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Friday 2 February 2018
Two Area Men Charged with Drug Offenses Following Investigation of Drug Trafficking at D.C. Barber ShopRead the Press Release
WASHINGTON – Two area men have been arrested in an investigation that led to the seizure of firearms, ammunition and narcotics at various locations in the District of Columbia and Maryland, including a barbershop and surrounding property in Southeast Washington.
The charges were announced today by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Daniel L. Board, Jr., Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Baltimore Field Division, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Henry P. Stawinski III, Chief of the Prince George’s County, Md. Police Department.
On Feb. 1, 2018, law enforcement agents from ATF, MPD and the Prince George’s County Police Department executed search warrants on three locations and five vehicles linked to a seven-month investigation into alleged drug trafficking from the Next Level Cuts barbershop and surrounding property in the 2400 block of Martin Luther King, Jr. Avenue SE, which led to the seizure of firearms, ammunition, and quantities of narcotics.
The investigation established that drug traffickers would use the barbershop and adjoining property as a stash location for the trafficking of narcotics. A search at that location led to the seizure of more than $7,000 in cash, more than 800 grams of PCP, more than 300 grams of heroin, boxes of Suboxone strips, three firearms, and ammunition.
As a result of the search warrants, Anthony Fields, 44, of Washington, D.C., was arrested and charged in a criminal complaint filed in the U.S. District Court for the District of Columbia with two drug trafficking offenses. Fields made his first court appearance today and was ordered held pending a detention hearing set for Feb. 7, 2018.
As a result of a search warrant executed in Prince George’s County, James Venable, 46, of Fort Washington, Md., was arrested by Prince George’s County officers on narcotics and firearms charges.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In announcing the arrests and seizures, U.S. Attorney Liu, Special Agent in Charge Chittum, Special Agent in Charge Board, Chief Newsham, and Chief Stawinski commended the work of those who are investigating the case. They also acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli, and from the U.S. Attorney’s Office for the District of Maryland, including Assistant U.S. Attorney Jennifer Sykes.
Three Individuals Charged with Conspiring to Defraud Unsuspecting Used Car Buyers in BrooklynRead the Press Release
A federal grand jury sitting in the Eastern District of New York returned an indictment charging Inna Chebanenko, Andrii Gerasymenko, and Georgy Zakalyugin with conspiracy to commit wire fraud. The defendants were arrested in Illinois last week and are scheduled to be arraigned this afternoon before United States Magistrate Judge James Orenstein in federal court in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charge.
“As alleged in the indictment, the defendants profited through obtaining fraudulent titles to used cars in order to peddle salvaged or rebuilt vehicles to unsuspecting buyers,” stated United States Attorney Donoghue. “This Office, working with our law enforcement partners, is committed to protecting consumers and ensuring that they get what they are paying for.” Mr. Donoghue also expressed his grateful appreciation to the United States Postal Inspection Service, the New York State Department of Motor Vehicles, the Indiana Bureau of Motor Vehicles and the Delaware Division of Motor Vehicles for their assistance in the investigation.
“Most of us would not be able to pop the hood of a car and see for ourselves that there was damage or something seriously wrong with the vehicle. There are laws protecting consumers for a reason because fraudsters will use whatever means they can to make money illegally,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI will continue to work with our law enforcement partners and other governmental agencies to do all we can to stop criminals from taking advantage of unsuspecting people.”
According to the court documents, between 2013 and 2016, the defendants conspired to defraud car buyers in Brooklyn and elsewhere by concealing the fact that the cars were “salvage” or “rebuilt” vehicles. Vehicles are given a “salvage” title when they have been destroyed or received substantial damage. Cars with “salvage” titles are worth a fraction of the value of a comparable car without a “salvage” title. By forging the signatures of non-existent Indiana law enforcement officers on the necessary certifications, the conspirators obtained car titles from the State of Indiana stating that the salvage cars had been “rebuilt,” indicating the cars had been repaired and restored to operational condition. However, the “rebuilt” status of the cars was concealed on the titles by, among other means, placing an automobile auction sticker on the title before selling the cars to unsuspecting buyers in Brooklyn and elsewhere at inflated prices. The buyers would then find themselves in possession of a vehicle with a value that was a fraction of the value-as-represented at the time of the sale.
The charges announced today are merely allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney G. Karthik Srinivasan.
The Defendants:
INNA CHEBANENKO
Age: 31
Elmhurst, IndianaANDRII GERASYMENKO
Age: 32
River Grove, IllinoisGEORGY ZAKALYUGIN
Age: 32
Chicago, IllinoisE.D.N.Y. Docket Nos. 18-CR- 51
Three Florida Residents Sentenced for Operating an Illegal Steroid and Counterfeit Prescription Drug LabRead the Press Release
Montgomery, Alabama – Three Chipley, Florida residents were sentenced yesterday to serve time in federal prison for their involvement in a steroid and counterfeit prescription drug lab in Northwest Florida, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama.
Ryan Anthony Sikora (24) was sentenced to 41 months in prison, Ariel Anna Murphy (29) to 12 months, and John Joseph Bush, II (26) was sentenced to 8 months. The three received their sentences after pleading guilty to conspiracy charges for importing, manufacturing, and distributing anabolic steroids as well as counterfeit prescription drugs.
The investigation began when United States Postal Inspectors determined that large amounts of steroid and counterfeit prescription drug ingredients were being shipped from China to various locations in South Alabama and Northwest Florida. The defendants mass-produced counterfeit pills at a lab near Chipley, Florida using two large-scale pill presses. They marketed the counterfeit drugs online using the brand name “Future Pharma” and they would typically process the orders through encrypted email, and then use the United States Postal Service to send the contraband products across the United States.
U.S. Attorney Franklin would like to thank the following agencies for their assistance with this case: The United States Postal Inspection Service, the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Alabama Law Enforcement Agency (ALEA), the Florida Department of Law Enforcement (FDLE), the Washington County (Florida) Sheriff’s Office, and the Chipley, Florida Police Department. This case was prosecuted by Assistant United States Attorney Bradley Bodiford.
Three Alleged Gang Members Charged with Dealing FirearmsRead the Press Release
BOSTON – Three alleged members of the Latin Gangsta’ Disciples were charged yesterday with federal firearm offenses.
Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport; Bryan Torres-Almanzar, a/k/a “Flex,” 19, of Lawrence; and Eric Valentin, a/k/a “Jefe,” 22, also of Lawrence, were charged with dealing firearms without a license and conspiracy to deal firearms without a license. Torres-Almanzar and Valentin were arrested yesterday in Nashua, N.H., and detained following an appearance in federal court in Boston. Ilarraza is in state custody for an unrelated offense.
As alleged in court documents, in September 2017, an individual who was working as a cooperating witness for federal investigators was approached by Ilarraza after hearing that the cooperating witness was interested in obtaining firearms that could be sent to the Dominican Republic. Ilarraza, who was incarcerated at the time at the Essex County Jail following a conviction for breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who was allegedly heavily involved in firearms trafficking.
This information and another cooperating witness were used to purchase firearms from Torres-Almanzar and his “partner,” Valentin, on six occasions between Sept. 12, 2017, and Oct. 19, 2017. For example, on Sept. 14, 2017, the cooperating witness arranged to purchase a 9mm semiautomatic pistol with a laser sight and an extended magazine for $1,000 from Torres-Almanzar and Valentin. During the sale, Torres-Almanzar and Valentin talked about future gun purchases and told the cooperating witness that “we do business and will take care of you.” They also said that they were in the business of “growing our organization” and that it was a “good thing that he [Ilarraza] introduced us.” During the course of the investigation, the cooperating witness purchased eight firearms from Torres-Almanzar and Valentin.
The charges of dealing in firearms without a license and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Chief of Police William Taylor; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ten Individuals Indicted by a Federal Grand Jury in Denver and Then Arrested for Diesel Fuel FraudRead the Press Release
DENVER – Following a year and a half investigation conducted by the FBI and other law enforcement agencies, a federal grand jury in Denver returned six indictments charging a total of ten individuals with a variety of charges related to the theft and sale of diesel fuel. During an operation this past Tuesday, January 30th, 2018, all ten defendants were arrested and have subsequently appeared before a U.S. Magistrate Judge where they were advised of their rights and the charges pending against them. Three homes and a business premises were searched and 13 gas haul trucks used during the scheme were seized.
According to the indictment, the defendants, acting as a loose-knit ring of diesel fuel thieves, went to gas stations throughout the Northern Front Range of Colorado, purchasing thousands of gallons of fuel using fraudulent credit cards. The thieves obtained individuals’ bank account numbers through illicit means, to include skimmers (devices used for secretly capturing bank account numbers and information) and/or from purchases of stolen account numbers on the dark web. The defendants or others associated with the ring would then take that information and put it on blank credit cards, also known as access devices. The credit card thieves would then use the fraudulent cards to fill trucks with diesel fuel. The defendants off-loaded the diesel fuel at storage depots located at various truck lots or businesses within Colorado, in exchange for money from fuel buyers. The trucks utilized in the scheme to haul and distribute the fuel contained modified and/or supplemental fuel tanks capable of storing approximately 100 gallons or more of diesel fuel at any given time. In several cases, the fuel tanks were installed on the trucks in a manner designed to conceal the fact that the trucks were being utilized to store and transport substantial volumes of fuel.
In one case, a defendant controlled and utilized a semi-trailer on the premises of his business --“Salinas Trucking” located in Fort Lupton, Colorado -- which served as a hidden fuel depot where defendants would off-load diesel fuel purchased with clone cards. Salinas in turn would transfer, or cause to be transferred, such fuel to various large semi-trailer trucks, buses and other commercial vehicles which he used in the course of operating his trucking business.
Those indicted and arrested include:
Moises Ramirez-Duenas (18-cr-00047)
Eddie Luis Tamayo Pena (18-cr-00025)
Lisvan Leiva Perez (18-cr-00046)
Javier Vergara Rodriquez (18-cr-00026)
Yordanis Tamayo Aguilar (18-cr-00041)
Yunior Ricardo Gutierrez Bermudez
Sergio Reynier Ona Lago
Fidel Salinas*
Yordanis Batista Pacho (18-cr-00045)
Ricardo Sarmiento Pacho
Fidel Salinas*
*Defendant Fidel Salinas named in two separate indictments
Charges include Bank Fraud, Fraudulent Use of Counterfeit Devices or Conspiracy to Fraudulently Use Counterfeit Devices, and Aggravated Identity Theft. Penalties for the ten defendants range from not more than 10 years, to not more than 30 years in federal prison.
This case was investigated by the FBI Denver Division, with assistance from Immigration Customs Enforcement - Enforcement and Removal Operations; Brighton Police Department and Colorado State Patrol.
The defendants are being prosecuted by Assistant U.S. Attorney Tim Neff.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
Takoma Park Man Pleads Guilty to Drug and Firearms ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On January 31, 2018, Stanley Eugene Green, Jr., age 42, of Takoma Park, Maryland, pleaded guilty to Distribution of Heroin, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr., of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Baltimore Field Division; and Police Chief Antonio DeVaul of the Takoma Park Police Department.
According to his plea agreement, between in or about February 2015, and continuing through April 27, 2017, in the District of Maryland and elsewhere, Green, together with others, distributed, conspired to distribute, and possessed with intent to distribute heroin and fentanyl. During the conspiracy, Green obtained distribution quantities of heroin (that contained fentanyl), and redistributed those drugs to users in Montgomery County, Maryland, and elsewhere.
In August 2016, law enforcement officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Takoma Park Police Department received information from a confidential informant about narcotics distribution in Takoma Park, Maryland, specifically 636 Houston Court, Takoma Park, Maryland (an apartment complex with multiple residential units). Between August 2016 and April 2017, ATF and local law enforcement identified and investigated someone named “Rico” who was selling heroin (later found to contain fentanyl). Law enforcement identified “Rico” as Green.
In late January 2017, a victim who obtained heroin from Green suffered an overdose and required emergency medical attention. The victim fell into a coma and thereafter required hospitalization and physical rehabilitation, and was hospitalized for approximately 2½ months.
United States District Judge George J. Hazel has scheduled the sentencing for April 5, 2018.
As part of his plea agreement, Green will be required to forfeit the firearms and ammunition seized during the search of his residence, as well as the $37,592.00.
Acting United States Attorney Stephen M. Schenning praised the ATF Baltimore Field Division, Takoma Park Police Department, and Montgomery County Police Department for their work in the investigation. He also recognized the assistance Harford County Sheriff’s Office and the Drug Enforcement Administration gave to the lead investigating agencies. Mr. Schenning thanked Assistant United States Attorney Thomas M. Sullivan, who is prosecuting the case.
Southern District of Florida U.S. Attorney’s Office Collects $81,953,065.05 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
U.S. Attorney Benjamin G. Greenberg announced today that the Southern District of Florida collected $81,953,065.05 in criminal and civil actions in Fiscal Year 2017. Of this amount, $57,410,683.40 was collected in criminal actions and $24,542,381.65 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $84,495,243.94 in cases pursued jointly with these offices. Of this amount, $23,280.87 was collected in criminal actions and $84,471,963.07 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
U.S. Attorney Benjamin G. Greenberg stated, “Through great efforts and diligence our office was once again able to secure restitution for crime victims and recover monies for the U.S. taxpayers. We work hard not only to protect the people of our great nation, but to ensure that criminals do not profit from their crime. Today’s numbers reflect that the U.S. Attorney’s Office collects substantially more money than it spends, and provides the taxpayers with an excellent return on their investment.”
For example, the Southern District of Florida recovered $12,000,000 from a not-for-profit hospital to settle allegations that the hospital violated the False Claims Act by submitting false claims to federal healthcare programs for medically unnecessary cardiac procedures.
In United States v. Goodman, Case No. 07-20871-CR-Seitz, the government recovered $1,474,027.84 from the sale of the criminal defendant’s two luxury condominiums in Costa Rica. In his plea agreement, the defendant agreed to the sale of the Costa Rican properties. The court ordered that the two condominiums be sold and the proceeds applied to Goodman’s restitution judgment.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $232,327,657.00 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Bend Man Sentenced to 60 Months ImprisonmentRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Larry D. Cole, age 46, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for one count of possession of a firearm in furtherance of a drug trafficking crime
Cole was sentenced to 60 months imprisonment and 2 years of supervised release.
According to documents in this case, in May of 2017, Cole sold 3.6 grams of cocaine to an individual working for the St. Joseph County Drug Interdiction Unit. When officers executed a search warrant on an address in South Bend where the drugs were sold, they observed Cole running from the rear of the house to the living room and reaching under the couch for a .45 caliber handgun. Cole also had $1,188 in cash and a small amount of marijuana and cocaine. Some of the cash was from the sale of drugs the day before to the individual working with the Drug Interdiction Unit.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the St. Joseph County Drug Interdiction Unit which is comprised of officers from the Mishawaka Police Department; the South Bend Police Department and the St. Joseph County Sheriff’s Department. This case was handled by Assistant U.S. Attorney John M. Maciejczyk.
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Seven Sentenced in Money Laundering Scheme Involving Proceeds from Multiple Foreign Scams that Targeted U.S. VictimsRead the Press Release
In Austin today, a federal judge sentenced two Nigerian citizens and a Houston man to federal prison for their roles in a money laundering conspiracy that collected millions of dollars from victims located across the country, announced United States Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; Acting Special Agent in Charge Andy Tsui, Internal Revenue Service – Criminal Investigation (IRS-CI); and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service, Houston Division.
United States District Judge Sam Sparks sentenced:
- Nathaniel Itimi, a 46-year-old native of Nigeria and current U.S. citizen residing in Houston, to 97 months in federal prison and ordered him to pay, jointly and severally, $1,672,805.51 restitution;
- Lewis Akpomofune, a 41-year-old citizen of Nigeria residing in Houston, to 108 months in federal prison and ordered him to pay, jointly and severally, $1,672,805.51 restitution; and,
- Michael Omoh Okiki, a 37-year-old citizen of Nigeria residing in Houston, to 57 months in federal prison and ordered him to pay, jointly and severally, $1,213,354.94 restitution.
“Today’s sentencing reflects the commitment of the Department of Justice to destroy the money-laundering networks that facilitate fraud against the most vulnerable Americans, such as the elderly,” stated United States Attorney John F. Bash.
Last year, all three defendants pleaded guilty to a charge of conspiracy to commit money laundering.
Four other individuals received federal prison terms in connection with this investigation. They are:
- Ayibatonye Bienzigha, a 23-year-old citizen of Nigeria residing in New Jersey, received 37 months in federal prison and was ordered to pay $51,307 restitution;
- Eghosa Obaretin, a 30-year-old citizen of Nigeria residing in Austin, received 40 months in federal prison and was ordered to pay $677,303.83 restitution and forfeit $222,000;
- Roland Imoe, a 37-year-old native of Nigeria and current U.S. citizen residing in Austin, ten months in federal prison and ordered to pay $25,632 restitution; and,
- Augustine Ikolo, a 41-year-old citizen of Nigeria residing in Austin, received 97 months in federal prison and ordered to pay $842,970 restitution.
Previously, Obaretin and Imoe pleaded guilty to one count of Passport Fraud; Bienzigha, to one count of conspiracy to commit money laundering; and, Ikolo to one count of conspiracy to commit money laundering.
In December 2017, co-defendant Ochuko Sylvester Eruotor, a 43-year-old resident of Canada and citizen of Nigeria, was extradited from Germany to the United States after being arrested with assistance from Interpol. Yesterday in Austin, Eruotor pleaded guilty to one count of conspiracy to commit money laundering. He remains in federal custody awaiting sentencing. No sentencing date has been scheduled.
Court documents showed that this investigation targeted a money laundering network that laundered the proceeds of various fraud schemes perpetrated against U.S. victims by scammers based in Canada, Nigeria, and the United States. The schemes included: “grandson-in-jail” frauds over the phone targeting elderly victims; fake investment scams; business email compromise scams; Stolen Identity Refund Fraud (SIRF) tax filing scams; and, romance victim scams.
The money launderers opened bank accounts, sometimes using fraudulent passports in fake identities, or hired others to open bank accounts in order to facilitate their scheme. Those U.S.-based bank accounts would receive the fraudulently obtained funds from the victims. The U.S.-based conspirators quickly withdrew the money from the bank accounts with a portion of the fraud proceeds kept as a fee. Then the remainder of the funds were sent to Canada or Nigeria. To date, law enforcement has identified in excess of $3.5 million dollars of fraud proceeds from hundreds of victims laundered by the conspiracy.
“Today’s actions will not only bring a sense of justice to the victims in this case, but this significant investigation will also help increase awareness of this type of fraud,” said Shane Folden, Special Agent in Charge, HSI San Antonio. “To potential victims, we encourage you to be vigilant and if you feel like you are being scammed, please contact law enforcement to report the suspected scam before you make a payment. There are criminals who are always seeking to exploit the vulnerable in our communities for their own personal gain.”
“The defendants who perpetrated this scheme systematically defrauded innocent American citizens,” stated Andy Tsui, IRS Criminal Investigation, Acting Special Agent in Charge, San Antonio Field Office. “Protecting taxpayer money is a matter we take very seriously. IRS-Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by creating elaborate money laundering schemes such as this one.”
Agents with HSI, IRS-CI, and U.S. Postal Inspection Service investigated this case. The United States Marshals Service provided assistance with Eruotor’s extradition. Assistant United States Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
Security Guard at the 9/11 Memorial and A Conspirator Charged in Manhattan Federal Court with Firearms TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest of MAQUAN MOORE, a 9/11 Memorial security guard, and MORRIS WILSON, for the trafficking of more than 25 firearms from locations outside of New York into Manhattan. MOORE and WILSON were arrested last night by the ATF and NYPD, and presented today on separate complaints before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Maquan Moore and Morris Wilson are responsible for illegally introducing into Manhattan scores of illegal firearms – including assault-style weapons capable of inflicting mass casualties – and knowingly doing so in the neighborhood of a nearby school. Their alleged disregard for public safety could have had catastrophic consequences. The danger of selling unlicensed firearms cannot be overstated. I commend our NYPD and ATF partners for keeping these guns out of the hands of unlicensed owners.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “ATF is committed to making the streets safe by ridding neighborhoods of individuals that seek to distribute illegal firearms. Maquan Moore and Morris Wilson are alleged to have trafficked numerous firearms into New York City endangering the lives of its citizens. Thanks to the efforts of the Special Agents and Detectives assigned to the ATF/NYPD Joint Firearms Task Force, this interstate firearms trafficking network will be disbanded and all of its tentacles prosecuted to the full extent of the law. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
NYPD Commissioner James P. O’Neill said: “As charged, these defendants engaged in several transactions involving the sale of multiple illegal firearms on the streets of New York City. Their actions could have jeopardized the lives of an untold number of citizens as we have seen far too often. It was only through the well-coordinated efforts of the Joint Firearms Task Force that this gun-trafficking operation was successfully curtailed.”
According to the allegations in the Complaints[1]:
Beginning in December 2017, an ATF/NYPD Task Force made multiple undercover purchases of firearms from MOORE, who at the time was working as a security guard at the 9/11 Memorial. These firearms included several assault-styled weapons, such as a MAC-10 machine pistol, and various other handguns and rifles. On the evening of February 1, 2018, an undercover officer purchased from MOORE additional firearms, many of which had been brought by WILSON from Florida to New York. In connection with MOORE and WILSON’s arrest, the ATF/NYPD Task Force seized 21 additional firearms.
* * *
MOORE, 29, of Manhattan, is charged with conspiracy to traffic in firearms, firearms trafficking, interstate transportation and receipt of firearms, and possession of a firearm near a school zone, each of which carries a maximum statutory penalty of five years in prison; and receiving a firearm with intent to commit an offense, which carries a maximum statutory penalty of 10 years in prison.
WILSON, 32, of Orlando, Florida, is charged with conspiracy to traffic firearms, firearms trafficking, and interstate transportation and receipt of firearms, each of which carries a maximum statutory penalty of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the efforts of the ATF and NYPD in this case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jacob Warren and Dominic Gentile are in charge of the prosecution.
The charges contained in the Complaints are merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints forth herein constitute only allegations, and every fact described should be treated as an allegation.
Santa Fe Cardiologist Pleads Guilty to Obstructing Justice While Awaiting Sentencing on Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and U.S. Marshal Conrad E. Candelaria today announced that Roy G. Heilbron, 54, a cardiologist residing in Santa Fe, N.M., pled guilty in federal court in Albuquerque, N.M., to an obstruction of justice charge. The charge against Heilbron arises out of his alleged attempt to obstruct and impede sentencing proceedings in a pending criminal case.
“The administration of justice depends on the honesty and good faith of all concerned, even those charged with crimes,” said Acting U.S. Attorney Tierney. “In this case, Mr. Heilbron impeded the administration of justice by falsely claiming that he required medical treatment in Costa Rica for the purpose of delaying or avoiding sentencing for committing healthcare fraud. For this, he deserves just punishment.”
“A doctor who cheats Medicare and private insurance companies by billing them for unnecessary tests is a criminal,” said FBI Special Agent in Charge Wade. “When that doctor tries to delay sentencing by lying and making up phony documents, he’s a criminal looking at possibly spending a lot more time in prison. The FBI hopes today’s guilty plea sends a message that we will not allow wrongdoers to avoid paying for their crimes.”
Heilbron was charged on Sept. 6, 2017, in a two-count indictment with making and presenting fraudulent documents regarding his medical condition to a U.S. Probation Officer, and submitting the fraudulent documents for the purpose of postponing or avoiding sentencing in a pending health care fraud prosecution. The indictment alleges that Heilbron committed the two crimes in Bernalillo County, N.M., and elsewhere, between Aug. 3, 2017 and Aug. 7, 2017.
Heilbron previously had pleaded guilty in federal court in Albuquerque, N.M., to a health care fraud charge on Feb. 17, 2017, under a plea agreement recommending a sentence of two years of imprisonment followed by a term of supervised release to be determined by the court.
On Aug. 7, 2017, Heilbron’s attorney filed a motion to continue Heilbron’s sentencing hearing, which was then scheduled for Aug. 28, 2017, to permit Heilbron to begin chemotherapy in Costa Rica for prostate cancer. The motion included two attachments: a one-page “Treatment Protocol for Roy Heilbron” dated Aug. 3, 2017, which purported to detail Heilbron’s alleged prostate cancer diagnosis, and a three-page “Clinical Summary” dated June 24, 2017, which purported to outline a four-cycle chemotherapy treatment plan. The two documents purported to be authored by a physician with offices in San Jose, Costa Rica, and Miami, Fla.
On Aug. 9, 2017, a U.S. Magistrate Judge issued a warrant for Heilbron’s arrest based on a criminal complaint setting forth the same charges as those contained in the indictment. The complaint outlined the FBI’s investigation into the claims made in the “Clinical Summary” and “Treatment Protocol,” and asserted that Heilbron created the two documents himself and that Heilbron was not a patient of the physician whose name appears on the fraudulent documents. According to the complaint, Heilbron allegedly provided the fraudulent documents to his U.S. Probation Officer on Aug. 4, 2017, in support of a request to postpone his sentencing hearing.
During today’s proceedings, Heilbron entered a guilty plea to the obstruction of justice charge of the indictment. According to the plea agreement, Heilbron acknowledged that he previously pled guilty to a health care fraud charge on Feb. 17, 2017, and had a sentencing hearing on Aug. 28, 2017. In entering his guilty plea, Heilbron admitted that on Aug. 4, 2017, he sent his Probation Officer an email requesting to postpone his sentencing hearing based on the representation that he was scheduled to begin chemotherapy treatments in Costa Rica on Aug. 14, 2017. In support of his request, Heilbron attached a clinical summary and treatment protocol purportedly authored by Heilbron’s physician. Heilbron further admitted that the email was false and created for the purpose of delaying or avoiding the sentencing hearing on his health care fraud plea, and at the time he made the request for the postponement, he was on vacation in Europe with no intention of beginning chemotherapy treatments in Costa Rica beginning on Aug. 14, 2017.
In entering the guilty plea, Heilbron acknowledged that when he sent the false email, he was on release under a July 1, 2015 order of the U.S. District Court for the District of New Mexico relating to his health care fraud charge that put him on notice on the effect of committing crimes while on presentence release.
At sentencing, Heilbron faces a maximum penalty of 30 years in federal prison, which will run consecutive to the two-year term of term of imprisonment he faces as the result of his guilty plea in the health care fraud case. Heilbron remains in federal custody pending sentencing hearings in in his obstruction of justice and health care fraud cases, which have yet to be scheduled.
The obstruction of justice case was investigated by the Santa Fe and Albuquerque offices of the FBI, with assistance from the Charlotte office of the FBI and the U.S. Marshals Service, and the Santa Fe office of the FBI investigated the health care fraud case. Assistant U.S. Attorneys Jeremy Peña and George C. Kraehe are prosecuting both cases.
Saint Bernard Resident Pleads Guilty toRead the Press Release
United States Attorney Duane A. Evans announced that EMELDA MATTHEWS (“MATTHEWS”), age 36, of Violet, Louisiana, pleaded guilty yesterday to Aiding and Assisting in the Preparation of False Tax Returns.
According to documents filed in federal court, MATTHEWS operated a small tax preparer business from her home in Violet, Louisiana. And from 2013 through 2015, MATTHEWS, aided and assisted numerous federal income tax filers in preparing and filing false tax returns with the Internal Revenue Service.
The maximum penalty for aiding and assisting in the preparation of false tax returns is three years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. United States District Judge Susie Morgan set the sentencing hearing for May 2, 2018.
United States Attorney Evans praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Reserve Man Pleads Guilty to Crack ChargeRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL SANDERS, age 36, of Reserve, pled guilty today to charges relating to narcotics trafficking.
According to court documents, SANDERS conspired with others to distribute cocaine base (“crack”). SANDERS faces a term of imprisonment of up to twenty years, a fine of $1,000,000, and at least three years of supervised release following any term of imprisonment.
Judge Jane Triche Milazzo set sentencing for May 3, 2018. U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Repeat Investment Fraudster Convicted of Wire Fraud, Securities Fraud and Aggravated Identity TheftRead the Press Release
A federal jury convicted RICHARD THOMAS ZIESKE, a Renton man who presented himself as an investment advisor, of eight federal felonies late yesterday, announced U.S. Attorney Annette L. Hayes. ZIESKE was previously convicted of federal fraud charges for defrauding members of his church and others out of over $1.2 million by posing as an investment advisor. In the present prosecution, ZIESKE was charged with a similar scheme to defraud victims he met through a Renton martial arts studio. The jury deliberated for about two hours following the three-day trial before finding ZIESKE, 48, guilty of eight federal felonies. ZIESKE was convicted of five counts of wire fraud, one count of securities fraud and two counts of aggravated identity theft. U.S. District Judge James L. Robart scheduled sentencing for April 30, 2018.
According to records in the case and testimony at trial, in 2005 ZIESKE pleaded guilty to mail fraud, securities fraud and wire fraud for a scheme in which he solicited nearly $2 million from members of his church and others, fraudulently promising big returns on investments. ZIESKE was sentenced to 41 months in prison and ordered to pay more than $1.3 million in restitution. The Washington Department of Financial Institutions also entered a cease and desist order against him.
Nevertheless, in 2013, ZIESKE overheard a member of his Renton martial arts studio talking about his 401k account. The victim had been forced to retire and limit his martial arts due to a degenerative neck condition. ZIESKE convinced the victim to allow him to manage more than $95,000 in retirement funds, promising big returns. Instead, ZIESKE used the money to purchase a limited edition Harley Davidson motorcycle, to pay for liposuction surgery, and to finance a luxury SUV. ZIESKE attempted to recruit other ‘investors,’ and convinced the founder of the martial arts studio to invest about $40,000 with him. A brokerage firm closed ZIESKE’s trading account after its check revealed ZIESKE’s prior conviction. ZIESKE then opened another brokerage account using the identity of another member of the martial arts studio. That conduct is the basis for the aggravated identity theft convictions.
Wire fraud is punishable by up to 20 years in prison. Securities fraud is punishable by up to five years in prison. Aggravated identity theft is punishable by two years in prison consecutive to any other sentence imposed on other counts of conviction.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Michael Dion.
Pittston Man Sentenced to 33 Month’s Imprisonment for Role in Drug ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on January 31, 2018, United States District Court Judge Malachy E. Mannion sentenced Evans Samuel Santos Diaz, age 33, of Pittston, Pennsylvania, to 33 months’ imprisonment for his role in a drug conspiracy.
According to United States Attorney David J. Freed, Santos Diaz was convicted after a three-day trial in August 2017, of conspiring to distribute cocaine and 30 grams of heroin (which equates to approximately 1,200 individual doses) throughout Northeastern Pennsylvania between February and April 2016.
Santos Diaz was indicted by a grand jury on October 25, 2016.
The investigation was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, Pennsylvania State Police, and the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorneys Evan Gotlob and Sean Camoni prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Pittsburgh Woman Sentenced to Prison for Dealing HeroinRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 18 months’ imprisonment on her conviction of conspiracy to possess with intent to distribute and distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Auriana Torrez, age 25, of Pittsburgh, PA.
According to information presented to the court, from April through August 2016, Torrez was intercepted over a DEA wiretap conspiring with others to possess with intent to distribute and distribute heroin and was found in possession of 200 stamp bags of heroin.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Torrez. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Orlando Lawyer Sentenced to Three Years for Tax EvasionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced William B. Pringle, III to three years in federal prison for tax evasion. He also was ordered to pay $1,650,744 in restitution to the Internal Revenue Service.
A federal jury found Pringle guilty on November 3, 2017.
According to evidence presented at trial, Pringle owed more than $2.1 million in federal income taxes, interest, and penalties for the years 1996 and 1998-2010. Over a period of at least nine years, he avoided paying income taxes by hiding his substantial income and luxury assets from the IRS, and by engaging in tactics to stop the IRS from locating and seizing his assets to pay the taxes he owed.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
Omaha Man Sentenced to 8 Years for Attempting to Receive Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced today that Jeffrey T. Fenn, Jr., 37, was sentenced in federal court in Omaha for attempting to receive child pornography. The Honorable Robert F. Rossiter, Jr., sentenced Fenn to 96 months’ imprisonment. There is no parole in the federal system. After his release from prison, Fenn will begin a five-year term of supervised release.
Fenn befriended a 12-year-old girl while playing an online video game. They then began an online relationship over a popular messaging service. During the course of the online relationship, Fenn asked the girl to take sexually explicit pictures of herself and send them to him. She sent suggestive but not sexually explicit images. Fenn repeatedly asked for specific images of sexually explicit body parts and directed her to pose in specific ways. He threatened to end the online relationship if she did not comply. The minor girl refused to send the explicit images Fenn requested. The texts were reported to the Georgia Bureau of Investigation.
On January 19, 2017, the FBI Cyber Crimes Task Force served a search warrant on the Omaha address used during the online chats and texts. Fenn admitted to texting the minor and admitted to sending her images.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Oil and Gas Repairman Pleads Guilty to over $400,000 in Fraudulent InvoicesRead the Press Release
Oklahoma City, Oklahoma – LUIS ENRIQUE DAMAZO, also known as Luis Enrique Cassinelli, 54, of Oklahoma City, Oklahoma, has pleaded guilty to defrauding a Texas company of more than $400,000 through fraudulent invoices, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed on December 29, 2017, Damazo was employed as a repair technician by Dexter Field Services LP, a company headquartered in Austin, Texas. Dexter Field Services provided leak detection, environmental monitoring, and consulting services to industrial clients in the energy sector. Damazo’s job was to repair toxic vapor analyzers used to detect leaks at oil and gas refineries, which involved ordering replacement parts. From November 2009 through October 2015, he is alleged to have secretly operated a business known as BC Environmental. According to the charges, he used that business to prepare fictitious order forms and invoices showing purchases purportedly made on behalf of Dexter Field Services for equipment, replacement parts, and tools. He is charged with having received more than $400,000 from Dexter Field Services as a result of these fraudulent documents. He allegedly caused these checks to be deposited in a BC Environmental bank account and used the money for his personal benefit.
Today Damazo admitted these allegations and entered a guilty plea to mail fraud before U.S. District Judge Stephen P. Friot. As a result, he could be imprisoned for a maximum of twenty years, to be followed by three years of supervised release. He could also be fined up to $250,000 and will be subject to mandatory restitution. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Jessica L. Perry and William E. Farrior are prosecuting the case.
Reference is made to court filings for further information.
O.C. Man Charged with Producing Child Pornography and Child Sex Tourism for Allegedly Engaging in Sexual Conduct with Boy in ChinaRead the Press Release
LOS ANGELES – A federal grand jury today named an Aliso Viejo man in an indictment that accuses him of traveling to China to engage in illegal sexual activity with a 16-year-old and taking sexually explicit photographs of the victim.
Ezequiel Christopher Barragan, 51 – who previously was a Spanish teacher at Dana Hills High School, as well as a youth baseball coach – was charged today in a three-count indictment that accuses him of producing child pornography, traveling with the intent to engage in illicit sexual conduct with a minor, and engaging in illicit sexual conduct with a minor in a foreign place.
According to the indictment, Barragan traveled to China in August 2009, where he allegedly coerced a boy to engage in sexual conduct “for the purpose of producing a visual depiction of such conduct.”
The charge of producing child pornography carries a mandatory minimum prison sentence of 15 years and a maximum of 30 years. The charges of international travel and engaging in illicit sexual activity each carry a statutory maximum sentence of 30 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Barragan, who is currently serving a state prison sentence in an unrelated case, will be arraigned on the indictment in the coming weeks. The case against Barragan was investigated by the United States Postal Inspection Service, which received substantial assistance from the Los Angeles Joint Regional Intelligence Center and the Orange County Child Exploitation Task Force.
This case was indicted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Nine Indicted by Federal Grand Jury for Multiple Violent Robberies in North TexasRead the Press Release
DALLAS — A federal grand jury returned an indictment last week charging nine Houston residents with offenses related to eight violent robberies in North Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, the nine-count indictment, unsealed yesterday afternoon, charges, Jarvis Broussard, aka “Koppo,” 29; Trey Nathaniel Dickerson, 25; Christian Demond Gilbert, aka “Go Getta,” 28; Randy Lamark Hammond, 23; John Christopher Jones, aka “2tall,” 27; Brandon Chermaine Mallet, aka “Wookie,” 31; Chrisheena Ladale Milburn, aka “Beanz,” 27; Fernando Rafael Taylor, 29; and Jonathan Walker, aka “Johnathan Walker,” 31, with one count each of conspiracy to interfere with commerce by robbery and at least one additional count of interference with commerce by robbery.
The defendants were arrested today and will remain in custody pending their initial appearances.
The indictment arises out of a series of “jugging” offenses in the Dallas area. “Jugging” is a term informally used to refer to crimes that involve surveilling banks for potential targets suspected of having significant sums of cash and following the targeted victims to other locations where they are robbed. The indictment alleges that, on February 4, 2016 and continuing until at least July 22, 2017, the defendants conspired together to commit several robberies to obtain U.S. currency. The defendants discussed and planned the surveillance and selection of individuals for robbery; the acquisition of property for use in committing robbery; the timing and means of transportation to commit robbery; the roles of participants during the preparation for and commission of robbery; the division of proceeds obtained from robbery; and plans to avoid detection and apprehension by law enforcement.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. 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 is being conducted by the FBI, with assistance from the Dallas, Garland, Irving, and Richardson Police Departments. Assistant U.S. Attorneys Brian McKay and Sid Mody are in charge of the prosecution.
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New Orleans Men Plead Guilty to Gun and Carjacking ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced today that RODNEY BROWN, age 22 and MICHAEL PORTIS, 27, both of New Orleans, pled guilty to carjacking related charges. PORTIS pled guilty to brandishing a firearm during and in relation to a carjacking and BROWN pled guilty to carjacking.
According to court documents, on April 24, 2016, at approximately 2:29 a.m., two females were carjacked in the driveway of a house located in the 5000 block of N. Derbigny Street. The victims stated that they exited the house and entered a vehicle that was parked in the driveway of that location. PORTIS and BROWN, dressed in black and brandishing guns, approached from opposite sides of the vehicle. BROWN tapped on the window of the vehicle with a gun and stated, “You move I’ll shoot.” A third suspect stood nearby and acted as a lookout. The two females exited the car and the suspects entered and drove away. A short time later, the car was returned and left in the driveway.
One of the victims told the police officers that one of the suspects had facial tattoos. Officers canvassed the area, set up a perimeter and searched the block. Officers located PORTIS and two other subjects hiding in high bush nearby. PORTIS had facial tattoos and was wearing dark pants and a dark, hooded sweatshirt, consistent with the description given by the victims. The victim positively identified PORTIS as one of the gunmen. BROWN was not apprehended on the date of the incident, but was later identified and implicated on jail phone call recordings.
PORTIS faces a possible maximum sentence of life imprisonment, a fine of $250,000 and up to five years on supervised release. BROWN faces up to 15 years imprisonment, a fine of $250,000, and up to three years on supervised release. U.S. District Judge Carl J. Barbier scheduled PORTIS and BROWN to be sentenced on May 17, 2018.
New Haven Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT EPPS, 25, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on August 28, 2017, EPPS participated in the sale of a stolen Smith and Wesson .223 caliber semi-automatic rifle and two rifle magazines containing a total of 39 rounds of .223 caliber ammunition. On that date, EPPS transported the rifle and ammunition to a parking lot in New Haven. He then removed the firearm and ammunition from the trunk of his vehicle and handed the items to another person who, in turn, handed them to the purchaser.
EPPS’ criminal history includes state felony convictions for narcotics distribution and identity theft.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Arterton scheduled sentencing for April 27, 2018, at which time EPPS faces a maximum term of imprisonment of 10 years. EPPS is released on bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Mexican Man Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JORGE GARCIA-HERNANDEZ, age 33, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien.
According to court documents, GARCIA was previously removed from the United States on April 21, 2012. He was later found in the Eastern District of Louisiana on September 15, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
GARCIA faces a maximum term of imprisonment of two years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Mary Ann Vial Lemmon set sentencing for March 1, 2018.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican Citizen who was in the U.S. Illegally Sentenced to 210 Months in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Rosalio Ramos Tapia, aka “Rosalio Ramos,” “Chale,” and “Mocho,” 43, a citizen of Mexico and in the United States illegally, was sentenced earlier this week before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Tapia was sentenced to 210 months in federal prison following his guilty plea in October 2016 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 50 grams or more of methamphetamine. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Tapia has been in custody since his arrest in July 2016.
Tapia was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, fourteen have pleaded guilty, seven have been sentenced and two are awaiting trial. Four defendants remain fugitives.
According to documents filed in the case, between September 25, 2015 through March 18, 2016, Tapia and his coconspirators conspired to distribute methamphetamine and on several occasions, discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine.
Specifically, Tapia used coded language to purchase multiple kilograms of methamphetamine so that he could distribute the methamphetamine to other people. Once Tapia sold the kilograms of methamphetamine he provided drug proceeds to the supplier of the methamphetamine.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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Memphis Operator, LLC d/b/a Spring Gate Rehabilitation and Healthcare Center will pay $500,000 to the United States and the State of Tennessee for services rendered to residents of Spring Gate that were materially substandard and worthlessRead the Press Release
Memphis, TN – Memphis Operator, LLC d/b/a Spring Gate Rehabilitation and Healthcare Center will pay $500,000 to the United States and the State of Tennessee to resolve allegations of false claims to Medicare and Tenncare for services rendered to residents of Spring Gate that were materially substandard, worthless and were provided in violation of certain essential requirements that the United States expects skilled nursing facilities to meet.
The Complaint alleged that from 2012 to 2015, Spring Gate provided substandard and worthless nursing home services to residents. Under federal and state law, Medicare and Tenncare will not pay for services deemed to be so deficient that they are essentially worthless.
The allegations resolved in this settlement were first raised in a lawsuit filed against Spring Gate under the qui tam provisions of the False Claims Act, which permits parties to sue on behalf of the government for the submission of false claims and share in the recovery. The False Claims Act, 31 U.S.C. §§ 3729-3733, provides the United States with a cause of action against any person or entity that knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval.
The case was captioned United States of America and the State of Tennessee ex rel. Chris Godwin v. Memphis Operator, LLC (d/b/a Spring Gate Rehabilitation and Healthcare Center). Vericare Management, Inc. and PharMerica Corporation, No. 2:15-cv-2090 (W.D.Tenn.). During the investigation of this matter, Spring Gate cooperated with the United States and the State of Tennessee in bringing this matter to a resolution.
"Residents of nursing homes are some of our most vulnerable citizens. When nursing homes break the law by defrauding the government for substandard or worthless services we will use our resources to combat this fraud and hold them accountable," said D. Michael Dunavant, United States Attorney for the Western District of Tennessee.
"Protecting the health and safety of Medicare patients is one of our primary concerns," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "Nursing facilities that fail to meet minimum quality standards can expect to pay a heavy price for neglecting their residents."
In addition to the $500,000 settlement, Spring Gate entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General intended to deter future wrongful conduct.
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General, the Tennessee Bureau of Investigation and the Tennessee State Attorney General’s Office.
Assistant United States Attorneys Stuart J. Canale and Matt Waldrop and Steve Jobe, Senior Counsel for the Tennessee Attorney General prosecuted this case on the government’s behalf.
McHenry Man Convicted of Child Pornography ChargesRead the Press Release
ROCKFORD — A McHenry man was found guilty of child pornography charges following a four-day jury trial in federal court in Rockford.
MICHAEL L. CHAPARRO, 29, was charged with one count of transporting child pornography via the internet, and two counts of accessing child pornography that had crossed state lines, including an image of a prepubescent minor and a minor under 12 years of age, with intent to view the child pornography.
According to the indictment and the evidence at trial, on Aug. 7, 2014, Chaparro knowingly transported to Pennsylvania and Texas materials depicting one or more actual minors engaged in sexually explicit conduct. In addition, evidence at trial indicated that Chaparro accessed a smart phone on Nov. 24, 2014, and computer hard drive on July 30, 2013, with intent to view child pornography, knowing that one or more persons depicted in an image involved a prepubescent minor or a minor who had not attained 12 years of age.
Transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and accessing child pornography carries a maximum of ten years in prison and up to 20 years in prison for an offense involving a minor under 12 years of age. Each count carries a $250,000 maximum fine. The court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. A sentencing hearing will be set by the Court at a later date.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Bill Prim, McHenry County Sheriff. The Illinois Internet Crimes Against Children Task Force assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.
Manhattan Man Charged in Connection with Arson at A Manhattan BarRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, the Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of LUIS SAQUICILI in connection with an arson in New York, which occurred on the evening on January 31, 2018. It is alleged that SAQUICILI threw a glass bottle with ignitable liquid and a lit wick, commonly known as a “Molotov cocktail,” into a bar in East Harlem. SAQUICILI was arrested this morning, and presented today in Manhattan federal court before the Honorable Kevin N. Fox.
Manhattan U.S. Geoffrey S. Berman said: “As alleged, Luis Saquicili put the public at grave risk when he threw an incendiary device into a bar that was open for business. Thanks to the Strategic Explosive and Arson Response Task Force, shortly after this incident, Saquicili was located and arrested.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “The alleged actions of Luis Saquicili could have resulted in damage, destruction and death for many innocent people. Thanks to the efforts of the Agents, Detectives and Fire Marshals assigned to the ATF/ NYPD/FDNY Strategic Explosive and Arson Response Task Force, Mr. Saquicili was quickly apprehended and brought to justice. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting this case.”
Police Commissioner James P. O’Neill said: "This defendant is accused to hurling a Molotov cocktail into an East Harlem bar that was open for business. He put the lives of civilians and first responders at risk, so I want to thank those who responded to and investigated this act of arson for their hard work to bring this dangerous individual to justice."
Fire Commissioner Daniel A. Nigro said: “Without question, this fire could have resulted in many lives lost. I applaud our Fire Marshals and the members of the NYPD and ATF for their quick work and collaboration to apprehend this suspect.”
Accordingly to allegations in the Complaint filed in Manhattan federal court.[1]
On January 31, 2018, at approximately 8:00 p.m., SAQUICILI entered a bar in New York, where he had been a patron for over one year. He was refused entry by the owner of the bar because he was heavily intoxicated. At approximately 10:45 p.m., SAQUICILI returned to the bar and threw a glass bottle that contained an ignitable fluid and lit wick onto the floor of the bar. The bottle broke causing a fire and charring the floor of the bar.
Mr. Berman praised the outstanding work of the Strategic Explosive and Arson Response Task Force of the ATF, the NYPD, and the FDNY.
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SAQUICILI, 46, of New York, New York, is charged with one count of arson, which carries a mandatory minimum of five years in prison and a maximum 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jamie E. Bagliebter is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man from Liberal Sentenced for Distributing Child PornographyRead the Press Release
WICHITA, KAN. – A man from Liberal was sentenced Thursday to 72 months in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said.
Michael Martin, 50, Liberal, Kan., pleaded guilty to one count of distributing child pornography. Martin admitted that a detective with the Kansas Internet Crimes Against Children Task Force downloaded child pornography from Martin’s computer over a file-sharing network. The images depicted a prepubescent girl engaged in sex acts with an adult. Investigator also found child pornography on Martin’s smartphone.
McAllister commended Homeland Security Investigations, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Man Indicted for Firearms and Hobbs Act RobberyRead the Press Release
U.S. Attorney Duane A. Evans announced that STEPHAN MITCHEL THOMAS, age 22, of Holden, Louisiana, was charged with federal firearms violations and Hobbs Act robberies in a seven-count indictment.
According to the indictment, THOMAS committed robberies in violation of Title 18, United States Code 1951(a) on July 11, 2016 and September 1, 2016, and brandished firearms during these robberies, in violation of Title 18, United States Code 924(c). The indictment also alleges that, on August 31, 2016, THOMAS possessed a firearm silencer, a short-barrel rifle, and a sawed-off shotgun, without registering these firearms in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Section 5861.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, THOMAS faces, as to each count of Hobbs Act robbery, a maximum term of imprisonment of 20 years, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment. As to each count of brandishing a firearm during a crime of violence, THOMAS faces a minimum sentence of seven years up to a maximum term of imprisonment of life, consecutive to any other term of imprisonment, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment. As to each count of possessing unregistered firearms, THOMAS faces a maximum term of imprisonment of 20 years, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Shirin Hakimzadeh.
Lubbock Man Involved in Furanyl Fentanyl Distribution Conspiracy Pleads Guilty to Federal Drug ChargeRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Steven Lawrence Forcum, 32, appeared yesterday before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to a federal offense stemming from his role in a large-scale furanyl fentanyl distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Forcum pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He faces a statutory penalty of not more than twenty years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Forcum’s guilty plea.
Co-defendants, Krisandrea Monee Dobbs, 31; Peyton Cleveland Wilson, 27; and Ashlyn Paige Utley, 23, previously pleaded guilty to their role in the conspiracy and are awaiting sentencing.
Law enforcement first learned of Forcum’s involvement in distributing the potent synthetic opioid when Forcum voluntarily made a police report that someone had stolen his supply of fentanyl.
According to the plea agreement factual resume in Forcum’s case, between 2015 and October 2016, Forcum used his email account to contact numerous international companies to purchase large quantities of furanyl fentanyl and other controlled substances. In corresponding with these international companies, Forcum would boast that he sells a kilogram of furanyl fentanyl every two months. He also bragged that fentanyl and synthetic fentanyl were his “hottest sellers for years.” Forcum admitted that he routinely supplied Wilson and Dobbs with furanyl fentanyl for distribution in the Lubbock, Texas, area.
Fentanyl is a potent synthetic opioid analgesic that is about 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine. Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance. Fentanyl is potentially lethal, even at very low levels. Ingestion of small dosages—the equivalent of a grain of salt—can be fatal. Fentanyl can also be absorbed through the skin and accidental inhalation of airborne powder can occur.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance.
The Drug Enforcement Administration and the Lubbock Police Department are in charge of the investigation.
Assistant United States Attorney Russell Lorfing is in charge of the prosecution.
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Leonardtown Man Exiled to 10 Years in Prison for Possession of A FirearmRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Deborah J. Chasanow sentenced Jason Andre Armstrong, age 43, of Leonardtown, Maryland to 10 years in prison followed by three years of supervised release for being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Sheriff Timothy K. Cameron of the St. Mary’s County Sheriff’s Department; and Richard Fritz of the St. Mary’s County State’s Attorney’s office.
According to his plea agreement, on March 5, 2016, Armstrong entered a residence in Lexington Park, Maryland, demanded money from the occupants and threatened them with a handgun. Armstrong then left the residence, got into the rear driver’s side passenger seat of a vehicle, and the vehicle drove away. Shortly after receiving a description of the vehicle, St. Mary’s County Sheriff’s officers stopped the vehicle and arrested Armstrong.
Officers recovered a 9mm caliber semi-automatic pistol from underneath the driver’s seat on the rear passenger side. The pistol was reported stolen in 1995 from a federally licensed firearms store in St. Mary’s County, Maryland. After the officers advised Armstrong of his rights on the scene, Armstrong admitted that he possessed the firearm.
On April 20, 2005, in St. Mary’s County, Maryland, Armstrong was convicted of robbery. As a felon, Armstrong was prohibited from possessing a firearm.
Acting United States Attorney Stephen M. Schenning commended the FBI, the St. Mary’s County Sheriff’s Department and the St. Mary’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Schenning thanked Assistant U.S. Attorney Kelly Hayes, who prosecuted the case.
Lake Wales Man Pleads Guilty to Tax Fraud ChargesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Tedderick Fields (40, Lake Wales) has pleaded guilty to two counts of filing false claims with the Internal Revenue Service. He faces up to five years in federal prison on each count.
Fields was indicted on January 18, 2017, and arrested in the Southern District of Florida on June 13, 2017.
According to court documents, Fields filed false tax returns in his name from 2011 through 2013. In 2012, his false tax return resulted in the issuance of a fraudulent tax refund check in the amount of $400,000.
This case was investigated by Internal Revenue Service – Criminal Investigation, with assistance from the St. Lucie County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Jersey City Police Officer Admits Conspiracy to Commit Fraud and Accept Corrupt PaymentsRead the Press Release
NEWARK, N.J. – A Jersey City police officer today admitted accepting corrupt payments in exchange for helping employers operate at worksites without the required presence of an off-duty police officer, U.S. Attorney Craig Carpenito announced.
Juan Berrios, 41, of Rahway, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments.According to documents filed in this case and statements made in court:
Berrios was a police officer with the Jersey City Police Department from 2004 to 2017. Under Jersey City’s municipal code, police officers performing off-duty work were not permitted to receive cash payments directly from other employers. Rather, the employers were supposed to pay Jersey City, which would then pay the off-duty police officers, minus certain fees, taxes and deductions.
Berrios agreed with numerous off-duty employers to accept payments directly from them and cut Jersey City out of the process. In exchange for the payments, Berrios permitted off-duty employers to operate at worksites without the presence of a police officer when such a presence was required.
On several occasions, Berrios submitted off-duty vouchers seeking and obtaining compensation for working as a traffic director or security guard. Berrios also sought and received overtime compensation for appearing in court at the same time he was purportedly performing off-duty work. As a result, Berrios fraudulently obtained compensation from Jersey City for separate assignments that occurred at the same time.
Berrios faces a maximum statutory penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Berrios will forfeit $50,000. His sentencing is scheduled for April 16, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Danny J. Welsh Esq. Jersey City, New Jersey
Jefferson County man admits to firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Mark Hanshaw, of Jefferson Village, West Virginia has admitted to a firearm charge, United States Attorney Bill Powell announced.
Hanshaw, age 28, pled guilty to one count of “Drug User in Possession of a Firearm – Aiding and Abetting.” Hanshaw admitted to illegally possessing a Taurus 38 Special handgun. The crime occurred in September 2015 in Jefferson County.
Hanshaw faces up to ten 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 Paul T. Camilletti is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Israeli National Pleads Guilty to Cocaine Conspiracy and International Money Laundering ChargesRead the Press Release
BOSTON – An Israeli national pleaded guilty today in federal court in Boston to conspiring to transfer $2.5 million worth of cocaine from Colombia to Israel via Boston and to money laundering charges.
Jalal Altarabeen, a/k/a Glal El Tarbin, a/k/a Jalal Salamah, a/k/a Abu Rasheed, 34, pleaded guilty to one count of conspiring to possess with intent to distribute and to distribute more than five kilograms of cocaine and six counts of international money laundering. U.S. District Court Judge Indira Talwani deferred acceptance of the plea until sentencing, which she scheduled for April 13, 2018. In February 2017, Altarabeen was extradited from Poland after being indicted with a co-conspirator. Altarabeen and the co-conspirator were previously charged in a federal criminal complaint in March 2016.
From October 2015 to April 20, 2016, Altarabeen and his co-conspirator conspired in Boston, Colombia, Poland, and elsewhere to distribute 50 kilograms of cocaine and to launder money internationally. They also negotiated to buy 50 kilograms of cocaine from an undercover officer posing as a drug trafficker. The undercover officer’s relationship with the co-conspirator began in 2008 and included a meeting in Nicosia, Cyprus.
Altarabeen and the co-conspirator agreed to pay the undercover officer $50,000 per kilogram to have the cocaine delivered in Israel. The undercover officer told the conspirators that the cocaine would be transported from Colombia to Boston and from Boston to Beersheba, Israel. Altarabeen agreed to make an advance payment of nearly $1 million to cover transportation costs, and he sent six wire transfers from Turkey totaling $999,972 to an undercover bank account in Boston. The undercover officer and Altarabeen agreed that Altarabeen would pay the $1.5 million balance after the receipt and sale of the 50 kilograms of cocaine.
Over several months, the undercover officer spoke with Altarabeen and the co-conspirator by telephone, WhatsApp, video Skype and in person. They contacted the undercover officer using telephone numbers from Cyprus, Jordan, Israel, Palestine and Colombia, and discussed the drug transaction while in Bogota, Colombia, on Oct. 14, 2015, and Feb. 9, 2016.
The drug trafficking statute provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The money laundering statute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $500,000 or twice the value of the property involved in the offense. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration; Joel Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Independence Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man was among four area residents sentenced in federal court for their roles in a conspiracy to distribute methamphetamine.
William D. Whitehurst, 54, of Independence, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, Feb. 1, 2018, to 15 years in federal prison without parole.
Co-defendants John D. Grandon, 47, of Independence, his sister, Regina R. Williamson, 54, of Kansas City, Mo., and James P. Earl, 48, of Blue Springs, Mo., were also sentenced yesterday. Grandon was sentenced to 10 years in federal prison without parole. Williamson was sentenced to two years and six months in federal prison without parole. Earl was sentenced to four years and six months in federal prison without parole.
Whitehurst, Grandon, Williamson and Earl each pleaded guilty to their roles in a drug-trafficking conspiracy that ran from Nov. 1, 2013, to Sept. 24, 2014. Grandon also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Whitehurst and Earl each admitted that he purchased methamphetamine from co-defendant Melanie C. Hamilton, 45, of Independence. They then redistributed that methamphetamine to Grandon, Williamson and others.
Grandon admitted that he is individually responsible for the purchase and redistribution of at least 1.5 kilograms of methamphetamine. A confidential informant told investigators that he had seen Grandon at his residence with half a pound of methamphetamine and a gun. Law enforcement officers executed a search warrant at Grandon’s residence on July 1, 2014, and found approximately 160 grams of methamphetamine, a Smith and Wesson .380-caliber revolver, $2,944 and numerous items of drug paraphernalia. Grandon told investigators that he had purchased approximately half a pound of methamphetamine each week from Whitehurst over the past three months (approximately 2.7 kilograms).
Williamson admitted to selling approximately three to four ounces of methamphetamine per week at $1,000 per ounce for approximately two months (approximately 792 grams of methamphetamine). Williamson sold methamphetamine to her brother Grandon’s customers while he was incarcerated.
Hamilton pleaded guilty to being the source of supply for the drug-trafficking conspiracy and is scheduled to be sentenced on April 12, 2018. Hamilton admitted that she obtained large quantities of methamphetamine, which she broke down into smaller quantities for redistribution. A confidential informant made three separate controlled purchases from Hamilton; on each occasion she weighed out approximately 8.3 grams of methamphetamine from a large zip-lock freezer bag that contained multiple pounds of methamphetamine.
Law enforcement officers executed a search warrant at Hamilton’s residence on Sept. 24, 2014, and seized more than a kilogram of methamphetamine, a DVR containing video surveillance of individuals coming and going from her residence, and drug paraphernalia. Hamilton told investigators that she had received one to two pounds of methamphetamine from her source every other week over the past three months (1.5 pounds per two weeks, or three pounds per month, totals nine pounds, or 4,086 grams). The totality of the investigation indicates that Hamilton was involved in the distribution of at least five kilograms of methamphetamine.
Five additional co-defendants have also pleaded guilty and been sentenced.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Jackson County Drug Task Force and the Independence, Mo., Police Department.
Illinois Man Charged with Operating Unemployment Benefits Fraud and Identity Theft SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging RICHARD M. LACH, 31, of Richton Park, Illinois, with six counts of wire fraud and one count of aggravated identity theft stemming from a scheme to defraud state unemployment insurance programs in Connecticut and several other states.
LACH was arrested this morning in Matteson, Illinois. He appeared today in U.S. District Court for the Northern District of Illinois, in Chicago, and was order detained pending his removal to the District of Connecticut.
According to the indictment, LACH fraudulently filed claims with the Connecticut Department of Labor for unemployment benefits in the names of identity theft victims, using their names, dates of birth and social security numbers. LACH directed that the unemployment benefits be directly deposited to Green Dot debit cards he was using. The Green Dot cards had been fraudulently opened in the names of other victims. In some cases, based on the fraudulent claims, unemployment benefits were deposited to the Green Dot cards. LACH then withdrew the funds or otherwise spent the funds for his own personal use and benefit.
The indictment further alleges that in addition to fraudulently obtaining unemployment benefits from the Connecticut Department of Labor, LACH also fraudulently obtained or attempted to obtain unemployment benefits from agencies in other states, including Idaho, Iowa, Maine, New Jersey, New York, Pennsylvania and Texas.
Each count of wire fraud carries a maximum term of imprisonment of 20 years and aggravated identity theft carries a mandatory consecutive two-year term of imprisonment
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, New York State Department of Labor, and Matteson (Illinois) Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Husband and Wife Plead Guilty in Scheme to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bin “Ben” Wen, 46, and Peng “Jessica” Zhang, 45, both formerly of Horseheads, NY, pleaded guilty for their roles in a scheme to defraud the United States before U.S. District Judge Elizabeth A. Wolford. Wen pleaded guilty to conspiracy to commit wire fraud which is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. Zhang pleaded guilty to conspiracy to defraud the United States and faces a maximum sentence of five years in prison and a $250,000 fine. As part of the plea, the defendants agreed to forfeit nearly $5,000,000 in assets derived from their criminal activity.
Assistant U.S. Attorneys Tiffany H. Lee Grace M. Carducci, who are handling the case, stated that between June 2010, and December 2015, the defendants participated in a scheme to defraud departments and agencies of the United States of federal research funds that were awarded to companies controlled by the defendants. The government entities defrauded by the defendants included: the National Science Foundation (NSF); the United States Department of Energy (DOE); and the United States Department of Agriculture (USDA).
In December, 2003, Zhang incorporated United Environment & Energy, L.L.C. (UEE) in Horseheads, NY. Meanwhile, Wen incorporated Advanced Technologies and Materials, L.L.C. (ATM), in December, 2007, also in Horseheads. UEE submitted approximately 13 applications to NSF totaling over $2,600,000, 10 applications to the DOE totaling more than $5,000,000 and four applications to the USDA totaling approximately $650,000. The defendant received, through their companies, approximately $8,400,000 in awards from the NSF, the DOE, and the USDA.
Wen and Zhang submitted false and fraudulent information in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) applications by:• fabricating letters of support and investment;
• providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.A substantial amount of the fraudulently obtained money went toward the personal use and benefit of the defendants.
“By diverting monies that were intended to promote innovation and technology in small businesses, the defendants, through their frauds, not only swindled taxpayers but stifled economic and scientific development,” stated U.S. Attorney Kennedy. “It is a core responsibility of this Office to ensure that those receiving federal funds are entitled to those funds and that they are spent in accordance with the purposes for which it was given. Wen and Zhang neither deserved nor appropriately dispersed the millions of dollars in grants that they received.”
Allison Lerner, NSF’s Inspector General said, “The defendants conspired to provide false information about their businesses in SBIR/STTR research proposals, correspondence, and reports submitted to the federal government, misrepresenting among other things, their key personnel and investments, and forming multiple sham companies to carry out their fraud schemes. Not only did they divert scarce taxpayer dollars intended for scientific research to personal use, they inflated their budgets with hours for individuals who were not actually employed by or doing research for their business, and doctored their biographies to strengthen their proposals, victimizing legitimate researchers and professionals in the community. I commend the U.S. Attorney’s Office and our investigative partners for their work on this case.”
“The SBIR Program is an essential Department of Energy program that supports scientific excellence and technological innovation,” stated Principal Deputy Inspector General April G. Stephenson. “We appreciate the efforts of our investigative partners and the U.S. Attorney’s Office in pursuing this matter. We will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
“In addition to enforcing the nation’s criminal tax laws, we are also an essential part of the larger law enforcement community,” said James D. Robnett, Special Agent-in- Charge, IRS-Criminal Investigation, New York Field Office. “Our specialized financial expertise is needed in these large and complex investigations, where in this case our Criminal Investigators followed the complex flow of money designed by the defendants to conceal fraudulent grant proceeds they obtained. In addition to today’s guilty plea, this led to the seizure of $5,000,000 in assets that will be forfeited.”“This investigation demonstrates that ensuring taxpayer dollars are protected from fraud and abuse is a top priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Douglas Shoemaker, DOT OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial partners, we will continue our efforts to promote the prevention, detection, and prosecution of contract and grant fraud schemes.”
Today’s plea is the result of a joint investigation by Special Agents with the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner; the Department of Energy, Office of Inspector General, under the direction of Principal Deputy Inspector General April G. Stephenson; the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office; and the Department of Transportation, Office of Inspector General, under the direction of Special Agent-in-Charge Douglas Shoemaker.
Heroin Traffickers Plead GuiltyRead the Press Release
Memphis, TN – Jacqueline DeAvila Montoya, 23 and Selene Yanira Castillo-Meraz, 19, pleaded guilty to federal charges of distribution of heroin and conspiracy to distribute heroin. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to the information presented, on October 4, 2017, Montoya and Castillo-Meraz were charged with conspiracy to distribute heroin and distribution of heroin in a 4-count indictment handed down by a federal grand jury in Memphis.
United States Attorney D. Michael Dunavant said: "Our nation and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. This office will use every available resource to prioritize cases involving the distribution of heroin, and to disrupt and dismantle drug trafficking organizations that deliver this deadly poison to citizens in the Western District of Tennessee".
On September 7, 2017, the two women were stopped for speeding on Interstate 40 in Memphis. A subsequent search of their vehicle revealed over 18 pounds of heroin and other illegal narcotics. The defendants were bringing the drugs from California through Tennessee on their way to a delivery in New York City. David Silva Garcia has been identified as another co-conspirator from California, and is currently under indictment in Memphis for his role in the drug trafficking organization.
At the plea hearing, the two women pleaded guilty to Counts 1 and 3 of the indictment for trafficking heroin. They each face a mandatory minimum of 10 years imprisonment.
This case was investigated by the West Tennessee Drug Task Force, an arm of the Shelby County District Attorney’s Office; and the Drug Enforcement Administration in Memphis along with their DEA partners in Riverside, California, New York City and Mexico City.
Assistant U.S. Attorney Joseph F. Griffith is prosecuting this case on the government’s behalf.
Hedge Fund Manager Charged in Manhattan Federal Court with Scheme to Defraud InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging NICHOLAS JOSEPH GENOVESE with securities and wire fraud in connection with a scheme to induce investments in a hedge fund by misrepresenting his qualifications and professional background. From 2015 through January 2018, GENOVESE fraudulently solicited investments in a hedge fund that he had founded, Willow Creek Investments LP (“Willow Creek”), by claiming that he had impressive credentials and a long history serving in significant roles at major Wall Street financial institutions. Victims invested at least $4 million with GENOVESE based on these representations. The claims that GENOVESE made to help secure these investments, however, were false. GENOVESE did not possess the credentials he claimed and had never worked at the financial institutions he referenced. In addition, GENOVESE failed to inform his investors that he had multiple felony convictions for grand larceny, forgery, and related offenses. GENOVESE was arrested today and will be presented in the Southern District of Florida.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against GENOVESE.
U.S. Attorney Berman said: “Nicholas Genovese allegedly touted fictitious credentials when luring victims to invest over $4 million into his hedge fund, Willow Creek, falsely claiming to have an Ivy League MBA and to have held senior roles at Wall Street firms. In reality, as alleged, Genovese had a criminal history and lost millions in stock trades. We thank our law enforcement and regulatory partners for their continued efforts to eliminate fraud from our equity markets.”
Assistant Director-in-Charge Sweeney said: “Through a series of gross misrepresentations, about himself and his supposed credentials, Genovese solicited millions of dollars from victims who invested in the hedge fund he founded. But he was no master of illusion, as proven by the nearly $8 million he lost throughout the course of this smoke-and-mirrors scheme. While this money may have seemingly vanished into thin air, his intentions have been clearly interpreted. Today we hold him accountable for his crime.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
In or about September 2015, GENOVESE began soliciting individuals to invest in the hedge fund that became Willow Creek. In multiple conversations and later in written offering materials, GENOVESE represented, among other things, that he had graduated from the University of Kentucky and Dartmouth College’s Tuck School of Business, and that he had extensive Wall Street experience. In particular, GENOVESE claimed that he had been a Goldman Sachs partner and a Bear Sterns portfolio manager before forming Willow Creek. Based in part on these claims, victims invested at least $4 million with GENOVESE.
These representations were false. Records indicate that GENOVESE did not attend the University of Kentucky or the Tuck School of Business and had never worked for Goldman Sachs or Bear Stearns. GENOVESE also did not tell his investors that he had multiple prior felony convictions.
When investors began to ask for their money back, GENOVESE put them off. He told one investor that he would only return that investor’s funds after “the stars have aligned,” or else there would be a risk that almost all the money would be lost as a result of the purported impracticalities of unwinding unspecified trading positions. Records indicate that GENOVESE lost approximately $8 million trading in TD Ameritrade accounts between January 2015 and December 2017.
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GENOVESE, 52, is a resident of New York, New York. GENOVESE is charged with one count of securities fraud and one count of wire fraud. Each charge carries a maximum term of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Samson Enzer is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Hazleton Man Sentenced to Two Years in Prison for Making Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amaury Guzman-Escobar, age 31, of Hazleton, Luzerne County, was sentenced today by United States District Court Judge Malachy E. Mannion, to serve two years in prison on the charge of conspiracy to make false statements to a federally licensed firearms dealer.
According to United States Attorney David J. Freed, Guzman-Escobar admitted that he and another individual, Crystal Muentes, age 34, of Scranton, provided false information regarding the purchase of two firearms from Dave’s Gun Shop, in Drums, Luzerne County, on June 1, 2016 and June 17, 2016, and the purchase of a firearm from Ed’s Sports Shop in Tamaqua, Schuylkill County, on June 17, 2016. Two of the firearms purchased by Guzman-Escobar and Muentes were later recovered in the mail by Postal Inspectors in Puerto Rico.
In addition to the sentence of imprisonment, Judge Mannion ordered that Guzman-Escobar be supervised by a probation officer for three years after his release from prison.
Crystal Muentes was previously sentenced by Judge Mannion to serve two years of probation.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service. Members of the Scranton Police Department also participated in the investigation. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Hazleton Man Charged with Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Portanova, age 27, of Hazleton, was indicted on January 23, 2018, by a federal grand jury for receiving child pornography. The case was unsealed following Portanova’s initial appearance before United States Magistrate Judge Karoline Mehalchick.
According to United States Attorney David J. Freed, the indictment alleges that Portanova committed the offense between August 2017 and October 30, 2017, in Luzerne County. The indictment also alleges that Portanova used a computer and cell phone to commit the crime.
The indictment further alleges that Portanova committed the offense after having been convicted of dissemination and possession of child pornography in Luzerne County in 2014.
The case was investigated by Homeland Security Investigations and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
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."
The maximum penalty under federal law for these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Sentenced to 15 Years’ Imprisonment for Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saquan Parker, age 34, of Harrisburg, Pennsylvania, was sentenced on February 1, 2018, by United States District Court Judge Yvette Kane to 180 months’ imprisonment for firearm charges.
According to United States Attorney David J. Freed, on August 18, 2015, Parker and co-defendant Jordan Keys tried to sell four stolen firearms (CBC .22 caliber rifle, Remington 12 gauge shotgun, Winchester 30/30 rifle, and a Marlin .22 caliber rifle) to a pawn broker in Susquehanna Township, Dauphin County. Parker and Keys were arrested at that time by the Susquehanna Township Police Department. Parker was a convicted felon who illegally possessed the four stolen firearms.
Keys was sentenced on November 16, 2017, to 36 months’ imprisonment.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The investigation was conducted by Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Susquehanna Township and Fairview Township Police Departments. Assistant United States Attorneys William Behe and Michelle Olshefski prosecuted the case.
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Guatemalan Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
YONI LOPEZ-ROJAS, age 25, a citizen Guatemala, pleaded guilty today to a one-count bill of information for illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
YONI LOPEZ-ROJAS faces a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, Mr. LOPEZ –ROJAS is subject to a period of supervised release after imprisonment of up to three years. Sentencing has been scheduled for March 7, 2018.
According to the indictment, on September 6, 2017, YONI LOPEZ-ROJAS used a social security number that did not belong to him to register for a safety training course that his employer required him to take before he could begin working for the company as a pipe insulator.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Guatemalan Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that MISAEL BERNAL, age 32, a citizen of Guatemala, was charged in a one-count indictment for violations of the Federal Gun Control Act.
According to the indictment, on or about December 26, 2017, BERNAL, an alien present illegally in the United States, was found in possession of a Hi-Point, Model C-9, 9mm semi-automatic pistol, as well as 9mm ammunition.
If convicted of these charges, BERNAL faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Evans praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Gramercy and Laplace Men Indicted on Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that THORNE BROWN, age 30, of Gramercy, and EDWIN WATSON, age 36, of LaPlace, were indicted on January 26, 2018 by a federal grand jury for charges of distributing and conspiring to distribute methamphetamine. The indictment was unsealed on January 31, 2018.
According to the indictment, since October 9, 2017, BROWN and WATSON conspired to distribute and possess with the intent to distribute more than fifty grams of methamphetamine and more than five hundred grams of a mixture containing a detectible amount of methamphetamine. In addition, BROWN and WATSON are charged with more than fifty grams of methamphetamine and more than five hundred grams of a mixture containing a detectible amount of methamphetamine on October 17, 2017. If convicted of these charges, the defendants face a term of imprisonment of at least ten years and up to life.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
Four Individuals Indicted for Conspiracy to Possess and Import over $5 Million in CocaineRead the Press Release
SAN JUAN, Puerto Rico – On February 1, 2018, a federal grand jury in the District of Puerto Rico returned an indictment against four defendants charged with Conspiracy to Possess with the Intent to Distribute Cocaine and Conspiracy to Import a Controlled Substance. Agents from the U.S. Customs and Border Protection (CBP) Air and Marine Operations along with agents from the Federal Bureau of Investigation seized 292 pounds (132 kilos) of cocaine concealed inside two hidden compartments in a vessel, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On January 27, 2018, a CBP St. Thomas Marine Unit intercepted a vessel after it had left Crown Bay Marina in the United States Virgin Islands (USVI). The vessel was headed towards Puerto Rico. Due to the rough sea conditions, the crew escorted the vessel back to the Crown Bay cruise ship dock in the USVI where a CBP K9 inspected the vessel. During a subsequent inspection of the vessel, agents discovered a hidden compartment inside the vessel. Inside this hidden compartment, agents recovered approximately 55 brick shaped objects, which later tested positive for the characteristics of cocaine.
On January 28, 2018, the Federal Bureau of Investigations with the help of the United States Attorney’s Office in the District of the Virgin Islands obtained a search warrant for the vessel. During a thorough search of the vessel, St. Thomas Marine Unit agents found an additional 56 brick shaped objects, which later tested positive for the characteristics of cocaine. The kilograms of cocaine were located in a hidden compartment under the carpet holding a bolted down table in the bow of the vessel.
At the time of the interdiction, there were four individuals on board, all of whom were Indicted in the District of Puerto Rico: Maximiliano Fígaro-Benjamín and Emiliano Fígaro-Benjamín, United States Permanent Resident Card holders from the Dominican Republic; Alexandria Andino-Rodríguez, a United States Citizen; and Katerin Martinez-Alberto, a United States Permanent Resident Card holder from Switzerland.
A total of 111 bricks of cocaine was seized from the defendants, weighing 292 pounds (132 kilos). The estimated wholesale value of the narcotics is over $5 million.
The Federal Bureau of Investigation is in charge of the investigation along with agents from the Caribbean Corridor Strike Force (CCSF), with the collaboration of the United States Coast Guard (USCG), U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO), CBP Air and Marine Operations (CBP AMO), CBP United States Border Patrol (CBP USBP), Homeland Security Investigations (HSI) and PR Joint Forces of Rapid Action (FURA). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF), which investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
Assistant U.S. Attorneys Stuart J. Zander and Laura Montes are in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Fort Wayne Man Sentenced to 120 Months ImprisonmentRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Samuel J. Gemple, age 49, of Fort Wayne, Indiana was sentenced before Chief Judge Theresa Springmann on his guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 kilograms of marijuana.
Gemple was sentenced to 120 months of imprisonment and 8 years of supervised release
According to documents in this case, Gemple was delivering large marijuana shipments for the conspiracy and that he was obtaining heroin from the conspiracy and distributing it to his drug customers.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets and Gang Task Force, whose members include FBI, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The United States Marshals Service also assisted with the apprehension of Gemple. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey Speith.
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Former Virginia Attorney Sentenced to 7 Years in Prison for Laundering and Attempting to Launder over $2 MillionRead the Press Release
A former Vienna, Virginia attorney was sentenced today to 84 months in prison for conspiring to launder over $2 million dollars derived from a business email compromise scheme and for attempting to launder funds he believed to be the proceeds of smuggling illegal aliens into the United States and trafficking firearms in Africa.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., made the announcement after Ho was sentenced by U.S. District Judge Leonie M. Brinkema.
Raymond Juiwen Ho, 48, pleaded guilty on Oct. 19, 2017 to one count of conspiracy to commit money laundering and one count of money laundering. According to court documents, from at least March 2013 to February 2017, Ho engaged in a large-scale money laundering scheme that resulted in millions of dollars being moved through bank accounts (some of which were attorney trust accounts) that Ho or his co-conspirators controlled. Specifically, between July and November 2014, Ho participated in a conspiracy in which co-conspirators sent emails from compromised or imitation accounts that duped victims into transferring money to accounts controlled by Ho and others. Ho then laundered these stolen funds, moving them through and to accounts located in the United States and abroad. Ho, who recruited others to aid his laundering activities, laundered over $2 million in unlawfully obtained funds.
Ho engaged in his money laundering business despite multiple instances of banks closing his accounts due to fraud and inquires by law enforcement. Eventually, in November 2015, HSI initiated an operation in which undercover HSI agents sought Ho’s assistance in moving the proceeds of human smuggling and firearms trafficking between bank accounts located in the United States and overseas. Ho engaged in four such transactions between December 2015 and June 2016, involving over $175,000 that he believed were the proceeds of the illegal smuggling and firearms trafficking activity.
Throughout the criminal conduct described above, Ho was a practicing attorney for an intellectual property law firm based in Washington, D.C. As part of this case, he has surrendered his bar licenses from Georgia and the District of Columbia.
The investigation was conducted by HSI Washington, DC. Senior Counsels Ryan K. Dickey and James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Alexander P. Berrang of the Eastern District of Virginia and Trial Attorney Kendrack D. Lewis and Former Trial Attorney Elizabeth Wright of the Criminal Division’s Money Laundering and Asset Recovery Section investigated and prosecuted the case. Former Assistant U.S. Attorney Alexander Nguyen and former Special Assistant U.S. Attorney Joseph V. Longobardo provided assistance investigating the case.