (brand name Klonopin), and Zolipidem Tartrate (brand name Ambien). The Indictment further alleges that Cervantes caused health insurance providers, including Virginia Medicaid, to pay for unnecessary psychotherapy treatments and prescription drugs.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, the U.S. Health and Human Services - Office of Inspector General, the Lebanon Police Department, and the Virginia Department of Health Professions - Enforcement Division. Janine Myatt, Assistant Attorney General and Special Assistant United States Attorney is prosecuting the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Lawrence Man Pleads Guilty to Oxycodone Trafficking ChargesRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that John Jacome, 35, of Lawrence, Massachusetts, pleaded guilty to oxycodone trafficking charges.
Court documents and statements in court showed that on four separate occasions from January to May of 2017, Jacome sold quantities of oxycodone pills to undercover agents of the Drug Enforcement Administration (DEA) at a location in Kingston. On June 19, 2017, Jacome was arrested by the New Hampshire State Police during a traffic stop after Jacome was found to be in possession of 500 oxycodone pills. In total, Jacome distributed or possessed with the intent to distribute approximately 1,513 oxycodone pills.
Jacome pleaded guilty to four counts of distributing oxycodone and one count of possession of oxycodone with the intent to distribute. He is scheduled to be sentence on June 27, 2018.
“The aggressive investigation and prosecution of individuals engaged in opiate pill trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state and federal level,” said U.S. Attorney Murray. “The United States Attorney’s Office will continue to work tirelessly with our law enforcement partners to prosecute those who are responsible for distributing these dangerous drugs in our state.”
This investigation was conducted by the DEA with the assistance of the New Hampshire State Police. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Las Cruces Woman Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joclyn Telles, 35, of Las Cruces, N.M., was sentenced today in federal court to 60 months in prison followed by four years of supervised release for her methamphetamine trafficking conviction.
Telles and co-defendant Joshua Nestle, 26, also of Las Cruces, were arrested in Feb. 2017, and were charged by criminal complaint with conspiracy and possession of a controlled substance with intent to distribute. The complaint also charged Nestle with being a felon in possession of a firearm and with using and carrying a firearm in relation to a drug trafficking crime. According to the criminal complaint, the defendants committed the crimes on June 29, 2016, in Dona Ana County, N.M. Law enforcement officers arrested Nestle and Telles on outstanding arrest warrants following a traffic stop. During a search incident to the defendants’ arrests, the officers found approximately 2.6 ounces of methamphetamine and a firearm in the defendants’ vehicle.
Telles was indicted on June 21, 2017, and charged with conspiracy and possession of methamphetamine with intent to distribute. She entered a guilty plea to the indictment on July 18, 2017, without the benefit of a plea agreement.
On June 7, 2017, Nestle pled guilty to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute, and admitted conspiring on June 29, 2016, with others to violate the federal drug trafficking laws. He also admitted possessing the 2.6 ounces of methamphetamine found in his vehicle and acknowledged that he intended to distribute the drugs to others. Nestle also admitted that on March 9, 2017, he possessed a controlled substance while incarcerated at the Dona Ana County Detention Center. Nestle was sentenced on Feb. 6, 2018, to 140 months in prison followed by four years of supervised release.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Las Cruces Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Gustavo Flores, 26, of Las Cruces, N.M., was sentenced yesterday in federal court to 120 months in prison followed by five years of supervised release for his conviction on a methamphetamine trafficking charge.
The FBI arrested Flores on July 10, 2017, on a criminal complaint charging him with committing drug trafficking and firearms offenses in Dona Ana County, N.M., on Jan. 28, 2017. According to the complaint, Las Cruces Police Department (LCPD) officers arrested Flores after finding approximately five pounds of methamphetamine and a firearm in his vehicle while responding to a call regarding a suspicious vehicle driving around a neighborhood in Las Cruces.
On Sept. 26, 2017, Flores pled guilty to a felony information charging him with possession of more than 500 grams of methamphetamine with intent to distribute. In entering the guilty plea, Flores admitted that on Jan. 28, 2017, LCPD officers found approximately 2.28 kilograms (5 pounds) of methamphetamine, a firearm and ammunition in his vehicle. Flores further admitted that he intended to deliver the methamphetamine to others in exchange for money.
This case was investigated by the Las Cruces office of the DEA and the LCPD. Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Justice Department Reaches Settlement with Learning Care Group Inc. to Resolve ADA ViolationsRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with Learning Care Group (LCG), the second largest for-profit child care provider in North America, headquartered in Novi, Michigan. LCG owns and operates over 900 child care centers nation-wide operating under seven brand names including, but not limited to: La Petite Academy, Childtime Learning Centers, Tutor Time Child Care/Learning Centers, The Children’s Courtyard, Montessori Unlimited, Everbrook Academy, and Creative Kids Learning Center. The matter was handled by the Justice Department’s Civil Rights Division and the United States Attorney’s Office for the Eastern District of Michigan.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) that LCG was discriminating against children with insulin dependent diabetes, on the basis of disability, by failing to make certain reasonable modifications for those children. Under the agreement, LCG agreed to pay $10,000 in compensatory damages to each of the eight aggrieved individuals and families identified.
LCG also agreed to evaluate each request for reasonable modification on an individualized basis, using objective evidence and current medical standards, and where appropriate, will train child care staff members to assist with routine diabetes care tasks, including the administration of insulin by pen, syringe, or pump.
“The ADA guarantees all children, including those with insulin dependent diabetes, equal access to child care centers,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We applaud LCG for taking steps to enable parents of children with diabetes to enjoy the benefits of child care while knowing staff will be trained to ensure that their child is well cared for.”
“Given the critical role that dependable child care plays in a parent’s ability to work or go to school, we are proud that this settlement will ease the struggle to find quality child care for families of children with disabilities,” said United States Attorney Matthew Schneider. “The United States Attorney’s Office will continue to work to ensure the equal rights of individuals with disabilities in our community.”
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), and access the ADA website at http://www.ada.gov, or contact the U.S. Attorney’s civil rights hotline at 313-226-9151.
Judge Sentences Twice-Deported Illegal Alien to Eight Months IncarcerationRead the Press Release
PITTSBURGH - An illegal alien found in Western Pennsylvania has been sentenced in federal court to eight months incarceration on his conviction of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Pedro Omar Martinez-Alba, age 30, of Mexico.
According to the information presented to the court, Pedro Omar Martinez-Alba, an illegal alien, was formally removed from the United States by U.S. Immigration and Customs Enforcement on January 23, 2014 and November 24, 2015. Pedro Omar Martinez-Alba was found to be illegally present in Westmoreland County on April 12, 2017.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
The United States Attorney commended the U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) for the investigation that lead to the successful prosecution of Pedro Omar Martinez-Alba.
Jackson Man Sentenced to 9 Years in Prison for Importation of Chemicals to Manufacture SpiceRead the Press Release
Jackson, Miss. – Lester Singleton, 35, of Jackson, was sentenced today by U.S. District Chief Judge Daniel P. Jordan III, to 108 months in prison, followed by three years of supervised release, for his role in importing the controlled substance 5-Fluoro-PB-22, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On April 19, 2015, agents with the Mississippi Bureau of Narcotics went to a residence in Jackson after a package was intercepted inbound from China. Agents arrived at the apartment and encountered Singleton and his wife, Latoya Emmons. The agents discovered a white powdery substance on the surfaces of the apartment and that the apartment was being used as a clandestine laboratory to manufacture spice. Agents recovered substances to manufacture spice, including, 5-Fluoro-PB-22, acetone, numerous other liquids, packets for distribution, sprayers, fans and several firearms.
Singleton and Emmons were charged in a multi-count federal indictment on December 7, 2016. Singleton pled guilty on October 19, 2017, to importation of a controlled substance. Emmons pled guilty on December 12, 2017, to possession with intent to distribute 5-Fluoro-PB-22. Emmons was sentenced on March 12, 2018, to 100 months in federal prison followed by three years of supervised release.
This case was a joint investigation by U.S. Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Mississippi State Crime Laboratory, the Jackson Police Department, the Hinds County Sheriff’s Department, the Jackson Fire Department and American Medical Response. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Iranian Citizen Sentenced for Conspiring to Facilitate the Illegal Export of Technology to IranRead the Press Release
Alireza Jalali, 39, of Iran, was sentenced to 15 months in prison for his participation in a conspiracy to defraud the United States. Jalali pleaded guilty on Nov. 29, 2017,
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Gregory G. Brooker for the District of Minnesota, Acting Special Agent in Charge Robert C. Bone II of the FBI’s Minneapolis Division, Special Agent in Charge Dan Clutch of the Department of Commerce-Office of Export Enforcement (OEE) and Special Agent in Charge Tracy Cormier of Homeland Security Investigations (HSI) St. Paul Field Office made the announcement. Jalali was sentenced today before U.S. District Judge Joan N. Ericksen.
“Jalali and his co-conspirators illegally sent sensitive military-use technology to Iran, where it could fall into the hands of Iran’s Islamic Revolutionary Guard Corps, in clear violation of U.S. law,” said Assistant Attorney General Demers. “This is a threat to the national security of the United States and our allies, and we will aggressively prosecute those who brazenly violate our export control laws.”
“This multi-year investigation highlights the importance of preventing U.S.-origin technology from being transferred to unauthorized end users. Fana Moj has designed components for the Iranian military's missile systems,” said Acting Special Agent in Charge Bone. “We must prevent U.S. technology from falling into the wrong hands, where it could be used against our military members.”
“A top priority of OEE is identifying and disrupting the illicit export of controlled technology to Iran,” said Special Agent in Charge Clutch. “OEE will continue to collaborate with its law enforcement partners to combat these criminal schemes that threaten U.S. national security.”
“U.S. export controls are in place to keep sensitive technology from falling into the hands of our nation's enemies,” said Special Agent in Charge Cormier. “One of HSI's highest priorities is to prevent illicit procurement networks, terrorist groups, and hostile nations from illegally obtaining military items and controlled dual-use technology.”
According to the defendant’s guilty plea, from 2009 through December 2015, Jalali was a part-time employee of Green Wave Telecommunication, Sdn Bhn, (Green Wave) a Malaysian company located in Kuala Lumpur, Malaysia. Since its incorporation in 2009, Green Wave operated as a front company for Fanavar Moj Khavar (Fana Moj), an Iran-based company that specializes in both broadcast communications and microwave communications.
As part of the conspiracy, Green Wave was used to acquire unlawfully sensitive export-controlled technology from the United States on behalf of Fana Moj. In order to accomplish these acquisitions, Jalali and his co-conspirators concealed the ultimate unlawful destination and end users of the exported technology through false statements, unlawful financial transactions, and other means.
As part of the conspiracy, the defendant’s co-conspirators would contact producers and distributors of the sought-after technology, solicit purchase agreements, and negotiate the purchase and delivery of the goods with the seller. When the goods were received by Green Wave in Malaysia, Jalali repackaged and unlawfully exported the items from Malaysia to Fana Moj in Tehran, Iran. In 2017, Fana Moj was designated by the United States Department of the Treasury as a Specially Designated National for providing financial, material, technological or other support for, or goods or services in support of, the IRGC.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce-OEE and HSI.
This case is being prosecuted by Assistant U.S. Attorney Charles J. Kovats of the District of Minnesota and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, with assistance provided by Assistant U.S. Attorney Douglas M. Pravda for the Eastern District of New York.
Iranian Citizen Sentenced for Conspiring to Facilitate the Illegal Export of Technology to IranRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of ALIREZA JALALI, 39, to 15 months in prison for his participation in a conspiracy to defraud the United States. JALALI, who pleaded guilty on November 29, 2017, was sentenced today before United States District Judge Joan N. Ericksen in Minneapolis, Minn.
“Jalali and his co-conspirators illegally sent sensitive military-use technology to Iran, where it could fall into the hands of Iran’s Islamic Revolutionary Guard Corps, in clear violation of U.S. law,” said Assistant Attorney General Demers. “This is a threat to the national security of the United States and our allies, and we will aggressively prosecute those who brazenly violate our export control laws.”
Acting Special Agent in Charge Robert C. Bone II of the FBI Minneapolis Division stated, “This multi-year investigation highlights the importance of preventing U.S.-origin technology from being transferred to unauthorized end users. Fana Moj has designed components for the Iranian military's missile systems. We must prevent U.S. technology from falling into the wrong hands, where it could be used against our military members.”
Department of Commerce-Office of Export Enforcement (OEE) Special Agent in Charge Dan Clutch said: “A top priority of OEE is identifying and disrupting the illicit export of controlled technology to Iran. OEE will continue to collaborate with its law enforcement partners to combat these criminal schemes that threaten U.S. national security.”
“U.S. export controls are in place to keep sensitive technology from falling into the hands of our nation's enemies,” said Special Agent in Charge Tracy Cormier of HSI St. Paul. “One of HSI's highest priorities is to prevent illicit procurement networks, terrorist groups, and hostile nations from illegally obtaining military items and controlled dual-use technology.”
According to the defendant’s guilty plea, from 2009 through December 2015, JALALI was a part-time employee of Green Wave Telecommunication, Sdn Bhn, (“Green Wave”) a Malaysian company located in Kuala Lumpur, Malaysia. Since its incorporation in 2009, Green Wave operated as a front company for Fanavar Moj Khavar (“Fana Moj”), an Iran-based company that specializes in both broadcast communications and microwave communications.
As part of the conspiracy, Green Wave was used to acquire unlawfully sensitive export-controlled technology from the United States on behalf of Fana Moj. In order to accomplish these acquisitions, JALALI and his co-conspirators concealed the ultimate unlawful destination and end users of the exported technology through false statements, unlawful financial transactions, and other means.
As part of the conspiracy, the defendant’s co-conspirators would contact producers and distributors of the sought-after technology, solicit purchase agreements, and negotiate the purchase and delivery of the goods with the seller. When the goods were received by Green Wave in Malaysia, JALALI repackaged and unlawfully exported the items from Malaysia to Fana Moj in Tehran, Iran. In 2017, Fana Moj was designated by the United States Department of the Treasury as a Specially Designated National for providing financial, material, technological or other support for, or goods or services in support of, the IRGC.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorney Charles J. Kovats and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, with assistance provided by Assistant U.S. Attorney Douglas M. Pravda for the Eastern District of New York.
Defendant Information:
ALIREZA JALALI, 39
Citizen of Iran
Convicted:
- Conspiracy to defraud the United States, 1 count
Sentenced:- 15 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Indian Nationals Sentenced for Roles in Alien Harboring Scheme Involving Labor Exploitation at Nebraska MotelRead the Press Release
Vishnubhai Chaudhari, 50, and Leelabahen Chaudhari, 44, of Kimball, Nebraska, and Indian nationals unlawfully residing in the United States, were sentenced yesterday in federal court in Omaha after previously pleading guilty on Dec. 18, 2017, to alien harboring for financial gain and conspiracy to harbor an alien, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Joe Kelly for the District of Nebraska, and Special Agent in Charge Tracy Cormier of ICE Homeland Security Investigations (HSI).
U.S. District Court Judge Lauri Smith Camp sentenced both of the defendants to one year and one day in prison, followed by two years’ supervised release. The defendants also agreed to the entry of a stipulated judicial order of removal to India at the completion of their sentences and paid the victim $40,000 in restitution as a condition of their guilty pleas.
According to documents filed in court, the defendants admitted to conspiring to harbor the victim, who was an undocumented Indian national, at a Super 8 Motel in Kimball between October 2011 and February 2013. During that time, the defendants required the victim to work long hours, seven days a week at the motel, performing manual labor, including cleaning rooms, shoveling snow, and doing laundry. Although the defendants promised to pay the victim, they never did, but rather claimed to apply that amount to a debt the victim owed. The defendants further restricted the victim’s movement, isolated him, and verbally abused him. Defendant Vishnubhai Chaudhari also threatened to find the victim if he ever left the motel, and defendant Leelabahen Chaudhari regularly assaulted the victim, including on one occasion when she slapped his face several times because he had failed to clean a bathtub to her standards. The victim eventually escaped with the help of a motel guest and local law enforcement.
“Today’s sentence, and the restitution awarded to the victim, sends a clear message that the Justice Department will use its full resources to prosecute defendants like this one who motivated by their greed violate our immigration laws and exploit a vulnerable individual who lacked immigration status,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
“This case is a reminder that labor exploitation occurs in the United States, not just overseas, and federal law targets those who profit from human trafficking and related crimes,” said U.S. Attorney Joe Kelly for the District of Nebraska. “This case is a testament that such conduct will be vigorously investigated and prosecuted in the District of Nebraska.”
“Human trafficking is the modern world’s version of enslaving another person for profit. That is what these individuals have done to this victim,” said Special Agent in Charge Tracy Cormier of HSI St. Paul. “I’m proud of the work accomplished by HSI’s special agents, our partners at the U.S. Attorney’s Office for the District of Nebraska, and the Department of Justice, who made these guilty pleas possible.”
The case was investigated by the Department of Homeland Security’s Homeland Security Investigations, and was prosecuted by Trial Attorneys Olimpia Michel and Shan Patel of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Frederick D. Franklin of the District of Nebraska.
Houston Man and Woman Sentenced for Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas - A Houston man and woman have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Eric Ray Johnson, 37, pleaded guilty on Sep. 26, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 72 months in federal prison today by U.S. District Judge Thad Heartfield. Trashawna Day, 22, pleaded guilty on Sep. 27, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 63 months in federal prison today by Judge Heartfield.
According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Johnson and Davy were charged along with six others in a five-count indictment returned on Mar. 22, 2017.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.
Henderson County Man Guilty of Unlawfully Possessing RicinRead the Press Release
TYLER, Texas – A 19-year-old Athens, Texas, man has pleaded guilty to the unlawful possession of ricin in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and Assistant Attorney General for National Security John C. Demers today.
Abel Keith Fulton pleaded guilty today before U.S. Magistrate Judge John D. Love.
According to information presented in court, from August to September 2016, Fulton possessed ricin at his home in Athens, Texas. Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected. There is no known antidote or cure for ricin poisoning. Fulton made the ricin using supplies that he purchased online.
Under federal statutes, Fulton faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Frank Coan and Trial Attorney Jerome Teresinski of the Department of Justice National Security Division.
Grand Forks Man Sentenced to 16 Years in Federal Prison for Role in Drug ConspiracyRead the Press Release
FARGO – United States Attorney Christopher C. Myers announced that on March 20, 2018, Ryan Scott Franklin, age 39, was sentenced by Ralph R. Erickson, Circuit Judge for the Eighth Circuit Court of Appeals, Sitting by Designation, to serve 16 years imprisonment for conspiracy to distribute methamphetamine. As part of the sentence, Franklin was ordered to serve five years supervised release and to pay a special assessment of $100.00 to the Crime Victims Fund.
This case came to the attention of law enforcement after the shooting death of Austin Forsman at the Flying J Truck Stop in Grand Forks, ND, on March 11, 2016. The murder investigation resulted in the unravelling of a large methamphetamine trafficking conspiracy operating in the Red River Valley and twelve (12) other individuals were charged in Federal Court. According to trial testimony, Franklin was involved with Modesto Torrez and others with bringing pound quantities from the Twin Cities area to the Red River Valley for distribution.
This case was investigated by the Grand Forks Police Department, Grand Forks Narcotics Task Force, North Dakota Bureau of Criminal Investigation, and the U.S. Department of Homeland Security – Homeland Security Investigations.
This case was prosecuted by U.S. Attorney Christopher C. Myers, Assistant U.S. Attorney Jake Rodenbiker, and Special Assistant U.S. Attorney Jeremy Ensrud.
http://www.usdoj.gov/usao/nd/
Georgia Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnRead the Press Release
An Atlanta, Georgia, woman was sentenced today to 15 months in prison for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. Pak for the Northern District of Georgia.
According to documents and evidence presented in court, Gianna C. Liady co-owned K-1 Financial, a tax return preparation firm operating in Atlanta, Georgia. In November 2017, Liady pleaded guilty to a one-count Information charging her with assisting in the preparation and filing of a false federal income tax return. Liady prepared and filed false tax returns on behalf of K-1 Financial’s customers causing a tax loss to the United States of approximately $197,506.
In addition to the term of imprisonment, U.S. District Court Judge Eleanor L. Ross ordered Liady to serve one year of supervised release and to pay restitution in the amount of $197,506.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Pak thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Bernita Malloy and Trial Attorney Sean Beaty of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.Frisco Man in Custody on Federal Charges Stemming from a Murder-For-Hire PlotRead the Press Release
DALLAS — Eskandar Molavi, 69, of Frisco, Texas, is in federal custody following his arrest Friday, March 16, 2018 on federal charges stemming from a murder-for-hire plot to have his former business partner kidnapped and possibly killed. The announcement was made this afternoon by Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Molavi is charged with one count of solicitation of kidnapping and one count of attempted kidnapping. He made his initial appearance yesterday before U.S. Magistrate Renee Harris Toliver. A detention hearing was held today and Molavi was ordered detained pending trial.
According to the criminal complaint affidavit filed in the case, Molavi approached a man, whom Molavi believed to be a pilot for a Mexican Drug Trafficking Organization (DTO), about kidnapping his former business partner, later identified as H.M., and forcing him to sign over a gas station that Molavi lost to H.M. in civil court. Molavi told the man that if the business partner did not sign the business over, he wanted him flown to Mexico and murdered.
On March 6, 2018, according to the affidavit, the individual Molavi contacted had an unplanned meeting with Molavi in Frisco, Texas. At the meeting, Molavi again asserted that he wanted H.M. kidnapped and forced to sign over the gas station. The man told Molavi that a man known as “D.J.,” also known as “Iceman,” would be in town, and would be the individual that would carry out the kidnapping/extortion scheme. The individual referred to as D.J. or Iceman was, in fact, an FBI agent.
On March 13, 2018, the FBI agent met with Molavi in Dallas, Texas. During the course of the meeting, Molavi told the agent about his dispute with H.M.; inquired about what services the agent could provide and the cost of such services. Molavi ultimately agreed to pay the agent $20,000 to kidnap H.M. and force him to sign over the business. Molavi provided the agent with H.M.’s true name, home address, business address, and information related to the location of the school that H.M.’s daughter attended. Molavi also told the agent that if H.M. did not sign over the business, that the agent should kill H.M. The agent told Molavi that the price for murder was $50,000.
After the meeting, Molavi asked the individual he originally contacted if he would be able to get him a gun and a silencer in the event that the agent was unsuccessful in getting H.M. to sign over the business.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a U.S. magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the case to a federal grand jury for indictment. If convicted, however, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
The investigation was conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Former physician Richard Rydze sentenced to 10 years in prison for illegally distributing anabolic steroids, HGH, oxycodone and OxyContinRead the Press Release
Former physician Richard Rydze was sentenced to 10 years in prison for illegally distributing anabolic steroids, human growth hormone, oxycodone and OxyContin.
The sentencing was announced by U.S. Attorney Justin E. Herdman of the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony, who oversees the FBI’s Cleveland Office.
A jury last year convicted Rydze, 68, on all 180 charged counts, including conspiracy to distribute anabolic steroids, human growth hormone, oxycodone and OxyContin.
“Rydze violated his legal, professional and ethical obligations,” U.S. Attorney Herdman said. “He flooded Pennsylvania with dangerous painkillers and prescribed steroids to enrich himself.”
“Greed and power often drives criminal activity as evidenced by this indictment, where a physician decided to abuse his medical privileges in order to line his pockets,” Anthony said. “The FBI will continue to aggressively pursue doctors who illegally divert prescription medications.”
U.S. District Judge Joy Flowers Conti also sentenced Rydze to pay $32,390 in restitution and $18,300 in special assessments.
Various conduct detailed in the months-long trial spanned from 2005 through 2012.
Rydze was the sole owner of Optimal Health Center LLC (OHC), located at 425 First Avenue, Pittsburgh, which opened in 2007. Prior to OHC, Rydze was involved with other physicians in a joint medical practice known as Diagnostic Medical Associates.
James Hatzimbes and William Sadowksi previously pleaded guilty to their roles in the case. Hatzimbes owned and operated HSE Salon and Wellness Center, aka HSE Anti-Aging & Wellness Center (HSE), formerly located in a strip mall at 2851 Saw Mill Run, Pittsburgh. It was located in the same strip mall where Hatzimbes owned and operated Hatz’s Solar Eclipse Tanning. Sadowski operated a Pittsburgh pharamacy called ANEWrx, according to court documents.
Together, they facilitated the conspiracy to illegally distribute controlled substances and, in the case of Sadowski, knowingly facilitated a kickback scheme from which Rydze directly benefitted.
Rydze conspired with others to distribute anabolic steroids, including Stanozolol, Nandrolone Decanoate, Testosterone Enanthate, Testosterone Cypionate, Oxandrolone and testosterone. He unjustly enriched himself by causing the distribution of the steroids for unauthorized uses such as bodybuilding and athletic performance enhancement, according to trial testimony and court documents.
Rydze and Hatzimbes scheduled “steroid clinics” at HSE nearly every other Saturday. Frequently, Rydze would falsely diagnose clients as having hormone imbalance or other conditions, and then knowingly prescribe steroids and human growth hormone, according to court documents.
Rydze and Hatzimbes had a financial relationship in which Rydze charged clients $75 for each visit at HSE, which Rydze and Hatzimbes split equally. Additionally, Hatzimbes received prescriptions for anabolic steroids and human growth hormone from Rydze on numerous occasions, which were filled at ANEWrx, despite no corresponding office appointments, notations or diagnosis to justify the prescriptions, according to court documents and trial testimony.
In early 2007, Rydze met with Sadowski, the co-owner of ANEWrx, and they agreed Rydze would be paid a commission on every prescription for human growth hormone, anabolic steroids and other specific medications filled at ANEWrx. Sadowski then provided Rydze with a list of ANEWrx’s price for each prescription. They agreed to mark up the price for Rydze’s patients, with Sadowski then kicking back additional money to Rydze, according to court documents and trial testimony.
Commission reports prepared by ANEWrx show that between August 2007 and January 2011, Rydze received $301,407 in commission payments. For commissions paid on mark-ups for Rydze’s patients, ANEWrx wrote one check to Rydze for $6,845 and three to OHC for $25,395. Additionally, ANEWrx made 14 deposits into OHC’s account totaling $146,465, according to court documents and trial testimony.
Rydze was also convicted of multiple counts of distribution of anabolic steroids, conspiracy to distribute human growth hormone, distribution of human growth hormone, distribution of controlled substances, obstruction of justice.
Rydze conspired with others to distribute controlled substances, including Oxycodone, Oxymorphone, Oxycontin and Opana, according to court documents.
Beginning in 2007, Rydze prescribed the painkillers to Williams Zipf. Later that year, Zipf requested Rydze put the prescriptions in the names of other people, including Zipf’s relatives. At times, Zipf requested Rydze write two prescriptions for him at the same time and leave the date blank on one so Zipf could fill it in later. Zipf took the prescriptions to numerous different pharmacies in order to avoid detection, according to court documents and trial testimony.
Zipf has pleaded guilty to crimes for his role in the case.
From 2005 through 2011, Rydze obtained more than 21,000 pills of Hydrocodone-Acetaminophen, commonly referred to as “Vicodin ES,” by calling in more than 200 prescriptions to Pittsburgh-area pharmacies. He did so by fraudulently and without lawful authority using a DEA registration number that was issued to another physician, and did so without the consent or knowledge of that physician, according to court documents and trial testimony.
The jury also found Rydze corruptly attempted to obstruct justice by calling his brother and asking his brother to lie to federal law enforcement by declaring that some of the diverted opioid prescriptions found in Rydze’s control during the execution of a search warrant were written to the brother. In fact, according to trial testimony and other evidence, the prescription was illegally written to Rydze’s deceased father. His brother refused and testified during the trial of this matter.
This case was prosecuted by Assistant U.S. Attorneys Carol M. Skutnik and Brian McDonough following an investigation by the FBI.
Former QVC Director Pleads Guilty to Million-Dollar Fraud Scheme Involving Hollywood PR Agency and NYC Production CompanyRead the Press Release
PHILADELPHIA – James D. Falkowski, a/k/a “Jamie Falkowski,” 42, of Buffalo, New York, pleaded guilty on March 20, 2018 in federal court to criminal charges for which he was indicted including eleven counts of wire fraud, and one count of conspiracy, announced United States Attorney Louis D. Lappen.
Falkowski pleaded guilty to operating a multi-faceted fraud scheme while working as a director at QVC, Inc., an American cable, satellite and broadcast television network and multinational corporation specializing in televised and internet home shopping based in West Chester, Pennsylvania. Falkowski – a QVC Director from 2008 until his termination in 2013 – was responsible for enhancing QVC’s brand and reputation in the entertainment and fashion industries. Falkowski used his position at QVC to embezzle and fraudulently obtain from QVC over $1,000,000 worth of money, goods and services, all without QVC’s knowledge or approval, including hundreds of thousands of dollars of first-class travel, luxury hotel and resort stays, spa treatments, upscale restaurants, luxury clothing, luxury accessories, and personal medical treatments such as botox treatment. To hide his actions from QVC, Falkowski created fake invoices purporting to be from The Four Seasons Hotels, luxury car service companies, and other vendors in order to deceive QVC into paying for Falkowski’s fraud. Falkowski also enlisted the assistance of two QVC vendors to help him defraud QVC: those two vendors – including Los Angeles-based public relations agency “The Steinberg Group,” doing business as “dOMAIN,” and a New York City-based production management company – agreed to submit to QVC fraudulently altered invoices and bills to hide Falkowski’s embezzlement.
Falkowski also pleaded guilty to crimes involving fraudulently causing QVC to pay over $200,000 in private luxury chauffeur rides for himself and his associates, approximately $70,000 in payments to his personal creditors – including by causing QVC to pay more than $28,000 for a coffee table and credenza table for Falkowski’s Philadelphia apartment – as well as $59,500 in gift cards from American Express, Tom Ford, and Barney’s New York that Falkowski claimed were for distribution to talent, but which he used for himself.
Falkowski also pleaded guilty to participating in illegal kickback deals with two separate QVC vendors – both of whom Falkowksi had caused QVC to hire, and both of whose relationships with QVC Falkowski controlled. First, Falkowski caused QVC to hire The Steinberg Group, doing business as dOMAIN; Falkowski thereafter instructed The Steinberg Group’s leadership to become a QVC “vendor representative” and earn royalties from QVC. Falkowski then covertly assisted The Steinberg Group’s leadership in negotiating against QVC by providing The Steinberg Group with QVC’s confidential, proprietary contractual information, which enabled The Steinberg Group to illicitly negotiate for – and fraudulently obtain – a larger royalty percentage over a longer period of time from QVC. In return for his fraudulent assistance, The Steinberg Group secretly cut Falkowski into their deal, agreeing to pay Falkowski a kickback of fifty percent (50%) on all royalty payments received from QVC. Falkowski and The Steinberg Group’s leadership also secretly entered into a separate kickback deal relating to products sold by a QVC competitor – all while Falkowski was an executive at QVC. Ultimately, The Steinberg Group/dOMAIN and Falkowski brought in $312,488.32 pursuant to their fraudulent kickback deal. After Falkowski was terminated by QVC in December 2013, Falkowski sent an email to The Steinberg Group’s leadership, stating: “Let’s be clear . . . You have a better deal than any other rep because of me solely. [W]e do not have any contract between us of our deal JUST [The Steinberg Group’s/dOMAIN’s President’s] word that we split things 50/50 always. This was because of the complications while I was at QVC.” Separately, also entered into a fraudulent kickback arrangement with the New York City-based production management company, pursuant to which he instructed the company’s leadership to become a QVC vendor representative, and in turn was secretly cut into that deal as a one-third (33%) partner. Falkowski and the New York City-based production management company brought in $314,768.92 pursuant to their fraudulent kickback arrangement.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney James Petkun.
Sentencing was set for July 10, 2018, before U.S. District Judge Michael M. Baylson.
Former Marine Corps Staff Sergeant is Sentenced to 10 Years for the Receipt of Child PornographyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Terrance W. Boyle sentenced MATTHEW HARTLEY BENTON, 36, from Jacksonville to 120 months in prison, followed by 5 years of supervised release for the Receipt of Child Pornography (CP). BENTON pled guilty to the charge on January 4, 2018.
On March 20, 2017, agents with the Homeland Security Investigations (HSI) initiated a query of a Peer-to-Peer file share network to identify distributors of child pornography (CP). As a result of the queries, it was discovered a computer was possessing and distributing CP videos and pictures. Specifically, agents secured a video which depicted a prepubescent female, having forced sex with an adult male. The child seems to be in extreme pain. Time Warner Cable provided the subscriber information for the IP address as belonging to BENTON in Jacksonville.
On March 31, 2017, HSI agents executed a search warrant on BENTON'S residence as soon as he arrived home. BENTON agreed to speak with the agents and admitted to downloading CP at times. BENTON denied ever doing anything to his children and only downloading videos and pictures via peer-to-peer on his desktop computer after moving from California to Jacksonville in August 2016. BENTON stated agents would probably find 50 to 100 images of CP on his computer in hidden folders. BENTON was then questioned about the existence of videos from a hidden camera that appeared to have been placed in his home and were discovered during a search of the computer. BENTON admitted purchasing a mini camera and using it to watch his wife and other female visitors in the bathroom when they lived in California. Though he stated he did not reinstall the camera after moving to Jacksonville, as there was no good location to put it. BENTON advised there were times his children used that bathroom and were recorded, but he stated he immediately deleted those videos.
Based on the investigation, BENTON used file sharing software to receive and store 2,860 images and 63 videos of CP, for a total of 7,585 images of CP as well as 125 images of child erotica. At least a portion of his collection was then made available for further distribution. Many of the images depicted children less than 12 years of age engaged in prohibited sexual acts, and multiple images portrayed sadistic or masochistic conduct or other depictions of violence. Videos were also found on BENTON’s devices that he made using the hidden camera and saved, which included partially nude children using the bathroom in BENTON’s house.
The case was investigated by Homeland Security Investigations (HSI). The federal prosecution was handled by Assistant United States Attorney Daniel P. Bubar.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Florida Man Pleads Guilty to Conspiracy to Illegally Export Defense Articles to RussiaRead the Press Release
Vladimir Nevidomy, 31, of Hallandale Beach, Florida, pleaded guilty on March 19, to conspiring to illegally export military-grade night vision and thermal vision devices and ammunition primers to Russia.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement.
According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State. Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export.
On or about April 16, 2013, a co-defendant caused a wire transfer from a Shanghai, China bank account in the amount of $11,755 for the purchase and shipment of two ATN MARS 4x4 night-vision rifle scopes. That same day, Nevidomy paid $9,599 to a U.S. vendor for the purchase of those two night-vision rifle scopes. On or about May 2, 2013, Nevidomy also caused a wire transfer in the amount of $10,000 to be sent to a U.S. vendor for the purchase of the ODIN 61BW thermal multi-purpose monocular.
Later, Nevidomy’s co-defendant caused a wire transfer from a bank account in Riga, Latvia in the amount of $18,036, part of which was for the purchase of a third ATN Mars 4X4 night-vision rifle scope. On the same day, Nevidomy caused a wire transfer in the amount of $9,599 to a U.S. vendor, part of which was for the purchase of the third ATN Mars 4X4 night-vision rifle scope.
After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to the co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida. In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia.
On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia. On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok, Russia. These ammunition primers were seized by U.S. Customs and Border Protection.
These night vision rifle scopes, thermal monocular, and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List. A certified license history check revealed that neither Nevidomy nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers.
Sentencing is scheduled before U.S. District Judge Kathleen Williams, on May 25. Nevidomy, a Ukraine-born naturalized U.S. citizen, faces a maximum sentence of 5 years imprisonment.
In addition, on Feb. 5, in a separate federal case, Nevidomy pleaded guilty to passport fraud and conspiracy to commit passport fraud in the Southern District of Florida.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and HSI. This case is being prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Five Individuals Charged in Phony Debt Elimination SchemeRead the Press Release
NEWARK, N.J. - Five individuals were arrested this morning and charged with using phony money orders, cashier’s checks, receipts and other fabricated documents to fraudulently discharge mortgages, student loans, and other financial obligations, U.S. Attorney Craig Carpenito announced.
Melissa Reynolds, 42, of Elizabeth, New Jersey, is charged by complaint with three counts of conspiracy to commit bank and mail fraud, two counts of bank fraud, one count of mail fraud, one count of conspiracy to commit mail fraud, and one count of making false statements to the United States. Germaine King, 40, also of Elizabeth, is charged with one count of conspiracy to commit mail fraud, one count of mail fraud and one count of making false statements to the United States.
Henry Grady James IV, 43, of Hillside, New Jersey, and Arthur N. Martin III of West Orange, New Jersey, are both charged with one count of conspiracy to commit bank and mail fraud. Daniel K. Dxrams, 39, of Maplewood, New Jersey, is charged with one count of conspiracy to commit mail fraud. All five defendants are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint:Reynolds, King, James, Martin, Dxrams, and others used fraudulent money orders, cashier’s checks, and other fictitious documents to fraudulently discharge their debts or other obligations. In total, Reynolds and other conspirators caused and attempted to cause over $3 million in losses.
For example, in March 2013, Reynolds obtained a $417,276 mortgage from an entity referred to in the complaint as “Financial Institution One,” for the purchase of her Elizabeth residence. In May 2014, Reynolds mailed a fraudulent money order in the amount of $432,000 to Financial Institution One as a payoff on the mortgage. The money order falsely claimed to have been issued or processed by the IRS.
Financial Institution One’s mortgage business erroneously accepted the fraudulent payment and credited it as a payoff for her mortgage. Financial Institution One also mailed Reynolds an overpayment refund of $9,789. When Financial Institution One’s mortgage business filed a suit seeking to reinstate the fraudulently discharged mortgage, Reynolds and King continued to allege in court that the mortgage had been paid and even submitted a phony receipt for the bogus money order.
Reynolds and others unsuccessfully used the same scheme to seek the discharge of other mortgages, including Reynolds’ second residence in Newark, the residence of an individual in Bowie, Maryland, James’ residence in Hillside, New Jersey, and Martin’s residence in West Orange, New Jersey.
Reynolds also sought to fraudulently discharge over $52,000 in student loans with fraudulent money orders and cashier’s checks. For example, on March 20, 2017, Reynolds sent a fraudulent cashier’s check in the amount $67,000 to the Department of Education’s processing company. The payment was rejected.
Reynolds, King, and Dxrams conspired to fraudulently obtain luxury cars in a similar fashion. For instance, Reynolds sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley. Dxrams sold the car to a third party for approximately $85,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain two Mercedes-Benz cars.
The bank fraud and bank fraud conspiracy charges are punishable by a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The mail fraud and mail fraud conspiracy charges are punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The false statement charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi.
The charges and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit in Newark.
Final Defendant Sentenced in Dog-Fighting ConspiracyRead the Press Release
COLUMBUS, Ohio – Four Columbus men have been sentenced in U.S. District Court for crimes related to participating in a dog-fighting ring in central Ohio.
Charles A. Granberry, 42, was sentenced to 72 months in prison. Henry Gerard James Hill, Jr., 22, and Randall J. Frye, 59, were each sentenced to six months in prison. Dwayne T. Robinson, Jr., 34, was sentenced to three years of probation including six months of home confinement, 150 hours of community service and ordered to pay $3,700 in restitution.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Columbus Humane Executive Director Rachel D.K. Finney announced the sentences handed down by U.S. District Judge James L. Graham.
According to court documents, investigators discovered evidence at two houses in Columbus in March 2016 that indicated the houses were used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground.
Officers subsequently executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including 46 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog-fighting pit.
At the time of the search warrant, the Humane Society officials took extreme measures to ensure the safety of the seized dogs and the ASPCA provided animal behavioral specialists to conduct examinations of each dog. Some of the dogs reacted severely to loud noises and leashes during the examinations. For example, one dog latched on to a stuffed animal so aggressively that professionals had to cut the head off the toy.
Additionally, a large number of the dogs seized had a canine disease called Babesia Gibsoni, which results in anemia and ultimately death. The prevalence of the disease is unusually high in “bully breeds” used in dog-fighting operations through exposure to infected dogs’ blood and during non-sterile procedures such as tail docking, ear cropping and vaccinations of multiple animals with single needles.
Of the 46 dogs seized, specialists determined that 15 were eligible for placement in a shelter for adoption, and the remaining 31 dogs were euthanized for behavioral concerns or medical issues.
If you have information related to suspected dog-fighting activity, please call the Columbus Humane Cruelty Investigation Department at 614-777-7387 ext. 250.
U.S. Attorney Glassman commended the investigation by the USDA-OIG, Columbus Police, the Humane Society and the ASPCA, as well as Assistant U.S. Attorneys Jessica W. Knight and J. Michael Marous, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.
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Federal Judge Sentences Prior Felon to 22 Years in Prison for Armed CarjackingRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Graysville man to more than 20 years in prison for a 2016 carjacking in Forestdale, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge L. Scott Coogler sentenced MICHAEL DeWAYNE JOHNSON, 33, to 21 years and 10 months in prison on one count each of carjacking, being a convicted felon in possession of a gun and using a gun during the commission of a violent crime. Johnson pleaded guilty to the charges in October.
“This defendant was a violent career criminal. At the time of this offense, he had just recently been released on probation for another violent robbery in which he used a gun,” Town said. “The revolving door for Johnson is now locked tightly behind him and a warm prison bed awaits him.”
“I applaud the sentence handed down today because this is the type of violent offender who needs to be taken off the streets,” Sharp said. “I want to thank the Jefferson County Sheriff’s Office and my agents for their outstanding work on this case.”
According to Johnson’s plea agreement, the carjacking and his arrest occurred as follows:
Johnson stole a Chevrolet Trailblazer from a man stopped in the parking lot of a fast-food restaurant on Forestdale Boulevard on Aug. 17, 2016, by opening the truck door, twice striking the man with the butt of a pistol and ordering him out of the vehicle. The victim had stopped in the parking lot to call his wife and ask what she wanted him to order.
The victim reported the carjacking and a Jefferson County sheriff’s deputy spotted a truck matching the Trailblazer’s description about 30 minutes later at a gas station about five miles from the restaurant where the incident occurred. When the deputy pulled behind the Trailblazer, Johnson sped away, only to lose control and wreck the vehicle after a short chase. The truck flipped several times, strewing debris, before landing in a residential yard.
Law enforcement recovered two semi-automatic handguns among the debris, a Taurus Millennium .40-caliber and a Smith & Wesson .40-caliber, both matching the victim’s description of the gun used in the carjacking. The Taurus pistol was reported stolen from a burglary in Tarrant the day before the carjacking. A passenger in the Trailblazer with Johnson told investigators that he had no guns on him that night and both firearms found at the scene must have belonged to Johnson.
Johnson had at least two prior state felony convictions – first degree robbery in Jefferson County in 2004, and first degree robbery in Jefferson County in 2008.
The FBI and Jefferson County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. prosecuted.
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Federal Judge Sentences Greene County Man to 338 Years in Prison for Child Exploitation OffensesRead the Press Release
PITTSBURGH, Pa. - A former resident of Greene County, Pennsylvania, has been sentenced in federal court to 338 years, one month and 11 days imprisonment, followed by a lifetime supervised release, on charges of production, distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Eric James Stull, age 50, of Clarksville, Pennsylvania.
According to information presented to the Court, from May 8, 2006 to December 26, 2015, Stull produced 39 videos and 106 image files of his sexual exploitation of a female minor. The conduct began when the minor was less than two years old and continued for ten years until she was 11 years old. Also, on July 21, 2015, Stull knowingly distributed a video containing material depicting the sexual exploitation of a minor to an undercover Pennsylvania State Police Corporal. Further, on April 29, 2016, Stull possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
In sentencing the defendant, Judge Ambrose stated that this was an "entirely heinous crime. The worst of its kind…" that she had seen. She stated to the defendant, "It’s hard to know what to say to you. You committed indefensible conduct."
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania State Police, the Federal Bureau of Investigation and the Greene County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Stull.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal & State Law Enforcement Authorities Announce Formation of Special Unit to Fight Public CorruptionRead the Press Release
Citizen Assistance Encouraged
Innovative Corruption “Button” Rolled OutCHARLESTON, W.Va. -- United States Attorney Mike Stuart and representatives from federal and state law enforcement announced today the formation of a Public Integrity Special Investigations Unit to investigate corrupt public officials, the misuse of public funds, campaign and election law violations and suspected criminal activity.
The Public Integrity Special Investigations Unit includes representatives from federal and state agencies including the Federal Bureau of Investigation; the United States Postal Inspection Service; the Internal Revenue Service – Criminal Investigation Division; the Inspector General’s Offices of the United States Department of Health and Human Services, the United States Department of Housing and Urban Development, the United States Department of Veterans Affairs, Department of Defense and the Department of Homeland Security; the West Virginia State Police; the West Virginia Commission on Special Investigations; and the West Virginia State Auditor’s Office. The West Virginia Secretary of State’s Office will assist in investigating campaign and election law violations.
“Maintaining public integrity is a tremendous priority for me and for the Southern District of West Virginia,” said U.S. Attorney Stuart. “Public corruption is a cancer on our system of government. If it’s not rooted out, the cancer grows. It causes the public to be cynical about the honesty of public officials and public institutions. There is an absolute burden on public officials and persons in a position of public authority to be honest brokers to protect the integrity of public service and the taxpayers’ wallets. Dirty politicians and dirty public officials must and will be held accountable for violations of the public trust,” Stuart continued.
U.S. Attorney Stuart explained that the Special Investigations Unit is focused on rooting out not only corrupt elected officials, but also federal, state and municipal employees who use their position for personal gain at the expense of the public. The Special Investigations Unit will investigate corruption that threatens public resources, the electoral process, and fair economic opportunities for citizens and businesses. The Special Investigations Unit is also charged with uncovering corruption within both public and private institutions that receive and misuse taxpayer dollars.
“The FBI is joining forces with our federal agency partners to combat public corruption and maintain public integrity throughout the southern district,” said Special Agent in Charge Bob Johnson. “The FBI looks forward to participating in this Special Investigative Unit with the USAO and our other federal, local and state law enforcement partners as we work to investigate allegations of federal crimes.”
“The Postal Inspection Service has enjoyed a close relationship with the U.S. Attorney’s Office for the Southern District of West Virginia through the years working intricate and complex fraud cases that involve the illicit use of the U.S Mails,” said Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service welcomes the formation of the USAO’s Public Integrity Special Investigations Unit, a partnership that presents a tremendous opportunity for agencies to pool resources and expertise to ensure public officials are held accountable.”
“Investigating public corruption remains one of IRS Criminal Investigation’s highest priorities,” said Kimberly Lappin, Special Agent in Charge, Internal Revenue Service. “Public trust is broken when elected or appointed officials commit crimes – most often triggered by greed and resulting in unlawful personal financial gain.”
“As part of the Public Integrity Special Investigations Unit, HHS OIG will ensure that taxpayer’s dollars are not wasted though public corruption and are instead used for their intended purpose of providing needed care and assistance for the most vulnerable members of our society – including the elderly, poor, and children,” said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Health and Human Services, Office of the Inspector General. “Working with our federal, state, and local law enforcement partners, we will continue to vigorously bring those who steal from these vital public programs to justice.”
“Today’s announcement affirms our dedication to aggressively pursue those that choose to engage in illicit behavior that undermines HUD programs,” said Bertrand Nelson, Special Agent in Charge, Mid-Atlantic Regional Office, HUD Office of Inspector General. “We will continue to work steadfastly as a partner of the Public Integrity Special Investigations Unit to bring cases such as these to prosecution.”
“The U.S. Department of Veterans Affairs OIG looks forward to joining with our federal and state law enforcement partners as part of the Public Integrity Special Investigations Unit,” said Kim Lampkins, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Mid-Atlantic Field Office. “Public officials who break the law or use their positions for personal gain undermine the work of government. The VA OIG is dedicated to investigating fraud, waste, and abuse, and we will contribute our expertise to this team to hold officials accountable for their actions.”
According to U.S. Attorney Stuart, “I am looking forward to working closely not only with my federal partners but also our West Virginia partners. The West Virginia State Auditor’s Office is an invaluable resource for uncovering waste, fraud and abuse and the WV Secretary of State’s Office brings unparalleled expertise in maintaining the integrity of our election system through the investigation and prosecution of those that commit campaign and election fraud.”
“I am honored for the Secretary of State’s Office to have been asked to join this very important effort to address public corruption in West Virginia. I commend U.S. Attorney Mike Stuart for bringing this partnership together to work toward that end,” said Secretary of State Mac Warner.
U.S. Attorney Stuart encouraged citizens to report corrupt activity by either reporting suspected illegal activity by visiting the USAO’s website (https://www.justice.gov/usao-sdwv) and clicking on the “Corruption” button, an innovative new website reporting link, to route email tips to the U.S. Attorney’s Office, or calling 1-800-659-USAO.
“West Virginia’s unfortunate history with corruption is well known, but so is this Office’s history of combating corrupt activity,” said U.S. Attorney Stuart. “Our efforts have been aided by a dogged media and courageous, conscientious citizens, business owners and public officials who have provided information about corrupt activity. We call on public servants, the vast majority of whom are honest brokers, to not look the other way when they see indications of corruption. We cannot overstate the importance of citizen participation in our fight against corruption, and we urge all citizens to assist us in this effort.”
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Deanna Eder
(304) 345-2200 [email protected]Follow us on Twitter: @SDWVNews and @USAttyStuart
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Eight individuals with alleged ties to the Aryan Circle arrested and charged in connection with Evangeline Parish murderRead the Press Release
LAFAYETTE, La. – Eight alleged members or associates of the Aryan Circle (AC) have been indicted and arrested for their alleged roles in the 2016 murder of an alleged fellow AC gang member in Evangeline Parish, Louisiana.
The indictments were announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Alexander Van Hook of the Western District of Louisiana.
The superseding indictment, returned by a federal grand jury on March 14, and unsealed today, charges seven defendants with being accessories-after-the fact in violent crimes in aid of racketeering murder of Clifton Hallmark. The defendants charged in the superseding indictment are David Wayne Williams, aka Big Dave, 36, of Sulphur, Louisiana; Christina Marie Williams, 38, of Sulphur, Louisiana; Brian Elliot Granger, aka Sneak, 36, of Beaumont, Texas; Leland Edward Hamm, 43, of Tulsa, Oklahoma; Richard Alan Smith, 47, of Little Rock, Arkansas; Michael Paul Auxilien, 34, of Mamou, Louisiana; and Stone Haynes, 49, of Beaumont, Texas. An indictment charging alleged AC gang member Jeremy Jordan, 38, of Orange, Texas, for the racketeering murder of Clifton Hallmark was returned by the federal grand jury on Dec. 14, 2017, and unsealed today.
According to the indictment, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout Texas, Louisiana, and the United States. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Texas, Louisiana, and Missouri. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The indictment further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes, associates, are required to follow the orders of higher-ranking members without question.
An indictment merely contains allegations, and defendants are presumed innocent until proven guilty in a court of law.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; Louisiana State Police; Evangeline Parish, Louisiana Sheriff’s Office; Evangeline Parish District Attorney’s Office; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; the Carrollton, Texas, Police Department; and the Montgomery County Constable Precinct 1 in Texas.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Dominic Rossetti of the Western District of Louisiana.
Eight Individuals with Alleged Ties to the Aryan Circle Arrested and Charged in Connection with MurderRead the Press Release
Eight alleged members or associates of the Aryan Circle (AC) have been indicted and arrested for their alleged roles in the 2016 murder of an alleged fellow AC gang member in Evangeline Parish, Louisiana.
The indictments were announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Alexander Van Hook of the Western District of Louisiana.
The superseding indictment, returned by a federal grand jury on March 14, and unsealed today, charges seven defendants with being accessories-after-the fact in violent crimes in aid of racketeering murder of Clifton Hallmark. The defendants charged in the superseding indictment are David Wayne Williams, aka Big Dave, 36, of Sulphur, Louisiana; Christina Marie Williams, 38, of Sulphur, Louisiana; Brian Elliot Granger, aka Sneak, 36, of Beaumont, Texas; Leland Edward Hamm, 43, of Tulsa, Oklahoma; Richard Alan Smith, 47, of Little Rock, Arkansas; Michael Paul Auxilien, 34, of Mamou, Louisiana; and Stone Haynes, 49, of Beaumont, Texas. An indictment charging alleged AC gang member Jeremy Jordan, 38, of Orange, Texas, for the racketeering murder of Clifton Hallmark was returned by the federal grand jury on Dec. 14, 2017, and unsealed today.
According to the indictment, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout Texas, Louisiana, and the United States. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Texas, Louisiana, and Missouri. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The indictment further alleges that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes, associates, are required to follow the orders of higher-ranking members without question.
An indictment merely contains allegations, and defendants are presumed innocent until proven guilty in a court of law.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; Louisiana State Police; Evangeline Parish, Louisiana Sheriff’s Office; Evangeline Parish District Attorney’s Office; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; the Carrollton, Texas, Police Department; and the Montgomery County Constable Precinct 1 in Texas.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Dominic Rossetti of the Western District of Louisiana.
Eagle Grove Man Sentenced to over 28 Years in Federal Prison for Sexually Exploiting and Extorting a ChildRead the Press Release
A thirty-year old man who sexually exploited a child and then extorted the minor was sentenced to more than 28 years in federal prison on March 19, 2018.
Jason Marvets, age 30, from Eagle Grove, Iowa, received the prison term after pleading guilty to one count of sexual exploitation of a child and one count of extortion. At the plea hearing, Marvets admitted that, between 2016 and 2017, he persuaded or coerced a child to send him sexually explicit depictions of herself. In a plea agreement, he admitted that this child was 11 and 12 years old and that he threatened to distribute depictions of her in order to get more depictions of her. In the plea agreement, he also admitted he obtained sexually explicit depictions from a 15-year-old child and threatened to ruin her life when she did not communicate with him.
Marvets was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Marvets was sentenced to 344 months’ imprisonment. He must also serve a seven-year term of supervised release after the prison term. There is no parole in the federal system.
Marvets is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Wright County Sheriff’s Office, the Webster County Sheriff’s Office, the Georgia Bureau of Investigation, and the Michigan State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3034.
Follow us on Twitter @USAO_NDIA.
Dominican Man Sentenced to 87 Months in Prison for Fentanyl and Heroin TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Eris Manuel Paulino Guerrero, also known as Edward Garcia, 28, a citizen of the Dominican Republic, was sentenced on Monday to serve 87 months in federal prison for drug trafficking offenses.
Documents filed with the court established that the defendant participated in a Lawrence-based drug trafficking organization (DTO) distributing heroin between June 2013 and October 2014. Evidence showed that he delivered drugs to customers of the DTO. In approximately October 2014, the defendant also began selling fentanyl to customers as part of a separate drug distribution network.
The defendant previously pleaded guilty to conspiracy to distribute, and to possess with the intent to distribute, heroin and distribution of fentanyl. He faces likely deportation after he serves his sentence.
The investigation and prosecution of this defendant was part of a Drug Enforcement Administration (DEA) effort to address heroin distribution in New Hampshire. In addition to Guerrero’s prosecution, Alberto Guerrero Marte, 38, was sentenced to 15 years, Toribio Guerrero Marte, 34, was sentenced to 10 years, Maria Miguelina Lara, 33, was sentenced to 36 months, Allan Raymond Pimentel, 22, was sentenced to 57 months, Jose De La Altagracia Pimentel Lara, 26, was sentenced to 63 months, Wilkin Andres Beltre Arias, 39, was sentenced to 54 months, Allison DeJesus, 19, was sentenced to five years of probation, and Jonaly DeJesus, 22, was sentenced to time served and five years of supervised release. In a related case, Mark Gagnon, 54, of Candia, was sentenced to 48 months. Michell DeJesus, 34, and Santo Rodolfo Garcia Mendez, 33, are awaiting sentencing.
“The U.S. Attorney’s Office continues to work hand-in-hand with our law enforcement partners to combat the threats posed by fentanyl and heroin,” said U.S. Attorney Murray. “Those who seek to profit from the sales of these deadly drugs will be prosecuted aggressively.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But those responsible for distributing lethal drugs like fentanyl and heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA’s top priority is combatting the opioid epidemic by working with our local, county and state law enforcement partners to bring to justice those that distribute this poison.”
This matter was investigated by the DEA; Homeland Security Investigations; 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.
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. The case is being prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Delaware Woman Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
Rasheeda Overton, 38, of Dover, DE was charged in an indictment unsealed today with 23 counts of wire fraud and 4 counts of aggravated identity theft, announced United States Attorney Louis D. Lappen.
According to the indictment, Overton was a payroll manager of a Philadelphia-based non-profit entity that translates, publishes, and distributes copies of the Christian Bible to recipients around the world. Overton allegedly altered the bank account information of former employees that had been on file with the company so that any future payments to those former employees would be diverted into bank accounts that she controlled. Overton then allegedly arranged for her employer to pay more than $100,000 in wages to those former employees, all of which wound up in her bank accounts.
If convicted of all charges, the defendant faces a maximum possible sentence of at least two years’ imprisonment and a statutory maximum sentence of 468 years’ imprisonment, a $6.75 million fine, three years supervised release, and a $2,700 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defense Contractor and Civilian Employee at U.S. Military Base Admit Bribery Scheme Involving Government ContractsRead the Press Release
NEWARK, N.J. – Two Sussex County, New Jersey, women, one a defense contractor employee and the other a civilian employee at Picatinny Arsenal, today admitted their roles in a scheme that traded bribes and other gratuities for favorable treatment on government contracts, U.S. Attorney Craig Carpenito announced.
Irene Pombo, 68, of Hamburg, New Jersey, and her daughter, Nicole Pier, 38, of Byram Township, New Jersey, pleaded guilty before U.S. District Judge John Vazquez in Newark federal court to separate informations charging them with conspiracy to give or accept anything of value in return for favorable assistance with government contracts and with making false claims against the United States.
According to documents filed in this case and statements made in court:
Pombo was an employee of an entity referred to in the information as “Company A,” a defense contracting firm that works with the Department of Defense at Picatinny Arsenal, a U.S. Army installation in Morris County, New Jersey. Pier was a civilian employee at Picatinny Arsenal.
From January 2006 through December 2017, Company A, Pombo, and other Company A employees conspired to offer a variety of valuable gifts, including Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at least $150,000 to $250,000, to numerous individuals employed at Picatinny Arsenal, including Pier, in order to obtain and retain contracts and other favorable assistance.
Pombo admitted that she and other Company A employees filed false bills to the United States writing off the cost of the bribes as “materials” needed on government contracts.
The conspiracy charge to which Pombo and Pier pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for June 19, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: Pier: Robert Galantucci Esq., Hackensack
Pombo: Edward Cillick Esq., HackensackDallas Man Sentenced to 166 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
DALLAS — Ivan Reyes Perez, 27, of Dallas, Texas, was sentenced yesterday by U.S. District Judge David C. Godbey to 166 months in federal prison and ordered to forfeit $27,080 for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Perez has been in custody since his arrest in April 2017. He pleaded guilty in October 2017 to one count of conspiracy to possess with intent to distribute and to distribute and controlled substance.
Co-defendant Genesis Jaramillo, 24, was arrested in June 2017. Jaramillo pleaded guilty to her role and is awaiting sentencing.
According to the plea agreement factual resume, on March 25, 2017, law enforcement knocked on the door to room at a Hampton Inn Hotel in Mesquite, Texas. Jaramillo answered the door and Perez came up behind her. Officers were granted permission to search the room. Upon entering, officers observed a plastic bag containing a crystal like substance in plain view, a cooking pot and a pan that contained a crystal like substance. Officers also located a digital scale and plastic baggies, and a substance that is used to cut or supplement methamphetamine by those involved in the sale and distribution of methamphetamine.
The Drug Enforcement Administration and Mesquite Police Department investigated the case. Assistant U.S. Attorney George Leal prosecuted.
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