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16 March 2018
Correctional Officer at Federal Prison in Victorville Arrested on Charges of Sexually Abusing Female InmatesRead the Press Release
RIVERSIDE, California – A correctional officer employed by the U.S. Bureau of Prisons (BOP) at the Federal Correctional Complex in Victorville has been arrested on charges of sexually abusing two female inmates.
Apolonio Gamez, 40, of Lake Elsinore, was arrested Thursday afternoon and is expected to make his initial court appearance this afternoon in United States District Court in Riverside.
Gamez is charged in a criminal complaint filed on Wednesday that accuses him one count of sexual abuse of a ward.
According to the affidavit in support of the criminal complaint, Gamez engaged in sexual activity with one inmate on two occasions in September 2016 while he was on duty as a correctional officer.
Gamez allegedly directed a second female inmate to engage in a sexual act with him in May 2017 after he caught her attempting to steal food from a storage facility. Gamez alleged threated to send the victim to the “hole,” and then directed her to engage in sexual activity, which the victim did not resist because “she felt frozen and powerless with fear,” according to the affidavit.
The complaint further alleges that Gamez exposed himself to a third inmate and attempted to engage in a sexual act with her in the summer of 2017.
Gamez has worked for the BOP at several California locations since August 2012. He has been assigned to the Victorville complex since July 2016.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he were to be convicted of the charge in the complaint, Gamez would face a statutory maximum penalty of 15 years in federal prison.
The case against Gamez is being investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
The prosecution is being handled by Assistant United States Attorneys Julius J. Nam and Sean Peterson of the Riverside Branch Office.
Convicted Felon Indicted for Possession of Firearm and HeroinRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man who was previously convicted of federal heroin distribution charges was indicted today with drug distribution and firearms crimes, U.S. Attorney Craig Carpenito announced.
Jihad Garrett, 34, is charged with possession of heroin with intent to distribute, possession of a firearm in the course of committing that drug crime, and being a previously convicted felon in possession of a handgun. He is scheduled to make his initial appearance next week before U.S. Magistrate Judge Cathy Waldor in Newark federal court.
According to the indictment:
Garrett was charged in connection with the Feb. 23, 2018, seizure of a vehicle he was driving. Newark police subsequently recovered from the vehicle 500 packets of heroin that were prepared for distribution and a .40 caliber handgun loaded with seven rounds of ammunition.
Garrett was convicted in 2012 in Newark federal court on heroin distribution charges and was sentenced to 74 months in prison.
The current heroin distribution charge carries a maximum of 20 years in prison; the count of possession of a firearm during the drug offense carries a mandatory minimum sentence of five years in prison and a maximum term of life in prison that must be served upon completion of the drug offense. The charge of being a felon in possession of a firearm carries a maximum term of 10 years in prison.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited the FBI, under the leadership of Special Agent in Charge Timothy Gallagher; the U.S. Marshal’s Service, under the leadership of U.S. Marshal Juan Mattos Jr., and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Desiree Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Columbus Couple Sentenced for Conspiring to Kidnap Man After Cocaine Sale FailedRead the Press Release
COLUMBUS, Ohio – William Hernandez Castillo, 26, and Citlaly Casillas, 22, both of Columbus, were each sentenced today in U.S. District Court for conspiracy to commit kidnapping following a failed drug transaction. Hernandez Castillo was sentenced to 48 months in prison and Casillas was sentenced to 42 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Gahanna Police Chief Dennis Murphy and Westerville Police Chief Joseph Morbitzer announced the sentence imposed today by U.S. District Judge James L. Graham.
According to the Statement of Facts in this case, Hernandez Castillo and Casillas conspired to kidnap an individual from April 4 through April 7, 2017.
In March 2017, the individual told Casillas that an associate of his wanted to buy one kilogram of cocaine. Casillas and Hernandez Castillo agreed to buy the drugs and intended to sell the cocaine for more than $30,000.
When the time came to complete the transaction on April 4, the associate took the cocaine without paying.
Hernandez Castillo then called the owner of the drugs, who was in Mexico, to discuss how to respond. The owner of the drugs told Hernandez Castillo to hold the individual responsible for his associate. The owner said if he did not receive the drugs or the money, he would send enforcers to deal with the individual and his family.
Following the phone call, Hernandez Castillo told the individual that he had to come with Hernandez Castillo and Casillas.
From April 4 through April 7, Hernandez Castillo and Casillas seized, confined and kidnapped the victim for ransom at their Columbus residence. Hernandez Castillo told the victim that people from Mexico would harm his family if the drug owner did not receive the drugs or money.
During his confinement, Casillas told the victim stories of a 2015 fatal shooting at La Michoacana market in Columbus in order to scare him and keep him from leaving the residence. She joked that Hernandez Castillo would cut off one of the victim’s fingers if he left.
After contacting his girlfriend and mother, the victim was driven by Hernandez Castillo on April 7 to a location in Columbus, where they believed ransom money was waiting. When the victim arrived at the drop location, law enforcement secured him.
Casillas was arrested during the execution of a search warrant at her residence on April 17. Hernandez Castillo was arrested the same day, and the two have remained in custody since.
“The defendants held a victim ransom for days, communicating threats of violence and invoking an infamous murder at La Michoacana market in Columbus in 2015,” U.S. Attorney Glassman said. “They also made clear that they were taking orders from Mexico, suggesting these threats were backed by the full resources of an international drug-trafficking organization.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, DEA, Gahanna Police and Westerville Police, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.
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Citizen of Honduras Sentenced to Prison for Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS ANARIBA, also known as Marvin Guillen, 27, a citizen of Honduras last residing in Stamford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to six months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in November 2008, ANARIBA, using the name Marvin Guillen, was charged in Connecticut Superior Court in Stamford with assault, weapons, breach of peace and forgery offenses. After ANARIBA posted bond, he was released to the custody of U.S. Immigration and Customs Enforcement and, in March 2009, was deported from the U.S. to Honduras.
ANARIBA subsequently returned to the U.S.
In October 2014, ANARIBA, using his true name, was arrested by Stamford Police for a burglary offense. In February 2016, he was arrested by Stamford Police on larceny charges.
A biometric match connected the three criminal cases and confirmed that ANARIBA and Guillen are the same individual. ANARIBA resolved all three cases and, in October 2016, was sentenced in state court to 25 months of incarceration, concurrently, on each count.
On November 17, 2017, ANARIBA pleaded guilty in federal court to one count of reentry of a removed alien. He will deported to Honduras when he completes his prison term.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Calhoun Has Supervised Release Revoked for Firearms OffenseRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March, 15 2018, Senior United States District Court Judge Hugh Lawson revoked the Supervised Release for Frederick Tyrone Calhoun, age 35, of Lakeland, Georgia and ordered him to serve forty-eight (48) months in the Bureau of Prisons.
Mr. Calhoun violated two mandatory conditions of supervised release. The first is that he committed the offense of Possession of a Firearm by a Convicted Felon. The second is that he committed an Aggravated Assault.
Judge Lawson heard evidence from GBI Special Agent Cyrus Purdiman and former Lakeland Police Officer Justin Jones that on September 10, 2016, Lakeland, Georgia police officers responded to a call of shots fired in a Lakeland, Georgia neighborhood. While officers were responding to that scene, they heard more gunshots in the nearby area. Upon responding to the second scene, officers found Lewis Shukung Geddie lying on the ground suffering from gunshot wounds to his arm and hip. Mr. Geddie stated Fredrick Tyrone Calhoun shot him and then fled the scene on foot.
An individual arrived at the scene shortly thereafter and informed officers that Mr. Calhoun was at a nearby residence and wished to surrender to officers. The officers proceeded to the residence and contacted Mr. Calhoun. Upon questioning, Calhoun claimed that he shot Mr. Geddie in self-defense. An FBI/TFO testified that five .45 caliber shell casings found at the scene were fired from a weapon that Mr. Calhoun was known to carry. The only weapon recovered at the scene was the .40 caliber Glock that was found next to Mr. Geddie. There were no .40 caliber shells found at the scene.
On September 11, 2016, Lanier County, Georgia authorities arrested Calhoun on State of Georgia charges stemming from this incident. These were disposed of in a completely separate sentencing hearing following a guilty plea on December 1, 2017, in the Superior Court of Lanier County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October, 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
United States Attorney Charles E. Peeler noted that while his office was not able to address Mr. Calhoun’s state law violation violent crimes due to lack of jurisdiction, he is committed to ensuring that those who have previously been prosecuted by his office be held to answer whenever their post-release conduct violates the conditions imposed by the Court at the time of their original sentencing.
The case was investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation. Assistant United States Attorneys Sonja B. Profit and Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Buffalo Woman Sentenced for Use of Fraudulently Obtained Credit CardRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Tamika Favors, 35, of Buffalo, NY, who was convicted of misdemeanor bank larceny, was sentenced by U.S. Magistrate Judge Jeremiah J. McCarthy, to a two year term of probation, and ordered to pay $8,000 in restitution.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in August 2013, the defendant used a fraudulently obtained Citibank credit card to make purchases in excess of $8,000. In addition, Favors had 15 credit cards sent to her home and to nearby addresses without the knowledge or permission of the true account holders. Those fraudulently obtained credit cards were then used by others to make unauthorized purchases.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Ray Moss of the Boston Division, and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Brazilian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Josilei DeCastro, a/k/a Marcos Santos, a/k/a Marcos Augusto Dos Santos, 37, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to six months in prison and one year of supervised release. DeCastro will face deportation proceedings upon completion of his sentence. In December 2017, DeCastro pleaded guilty to one count of unlawful reentry of a deported alien.
In May 2016, DeCastro was arrested and charged in state court with multiple counts of sexual assault on a nine-year-old child. In July 2016, DeCastro was indicted by the state on those charges. His state case is pending; his federal sentence will be served concurrent to any state sentence that might be imposed.
On Dec. 9, 2016, while held on the aforementioned state charges, DeCastro was encountered by law enforcement officers at the Middlesex House of Corrections and determined to be illegally present in the United States. DeCastro was previously deported on July 17, 2000.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Kenneth G. Shine and David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Berkeley County man admits to fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bradley Markley, of Hedgesville, West Virginia, has admitted to distributing fentanyl, United States Attorney Bill Powell announced.
Markley, age 32, pled guilty to one count of “Distribution of Fentanyl and Acetyl Fentanyl.” Markley admitted to distributing the drugs in October 2016 in Berkeley County.
Assistant U.S. Attorneys Anna Z. Krasinski and Lara K. Omps-Botteicher are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Behind the HeadlinesRead the Press Release
Link: https://www.youtube.com/watch?v=ozgbviAdP20&feature=youtu.be&app=desktop
Amherst Man Sentenced for His Role in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Rohan Chopra, 23, of Amherst, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, MDMA, also known as “Molly,” was sentenced to 24 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that the defendant conspired with co-defendants Connor Dempsey and Joel Jacob. All three defendants agreed that Chopra would store various controlled substances at an apartment rented by Dempsey and Jacob that was located at 365 Campus Drive in Buffalo. Chopra was also allowed to sell drugs out of the apartment. Dempsey and Jacob gave Chopra keys to the apartment so that he could access and distribute the drugs stored there. Chopra also ordered controlled substances from the Internet and had them delivered to the apartment. Chopra instructed Dempsey and Jacob not to sign for packages and to deny that they were expecting a package to avoid liability.
On August 17, 2016, Jacob signed for a parcel addressed to him during a controlled delivery by the U.S. Postal Inspection Service. The package, which Chopra ordered over the Internet using bitcoins, was sent from Munchen, Germany and contained over 180 grams of MDMA. During a search of the apartment, officers recovered quantities of marijuana, LSD, cocaine, THC, Xanax, and ketamine. They also found a digital scale, baggies, empty capsules, other drug paraphernalia, and another mail parcel addressed to Chopra. After Chopra learned about the search, he contacted Dempsey and Jacob and asked them to take responsibility for a quantity of the controlled substances found in the apartment.
Dempsey and Jacob have been convicted and sentenced.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Ray Moss of the Boston Division.
15 March 2018
York County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert T. Donelon, age 55, of Etters, Pennsylvania, was indicted yesterday by a federal grand jury for offenses involving the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that on January 10, 2018, Donelon possessed images of child pornography depicting a minor engaged in sexually explicit conduct, and received child pornography over the internet. The indictment also seeks forfeiture of all electronic equipment connected with the images of child pornography.
This case was investigated by the West York Borough Police Department with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy 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."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the receipt of child pornography offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. That charges carries a mandatory minimum term of imprisonment of 5 years. The possession of child pornography charge is punishable by a maximum of 10 years’ imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wyoming Man Sentenced to Four Years in Federal Prison for Methamphetamine DistributionRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Emmanuel Arce-Gaxiola., a 29 year-old resident of Rock Springs, Wyoming, was sentenced to 48 months in prison, 3 years of supervised release, and a $300 special assessment. Arce-Gaxiola was convicted of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1), and two counts of distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1).
In May 2015, Arce-Gaxiola sold methamphetamine to a confidential informant on two separate occasions in Billings. Agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force then executed search warrants on his vehicle and hotel room and seized approximately 388 grams of pure methamphetamine.
In total, agents seized 415 grams of pure methamphetamine during the investigation. That converts to 3,320 individual dosage units of the drug that reached drug users in Montana.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Woman Sentenced to Five Years in Prison for Multi-Million Dollar Tax Return SchemeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 14, 2018, Amalia Gamboa (age 41), of Milwaukee, Wisconsin, was sentenced in federal court to 5 years in prison for fraudulently obtaining over $4.6 million in tax refund checks. The sentence followed her guilty plea to mail fraud, in violation of Title 18 United States Code, Section 1341, theft of government money, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Gamboa was also ordered to pay $4,681,690.42 in restitution to the Internal Revenue Service. Gamboa additionally agreed to be voluntarily deported after her prison sentence to Mexico due to her lack of legal status in the United States.
Gamboa committed her theft by fraudulently obtaining Individual Tax Identification Numbers (“ITINs”) from the IRS. An ITIN is what the IRS issues to individuals who cannot, due to their immigration status, obtain a Social Security number. Individuals who obtain an ITIN use it to file their income tax returns.
To obtain an ITIN, an applicant has to provide the IRS certain personal identifying documents, such as national identifications or voter cards. Gamboa obtained personal identifying documents from citizens of Mexico, fraudulently applied for ITINs in their names, and then filed false tax returns using the ITINs she obtained.
In the fraudulent tax returns that she filed, Gamboa claimed the Additional Child Tax Credit (“ACTC”). The ACTC reduces tax liability dollar for dollar, and the unused portion of a refundable credit is still payable to the taxpayer. Accordingly, even someone who has no tax liability may qualify to receive the ACTC. Gamboa falsely claimed dependents in the tax returns that she filed to fraudulently receive the ACTC.
From November 2010 through March 2017, Gamboa received at least $4,681,690.42 in U.S. Treasury refund checks from her scheme. When handing down the sentence, United States District Judge Pamela Pepper said that anyone who commits tax fraud “steals from every hard working person who pays taxes in the country,” and Judge Pepper stated that her sentence must “send a message” to others that tax fraud offenses are serious crimes that require significant sentences. Judge Pepper also said, referring to tax fraud cases over which she has presided, that she had “never seen a single person responsible for this much loss in my time as a judge,” and further described the amount that Gamboa stole as “mind blowing.”
“IRS Criminal Investigations is sworn to protect the tax system and bring to justice those who steal from the U.S. Treasury,” said St. Paul Acting Special Agent in Charge Hubbard Burgess. “The IRS and Department of Justice remain determined and vigilant in ferreting out these types of identity theft cases and holding those who engage in similar behavior fully accountable.”
“This case sends a clear warning: Tax fraud and identity theft are serious crimes and will be prosecuted aggressively. The honest taxpayers that fund our government deserve to know that cheaters face real punishment. We commend IRS Criminal Investigation for its excellent work in this case.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Keith Alexander.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Westchester Hedge Fund Manager Pleads Guilty to Securities FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL SCRONIC, a former hedge fund manager, pleaded guilty today to securities fraud before U.S. District Judge Cathy Seibel. SCRONIC admitted as part of his plea that he had defrauded the 45 investors in his Scronic Macro Fund of more than $22 million.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Michael Scronic lied about the performance of his investment fund, telling investors that his returns were as high as 13 percent. But, in fact, his fund was wholly unsuccessful, resulting in millions of dollars in losses. And what wasn’t lost in the market, Scronic used for his own personal expenses. Now he faces significant time in prison for his fraud.”
According to the allegations contained in the Indictment and other court documents, SCRONIC, raised more than $22 million from 45 investors in the Scronic Macro Fund (the “Fund”) from April 2010 to the October 2017. SCRONIC told investors that the Fund had positive returns in all but one of the 22 quarters from January 2012 through June 2017, with the highest reported quarterly return being 13.4 percent in the fourth quarter of 2014. In reality, the Fund lost money in 28 out of 29 quarters of its operation, with a total net loss of about $15.7 million before commissions. The Fund’s only positive quarter was its first quarter of operation in 2010.
As a result of these trading losses, the total assets SCRONIC claimed the Fund had in each quarter far exceeded its actual assets. For example, SCRONIC sent account statements to investors that together showed total fund assets of $21.7 million as of June 30, 2017. In actuality, on that date, the combined balance of SCRONIC’s brokerage and bank accounts was just $102,376.
In addition to losing money on trades, SCRONIC used investor money for personal expenses. His personal expenditures averaged more than $500,000 including monthly rent of $12,275 for his primary residence in Westchester, New York, mortgage payments on a vacation home in Stratton, Vermont, fees for multiple beach and country clubs, including a $30,000 payment to the Stratton Mountain Club in July 2017, and miscellaneous items charged to credit cards in amounts averaging more than $15,000 a month.
As of the summer of 2017, SCRONIC was unable to pay redemptions requested by Fund investors because he did not have sufficient funds on hand. He told investors seeking redemptions that he would pay redemptions only at quarter end, that he was too busy and preoccupied with a relative’s medical condition to pay redemptions, and that he was unavailable to pay redemptions because he was on vacation. In some cases, SCRONIC ignored redemption requests.
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SCRONIC, 46, of Manhattan, New York, pleaded guilty to one count of securities fraud, which carries a maximum sentence of 20 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 defendant will be determined by the judge.
SCRONIC is scheduled to be sentenced by Judge Seibel on July 9, 2018, at 11:00 a.m.
Mr. Berman praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Daniel Loss are in charge of the prosecution.
Washington County Businessman and Convicted Felon Charged with Fraud, Tax and Firearms OffensesRead the Press Release
PITTSBURGH – A resident of Washington County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, tax evasion, conspiracy to defraud the United States, false bankruptcy declaration, and unlawful possession of a firearm by a felon, United States Attorney Scott W. Brady announced today.
The 13-count indictment, returned on March 14, 2018, named George Retos, Jr., age 69, of Washington, Pennsylvania, as the sole defendant.
According to the indictment, Retos defrauded a Small Business Administration preferred lender, Preferred Capital BIDCO, Inc., in connection with $2,000,000 in loans to Prime Plastics, Inc. and Branikas Investments LLC, two entities operated and controlled by Retos. In violation of the loan agreements, Retos allegedly misappropriated tens of thousands of dollars of loan proceeds and pledged collateral through, among other expenditures, the financing of a $41,000 BMW for a family member and tens of thousands of dollars in charges at casinos in Western Pennsylvania and Las Vegas, Nevada.
The indictment also alleges that Retos willfully attempted to evade and defeat the payment of income taxes due and owing by him to the United States of America by concealing from the Internal Revenue Service (IRS) the nature and extent of his income and assets as well as the location thereof; placing business interests in the names of nominees; paying personal expenses with funds and bank accounts of Prime Plastics, Inc., Branikas Investments, Inc., and a third entity, Plastic Power, Inc., all companies controlled by Retos; issuing checks drawn on Prime Plastics, Branikas Investments and Plastic Power bank accounts payable to Retos; and making ATM withdrawals and purchases at casinos in the Western District of Pennsylvania, Las Vegas, Nevada, and elsewhere using Prime Plastics, Branikas Investments and Plastic Power funds and bank accounts.
The indictment further alleges that Retos conspired to defraud the IRS when he agreed with another individual not to pay over to the IRS payroll and employer taxes of Prime Plastics, Inc. and Plastic Power, Inc. Specifically, to avoid ongoing collection efforts by the IRS related to unpaid taxes of Prime Plastics, Inc., Retos and his co-conspirator allegedly arranged for employees of Prime Plastics, Inc. to be transferred to Plastic Power, Inc., which, in turn, also failed to pay employer and payroll taxes to the IRS. According to the indictment, the unpaid employer and payroll taxes totaled hundreds of thousands of dollars.
In addition, the indictment charges Retos with wire fraud in connection with a scheme to fraudulently obtain unemployment compensation from the Commonwealth of Pennsylvania for Prime Plastics, Inc. and, later, Plastic Power, Inc. employees. According to the indictment, Retos reduced the salaries of numerous employees and instructed them to seek unemployment from the state to make up the difference, knowing full well that the employees were ineligible for such unemployment compensation. During the execution of the scheme, Retos allegedly continued to siphon company funds for his personal benefit.
The indictment also alleges that at Retos’ direction, Prime Plastics, Inc. filed for bankruptcy and, among other things, falsely stated that there had been no withdrawals from the entity outside the normal course of business during the preceding two years. In fact, as alleged, Retos was responsible for numerous such expenditures, including thousands of dollars belonging to Prime Plastics, Inc. spent by Retos at casinos in Las Vegas, Nevada and elsewhere.
Finally, the indictment also alleges that Retos, after having been convicted in or around December 1992 of income tax evasion, false statements in connection with a credit application, mail fraud, and interstate transportation of stolen property, possessed on June 26, 2013, a Kel Tec handgun, .380 caliber, and ammunition, .380 hollow point.
U.S. Attorney Brady stated, "George Retos, Jr. is alleged to have used multiple businesses he controlled as his personal slush fund, siphoning money for his use at casinos and for the purchase of a BMW for a relative, among other things. In doing so, the indictment alleges that he committed myriad serious crimes, including engaging in two fraud schemes separately targeting a government-backed lender and the Pennsylvania unemployment compensation system, as well as participating in a conspiracy to defraud the IRS out of significant unpaid business taxes. The U.S. Attorney’s office will continue to investigate and prosecute serious financial crimes, and when a convicted felon is found in possession of a firearm, as is alleged here, we will see that they are held accountable to the full extent of the law."
"Today’s multiple count indictment is the result of the cooperative efforts of IRS-Criminal Investigation and our law enforcement partners," said Acting Special Agent in Charge Ed Wirth. "The Special Agents of IRS-CI remain diligent in their pursuit of those who attempt to undermine the system by committing tax fraud and bankruptcy fraud."
"An important mission of the Office of Inspector General is to investigate allegations of fraud related to the Department of Labor's unemployment insurance program. We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers," stated Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
"The FBI is committed to rooting out these types of fraudulent activities and today’s indictment highlights the continued need for that," said Special Agent in Charge Robert Johnson.
Retos faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the seven counts charging him with wire fraud, a maximum sentence of five years imprisonment and a fine of $250,000 for each of the five counts charging him with income tax evasion, conspiracy and false bankruptcy declaration, and a maximum sentence of ten years imprisonment
and a fine of $250,000 for the felon in possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Mary McKeen Houghton and Eric G. Olshan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation; the Department of Labor, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Warren County Doctor Indicted for Illegal Prescriptions of Opioid Narcotic Drugs to Three WomenRead the Press Release
St. Louis, MO – Philip D. Dean, M.D., 62, of Warrenton, Missouri, was indicted today with eight felony charges for making false statements to Medicare and Medicaid and illegally distributing fentanyl, hydrocodone, and other controlled prescription drugs without a legitimate medical purpose.
According to the Indictment, Dr. Dean had personal relationships with several women, and during the relationships provided these women with prescriptions for narcotic pain relief opioid drugs. With one woman, Dr. Dean wrote her multiple prescriptions using the name of her family member, and then Dr. Dean personally picked some of these drugs up from the pharmacy and paid the co-payment amount. With another woman, Dr. Dean exchanged text and social media messages with sexual content before making prescription decisions for her. Finally, Dr. Dean prescribed a drug called Subsys®, a narcotic pain relief drug that contains Fentanyl, to one of the women, causing Medicaid to pay approximately $213,000. However, Subsys® is only approved for use in cancer patients with breakthrough pain, and the woman who received the Subsys® prescriptions did not have cancer.
If convicted, the charges of false statements to Medicare and Medicaid carry a maximum penalty of 5 years in prison and a $250,000 fine. The drug distribution charges have maximum penalties of either 20 or 5 years in prison and a fine of either $1,000,000 or $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, and the Warrenton Police Department. Assistant United States Attorney Andy Lay is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
United States Attorney's Office Addresses Opioid EpidemicRead the Press Release
As part of his office’s “prevention, preservation and prosecution” efforts, U.S. Attorney Andrew Birge encouraged the public to attend an upcoming community presentation at Grandville Public High School and announced the arrival in West Michigan of additional resources for the Drug Enforcement Administration.
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge invited the media to meet today with him and several partners from the community and law enforcement on how they are addressing the opioid crisis.
“It’s a matter of saving lives,” U.S. Attorney Birge declared as he recounted the staggering statistics recently released:
• Since 2009, drug overdose deaths have outpaced traffic accidents as the leading cause of injury death in the United States.
• Life expectancy in the United States dropped for two years in a row after more than a century of steady progress.
• The number of children admitted to hospitals for opioid overdose has nearly doubled since 2004, according to a study recently published in the journal Pediatrics.
• More people died of an overdose in 2016 than ever before-- and more than died in the entire Vietnam War.
• The Centers for Disease Control identified Michigan as one of the states experiencing a significant increase in its drug overdose death rates through 2016; and up over 24% for women just last year, according to the United Health Foundation.
• Emergency Department visits for opioid overdoses rose 30% in all parts of the country from July of 2016 through September of 2017. Opioid overdoses were up 70% in the Midwest during that period.
• Preliminary numbers from the Medical Examiner in Kent County for 2017 indicate that we lost at least 137 community members in this County to drug overdose deaths—a 50% increase over the preceding year, with more cases pending.
U.S. Attorney Birge explained: “We also know that this trend started with prescription drugs. Addiction to these drugs leads to heroin and worse, including fentanyl bought off the street. About 80% of heroin users report using prescription drugs prior to heroin.”
U.S. Attorney Birge then discussed the three ways his office is addressing the epidemic:
• Prevention, educating the public and community members—especially our youngest—to discourage the new use of these dangerous drugs;
• Preservation, furthering information about what can be done to protect those currently suffering from Substance Abuse disorders, teaming with medical and treatment professionals and those that provide overdose antidotes to the community; and
• Prosecution, investigating and charging those that would profit from the spread of these dangerous substances in our community.
In the area of prevention, the U.S. Attorney’s Office is teaming with Grandville Public Schools to host a community presentation on the epidemic in the Grandville High School Auditorium on March 19, 2018. “I cannot stress enough how important it is for parents and teenagers to understand this epidemic. Teenagers learn and grow by making the occasional poor choice, but they can’t afford to make poor choices with opioids,” explained U.S. Attorney Birge.
The Superintendent of Grandville Public Schools, Roger Bearup, spoke with the media about the upcoming presentation and discussion. “Grandville Public Schools is honored to partner with our state and national officials to provide this opportunity to raise public awareness of this very unfortunate crisis that plagues West Michigan and our country,” he offered. In addition, Grandville Police Chief, Dan Steere, addressed the effect that opioids have had in his community.
As for preserving the lives of those caught in the addiction spiral, Dr. Jeanne Kapenga talked about Families Against Narcotics (FAN) and how FAN educates the public and provides support for families facing addiction. Dr. Kapenga will also present about the basics of addiction and recovery at the Grandville event.
“My office, of course, enforces the law,” U.S. Attorney Birge said. “Enforcing the law deters the suppliers and saves lives.” He gave as an example his office’s prosecution last year of a physician from Albion, Dr. Horace Davis, for illegally prescribing opioid painkillers and committing healthcare fraud. And he highlighted the heroin trafficking conspiracy his office charged last fall against 28 people. “We used the tools at our disposal to build that case, including wiretaps and the secrecy of the grand jury. During the initial takedown, we seized over 21 kilograms of heroin, over 13 kilograms of cocaine and over $1.3M in cash.” He added that his office prosecuted 50% more heroin cases and defendants last year than the year before and that he expects that rate to keep rising. “The federal penalties for drug trafficking are heavy; trafficking offenses can carry mandatory minimum penalties of five, ten, and twenty years and even life in prison, depending on the amount of drugs involved and criminal history. So my message for those who would turn people into addicts or take advantage of those who are already addicted, is the following: we’re going to use every tool we have to come looking for you and to prove your guilt and the federal sentences you will face if convicted are severe.
On the subject of enforcement, Bruce McColley, the Assistant Special Agent in Charge of the Detroit Field Office of the Drug Enforcement Administration, and Cathy Gallagher, the Detroit Diversion Program Manager, addressed additional resources the DEA is bringing to West Michigan. The Grand Rapids office of the DEA will have more agents installed to investigate diversion of prescription drugs to non-medical uses, which fuels the epidemic. U.S. Attorney Birge explained that the additional resources “will substantially improve our ability to deter and prevent prescription drugs from ending up in the wrong hands.”
Link to:
Flyer - 2018 OPIOID Summit at Grandville Public SchoolsEND
Two Solano County Men Indicted for Conspiring to Bomb a Suisun City ResidenceRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Thomas Wayne Capenhurst, 33, of Dixon, and Robert Lee McGraw, 20, of Fairfield, charging both men with conspiracy, malicious use of explosive materials, and using a destructive device during a crime of violence, U.S. Attorney McGregor W. Scott announced. The indictment also charges McGraw with possessing an unregistered destructive device.
According to court documents, Capenhurst offered to pay McGraw and another man $10,000 each to place pipe bombs at his brother’s house in Suisun City. According to the complaint, Capenhurst gave McGraw three homemade pipe bombs and directed him to “try to knock the house down.”
The complaint alleges that on February 17, 2018, McGraw walked to the front door of a home on Blue Jay Drive in Suisun City, just before 1:00 a.m., and set one of the pipe bombs on the front porch. According to the complaint, McGraw lit the fuse, banged on the front door, and then ran. Afterwards, the pipe bomb detonated and blew the front door off its hinges. Law enforcement found pieces of metal shrapnel lodged in the home’s exterior walls, and windows broken nearby. Court documents state that a family of five was active inside the home, having just returned from a trip to the Bay Area.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, and the Suisun City Police Department. Special assistance was provided by the Dixon Police Department, Fairfield Police Department, Vacaville Police Department, Vallejo Police Department, Benicia Police Department, the Solano County Sheriff’s Office, and the California Highway Patrol.
If convicted of malicious use of explosive materials, Capenhurst and McGraw both face a penalty of not less than five years, and up to 20 years, in prison, and a $250,000 fine. If convicted of using a destructive device during a crime of violence, each defendant faces a penalty of not less than 30 years in prison, up to life, and a $250,000 fine. If convicted of conspiracy, Capenhurst and McGraw face a maximum penalty of five years in prison and a $250,000 fine. If convicted of possessing an unregistered destructive device, McGraw faces a maximum statutory penalty of 10 years in prison and a $10,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Forestville Men Indicted on Multiple Child Pornography and Witness Tampering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 15-count indictment charging Richard C. Miller, 50, and Joseph Harvey, 54, both of Forestville, NY, with production, distribution, receipt, and possession of child pornography, conspiracy to distribute, receive, and possess child pornography, and witness tampering. The charges carry a minimum penalty of 15 years in prison, a maximum penalty of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that according to the indictment, between 2006 and 2009, defendant Miller produced child pornography by filming himself engaged in a sexual act with a minor. Between January 2016 and March 2017, Miller and defendant Harvey exchanged images of child pornography and engaged in illicit discussion regarding child pornography and pedophilia. In addition, a search of the residence shared by the defendants revealed multiple electronic devices that contained child pornography.
Richard Miller was initially arrested by complaint in May 2017. While being detained on charges of production and possession of child pornography, Miller sent a letter seeking to pay a material witness in the case not to participate in the criminal investigation.
The defendants were arraigned before U.S. Magistrate Judge Michael J. Roemer and are being detained.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Additional Individuals Charged with Smuggling Drugs and Contraband to InmatesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Deanna Tallo, age 29, of Throop, Pennsylvania, and Thomas Coss, age 36, currently an inmate in state prison, were indicted on March 13, 2018, by a federal grand jury for smuggling suboxone and tobacco into the Lackawanna County Prison during July 2015 and April 2016. The case was unsealed today following the arrest of Tallo.
According to United States Attorney David J. Freed, the indictment alleges that Tallo provided and attempted to provide suboxone and tobacco to inmates at the prison between July 2015 and April 2016, and that during that same time period Coss, then an inmate at the prison, obtained and possessed suboxone and tobacco.
In December 2017, Jerry Defazio, a former contract employee at the prison, pleaded guilty to providing and attempting to provide drugs and tobacco to inmates at the prison. He is awaiting sentencing.
The charges against Tallo and Coss stem from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Toppenish Man Sentenced to 78 Months Imprisonment for Voluntary ManslaughterRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Nolan Patrick John, III, age 25, of Toppenish, Washington, was sentenced after having pleaded guilty on December 6, 2017, to Voluntary Manslaughter. United States District Court Judge Salvador Mendoza, Jr. sentenced John to 78 months imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on March 26, 2017, Yakama Nation Police Officers responded to a dispatch call to a residence in Wapato, Washington, in the exterior boundaries of the Yakama Nation. Officers knocked on the door and a male, later identified as Nolan Patrick John, III, answered. Officers saw another male, covered in blood, lying motionless on the floor. Blood spatter was on the wall of the residence. John stated that he beat up the male. The male-victim did not respond to verbal communication, and he was pronounced dead at the scene. The FBI responded. FBI observed that John had injuries to his hands, but did not have any injuries to his body. FBI also observed that male-victim had no injuries to his hands.
When interviewed by FBI, John stated he began fighting with the male-victim after an altercation involving John’s mother, John, and the male-victim arose. After the fight, John noticed the victim was not breathing, so he attempted CPR and called 911. Law enforcement officers observed that the male-victim’s blood was on John’s hands and clothing, and John did not have any defensive wounds.
In a subsequent interview with FBI, John stated everyone at the residence was drinking, and he started wrestling with the victim after the victim got into an argument with John’s mother. John stated the victim did now know how to fight and he kicked the victim in the face while they were on the ground. John admitted the fight got out of control.
During the sentencing hearing, Judge Mendoza described John’s conduct as a “brutal attack” and commented on the pain John caused the victim, the victim’s family, and John’s own family.
United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington, the Federal Bureau of Investigation, and the Yakama Nation Tribal Police Department are committed to investigating and prosecuting violent crimes occurring in the exterior boundaries of the Yakama Nation.”
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Tribal Police Department. The case was prosecuted by Meghan McCalla and Thomas Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Titusville Woman Charged with Social Security FraudRead the Press Release
ERIE, Pa. - A resident of Titusville, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of social security fraud, United States Attorney Scott W. Brady announced today.
The one-count indictment named Kelly Rene Johnson, 49, as the sole defendant.
According to the indictment presented to the court, between on or about February 28, 2014 and August 1, 2017, Johnson fraudulently received approximately $30,682.00 in Supplemental Security Income benefit payments by concealing the fact that she did not live alone in order in order to continue to receive these payments.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three men indicted for conspiracy involving passing $20,000 worth of counterfeit $50 bills at dozens of stores across Northeast OhioRead the Press Release
Three men were indicted in federal court for their roles in a counterfeiting conspiracy in which they passed more than $20,000 in counterfeit currency in nearly three dozen stores throughout Northeast Ohio, U.S. Attorney Justin E. Herdman said.
Named in the eight-count indictment are Labrawn Revelle Gullatt, Jr., 23, of Euclid; Yul Ardon Martin, Jr., 39 and Meco L. Shaw, 22, both of Cleveland.
“These defendants are accused of stealing tens of thousands of dollars from stores across Northeast Ohio,” Herdman said. “Whether it was buying merchandise from large stores, making relatively small purchases in an effort to get change or buy debit cards with fake cash, they broke the law and will now be held accountable for their actions.”
Gullat, Martin and Shaw conspired together between April 2017 through February 2018 to use counterfeit $50 bills to purchase merchandise from locations including Walmart in Sandusky, Mansfield and Cleveland, Home Depots in Highland Heights, Mentor and Euclid and Babies R Us in Mentor, according to the indictment.
They also made or attempted to make relatively small purchases with the counterfeit $50 bills, including a milkshake from Arby’s in Mentor and a sandwich from Chick-fil-A in Willoughy, according to the indictment.
They also made purchases in January 2018 with the counterfeit $50 bills from several stores in Aurora, including Adidas, Calvin Klein and Home Depot, a Dick’s Sporting Goods in Bainbridge. They also purchased or attempted to purchase several Master Card and American Express gift cards and debit cards using the counterfeit $50 bills, according to the indictment.
Keith Abrams, 42, of Cleveland, was indicted for passing $1,000 worth of counterfeit $50 bills at a Gap Store in Westlake on Nov. 21, 2017, according to the indictment
Assistant U.S. Attorney Brian S. Deckert is prosecuting the case following an investigation by the U.S. Secret Service.
If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
Three from Southern California Traffic Heroin and 30 Pounds Methamphetamine in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Julian Aispuro Jr., 33, of Los Angeles; Abel Gregory Castro, 29, of Torrance; and Tauri Dolores Valera, 32, of San Pedro, charging them with conspiring to distribute methamphetamine and heroin and possession with the intent to distribute both methamphetamine and heroin, U.S. Attorney McGregor W. Scott announced. Additionally, Castro and Valera were charged with possession of a firearm in furtherance of a drug trafficking offense.
According to court documents, Aispuro arranged to sell methamphetamine, black tar heroin, and china white heroin to two people, one of whom was an undercover officer. On February 21, 2018, Aispuro arrived at the prearranged meeting spot. Castro and Valera arrived separately with approximately 28.9 pounds of methamphetamine and 1.3 pounds of china white heroin in the trunk as well as a loaded .38-caliber Smith and Wesson revolver in plain view on the back seat.
This case is the product of an investigation by the Fresno Methamphetamine Task Force, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Special Investigation Team, California Highway Patrol, Fresno County Sheriff’s Office, and Tulare County Sheriff’s Office. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Aispuro faces a statutory penalty of a minimum of 10 years to life years in prison and a $10 million fine. If convicted, Castro and Valera face a statutory penalty of a minimum of 15 years to life years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three More Individuals Charged for the Añasco Armed RobberyRead the Press Release
SAN JUAN, P.R. – On March 14, 2018, a federal grand jury returned a superseding eight-count indictment against Benjamin Melendez-Rivera, Ralph Laboy-Santiago, Miguel Cruz-Kuilan, and Joel Laboy-Rosario for conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and related firearms offenses, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI, the Aguadilla Violent Crimes Task Force of the FBI, and the Police of Puerto Rico’s Bank Robbery Unit are in charge of the investigation.
The superseding indictment alleges that on March 20, 2017, in the District of Puerto Rico, the co-conspirators traveled to a Banco Popular branch in Morovis, Puerto Rico to commit a robbery. The defendants brandished a firearm at an armed courier employed by Econo Supermarket outside of the Banco Popular, and robbed approximately $3,000 in U.S. currency.
On March 23, 2017, the defendants conducted surveillance on a Banco Popular branch in Añasco, in preparation for a robbery. Returning to Añasco on March 30, 2017, Melendez-Rivera took photographs of the Añasco branch. On that same day, two of the co-conspirators robbed and discharged their firearms at a Ranger American armed courier outside of the Banco Popular branch. During the robbery, the armed courier was wounded and two innocent bystanders were killed. The defendants robbed approximately $16,900 in U.S. currency.
The superseding indictment further charges that Melendez-Rivera was found to have taken photographs of another Banco Popular branch located in Puerto Nuevo on October 9, 2017, allegedly in preparation for another robbery.
“Thanks to the joint investigation conducted by the FBI, Aguadilla Task Force officers, and Puerto Rico Police’s Bank Robbery Unit, the members of this alleged armed robbery organization have been apprehended,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We thank our local law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working actively with local law enforcement to apprehend and bring armed robbery organizations like this one to justice.”
“Today’s arrests by the Puerto Rico Police Department (PRPD) Tactical Operations Unit and FBI SWAT were the result of outstanding detective work by the PRPD Bank Robbery Unit and the FBI Aguadilla and San Juan Offices, with critical assistance provided by the Puerto Rico Department of Housing. Furthermore, FBI Headquarters has advised the United States Attorney General of the essential role played by our PRDP Task Force Officers in solving this and many other dangerous crimes occurring in Puerto Rico,” said FBI Special Agent in Charge Douglas A. Leff. “We commend the Puerto Rico authorities for committing these dedicated officers to work alongside us, and together we will never stop investigating crimes of violence until justice is fully accomplished through the apprehension of all those responsible”
Benjamin Melendez-Rivera was charged with conspiracy to interfere with commerce by robbery; interference with commerce by robbery (two counts); possession, and discharge of a firearm in furtherance of a crime of violence (two counts); and as a felon-in-possession (two counts).
Ralph Laboy-Santiago was charged with conspiracy to interfere with commerce by robbery; interference with commerce by robbery (two counts); possession, and discharge of a firearm in furtherance of a crime of violence (two counts); and as a felon-in-possession (two counts). Laboy-Santiago
Miguel Cruz-Kuilan was charged with conspiracy to interfere with commerce by robbery; interference with commerce by robbery (two counts); possession, and discharge of a firearm in furtherance of a crime of violence (two counts); and as a felon-in-possession (three counts).
Joel Laboy-Rosario was charged with conspiracy to interfere with commerce by robbery; interference with commerce by robbery (two counts); and possession, and discharge of a firearm in furtherance of a crime of violence (two counts).
The previous five-count indictment in the case, returned on December 6, 2017, charged only Melendez-Rivera.
Assistant U.S. Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, the defendants face a maximum sentence of life imprisonment. Indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent until the charges are proven beyond a reasonable doubt.
Three Miami-Area Home Health Agency Owners Charged for Role in Health Care Fraud SchemeRead the Press Release
Three Miami, Florida-area home health agency owners were charged in an indictment unsealed on March 13, 2018 for their alleged participation in a health care fraud scheme involving a now-defunct home health agency in Miami.
U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ailin Consuelo Rodriguez Sigler, 39; Zoila C. Rios, 57; and Tomas A. Rodriguez, 66, were charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud. Sigler, Rios and Rodriguez were arrested on March 13, 2018 and appeared before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
The indictment alleges that from approximately January 2011 through November 2014, Sigler, Rios and Rodriguez, owners of Florida Patient Care Corp. of Miami, Florida, were involved in a fraudulent scheme whereby they agreed with the owners and operators of multiple home health therapy staffing companies and others to bill Medicare for services that were medically unnecessary, not eligible for Medicare reimbursement, or were never provided.
According to the indictment, Sigler, Rios, Rodriguez and their co-conspirators allegedly caused the submission of false and fraudulent claims to Medicare for home health therapy care, and physical and occupational therapy services purportedly provided by Florida Patient Care Corp.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorney Yisel Valdes is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Three Charged in $1 Million Bank Loan SchemeRead the Press Release
CHARLOTTE, N.C. – Stanley Reginald Barron, 37, of Cornelius, N.C. and his co-conspirator, Kimberlie L. Flemings, 49, of Mt. Holly, N.C., were indicted on federal charges in connection with a $1 million bank loan scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. A third person, Brian Lyles, 46, formerly of Jersey City, New Jersey, was also charged separately for his role in the conspiracy.
U.S. Attorney Murray is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), and Steven Perez, Special Agent in Charge of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).
According to the charging documents and court proceedings, from at least 2012 to 2015, Barron, Flemings, Lyles and others executed a fraudulent scheme to obtain automobile and personal loans from at least 19 financial institutions. The co-conspirators submitted dozens of fraudulent loan applications in their names, and the names of at least 30 other individuals, to at least 19 banks and credit unions. As a result of the fraudulent scheme, the indictment alleges that the three defendants obtained more than $1 million in fraudulent loan proceeds.
According to allegations contained in the charging documents, Barron, Flemings and Lyles submitted the fraudulent loan applications for individuals they had recruited, falsely stating the loans would be used to purchase automobiles, among other things. Many of the recruited loan applicants had negative information in their credit histories which made getting legitimate loans difficult. Because of this, Barron and others fraudulently “cleaned” or “repaired” the credit reports of certain loan applicants to improve the chances of obtaining a loan from the banks and credit unions. For example, the indictment alleges, Barron and Flemings filed police reports online in the names of certain loan applicants, falsely claiming that the loan applicants were victims of identity theft and that the negative items on their credit reports were due to the identity theft. Barron, Flemings and others also submitted falsified supporting documents with the loan applications, including false employment and income information.
The indictment alleges that to further execute the scheme, Barron and his co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. They also set up bank accounts, websites, and addresses associated with these fake automobile dealerships and created fictitious purchase orders which were submitted to the financial institutions as part of the loan application.
According to allegations contained in court documents, Barron, Flemings and Lyles deposited the fraudulently-obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the fraudulent loan proceeds, Barron distributed the rest to his co-conspirators. In this manner, Barron and others obtained more than 25 checks, totaling more than $1 million, from at least 12 financial institutions.
Court documents allege that after Barron and others obtained the proceeds from the fraudulent loans, the majority of the loans defaulted, causing losses to the impacted financial institutions. To cover up the fraud, Barron and others made false statements to the defrauded banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.
Baron, Flemings and Lyles are charged with one count of conspiracy to commit wire and bank fraud. Barron and Flemings are also each charged with wire fraud affecting financial institutions and nine counts of financial institution fraud. Barron also faces a money laundering conspiracy charge.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. The wire and bank fraud conspiracy charge carries a maximum sentence of 30 years in prison and a $1,000,000 fine. The wire fraud affecting financial institutions charge carries a maximum prison term of 20 years in prison and a $250,000 fine. Each of the nine financial institution fraud charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine. The money laundering conspiracy charge carries a maximum penalty of 10 years in prison and a $250,000 Fine.
USPIS and FHFA-OIG led the investigation. Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Theron King a/k/a "Bug" Sentenced for Distribution of MethamphetamineRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March 15, 2018, United States District Court Judge W. Louis Sands sentenced Theron King, a/k/a “Bug”, age 29, of Doerun, GA, to 130 months imprisonment for the offense of distribution of methamphetamine.
On May 9, 2017, Mr. King was arrested in Sale City, Georgia in possession of approximately fifteen (15) ounces of methamphetamine. Earlier that day, he had agreed to supply the methamphetamine to another individual.
Evidence presented at his sentencing hearing showed that prior to the events in May 2017, he had arranged for the delivery of approximately ten (10) pounds of methamphetamine by US Mail.
“Methamphetamine continues to be one of the most serious drugs of abuse in the Middle District of Georgia,” said United States Attorney Peeler. “In a matter of only a few months it can destroy a person’s physical appearance, health, intellect and emotional stability. Those who deal in methamphetamine deal in human misery and will be held accountable for the choices they make.”
This case was investigated by the Drug Enforcement Administration, Columbus Division and the Mitchell County Sherriff’s Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Texas man arrested in Bossier Parish sentenced to 70 months in prison for heroin distributionRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a man from Texas was sentenced Wednesday to five years and 10 months in prison for drug distribution charges after heroin was found in his car battery.
Jose Alonzo Hernandez, 42, of Brownsville, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute heroin. He was also sentenced to five years of supervised release. According to the October 24, 2018 guilty plea, a state trooper conducted a traffic stop on Hernandez’s car March 16, 2017 on Interstate 20 in Bossier Parish. The trooper conducted a search of the vehicle and found approximately 3.35 kilograms of heroin hidden inside the car’s battery.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Stockton Man Sentenced to over 8 Years in Prison for Possession of Firearms and Ammunition Purchased on the Dark WebRead the Press Release
SACRAMENTO, Calif. — Jeremy Solima, 41, of Stockton, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to eight years and four months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 22, 2017, officers conducted a probation search of Solima’s residence and found a stolen assault rifle, a pistol, six high‑capacity magazines, three gun barrels, six boxes of ammunition, gun scopes, and other miscellaneous gun pieces. He said he purchased the firearms from the dark web marketplace AlphaBay, and he intended to sell them in Stockton. Solima, who had been previously convicted of several felonies, was prohibited from possessing or selling firearms.
Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin. AlphaBay was shut down by law enforcement in July 2017.
This case is a product of the Project Safe Neighborhoods (PSN) initiative and joint investigations by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PSN brings together federal, state and local law enforcement to combat gun and gang crime. PSN aims to incapacitate chronic violent offenders and deter potential gun offenders through increased federal prosecution. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
State Correctional Officer Admits to Illegally Distributing SteroidsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NICHOLAS AURORA JR., 33, of Hamden, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute anabolic steroids.
According to court documents and statements made in court, in December 2017, the Statewide Narcotics Task Force West conducted a court-authorized search of an individual’s residence in Hamden and seized approximately 25,000 pills and 530 vials of anabolic steroids. Subsequent analysis of the individual’s cell phone revealed numerous text messages relating to AURORA’s purchase and redistribution of steroids.
The investigation revealed that AURORA was purchasing steroids from his source of supply every two weeks. He personally used some of the steroids, and sold some, at a profit, to coworkers.
AURORA is a correctional officer with the Connecticut Department of Correction.
The offense carries a maximum term of imprisonment of 10 years and a fine of up to $500,000. A sentencing date is not scheduled.
AURORA is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Connecticut State Police, Statewide Narcotics Task Force West, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Silver Springs Woman Sentenced to Nearly Five YearsRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Elma Denise Sizelove (40, Silver Springs) to 57 months in federal prison for bank fraud and aggravated identity theft. She pleaded guilty to the offenses on December 18, 2017.
According to court documents, Sizelove was arrested by law enforcement after attempting to pass a fraudulently altered check at a local bank. A subsequent search of her vehicle uncovered 150 letters and 47 additional checks that had been stolen from local residents. The stolen checks had a total face value of $68,208.41. Further investigation revealed that Sizelove had fraudulently altered and deposited other checks that she had stolen from residential and commercial mailboxes into her bank account using mobile and ATM deposits.
This case was investigated by the U.S. Postal Service. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Shrewsbury Couple Sentenced for Roles in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Shrewsbury couple was sentenced today in federal court in Boston for their respective roles in a far-reaching, multi-million dollar conspiracy to distribute counterfeit steroids throughout the United States.
Tyler Bauman, a/k/a “musclehead320,” 32, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 10 years in prison and three years of supervised release. Kathryn Green, 29, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison and three years of supervised release. In August 2017, Bauman pleaded guilty to conspiracy to distribute counterfeit testosterone, trenbolone, and other steroid compounds; conspiracy to traffic in counterfeit drugs; conspiracy to launder money; possession with intent to distribute controlled substances (steroids); and trafficking in counterfeit drugs. Green pleaded guilty that same month to one count of conspiracy to distribute controlled substances. In April 2017, Green and five others were charged for their roles in the conspiracy.
From approximately May 2015 until April 12, 2017, Bauman, Green and their co-conspirators manufactured steroid products made from raw materials that they purchased overseas and marketed as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
Bauman had a robust social media following on Instagram and other platforms under the moniker “musclehead320” and derivations of that name. Bauman used the “musclehead320” persona to promote Onyx by claiming to be an “Onyx Sponsored Athlete.” As “musclehead320,” he publicly denied any suggestion that he was directly involved with making or selling Onyx; however, at the same time, he was in fact marketing Onyx injectable steroids through other social media accounts, including Instagram accounts in the name of “onyx_roid” and “onyxpharma.” Through these accounts, Bauman provided customers with email addresses to place orders, received steroid orders, and then communicated with customers via these email addresses.
Bauman directed other members of the conspiracy to ship steroids to customers using the U.S. Postal Service. Customers paid for the steroids via money remitters, such as Western Union and MoneyGram. Bauman then directed other members of the conspiracy to pick up payments at multiple remitter locations using false identifications to attempt to avoid suspicion.
Bauman purchased both the oral steroids (tablets) and the raw materials to manufacture the injectable steroids from overseas suppliers. He also ordered the counterfeit Onyx labeling and packaging from overseas suppliers. The injectable steroids advertised and sold by the members of this conspiracy bore trademarks of Onyx Pharmaceuticals.
Further, Bauman laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning salon located in Beverly, which he and a co-conspirator owned and operated specifically to launder the proceeds of the steroid operation.
Green’s principal roles in the conspiracy were to pay another member of the conspiracy to ship steroids and to collect payments from customers.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit prosecuted the cases.
Self-Proclaimed “Commissioner” of the Office of the Commissioner, “His Excellency” Brandon Jones, Guilty of All ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that BRANDON JONES, a/k/a “Brandon McGeer,” a/k/a “Brandon Jones-McGeer,” was convicted on all counts charged in a three-count Indictment of passing fictitious government obligations, wire fraud, and conspiracy to commit wire fraud, following an eight-day jury trial presided over by U.S. District Judge Alison J. Nathan.
Manhattan U.S. Attorney Geoffrey Berman stated: “As a unanimous jury found today, Brandon Jones went to great lengths to portray himself as a government official. In doing so, he manipulated businesses to obtain goods and services through fake ‘government’ documents and requests. Now that Jones has been convicted of his crimes, there will be nothing fictitious about the prison time he faces.”
According to the evidence introduced at trial:
In early January 2016, the United States Postal Inspection Service undertook an investigation into JONES, the self-proclaimed “Commissioner” of the “Office of the Commissioner, an IGO.” The “Office of the Commissioner” was an organization JONES created, which purported to be an “Intergovernmental Organization,” and which he claimed was funded by the federal government in doing work with the United Nations. In his role as the “Commissioner,” JONES obtained hundreds of thousands of dollars in goods and services using fake government purchase orders, government transportation requests, and other government payment documents. Among many others, JONES defrauded a former Ambassador to the United Nations, who JONES lured into providing consulting services while working to secure funding for a humanitarian aid project that, due to JONES’ fraud, never came to fruition. JONES also obtained hundreds of thousands of dollars in free hotel stays, airline tickets, and other goods and services.
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JONES, 35, of Philadelphia, stands convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of passing fictitious obligations, which carries a maximum sentence of 25 years in prison. The three charges each also carry a maximum fine of $250,000, 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.
In March 2015, an investigation undertaken with the United States Secret Service into one of JONES’s employees, an alleged “Deputy Commissioner” of the “Office of the Commissioner, an IGO,” Sandra Zongo, led to Zongo being charged with one count of impersonating an official or employee of the United States government; one count of wire fraud; one count of passing fictitious obligations; and one count of attempted benefits fraud. Zongo was convicted in January 2017 of all charges after a jury trial before U.S. Senior District Judge Kimba M. Wood.
Mr. Berman praised the outstanding investigative work of the USPIS. He added that the investigation is continuing.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jessica K. Fender, and Tara M. La Morte are in charge of the prosecution; paralegal specialists Jenny Satinover and Haley Zovickian provided additional support.
The USPIS encourages the public to report any information it has regarding JONES or the Office of the Commissioner at 1-877-876-2455.
Sedalia Man Pleads Guilty to Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man pleaded guilty in federal court today to illegally possessing a firearm.
Justin Lee Denny, 27, of Sedalia, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of a firearm.
By pleading guilty today, Denny admitted that he was in possession of a Kel-Tec .380-caliber semi-automatic pistol on Nov. 21, 2017.
A Sedalia police officer was conducting a traffic stop on Nov. 21, 2017, but when the officer activated his emergency lights, Denny accelerated away from the patrol car. The officer activated his sirens and pursued Denny for about two blocks before Denny abruptly pulled over.
During the pursuit, the officer could see that Denny appeared to be moving something with his hands in the middle of the seat. When the officer approached his truck, Denny was nervous and his hands were visibly shaking. The officer noticed that Denny appeared to be attempting to conceal something under a bag next to him.
After the officer told Denny to step out of the truck, he admitted that there was a gun in the seat. The officer searched the truck and recovered the pistol, which had been reported stolen out of Sedalia, as well as a black pouch that contained several plastic Ziploc bags, including one baggie with suspected methamphetamine.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Denny has three prior felony convictions for possession of a controlled substance and two prior felony convictions for driving with a revoked/suspended license.
Under federal statutes, Denny is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Sedalia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scranton Man Charged with Importing Synthetic Canaboids from ChinaRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Verkitus, age 53, of Scranton, Pennsylvania, was indicted on March 13, 2018, by a federal grand jury for importing into the United States synthetic canaboids, which are controlled substance analogues. The case was unsealed on March 14, 2018, following Verkitus’ plea of not guilty entered before United States Magistrate Judge Karoline Mehalchick.
According to United States Attorney David J. Freed, the indictment alleges that Verkitus obtained the drugs from China during 2015 and 2016. The indictment identifies the synthetic canaboid as “Naphthalen-1-yl 1-(5-fluoropentyl)-1H-indole-3carboxylate,” also known as NM-2201.
Under federal law, controlled substance analogues, which are chemically similar to controlled substances in Schedules I or II, to the extent they are intended for human consumption, are treated as controlled substances
The charge against Verkitus stems from an investigation by special agents of the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Scranton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sacramento Man Pleads Guilty to Repeat Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. —Marc Christopher Turner, 44, of Sacramento, pleaded guilty today to receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement agents searched Turner’s apartment in September 2016. Review of Turner’s computer located 90 videos and 171 still images depicting the sexual abuse and exploitation of minors. At the time of the search, Turner was a registered sex offender based on a prior conviction in federal court in Sacramento for distributing child pornography.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Turner is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on May 31, 2018. Turner faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rogers Man Sentenced to over 12 Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Christopher Scott, age 35 of Rogers, was sentenced today to 151 months in federal prison and four years of supervised release on one count of distribution of methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in the spring of 2017, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Scott. In May of 2017, the DEA arranged and conducted a controlled purchase of methamphetamine from Scott. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 26.105 grams of actual methamphetamine.
This case was investigated by the Drug Enforcement Administration and local law enforcement agencies. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Project HuntingtonRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart issued the following statement this morning during a press conference held at the Sidney L. Christie Federal Building in Huntington:
Remarks as prepared for delivery
“Good morning.
Attorney General Sessions and this Administration is wholly committed to working with our federal, state and local partners to ensure the safety of our streets, our families and our children. Frankly, we will no longer tolerate drug dealers, drug traffickers, violent criminals, or illegal guns on the streets of the City of Huntington.
Our goal is simple- To make Huntington the “Safest City in America.”
In what we are calling, “PROJECT HUNTINGTON”, I have ordered a surge of federal prosecutors in Huntington – doubling the number of prosecutors and, within weeks, tripling our office and we will add even more prosecutors as circumstances require. My team is led by Assistant United States Attorney Monica Coleman, a veteran prosecutor with a record of aggressive, fearless prosecution and she will lead a team wholly dedicated to this effort. The instructions to my team cannot be more clear – “Put violent criminals and bad guys behind bars, off our streets, and away from the public as long as possible.”
I want to personally thank Mayor Williams, Huntington Interim Police Chief Dial, and Prosecutor Hammers for their partnership in this effort. “PROJECT HUNTINGTON” would not be possible without their commitment and support.
In addition to Mayor Williams, Chief Dial, and Prosecutor Hammers, with me today are:
Supervisory Special Agent Wes Quigley, FBI
Assistant Special Agent in Charge David Gourley, DEA
Resident Agent in Charge Adam Black, ATF
Sharon Frazier, Cabell County Assistant Prosecutor
Monica Coleman, Assistant United States Attorney
With the assistance and commitment of our federal partners, “PROJECT HUNTINGTON” and a surge of prosecution ensures that every federal resource possible will be dedicated to working with our state and local partners to “Take Back These Streets” from those that bring havoc, chaos and despair to the Greater Huntington area.
“PROJECT HUNTINGTON” ensures that Huntington’s “greatest days” lay ahead.
Thank you.”
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Pro Poker Player Indicted on Fraud Charges Alleging Theft of over $6 Million Dollars in Super Bowl and World Cup Ticket-Flipping ScamRead the Press Release
SANTA ANA, California – An Orange County man has been indicted on wire fraud charges that allege a $6 million scheme that bilked investors who were promised large profits from the resale of tickets to high-profile sporting events.
Seyed Reza Ali Fazeli, 49, a professional poker player who resides in Aliso Viejo, was named in a two-count indictment returned Wednesday by a federal grand jury.
The indictment alleges that Fazeli ran a Las Vegas-based ticket business called Summit Entertainment, which also operated under the names onlinetickets.com and pacertickets.com. From May 2016 through at least May 2017, Fazeli solicited investors in Orange County, Houston and Las Vegas, Nevada to send approximately $6.2 million to Summit to purchase tickets to the 2017 Super Bowl and the 2018 World Cup. Fazeli allegedly told investors that Summit would resell the tickets at a substantial profit and share the proceeds with the investors.
Investors wired more than $6 million to Summit to purchase tickets for last year’s Super Bowl, but after the event Fazeli failed to provide any profit distribution to investors, according to the indictment. Fazeli allegedly falsely told the victims that the ticket sales did not go well because the NFL prohibited their resale and that he was working on a settlement with the NFL.
According to court documents, Fazeli never purchased large amounts of Super Bowl or World Cup tickets as promised. Instead, he used the money for gambling expenses at the Aria and Bellagio casinos in Las Vegas and for personal expenses.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he were to be convicted of the two charges in the indictment, Fazeli would face a statutory maximum penalty of 40 years in federal prison.
Fazeli was arrested in this case by the FBI on February 14 pursuant to a criminal complaint. During a court hearing the next day, he was released on a $120,000 bond and was ordered to appear in United States District Court for an arraignment on March 26.
Anyone who may have been victimized by Summit or Fazeli is encouraged to contact the FBI’s Los Angeles Field Office at 310-477-6565.
The investigation into Fazeli is being conducted by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Joseph T. McNally.
Possession of a Firearm by a Prohibited PersonRead the Press Release
Council Bluffs, IA- United States Attorney Marc Krickbaum announced that on March 13, 2018, 35-year-old Sean Cullen of Council Bluffs, Iowa was sentenced to 2 years in prison and ordered to serve three years of Supervised Release at the conclusion of his imprisonment, by Senior District Court Judge Robert Pratt for Felon in Possession of a Firearm.
On September 23, 2017, Cullen was admitted into the emergency room at Jennie Edmondson hospital with a gunshot wound to his leg claiming someone had shot him. After an investigation it was determined that Cullen shot himself with a firearm during a domestic dispute. Cullen then threw the loaded handgun into a neighbor’s yard before driving himself to the hospital for treatment. Officers observed a trail of blood on the outside of the residence that led to the fence of the property. The neighbor located the gun and reported it to Council Bluffs Police Department the next day. The firearm was determined to be a six shot, .22 caliber revolver, with one spent round in the cylinder. Cullen was convicted in 2007 of a felony for theft.
The investigation was conducted by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Possession of a Firearm by a Prohibited PersonRead the Press Release
Council Bluffs, IA- United States Attorney Marc Krickbaum announced that on March 13, 2018, 33 year old Jesus Everardo Medina of Council Bluffs, Iowa, was sentenced to 37 months in prison, and ordered to serve three years of Supervised Release at the conclusion of his imprisonment, by Senior District Court Judge Robert Pratt for Possession of a Firearm by a Felon.
The investigation began with law enforcement with the Council Bluffs Police Department responding to a gunshot being heard in the 1400 block of Avenue B shortly after midnight on June 5, 2017. Upon arriving in the area, officers located nine millimeter shell casings and were told by a witness that the party responsible, Jesus Medina, had left the area in a gold colored two door car. This vehicle was located by law enforcement a short distance from the 1400 block of Avenue B, with Medina in the back seat. A nine millimeter Jennings semi-automatic handgun was found in the seat pocket in front of Medina. Medina was convicted of a felony offense in 2009 making it unlawful for him to possess a firearm.
The investigation was conducted by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pittsburgh Man Sentenced for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA – An Allegheny County resident has been sentenced in federal court to a 48-month term of imprisonment on a charge of obtaining a controlled substance by fraud, and a 60-month term of imprisonment on a charge of distribution of oxycodone, a Schedule II controlled substance, to run concurrently, to be followed by a three-year term of supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Carl T. Wilson, age 50, of Pittsburgh, Pennsylvania.
According to information presented to the Court, from late 2015 to March 2017, Wilson knowingly, intentionally and unlawfully obtained oxycodone, a Schedule II controlled substance, by misrepresentations, fraud and deception. Also, on March 27, 2017, Wilson knowingly, intentionally, and unlawfully possessed with intent to distribute and distributed oxycodone.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Carl T. Wilson.
Philadelphia Man Charged with Possession of a Firearm by a Convicted FelonRead the Press Release
PHILADELPHIA – Keith Freeman, 23, of Philadelphia, Pennsylvania was charged today by Indictment with one count of possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen.
If convicted, the defendant faces a maximum sentence of ten years in prison, plus a possible fine, supervised release, and a special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Drug TraffickingRead the Press Release
Shawn Gilbert, 46, of Philadelphia, was charged today by indictment[1] with possession with intent to distribute marijuana and Xanax, possession of a firearm in furtherance of a drug trafficking crime, possession of a firearm by a convicted felon, announced United States Attorney Louis D. Lappen.
The indictment alleges that on about September 1, 2017, Gilbert possessed with intent to distribute marijuana and Xanax, and was found in possession of a firearm along with the marijuana and Xanax.
If convicted, Gilbert faces lifetime imprisonment, including a 20 year mandatory minimum term of imprisonment, at least 4 years up to lifetime supervised release, a $1,250,000 fine, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and has been assigned to Assistant United States Attorney Salvatore L. Astolfi.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Men Sentenced to Prison for Running Fraudulent Tax Return RingRead the Press Release
Two Philadelphia men were sentenced to prison for conspiring to file fraudulent tax refund claims, announced U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Moise Olivier, 28, a member of the conspiracy, was sentenced today to serve three months in prison, followed by three years of supervised release, and was ordered to pay $181,805.10 in restitution and a $100 special assessment. Hans Pierre, another member of the conspiracy, was sentenced last month to serve three months in prison. Pierre, 29, was also sentenced to three years of supervised release following his prison sentence and ordered to pay $95,157.41 in restitution and a $100 special assessment.
According to documents and information provided to the court, Olivier and Pierre conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Although neither man had a tax preparation business, Olivier opened up a bank account in the name of “Moise Olivier Tax Service” and Pierre opened up two bank accounts in the name of “Hans Pierre Tax Service” to facilitate the crime. Their co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into these bank accounts. Olivier and Pierre withdrew money from their bank accounts to provide to other co-conspirators, and they kept a substantial portion of the illegal proceeds for their own use. Olivier admitted to causing a tax loss of $181,805.10. Pierre admitted to causing a tax loss of $95,157.41.
In addition to these sentences, U.S. District Judge John R. Padova sentenced the other defendants as follows:
- Steeve Zamor, who recruited other individuals to join the scheme, was sentenced to 22 months in prison and three years of supervised release, and ordered to pay $366,135.53 in restitution and a $100 special assessment.
- Shamback Francois was sentenced to eight months in prison and three years of supervised release, and ordered to pay $425,841.14 in restitution and a $200 special assessment.
- Douge Francois was sentenced to four months in prison in prison and three years of supervised release, and ordered to pay $32,300 in restitution and a $100 special assessment.
- Daniel Monville was sentenced to three months in prison and three years of supervised release, and ordered to pay $155,789.23 in restitution and a $400 special assessment.
- Peterson Blanc was sentenced to three months in prison and three years of supervised release, and ordered to pay $100,049.10 in restitution and a $700 special assessment.
- Stanley Jean was sentenced to three months in a halfway house and five years of probation, and ordered to pay $129,000 in restitution and a $200 special assessment.
- Jean Celestin was sentenced to two months in prison and three years of supervised release, and ordered to pay $118,000 in restitution and a $100 special assessment.
- Ronald LaFortune was sentenced to two months of home confinement and three years of probation, and ordered to pay $118,000 in restitution and a $100 special assessment.
Zamor, Douge Francois, Blanc, Monville, and LaFortune all face potential immigration proceedings as a result of their felony convictions.
U.S. Attorney Lappen and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Trial Attorney Eric B. Powers of the Tax Division and Assistant U.S. Attorney David Ignall, who prosecuted the case.
- Steeve Zamor, who recruited other individuals to join the scheme, was sentenced to 22 months in prison and three years of supervised release, and ordered to pay $366,135.53 in restitution and a $100 special assessment.
Pennsylvania Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Pennsylvania man was sentenced today in federal court in Boston for failing to register as a sex offender.
Carlos Pagan-Reyes, 31, of Pittsburgh, Penn., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 11 months in prison and five years of supervised release. In December 2017, Pagan-Reyes pleaded guilty to failing to register as a sex offender.
On Feb. 17, 2017, Pagan-Reyes was arrested in Boston on state charges of possession of narcotics, buying/receiving stolen goods, assault with a dangerous weapon and failure to register as a sex offender. Pagan-Reyes was released from state custody pending charges. On April 27, 2017, federal investigators arrested Pagan-Reyes for failing to register as a sex offender in Massachusetts.
On April 25, 2007, Pagan-Reyes was convicted in Dauphin County, Penn., of statutory sexual assault and indecent assault on a child less than 16-years-old. Pagan-Reyes was sentenced to state prison and ordered to register as a sex offender in any communities where he lived and worked upon release. Upon his release from prison, Pagan-Reyes registered as a sex offender in Pennsylvania. However, Pennsylvania authorities later became aware that Pagan-Reyes had left Pennsylvania without notifying the proper authorities, as he was required to do; they then issued a warrant for his arrest. Pagan-Reyes was arrested by federal authorities in Boston after determining that he had been living in Massachusetts since Nov. 30, 2016, and had not registered as a sex offender.
United States Attorney Andrew E. Lelling; John Gibbons, U.S. Marshal for the District of Massachusetts; and Boston University Police Chief Kelly Nee made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Pasco Drug Dealer Sentenced to Life ImprisonmentRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Miles Barton Nichols, age 59, of Pasco, Washington, was sentenced after having been convicted after two separate jury trials in October, 2017, of one count of Possession with Intent to Distribute 50 Grams or more of pure Methamphetamine, one count of Possession with Intent to Distribute 5 Grams or more of pure Methamphetamine, one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and one count of Felon in Possession of a Firearm. United States Senior District Court Judge Edward F. Shea sentenced Nichols to a life term of imprisonment on Nichols for his possession with intent to distribute 50 grams or more of pure methamphetamine conviction and a 405-month term of imprisonment for his Possession with Intent to Distribute 5 grams or more of methamphetamine conviction; a ten-year term of imprisonment for his felon in possession of a firearm conviction; and a mandatory-minimum five-year term of imprisonment for his possession of a firearm in furtherance of a drug trafficking crime conviction, which sentence is to be served consecutively to all others, followed by an eight-year term of court supervision if Nichols is ever released from Federal prison.
According to information disclosed during court proceedings, the Richland Police Department Street Crimes Unit developed information that Nichols was distributing methamphetamine from his room at a hotel in Richland, Washington. Officers obtained a search warrant for Nichols’ room, and seized two firearms, ammunition, over 5 grams of pure methamphetamine, drug ledgers, digital scales, and other drug paraphernalia. Officers were unable to find Nichols when the search warrant was executed.
Through further investigation, officers determined Nichols relocated to a second hotel in Kennewick, Washington, and initiated surveillance there. After receiving information that Nichols was distributing methamphetamine out of his second hotel room, officers contacted Nichols and he was arrested on outstanding warrants. Law enforcement agents obtained a search warrant for Nichols’ second hotel room and found over 50 grams of pure methamphetamine, drug ledgers, a digital scale, and $3,302 in cash.
When interviewed by law enforcement, Nichols admitted that he sold pounds of methamphetamine on a weekly basis from both hotel rooms. Nichols also admitted that the two firearms law enforcement seized at his first hotel room were his and the drug ledgers that were seized at both rooms enabled him to keep track of his drug sales and who owed him money.
During the sentencing hearing, Judge Shea observed that Nichols’ had at least two prior felony drug convictions (Nichols had six) and they qualified him for a mandatory term of life imprisonment on his possession with intent to distribute 50 grams or more of pure methamphetamine conviction and it was an appropriate sentence to impose in this case. Judge Shea also imposed a 405-month term of imprisonment on Nichols for his possession with intent to distribute 5 grams or more of pure methamphetamine conviction and a 10-year term of imprisonment for his felon in possession of a firearm conviction. Judge Shea imposed a 5-year mandatory-minimum term of imprisonment on Nichols for his possession of a firearm in furtherance of a drug trafficking crime, to run consecutive to the other sentences imposed, followed by an eight-year term of court supervision if Nichols is ever released from federal prison.
United States Attorney Harrington said, “The Court’s sentence will protect the community, punish Nichols, and deter others who might consider committing similar crimes in our community. I also commend the law enforcement officers who worked on this case. Their seamless partnership resulted in the successful outcome of this matter. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for offenders who possess with intent to distribute drugs and illegally possess firearms in this District.”
Darek Pleasants, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Seattle Field Division, said, “The removal of Miles Nichols from the Tri-Cities area shows the significant and positive impact ATF makes on a community when we work shoulder to shoulder with our partners in law enforcement to send a strong message that career criminals and armed narcotics traffickers will not be tolerated.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Richland Police Department; United States Drug Enforcement Administration; Kennewick Police Department; and Washington State Patrol. The case was prosecuted by Meghan McCalla and Ian Garriques, Assistant United States Attorneys for the Eastern District of Washington.
O.C. Man Pleads Guilty to Federal Wire Fraud Charge and Admits Defrauding Victims of Three Investment Schemes out of $6.8 MillionRead the Press Release
SANTA ANA, California – A Laguna Beach man has pleaded guilty to a federal wire fraud charge and admitted that he stole $6.8 million from victims of three investment fraud schemes.
Peter Heinrich Conrad Reinert, 63, pleaded guilty Wednesday before United States District Judge Josephine L. Staton.
When he pleaded guilty, Reinert admitted running three separate schemes. In one scam, Reinert, who operated the Irvine-based Fazer Technologies, claimed he was developing, among other things, a product that could increase gas mileage for any car up to 150 miles per gallon. In another fraud, this one related to Global Encryption Imaging Corporation, Reinert claimed the company was developing, among other things, anti-counterfeiting technology to be used on state-issued identification documents. In the third scheme, Reinert told victims that another company he ran, Income from Waste Corporation, was developing a technology to convert used tires into oil.
As part of the schemes, to gain legitimacy with victims, Reinert falsely claimed to be a United States Secret Service agent and a United States Marine. Reinert also falsely claimed that companies such as Tesla and General Electric were interested in Fazer’s product – and that Tesla had stolen Fazer’s technology and used it in their cars.
Through various false claims, Reinert induced victims to send him approximately $6.8 million. The victims from these schemes came from around the nation and included farmers from Missouri.
Instead of spending the victims’ money to develop the purported technologies, Reinert used the money to pay for personal expenses, luxury automobiles, sales commissions, purchases at Apple’s iTunes store, and wire transfers to an account in Poland.
Judge Staton is scheduled to sentence Reinert on June 8, at which time he will face a statutory maximum sentence of 20 years in federal prison.
As part of his plea agreement, Reinert agreed to forfeit approximately $300,000 that the FBI had seized in 2015, as well as a 2009 Mercedes Benz S63 AMG and a 2011 Mercedes Benz.
The investigation into Reinert was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Department of Defense, the United States Secret Service, U.S. Customs and Border Protection, the State Department, and the Laguna Beach Police Department provided substantial assistance.
The case is being prosecuted by Assistant United States Attorneys Vibhav Mittal and Daniel Lim of the Santa Ana Branch Office.
Nine People Indicted on Federal Charges in Narcotics and Firearms Trafficking InvestigationRead the Press Release
WASHINGTON – Nine people have been indicted on federal charges stemming from an ongoing investigation into a ring that allegedly distributed crack cocaine, cocaine, PCP, fentanyl, and firearms in the Washington, D.C. metropolitan area.
To date, more than 500 grams of cocaine base and 100 grams of PCP have been seized as a result of the investigation, along with 13 firearms. Nine of the guns were seized today.
The charges are contained in three indictments unsealed today in the U.S. District Court for the District of Columbia. The charges were announced by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and 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).
Seven defendants were arrested today, including Darnell Catlett, 45, of Upper Marlboro, Md.; Jamal Curtis, 39, of Washington, D.C.; Pamela Davis, 56, of Washington, D.C.; Russel Harrison, 38, of Temple Hills, Md.; Brian Jenkins, 42, of Brentwood, Md., Tydell Mims, 48, of Upper Marlboro, Md., and Everette Reel, 45, of Upper Marlboro., Md. Two other defendants are still being sought.
Eight defendants are charged with taking part in a conspiracy to distribute and possess with intent to distribute cocaine and 280 grams or more of crack. Numerous defendants are also charged with possessing and distributing various narcotics, including crack, cocaine, PCP and fentanyl, during the period of the investigation. The indictments also include a forfeiture count against all of those now charged in the investigation, which seeks all proceeds from the crimes.
Two defendants are alleged to have engaged in a conspiracy to traffic firearms based on the controlled purchase of firearms by law enforcement led by the FBI, with the assistance of MPD and ATF.
“This investigation is another example of our determination to target drug trafficking organizations that are bringing crack cocaine, cocaine, PCP and firearms into neighborhoods of the District of Columbia,” said U.S. Attorney Liu. “Through this coordinated law enforcement effort, we were able to remove significant quantities of drugs as well as firearms from the streets.”
“Today’s arrests send a clear message that drug traffickers have no place in our community,” said Assistant Director in Charge Vale. “The FBI along with our local law enforcement partners is focused on stopping the movement and sale of drugs on our streets and ensuring that our neighborhoods are free from illegal firearms.”
“ATF is dedicated to removing those that use firearms to commit violence from our streets,” said Special Agent in Charge Chittum. “This investigation is a great example of how we actively collaborate with our federal, state and local law enforcement partners to reduce violent crime and keep our communities safe.”
In May 2015, the FBI, with the assistance of MPD, began a long-term investigation into a drug trafficking organization that operated in the Montana Terrace neighborhood of Northeast Washington and extended into Maryland. Earlier today, the FBI coordinated the execution of eight search warrants and the arrest warrants in the District of Columbia and Maryland. The search warrants were executed on five residences and three automobiles belonging to numerous alleged co-conspirators, resulting in the recovery of additional quantities of narcotics, firearms, narcotics paraphernalia, and approximately $80,000 in cash.
The defendants began making their first court appearances today.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Assistant Director in Charge Vale, Chief Newsham, and Special Agent in Charge Chittum commended the work of those who investigated the case from the FBI, ATF, and MPD. They also expressed appreciation for the assistance provided by the U.S. Marshals Service, the FBI’s Baltimore Division, the Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.
Finally, they cited the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Kevin Rosenberg and Christopher Macchiaroli.