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Friday 2 February 2018
Former Pacifica Resident Sentenced to Prison for Bank and Tax FraudRead the Press Release
SAN FRANCISCO – Krisinda Messer was sentenced today to 27 months in prison and was ordered to pay $541,617.52 in restitution for bank fraud and making and subscribing a false tax return, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Court Judge, following Messer’s plea of guilty to the charges.
A federal grand jury indicted Messer, 38, of Pope Valley, Calif., and formerly of Pacifica, Calif., on May 12, 2015, charging her with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344(2); four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); and three counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). On May 10, 2017, Messer pleaded guilty to one count of bank fraud and one count of making and subscribing a false tax return.
According to the plea agreement, Messer admitted that from 2007 until 2011, she was employed as a bookkeeper by delicatessens in San Francisco. Beginning in May 2008, and continuing through August 2011, Messer created 130 fraudulent checks totaling $436,396.52, 128 of which were payable by the delicatessens to American Backflow Company, a company owned by Messer’s relative. American Backflow Company was not a creditor of Messer’s employers and there was no business relationship between them. Messer forged the signature of the owner of the delicatessens on most of the checks. In order to conceal these checks from her employer, Messer created a fake company account on QuickBooks and used the fake company to produce checks written to American Backflow Company so that they would not appear in the books.
In addition to the prison term, Judge Breyer also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence on May 1, 2018.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
Former Kentucky River Regional Jail Deputy Jailer Pleads Guilty to Civil Rights Violation for Using Excessive Force Against an InmateRead the Press Release
LEXINGTON, Ky. – A former deputy jailer at an Eastern Kentucky jail has entered a guilty plea to a federal criminal civil rights charge related to his role in an unprovoked assault of a pretrial detainee.
Jarrod Allen Lucas, 28, entered his guilty plea today, before U.S. District Chief Judge Karen K. Caldwell.
In his plea, Lucas admitted that, on October 10, 2011, he assaulted an inmate immediately after his Supervisor - Damon Hickman - punched the inmate on the side of his head. Hickman struck the inmate with such force that he broke his hand and caused the inmate’s ear to bleed. Lucas and another supervisor, Matthew Amburgey, then knocked the inmate to the ground and repeatedly kicked him. Lucas admitted that he kicked the inmate without justification.
The Kentucky River Regional Jail houses pretrial detainees from Perry and Knott Counties. As a deputy jailer, Lucas was responsible for the custody, care, safety and control of the inmates at the jail.
Hickman pleaded guilty last year for his role in a separate assault at the same jail. The victim of that assault died.
Amburgey pleaded guilty last week for his role in the October 10, 2011, assault involving Lucas and Hickman.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The FBI conducted the investigation. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Sentencing for Lucas is scheduled for May 1, 2018, at 2:00 p.m. in Lexington. He faces up to 12 months imprisonment. The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutes before imposing sentence.
Former Dover Resident Sentenced for Stealing Children’s Social Security BenefitsRead the Press Release
CONCORD, N.H. - Arthur Nunes, III, 41, formerly of Dover, New Hampshire, was sentenced to serve 13 months in federal prison for making a false statement to obtain Social Security benefits, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February of 2012, Nunes submitted an application for Child’s Insurance Benefits to the Social Security Administration (SSA) on behalf of his two children based on the earnings record of their mother, who had passed away in January of 2012. On the application, he indicated that the children resided with him. The application was approved and Nunes, as the children’s representative payee, began receiving monthly benefits in March of 2012. As their representative payee, Nunes was responsible for using the benefits he received on behalf of his children for their current needs, such as food, clothing, housing, and medical care.
In reality, however, after the death of their mother in January 2012, Nunes’s children lived with another relative and Nunes used his children’s benefits for his own use. Nunes’s concealment of his children’s true residency and his failure to use the benefits for their needs caused him to get $36,526 in Child’s Insurance Benefits payments that he was not entitled to receive.
Nunes, who pleaded guilty on October 27, 2017, also was ordered to pay $36,526 in restitution.
“Federal benefit programs provide an important source of support for many deserving families,” said Acting U.S. Attorney Farley. “Unfortunately, there are some individuals who attempt to defraud the system and obtain money that they are not entitled to receive. The U.S. Attorney’s Office works closely with the SSA’s Office of the Inspector General to ensure that those who attempt to defraud the SSA are identified and prosecuted so that government funds are available for those who should be receiving them.”
“As this sentence demonstrates, the SSA OIG is committed to investigating cases of representative payee fraud, which involves the theft of government funds and harm to innocent children who are deserving of Social Security benefits,” said Scott Antolik, Special Agent-in-Charge of the SSA Office of the Inspector General Boston Field Division. “We will continue to work with our law enforcement partners and the U.S. Attorney's Office to investigate and prosecute all forms of Social Security fraud.”
This matter was investigated by the Social Security Administration Office of the Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Postal Inspection Service, and the Berwick, Maine Police Department. The case is being prosecuted by Special Assistant U.S. Attorneys Matthew T. Hunter and Karen B. Burzycki.
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Former Des Moines Dentist Sentenced to Prison for Unlawfully Obtaining Hydrocodone and Firearm OffensesRead the Press Release
DES MOINES, Iowa – On February 2, 2018, Shawn Michael Kerby, 39, formerly of Des Moines, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 20 months in prison for obtaining hydrocodone by misrepresentation and being a user and addict of a controlled substance in possession of a firearm, announced United States Attorney Marc Krickbaum. Kerby was ordered to pay a $15,000 fine.
According to the plea agreement, Kerby practiced dentistry at two dental clinics, Kerby Family Dentistry and Bright Smiles Family Dental. Kerby admitted he was addicted to opiates, including hydrocodone. Through his dental practices, Kerby prescribed hydrocodone to patients, even though there was no medical need. He then arranged for patients to provide the hydrocodone pills back to him after the patient filled the prescription at a local pharmacy.
On December 1, 2015, law enforcement executed search warrants at Kerby’s residence and dental practices. Kerby was found in possession of a Beretta handgun, a Heckler & Koch handgun, a Smith & Wesson snub-nose .38 caliber revolver, a Browning Arms shotgun, two Benelli shotguns, and a Herington/Richardson shotgun. Kerby had been abusing hydrocodone while in possession of the firearms.
This investigation was conducted by the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Dallas County Supervision Officer Sentenced to Federal Prison for Bribery ChargesRead the Press Release
DALLAS — David Delgado, 35, of Dallas, was sentenced yesterday before U.S. District Judge Jane J. Boyle to 37 months in federal prison and ordered to pay $2,900.00 in restitution, following his guilty plea in May 2017 to one count of use of interstate facility to commit travel act. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made today’s announcement.
According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.
During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.
In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.
The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office investigated the case. Assistant U.S. Attorneys John Kull and Kate Rumsey prosecuted.
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Former Brooklyn Assistant District Attorney Sentenced for Illegal Wiretapping SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tara Lenich, a former supervisory Assistant District Attorney with the Kings County District Attorney’s Office (KCDA), was sentenced by United States District Judge William F. Kuntz II to a year and one day in prison on each of the two counts, to be served concurrently, after having pled guilty on April 3, 2017 to two counts of illegally intercepting oral and electronic communications occurring over two cellular telephones.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
According to court filings and facts presented at the sentencing hearing, for nearly 18 months between approximately June 2015 and November 2016, Lenich illegally listened to phone conversations and viewed text messages sent to and from two cellular telephones. As part of her illegal conduct, she created fraudulent judicial orders and forged the signatures of multiple New York State judges onto judicial orders that purportedly authorized the KCDA to intercept communications occurring over the two cellular telephones. Lenich then misappropriated KCDA equipment to intercept, monitor, and record the communications to and from the two cellular telephones. In furtherance of her scheme, Lenich also created fraudulent search warrants, which she then used to obtain unlawfully intercepted text messages sent to and from the two cellular telephones. To conceal her scheme, Lenich lied to her colleagues at the KCDA, telling them that she was conducting a highly sensitive, confidential criminal investigation.
“Former Assistant District Attorney Lenich violated her duty to the public as a prosecutor when she engaged in her long-running illegal scheme,” stated United States Attorney Donoghue. “The victims of her scheme include the individuals whose privacy rights she violated by listening to and reading their private communications, the state court judges whose signatures she forged in order to perpetrate her scheme, the Kings County District Attorney’s Office whose reputation of integrity she damaged, and the public whose trust she betrayed. Today’s sentencing serves as a reminder that no one is above the law.” Mr. Donoghue expressed his appreciation to the KCDA for its cooperation.
“Without the appropriate legal authority to intercept and access communications, Lenich unlawfully listened in on personal conversations between her victims, evading the due process of law all public officials are expected to uphold,” stated FBI Assistant Director-in-Charge Sweeney. “It’s our hope today’s sentencing will send a strong message to anyone who thinks they can get away with this egregious abuse of power.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Maria Cruz Melendez and Robert Polemeni are in charge of the prosecution.
The Defendant:
TARA LENICH
Age: 42
New York, NYE.D.N.Y. Docket No. 17-CR-154 (WFK)
Former Attorney Sentenced to Prison for Money LaunderingRead the Press Release
**Video entered into the public record at sentencing will be available at: https://www.dvidshub.net/ice
ALEXANDRIA, Va. – A former attorney was sentenced today to seven years in prison for conspiring to launder over $2 million dollars derived from a business email compromise scheme and for attempting to launder funds he believed to be the proceeds of smuggling illegal aliens into the United States and trafficking firearms in Africa.
According to court documents, from at least March 2013 to February 2017, Raymond Juiwen Ho, 48, of Vienna, engaged in a large-scale money laundering scheme that resulted in millions of dollars being moved through bank accounts (some of which were attorney trust accounts) that Ho or his co-conspirators controlled. Specifically, between July and November 2014, Ho participated in a conspiracy in which co-conspirators sent emails from compromised or imitation accounts that duped victims into transferring money to accounts controlled by Ho and others. Ho then laundered these stolen funds, moving them through and to accounts located in the United States and abroad. Ho, who recruited others to aid his laundering activities, laundered over $2 million in unlawfully obtained funds.
Ho engaged in his money laundering business despite multiple instances of banks closing his accounts due to fraud and inquiries by law enforcement. Eventually, in November 2015, Homeland Security Investigations (HSI) initiated an operation in which undercover HSI agents sought Ho’s assistance in moving the proceeds of human smuggling and firearms trafficking between bank accounts located in the United States and overseas. Ho engaged in four such transactions between December 2015 and June 2016, involving over $175,000 that he believed were the proceeds of the illegal smuggling and trafficking activity.
Throughout the criminal conduct described above, Ho was a practicing attorney for an intellectual property law firm based in Washington, D.C. As part of this case, he has surrendered his bar licenses from Georgia and the District of Columbia.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) HSI Washington, D.C., made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Alexander P. Berrang, Senior Counsels Ryan K. Dickey and James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Kendrack D. Lewis and Former Trial Attorney Elizabeth Wright of the Justice Department’s Money Laundering and Asset Recovery Section investigated and prosecuted the case. Former Assistant U.S. Attorney Alexander Nguyen and former Special Assistant U.S. Attorney Joseph V. Longobardo provided assistance investigating the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-215.
Federal Jury Returns Guilty Verdict for Convicted Felon in Possession of a FirearmRead the Press Release
CHATTANOOGA, Tenn. – On January 31, 2018, following a trial in U.S. District Court in Chattanooga before the Honorable Travis R. McDonough, U.S. District Judge, a jury convicted Donald Ray Hobgood, 31, of Shelbyville, Tennessee, of three counts of being a felon in possession of a firearm and ammunition.
Evidence presented at trial revealed that, on January 20, 2017, Bedford County Sheriff’s Deputies were dispatched to Cedar Springs Road in Shelbyville, Tennessee. On arrival, they encountered Hobgood, who was brandishing an AK-style semi-automatic rifle. Hobgood evaded arrest on that date, but on February 15, 2017, deputies received information as to his whereabouts and located him. After a short foot pursuit, deputies subdued and arrested Hobgood. They recovered the AK-style rifle nearby, which was fully loaded with a high capacity 30-round magazine, and discovered multiple loose rounds of ammunition in his pocket.
Sentencing is set for June 1, 2018, in U.S. District Court in Chattanooga. Hobgood faces a sentence of up to 10 years in prison for each count of his conviction. If the judge determines that Hobgood qualifies as an armed career criminal, he faces a statutory mandatory minimum sentence of 15 years in prison for each count. There is no parole in the federal system.
Law enforcement agencies participating in this joint investigation included the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bedford County Sheriff’s Office. Assistant U.S. Attorneys Michael Porter and Kyle Wilson represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
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Federal Jury Finds Greenville Man Guilty in Firearms TrialRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that a jury returned a guilty verdict following a two-day jury trial in federal court in Greenville, South Carolina, finding Harvest Maurice Sloan, age 38, of Greenville, guilty of possession by a firearm and ammunition by a felon. The trial wrapped up yesterday afternoon and was held before United States District Judge Mary Geiger Lewis, of Columbia. Judge Lewis will impose a sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The government presented multiple witnesses during the course of the trial. Witness testimony and the evidence presented by the government at trial established that on April 25, 2017, a Greenville police officer encountered the defendant, Harvest Maurice Sloan, at a car while the officer was investigating a stolen vehicle report. During a search of the car police located a backpack containing a loaded Ruger 9mm pistol, along with additional 9mm ammunition from the front seat area of the car.
A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) retrieved calls made by Harvest Maurice Sloan from the Greenville County jail that contained conversations relating to the pistol recovered by police.
The case was investigated by the Greenville Police Department, the Greenville County Forensic Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Max Cauthen prosecuted the case.
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Fairbanks Couple Sentenced for Producing and Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks couple has been sentenced in federal court for producing and distributing child pornography.
Christopher Duane Davis, 32, of Fairbanks, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve 35 years in prison, followed by a lifetime term of supervised release. Charity Noel Germain, 27, of Fairbanks, was previously sentenced on Dec. 15, 2017, to serve 22 years in prison, followed by a lifetime term of supervised release. Davis previously pleaded guilty on Nov. 3, 2017, to production and distribution of child pornography. Germain previously pleaded guilty on April 27, 2017, to conspiracy to produce child pornography.
According to court documents, beginning in June 2015, Davis and Germain conspired to produce visual depictions of minors engaged in sexually explicit conduct. In furtherance of the conspiracy, Germain and Davis gained the trust of families with small children, whom they would then babysit. While babysitting for the children, Davis and Germain would sexually abuse the children and record the abuse. Davis would then share the images and videos with other pedophiles on the internet.
Davis and Germain became the subject of a federal investigation after an undercover law enforcement agent working with the Australian government identified Davis’s profile on a foreign-based photo-sharing site known to host images of child pornography. From Nov. 23 through Dec. 16, 2016, during email communications with the agent, Davis described having access to children through his girlfriend and to engaging in sexual acts or producing sexual explicit images of these children while his girlfriend was baby-sitting them.
A search warrant on Davis’s email account revealed instances where he distributed images of child pornography to others. Located on Davis’s computer were multiple child pornography images and videos, which Davis and Germain had produced. The images showed Germain was present with the victims during production, posing the child, and assisting Davis with the sexual exploitation of the child.
“We have a responsibility to protect the most vulnerable in our society,” said U.S. Attorney Schroder. “The 35 year sentence issued today by Judge Beistline first and foremost will protect Alaskan children from this predator. Moreover, it sends a strong signal to the community that dedicated law enforcement officers, like the HSI agents in this case, are working countless hours to track down and prosecute child sexual offenders.”
“A cyber monster’s perverse desires often turn into physical victimization and a child’s worst nightmare,” said Brad Bench, special agent in charge of HSI Seattle. “While we are satisfied with this sentence for the horrific crimes committed by this defendant, we must remember the young victims who are often left with permanent psychological, physical and emotional scars. This sentence is a testament to the dedicated HSI agents who aggressively hunt down these abusive pedophiles and bring them out of the shadows to receive the judgement they deserve.”
Homeland Security Investigations (HSI) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched PSC, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, PSC combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about PSC, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Essex County Loan Officer Charged with Mortgage FraudRead the Press Release
NEWARK N.J. – A Nutley, New Jersey, man was charged today with using fraudulent documents to deceive his employer into approving a loan, U.S. Attorney Craig Carpenito announced.
Richard Patino, 42, is charged by complaint with one count of wire fraud. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on bail.
According to the complaint:
Patino was a loan officer with a mortgage company based in New Jersey. On Aug. 15, 2013, a person identified in the complaint as “Individual A” signed a loan application in connection with Individual A’s purchase of a property in Elizabeth, New Jersey. Patino signed the loan application indicating that he had reviewed and approved it.
However, the bank statements that were included in the application were allegedly Patino’s own bank statements that he altered to make them appear as though they belonged to Individual A. Afterwards, the mortgage company approved the application and issued the loan to Individual A.
The loan was later sold to another financial institution, which was provided with both the loan application and supporting documents, including the fraudulent statements Patino created. The Federal Housing Administration (FHA) guaranteed the loan based in part on those phony documents.
As of January 2018, Individual A has ceased paying the loan and the financial institution has begun foreclosure proceedings on the property. Overall, law enforcement is aware of approximately 23 loans that Patino approved that are suspected of fraudulent activity.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.U .S. Attorney Carpenito credited special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Aidan P. O’Connor Esq., Hackensack, New Jersey
El Salvador National admits to illegal re-entryRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adonai Wilfredo Parada, of El Salvador, has admitted to an illegal re-entry charge, United States Attorney Bill Powell announced.
Parada, age 39, pled guilty to one count of “Reentry of Removed Alien.” Parada is in the United States illegally after being removed as an alien in 2015. Parada was found in Ranson, West Virginia on December 7, 2017.
Parada faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Dominican National Sentenced for Trafficking Fentanyl Facing DeportationRead the Press Release
PROVIDENCE, RI – A Dominican national convicted in U.S. District Court in Providence of trafficking nearly 2,000 grams of fentanyl faces deportation proceedings, having been sentenced on Tuesday to time served, 24 months in federal prison.
Jose Cordero, 28, formerly of Boston, was arrested by Rhode Island State Police in March 2015 during a traffic stop during which it was discovered that Cordero was operating the vehicle without license. A search of the vehicle revealed a complex wiring system that, when engaged, revealed a “hide” – an electronically powered compartment designed to conceal contraband – containing 1,993.21 grams of fentanyl under the front passenger seat.
Cordero, first charged in Rhode Island state court, was charged by way of federal criminal complaint in October 2015 and a federal indictment in May 2016 with possession with intent to distribute fentanyl. Cordero pleaded guilty on September 12, 2017, as charged in the indictment.
Cordero is presently in the custody of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removals Operations awaiting deportation proceedings.
Cordero’s sentence is announced by United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 70-87 months. The government recommended the court impose a sentence of 70 months in prison.
The case was prosecuted Assistant U.S. Attorney Ronald R. Gendron.
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District Man Sentenced to 12 Years in Prison for Assaulting Stranger in Her HomeRead the Press Release
WASHINGTON – Iray Turner, 41, of Washington, D.C., was sentenced today to 12 years in prison on one count of assault with intent to commit first-degree sexual abuse and one count of kidnapping for his assault of a stranger in her home, U.S. Attorney Jessie K. Liu announced.
Turner pled guilty in September 2017 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 10 and 12 years. The Honorable Lynn Leibovitz accepted the plea and sentenced Turner accordingly. Following his prison term, Turner will be required to register as a sex offender for the rest of his life. He also will be placed on supervised release for the rest of his life. .
According to the government’s evidence, in the early morning hours of Aug. 24, 2016, the victim arrived at her home in Northeast Washington in an intoxicated state. She does not remember how she got home. The first memory she has is of Turner, a stranger to her, on top of her in her bed, strangling her. She remembers screaming and calling for help. She remembers Turner telling her to be quiet and to calm down. Both of the victim’s neighbors called 911 to report the screams, and the Metropolitan Police Department (MPD) responded to the location.
When MPD officers arrived, they heard a woman screaming for help. They observed house keys hanging from the outdoor lock, and entered the home to locate the victim. Upon entering the home, the officers continued to hear the screams, coming from a bedroom on the second floor. Officers moved upstairs and continued to hear screaming for help. Officers also heard a male voice inside the bedroom, later determined to be the voice of Turner.
Officers pleaded with Turner to open the door, and he refused to do so. Officers urged Turner to allow them to see that the victim was okay. Despite the continued screams, Turner told officers that she was okay. On two occasions, Turner cracked open the bedroom door. However, he refused to allow the victim to exit the bedroom. Officers breached the door and moved in.
When officers entered the bedroom, Turner was sitting on the floor with his back against the door. He was wearing only boxer shorts and socks. The victim was seated on the bed, crying, unclothed from the waist down. She told officers that Turner did not rape her, but that he tried to rape her. Turner was arrested on the scene and has been in custody ever since.
The victim was transported to Washington Hospital Center, where she was examined by a Sexual Assault Nurse Examiner (SANE). The examination identified 49 different injuries on the victim’s body, including multiple abrasions on her face, hemorrhaging to both eyes, bruising all over her body, and red marks to her neck. An expert would have testified at trial that many of those observed injuries were consistent with strangulation, and that the injuries were acute. The expert would also have testified at trial that some of the scratches on the victim’s neck were consistent with defensive injuries that may resulted from the victim scratching her neck while trying to remove Turner’s hands from strangling her on her neck.
In announcing the sentence, U.S. Attorney Liu praised the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case, the officers from the Fifth District of the Metropolitan Police Department who initially responded to the scene, crime scene technicians from the District of Columbia Department of Forensic Sciences, and toxicologists from the District of Columbia Office of the Chief Medical Examiner.
She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key, T.J. McPhail, and Michelle Wicker, Victim/Witness Advocates Tracey Hawkins and Veronica Vaughan, and Litigation Technology Specialist Jeanie Latimore-Brown. Finally, she commended Assistant U.S. Attorneys Elana Suttenberg, Jessica Brooks, and Julianne Johnston, who investigated and prosecuted this case.
Convicted Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Hattiesburg, Miss. – Joe Lamont Gholar, 45, formerly of Jefferson Davis County, Mississippi, pled guilty yesterday before U.S. District Judge Keith Starrett to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst, Special Agent-in-Charge Dana Nichols, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent-in-Charge Stephen G. Azzam, Drug Enforcement Administration (DEA).
On June 9, 2015, in Jefferson Davis County, agents of the Drug Enforcement Administration Hattiesburg High Intensity Drug Trafficking Area (HIDTA) team served a search warrant at the home Gholar shared with two others. One of the two other residents of the home also was a convicted felon; but, was incarcerated at the time. Gholar was present during the search, and 35 rounds of .380 ammunition were found in Gholar’s room. A .380 caliber pistol was found in a vehicle for which Gholar was the only driver, and a shotgun and rifle belonging to Gholar also were found on the premises.
Previously, Gholar had been convicted in the United States District Court for the Western District of Texas, of felony possession with intent to distribute cocaine. Gholar admitted that he knew he was prohibited from possessing a firearm.
Gholar will be sentenced by Judge Starrett on April 17, 2018 at 9:45 a.m., and faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Stan Harris.
Colorado Man Sentenced to 20 Years for Robbing the Same Montgomery Bank TwiceRead the Press Release
Montgomery, Alabama – Richard Allen Evans (50), of Arvada, Colorado, was sentenced yesterday to 240 months in federal prison for bank robbery, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama. In addition to 20 years in prison, Evans is subject to 3 years of supervised release once he completes his sentence. There is no parole in the federal system.
In June of 2017, Evans entered the BBVA Compass Bank near Eastdale Mall in Montgomery, Alabama. He approached a bank teller and repeatedly demanded that she turn over all of the money in her bank drawer. The teller complied out of fear for her life and Evans got away with more than $1,900 in cash. He then fled to Florida where he was arrested the following day.
Court records indicate that this was the second time Evans robbed the bank. Approximately ten years ago, Evans was convicted of robbing the same bank along with six other banks. He was ordered to serve 125 months in prison and was released when his sentence was complete. Evans was still on supervised release for those prior convictions at the time he committed the June 2017 bank robbery.
“A twenty-year sentence is the maximum allowed by statute for this crime,” stated U.S Attorney Franklin. “This case is a statement of the excellent work law enforcement does to protect our communities and my office will continue to prosecute these violent offenders to the fullest extent of the law.”
FBI Acting Special Agent in Charge Bret Kirby stated, “These types of cases are a prime example of the good work that is done every day in this country by our agents as well as our state and local partners. This type of team work will ensure these repeat offenders will remain incarcerated.”
U.S. Attorney Franklin would like to thank the Federal Bureau of Investigation (FBI) and the Montgomery Police Department (MPD) for investigating this case. The Suwanee County Sheriff’s Office (Florida) and the U.S. Marshals Service assisted with this investigation. Assistant United States Attorney Bradley Bodiford prosecuted the case.
Chinese National Pleads Guilty to Conspiracy and Trafficking of Counterfeit Apple Goods into the United StatesRead the Press Release
A Chinese national living in the United States on a student visa pleaded guilty today for his role as a counterfeit distributor in a scheme to traffic and smuggle counterfeit electronics purporting to be Apple iPhones and iPads, from China into the United States.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Deputy Special Agent in Charge Michael S. McCarthy of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Newark and Acting Bergen County Prosecutor Dennis Calo made the announcement.
Jianhua “Jeff” Li, 43, pleaded guilty before U.S. District Court Judge Kevin McNulty of the District of New Jersey to one count of conspiracy to traffic in counterfeit goods and labels and to smuggle goods into the United States, and one count of trafficking in counterfeit goods. Li will be sentenced on May 30.
According to the documents filed in this case and statements made in court, from July 2009 through February 2014, Mr. Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks. Mr. Li also received payments totaling over $1.1 million in sales proceeds from U.S. accounts into his bank accounts. Becerra, Volpe and LaMarca have also pleaded guilty to their roles in the conspiracy. LaMarca was sentenced on July 20, 2017 to 37 months in prison and Becerra and Volpe are awaiting sentencing.
Further, the documents filed in this case and statements made in court showed that Mr. Li shipped devices separately from the labels bearing counterfeit trademarks for later assembly to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the co-conspirators’ accounts in Florida and New Jersey via structured cash deposits and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey are prosecuting the case.
Chinese National Admits Trafficking Counterfeit Apple Goods into the United StatesRead the Press Release
NEWARK, N.J. - A Chinese national living in the United States on a student visa today admitted his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
U.S. Attorney Craig Carpenito of the District of New Jersey; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) in Newark, and Acting Bergen County Prosecutor Dennis Calo made the announcement.
Jianhua “Jeff” Li, 43, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to one count of conspiracy to traffic in counterfeit goods and labels and to smuggle goods into the United States and one count of trafficking in counterfeit goods.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
The conspiracy charge to which Li pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The trafficking charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. His sentencing is scheduled for May 30, 2018.
LaMarca previously pleaded guilty to his role in the scheme and was sentenced July 21, 2017 to 37 months in prison. Becerra and Volpe have also pleaded guilty and await sentencing.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey and Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Defense counsel: Perry Primavera Esq., Hackensack, New Jersey
Carlsbad Woman Arraigned on Federal Wire Fraud Charges Arising Out of $800,000 Embezzlement SchemeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, and Eddy County Sheriff Mark Cage announced the arraignment of Lori V. Whitaker, 54, of Carlsbad, N.M., on wire fraud charges at the federal courthouse in Las Cruces, N.M.
Whitaker was arraigned this morning on a 75-count indictment charging her with perpetrating a scheme to defraud her former employer, the Otis Mutual Domestic Water Consumers and Sewage Works Association (Association), out of approximately $800,000.00 over a two-year period. The indictment charges Whitaker with 75 counts of wire fraud alleging that she fraudulently transmitted funds by means of wire communications between March 27, 2015 and Feb. 3, 2017, as part of a scheme to defraud the Association. The funds involved in the 75 transactions charged range from $416.00 to $15,746.64. During today’s arraignment hearing, Whitaker entered a not guilty plea and was released pending trial, which has not been scheduled, under pretrial supervision and other conditions of release.
“This indictment reflects the Justice Department’s commitment to investigate and prosecute fraudulent conduct that adversely impacts the lives of innocent victims,” said Acting U.S. Attorney Tierney.
“The scope of these charges shows the determination of the FBI to work with our partners to make sure justice is done,” said FBI Special Agent in Charge Wade. “I am proud of the FBI agents and staff who worked with the U.S. Attorney’s Office and Eddy County Sheriff’s Office on this case.”
Eddy County Sheriff Cage said, “This indictment brings us another step closer to bringing closure to the people who rely on the Otis water co-op for potable water and irrigation. The Eddy County Sheriff’s Office is grateful to the FBI for partnering with us and applying their resources and expertise to this complex case, and we look forward to continuing to work with the FBI and the U.S. Attorney’s Office as the prosecution moves forward.”
According to the indictment, Whitaker was employed by the Association, a non-profit special purpose government association that provided potable water and a wastewater system to more than 4300 people in Otis, N.M., in Eddy County, as its office manager from 2003 through April 2017. The indictment alleges that, as the Association’s office manager, Whitaker was responsible for controlling the Association’s finances, had access to the Association’s payroll account, and received a company credit card intended for use for Association-related expenses.
The indictment alleges that from March 2015 through Feb. 2017, Whitaker perpetrated a scheme to defraud the Association through which she embezzled approximately $800,000.00 of the Association’s funds for her personal use. According to the indictment, Whitaker executed the scheme to defraud in two ways. First, Whitaker allegedly defrauded the Association by using its credit card account for personal purposes unrelated to the Association’s business. To this end, the indictment alleges that Whitaker repeatedly used the credit card to obtain cash advances and initiate other charges at casinos, which she allegedly was not authorized to do. Second, Whitaker allegedly defrauded the Association by paying off credit card balances through frequent, but unauthorized, online transfers from the Association’s payroll account.
The indictment includes forfeiture provisions, which seek forfeiture to the United States of any property or proceeds derived from the crimes charged in the indictment. It also seeks the entry of a money judgment against Whitaker in the amount of $800,000.00.
If convicted, Whitaker faces a maximum statutory penalty of 20 years of imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI office in Las Cruces with assistance from the Eddy County Sheriff’s Office. Assistant U.S. Attorneys John A. Balla and Richard C. Williams are prosecuting the case.
Whitaker IndictmentCalifornia Man Sentenced to 50 Years in Prison for Armed Robbery and Home Invasion in Northwest WashingtonRead the Press Release
WASHINGTON – Jomo Dawes, 40, of San Diego, Calif., was sentenced today to 50 years in prison on charges stemming from a home invasion and armed robbery that took place in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Dawes was found guilty by a jury in November 2017 of a total of 27 charges, including multiple counts of kidnapping while armed, armed robbery, assault with a dangerous weapon, felony threats, and related weapons offenses. He was sentenced by the Honorable Marisa Demeo.
According to the government’s evidence, on Sept. 14, 2016, at approximately 10 p.m., Dawes and two accomplices got into a home in the 4800 block of Illinois Avenue NW under the ruse of selling marijuana. They pulled out guns and began robbing all four of the victims, repeatedly threatening to kill them. They even stacked the victims’ bodies on top of one another, suggesting to any frightful or reasonable person that they were about to be executed. At one point, one of the victims’ friends showed up at the front door and tried to enter. Dawes opened the door and proceeded to pistol-whip him in the face. The robbers fled the scene.
An investigation by the Metropolitan Police Department (MPD) led to the arrest of Dawes in July 2017 in Atlanta, Ga. He was extradited to the District of Columbia and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department, including detectives from the Fourth Police District. She also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Veronica Sanchez and Paralegal Specialist Donville Drummond. Finally, she commended the work of Assistant U.S. Attorneys Gregory Rosen and Michael McCarthy, who prosecuted the case.
Brooklyn Man Arrested for Attempting to Induce A Minor to Have SexRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of SHMUEL ZARZAR on a charge of attempted inducement of a minor to engage in sexual activity. ZARZAR was arrested yesterday and will be presented today in Manhattan federal court before the Honorable Kevin N. Fox.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Shmuel Zarzar attempted, through a month-long correspondence, to induce a 12-year-old to have sex with him. He was arrested yesterday when the meeting he allegedly thought he was having with the child victim turned out to be a meeting with the FBI.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The alleged behavior of the subject is nothing short of outrageous, and we simply won’t tolerate this in our community. The FBI New York Crimes Against Children Task Force fights each day to protect the most vulnerable among us, and we will aggressively pursue predators who target our children.”
According to the allegations in the Complaint sworn out today in Manhattan federal court:[1]
Over the course of several weeks in December 2017, ZARZAR exchanged text messages with a 12-year-old whom ZARZAR had met in person in Brooklyn, New York. ZARZAR repeatedly requested to meet with the victim and, when the victim refused to confirm a date and time, ZARZAR indicated that he had gone to an area near where the victim attended school in order to see her. After law enforcement officials were notified of these text message exchanges, a law enforcement officer operating in an undercover capacity (UC-1) assumed the victim’s identity and began to communicate with ZARZAR from the victim’s cellphone with the consent of her parents. During the course of these conversations, throughout January 2018, ZARZAR requested photographs of the victim, including ones in which the victim was nearly naked, and described explicit sexual activity that he intended to engage in with the victim. During the investigation, law enforcement officials observed ZARZAR standing near the victim’s school for several hours. On February 1, 2018, after ZARZAR and UC-1, who was acting as the victim, arranged to meet in Manhattan, law enforcement officials observed ZARZAR at the pre-arranged meeting location and apprehended him shortly thereafter.
* * *
ZARZAR, 30, of Brooklyn, New York, is charged with one count of attempted inducement of a minor under the age of 18 to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life 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.
Mr. Berman praised the outstanding investigative work of the FBI’s Crimes Against Children squad.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Elinor L. Tarlow is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Arizona Man Charged for Selling Armor Piercing Ammunition to Las Vegas Route 91 Festival ShooterRead the Press Release
LAS VEGAS, Nev. – An Arizona man was charged in U.S. District Court in Phoenix today for the manufacture and sale of armor piercing ammunition without a license. He allegedly sold ammunition to Stephen Paddock, who was later identified as the perpetrator of the October 1, 2017 mass shooting in Las Vegas, announced United States Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
Douglas Haig, 55, of Mesa, Ariz., is charged in a criminal complaint with one-count of conspiracy to manufacture and sell armor piercing ammunition. He appeared this afternoon before U.S. District Court Magistrate Judge Michelle H. Burns and was released on a bond with conditions pending a status conference regarding scheduling of a preliminary hearing on Feb. 15 in Phoenix. If convicted, he faces the statutory maximum penalty of five years in prison, a $250,000 fine, or both.
According to the criminal complaint, Haig met with Paddock on more than one occasion. Paddock met Haig at his home in September of 2017 to purchase ammunition. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the U.S., including Nevada, Texas, Virginia, Wyoming, and South Carolina. Haig did not have a license to manufacture armor piercing ammunition.
During an interview, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered in the shooter’s hotel rooms, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
The public is reminded that a criminal complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the FBI’s Las Vegas Division with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva, Patrick Burns, and Nicholas D. Dickinson.
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Annapolis Man Sentenced to Four Years in Prison for Real Estate and Credit Card Fraud SchemesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On January 30, 2018, United States District Judge James K. Bredar sentenced Joseph R. Dominici, age 31, of Annapolis, Maryland to four years in prison, followed by three years of supervised release for wire fraud and aggravated identity theft. The wire fraud charges stem from a telemarketing scheme to defraud real estate professionals around the country who paid to advertise on websites owned by Dominici. The aggravated identity theft charges stem from a scheme to use stolen credit card information to create and use fraudulent “cloned” credit cards.
On January 31, 2018, Judge Bredar sentenced Christina O. Price, age 23, of Bowie, Maryland to one year in prison followed by one year of supervised release, for her role in the credit card fraud scheme. Carlos Ledbetter, age 31, formerly of Annapolis, Maryland, was previously sentenced to six months in prison for his role in the credit card fraud, followed by four years of supervised release.
The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Christopher Caruso of the United States Secret Service - Baltimore Field Office; Chief Timothy J. Altomare, Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Wes Adams.
According to court documents, Dominici owned and operated JJ&M Enterprises, LLC, a business based in Annapolis, Maryland, operating to provide leads to real estate professionals seeking to advertise their services to potential homebuyers. Dominici registered two websites which he and JJ&M used to conduct business: BuyerHomeSite.com and FreeHomeFind.com.
The websites purported to contain active listings of homes for sale, and allowed potential homebuyers to browse home listings in a selected geographic area. The websites also represented to realtors or loan officers that they could pay to become a “preferred expert” in each of the geographic regions that they chose. If a prospective home buyer (user) searched the websites for properties in an area where a real estate professional had paid to become the “preferred expert,” the websites displayed an ad that included the real estate professional’s photograph and contact information. For a monthly fee of approximately $299, the websites would grant a real estate professional exclusive access to all leads generated on the websites associated with the real estate professional’s assigned geographic area.
From March 2014 to October 2015, Dominici represented to real estate professionals that such leads included personal information provided by a potential homebuyer, where in fact, the leads sent to the real estate professionals contained fictitious information created by Dominici and individuals employed by JJ&M. Dominici created fictitious identities, including names, email addresses and cell phone numbers. He provided cell phones to a JJ&M employee which had the name and phone number of a fictitious identity taped to the back. Dominici also posted false and duplicative “testimonials” from “satisfied” customers on the websites.
Dominici had employees make unsolicited telephone sales calls to many thousands of real estate professionals located all over the United States. Dominici provided JJ&M employees with scripts and talking points to use in soliciting real estate professionals to pay to become the “preferred expert” for their area on the websites. As a result of these sales calls, more than 1,000 real estate professionals agreed to pay approximately $299 per month to be advertised as preferred experts.
As a result of this telemarketing fraud scheme, Dominici obtained more than $895,568.31 from real estate professionals. As part of Dominici’s sentence, Judge Bredar also ordered forfeiture of Dominici’s funds in thirteen bank accounts.
In addition to the telemarketing fraud scheme, Dominici also engaged in a credit card fraud scheme, using stolen account information he obtained from corrupt restaurant servers and from a black marked “carding” website to create “cloned” credit cards. Christina Price, then a server at a restaurant in Gambrills, Maryland, used electronic devices known as “skimmers” to fraudulently obtain the credit card information of restaurant customers who paid by credit card. Price then provided this stolen customer information to Dominici, who used special equipment to encode the stolen account information onto new “cloned” credit cards. Dominici and Carlos Ledbetter, then an employee of JJ&M, used the “cloned” cards to purchase goods and services, primarily gift cards that can be used like cash. The credit card fraud scheme victimized a number of financial institutions and dozens of individuals, resulting in losses of approximately $29,280.13.
Acting United States Attorney Stephen M. Schenning commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who prosecuted the case.
Alleged Operator of Kelihos Botnet Extradited from SpainRead the Press Release
New Haven, Conn. – A Russian national has been extradited from Spain and will be arraigned later today in Connecticut on charges stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software, the Department of Justice announced today.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 37, also known as Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, has been detained since April 7, 2017, in Spain when he was arrested by Spanish authorities based upon a criminal complaint and arrest warrant issued in the District of Connecticut.
Levashov is scheduled to be arraigned today at approximately 6:00 p.m. before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
“Levashov is alleged to have controlled and operated the Kelihos botnet which was used to distribute hundreds of millions of fraudulent e-mails per year, intercept credentials to online and financial accounts belonging to thousands of Americans, and spread ransomware throughout our networks,” said Acting Assistant Attorney General Cronan. “Today’s action, as well as the disruption of the Kelihos botnet in April 2017, demonstrates the Department’s steadfast commitment to working with our international law enforcement partners to identify cybercriminals and hold them accountable for their conduct.”
“It is alleged that, for years, Mr. Levashov profited handsomely by controlling a botnet that infected computers and affected computer users all over the world,” said U.S. Attorney Durham. “Thanks to the excellent work of the FBI, with the assistance of our law enforcement partners in Spain, he was identified and apprehended, and will now face justice.”
“As a result of a sophisticated and complex computer intrusion investigation, the FBI, working with national and international law enforcement partners, have now brought to justice an individual who, we allege, has been responsible for the theft of personal information and distribution of SPAM and malware through his operation of the Kelihos botnet,” said FBI Special Agent in Charge Ferrick.
As alleged in an eight count-indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in Bridgeport returned an indictment charging Levashov with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section, are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter, and the U.S. Marshals Service coordinated he defendant’s safe transport from Spain to the U.S.
Alleged Operator of Kelihos Botnet Extradited from SpainRead the Press Release
A Russian national has been extradited from Spain and will be arraigned later today in Connecticut on charges stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software, the Department of Justice announced today.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 37, also known as Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, has been detained since April 7, 2017, in Spain when he was arrested by Spanish authorities based upon a criminal complaint and arrest warrant issued in the District of Connecticut.
Levashov is scheduled to be arraigned today at approximately 6:00 p.m. before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, Connecticut.
“Levashov is alleged to have controlled and operated the Kelihos botnet which was used to distribute hundreds of millions of fraudulent e-mails per year, intercept credentials to online and financial accounts belonging to thousands of Americans, and spread ransomware throughout our networks,” said Acting Assistant Attorney General Cronan. “Today’s action, as well as the disruption of the Kelihos botnet in April 2017, demonstrates the Department’s steadfast commitment to working with our international law enforcement partners to identify cybercriminals and hold them accountable for their conduct.”
“It is alleged that, for years, Mr. Levashov profited handsomely by controlling a botnet that infected computers and affected computer users all over the world,” said U.S. Attorney Durham. “Thanks to the excellent work of the FBI, with the assistance of our law enforcement partners in Spain, he was identified and apprehended, and will now face justice.”
“As a result of a sophisticated and complex computer intrusion investigation, the FBI, working with national and international law enforcement partners, have now brought to justice an individual who, we allege, has been responsible for the theft of personal information and distribution of SPAM and malware through his operation of the Kelihos botnet,” said FBI Special Agent in Charge Ferrick.
As alleged in an eight count-indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in Bridgeport returned an indictment charging Levashov with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police and the U.S. Marshals Service. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance from Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter. The U.S. Marshals Service assisted today’s extradition.
Albuquerque Man Pleads Guilty to Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Miller Eugene Francis, 59, of Albuquerque, N.M., pled guilty yesterday afternoon in federal court to violating the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
The U.S. Marshals Service arrested Francis in Sept. 2016, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. According to the complaint, Francis was convicted in Massachusetts in 1999, of rape and abuse of a child. According to court documents, Francis registered as a sex offender in Bernalillo County, N.M., beginning in July 2003 until he left the United States in Oct. 2003. The complaint further alleged that Francis reentered the United States in Dec. 2015, and failed to update his sex offender registration in Bernalillo County from May 2016 through Aug. 2016, as required.
Francis subsequently was charged by indictment on Oct. 12, 2016, with violating SORNA by failing to update his sex offender registration in Sandoval and Bernalillo Counties, N.M., between April 1, 2016 and Sept. 20, 2016.
During yesterday’s proceedings, Francis pled guilty to the indictment. In entering the guilty plea, Francis admitted that he was convicted in Jan. 1999, of criminal offenses that required him to register under SORNA. Francis further admitted that from Oct. 2003 through Dec. 2015, he resided outside of the United States, and beginning in April 2016, he resided in New Mexico, but failed to update his sex offender registration in New Mexico as required.
At sentencing, Francis faces a maximum penalty of ten years in federal prison followed by a minimum of five years to a lifetime of supervised release. Francis will also be required to register as a sex offender when he completes his prison sentence pursuant to his previous sexual abuse conviction. A sentencing hearing has yet to be scheduled
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Additional Explosives Charges Filed Against Luzerne County ManRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on January 30, 2018, a federal grand jury in Scranton returned a superseding indictment charging Roberto Torner, age 44, a resident of Freeland, Pennsylvania, with additional explosives offenses.
According to United States Attorney David J. Freed, the superseding indictment alleges that Torner possessed stolen C-4 explosives between September 6, 2017 to January 5, 2018. Torner and two other individuals, Liza Robles, age 33, and David Alzugaray-Lugones, age 48, previously were charged with various heroin distribution and firearms offenses on November 7, 2017. Torner was on pretrial release at the time of the alleged explosives offenses, but has since been taken into custody.
Torner, Robles and Alzugaray-Lugones were previously charged with conspiring to distribute heroin from June 2, 2015 to June 8, 2015. All three individuals also were charged with distributing heroin on June 8, 2015.
Torner and Robles were previously charged with conspiring, from May 12, 2012 to August 28, 2017, to provide firearms and ammunition to a convicted felon and to possess firearms and ammunition as a convicted felon. The indictment alleges that Robles purchased six firearms from various federal firearms licensees and other unnamed individuals, including two assault rifles, and provided them to Torner, a convicted felon prohibited from purchasing firearms. The indictment also alleges that Torner purchased a shotgun from an unnamed individual.
Robles also was initially charged with providing firearms and ammunition to Torner, despite knowing of his status as a felon. Torner also was charged with being a felon in possession of firearms and ammunition. Alzugaray-Lugones also was initially charged with being an illegal alien in possession of a firearm and ammunition.
The superseding indictment seeks forfeiture of $4,000, over 1,500 rounds of ammunitions, and various firearms seized during the investigation. The firearms are:
• Magnum Research 1911U .45acp;
• Hi-Point JHP .45acp;
• Stag Arms STAG-15, .223 cal. (a semiautomatic firearm that is capable of accepting a large capacity magazine);
• Mossberg 500 12-gauge shotgun;
• Norinco MAC90 (a semiautomatic firearm that is capable of accepting a large capacity magazine); and a
• Tikka T3, 30.06 rifle.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms. The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 penalties under federal law for the most serious narcotics charges are 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalties under federal law for the most serious firearms and explosives charges are 10 years of 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. # # #
Thursday 1 February 2018
York Woman Charged with Wire FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Wendi E. Detter, age 44, of York, Pennsylvania, was charged in a criminal information on January 31, 2018, with wire fraud.
According to United States Attorney David J. Freed, Detter, who had been President and part owner of YCP, Inc., a construction and excavation business, embezzled more than $100,000 from YCP, Inc. The information alleges from January 2010 through June 2016, Detter used her position and her access to financial accounts to write herself checks for her own personal use and financial gain. The information also alleges that, in order to conceal the embezzlement, Detter made false entries in the company's QuickBooks accounting software she maintained as part of her duties.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph J. Terz is prosecuting the case.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the federal statute 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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West Hartford Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NELSON MARQUEZ, 31, of West Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2014, the Drug Enforcement Administration’s Hartford Task Force received information that David Alvarado, also known as “Flaco,” was distributing heroin to street-level dealers and drug customers in the vicinity of his residence on Wethersfield Avenue in Hartford. Between August 2014 and May 2015, investigators made eight controlled purchases of heroin from Alvarado. A wiretap investigation revealed that Alvarado supplied MARQUEZ both with raw heroin and heroin packaged for distribution, which MARQUEZ distributed to his own customers.
On May 26, 2015, investigators conducted a court-authorized search of Alvarado’s residence and seized raw heroin, bagged heroin, heroin stamps, digital scales, thousands of wax folds, and other items used to process and package heroin. Investigators also seized a 9mm Beretta pistol with a loaded magazine, and numerous rounds of ammunition.
MARQUEZ’s criminal history includes a federal conviction for conspiring to distribute crack cocaine. On May 7, 2010, MARQUEZ was sentenced in New Haven federal court to 42 months of imprisonment and 5 years of supervised release for that offense. He was released from federal prison in June 2012 and was on federal supervised release while he engaged in the heroin trafficking activity described above.
MARQUEZ has been detained since his arrest on November 1, 2016. On May 15, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
Alvarado has pleaded guilty to a related charge and awaits sentencing.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Weare Man Sentenced to 18 Months in Prison for Drug TraffickingRead the Press Release
CONCORD, N.H. - Kenneth Bailey, 53, of Weare, New Hampshire was sentenced in federal court to serve 18 months in prison for drug trafficking, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on five occasions in 2013 and once in 2014, a cooperating individual purchased methamphetamine or a combination of cocaine and methamphetamine from Bailey at his residence.
Bailey pleaded guilty to six counts of distributing controlled substances on October 25, 2017. In addition to his prison sentence, the defendant was fined $1,000 and will be on supervised release for three years.
“The law enforcement community is united in the effort to stop the distribution of dangerous drugs in New Hampshire,” said Acting U.S. Attorney Farley. “We will continue to identify and prosecute drug traffickers in order to protect the safety of our community.”
“Mr. Bailey will now pay the price for distributing dangerous drugs that pose a serious threat to our community,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Together, with our law enforcement partners, the FBI New Hampshire Safe Streets Gang Task Force will continue to do everything we can to crack down on illegal drug distributors and the violence that is associated with them.”
This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Wareham Man Sentenced for Cocaine TraffickingRead the Press Release
BOSTON – A Wareham man was sentenced today in federal court in Boston in connection with trafficking cocaine.
Aaron Mott-Frye, 27, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 18 months in prison and three years of supervised release. In May 2017, Mott-Frye pleaded guilty to conspiracy to distribute cocaine and possession of cocaine with the intent to distribute.
Mott-Frye was a cocaine supplier to Christopher Wilkins and Christian Chapman, members of the Nauti-Block gang that operated on Cape Cod. On June 14-15, 2016, Mott-Frye distributed cocaine to a cooperating witness.
Christian Chapman and Christopher Wilkins pleaded guilty to heroin trafficking charges, among other crimes, and were sentenced to eight years and nine years in prison, respectively. Denzel Chisholm, the alleged leader of the Nauti-Block gang, was convicted by a federal jury and sentenced in September 2017 to 28.5 years in prison.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Lelling’s Criminal Division prosecuted the case.
Veteran Civil Litigator Appointed Civil Division ChiefRead the Press Release
PROVIDENCE, RI – Assistant United States Attorney Zachary A. Cunha, a civil litigator since 2001 and an Assistant United States Attorney since 2005, has been appointed by United States Attorney Stephen G. Dambruch to serve as the Civil Division Chief for the United States Attorney’s Office.
Prior to being named Civil Division Chief, Mr. Cunha served as the Affirmative Civil Enforcement Coordinator in the U.S. Attorney’s Office for the District of Rhode Island. In that capacity, he was responsible for cases in which the United States, as plaintiff, seek to vindicate governmental interests, combat fraud, and recover funds under the Federal False Claims Act.
Prior to joining the Rhode Island office in 2014, Mr. Cunha served as an Assistant U.S. Attorney in the District of Massachusetts for five years. While in the Boston office, he was appointed Chief of that office’s Affirmative Litigation Unit and was responsible for litigating and supervising the investigation of a number of nationally significant health care fraud matters. In 2010, Mr. Cunha was recognized with the Attorney General’s Award for Exceptional Service, the highest honor conferred by the Department of Justice, for his work on the prosecution team in United States v. Pfizer, which resulted in a recovery of $2.3 billion dollars; the largest civil and criminal healthcare fraud recovery made by the United States as of that time.
Mr. Cunha began his career with the Justice Department in the Eastern District of New York, where he served as an Assistant United States Attorney from 2005-2008. Before joining the Department, Mr. Cunha worked as an Assistant Corporation Counsel for the City of New York, representing the City and its officers in federal litigation.
Mr. Cunha received his Bachelor of Arts, with honors, from Brown University in 1998, and his Juris Doctorate, also with honors, from the George Washington University Law School in 2001.
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Two-Time Convicted Sex Offender Sentenced to 28 Years for Child Sex CrimesRead the Press Release
Tampa, Florida –U.S. District Judge James S. Moody, Jr. has sentenced Clayton Junior Thornburg (55, Iuka, Mississippi) to 28 years in federal prison for attempting to entice a minor to engage in sexual activity, attempting to transfer obscene material to a minor, transporting child pornography, and being a registered sex offender who committed another sex offense involving a minor.
Judge Moody found him guilty on November 7, 2017, following a bench trial.
According to evidence presented during the trial, between August and November 2015, Thornburg communicated online with an undercover agent who he believed was a 13-year-old girl. He repeatedly expressed explicit interest in having sex with the “child,” and he sent multiple pornographic images and videos to illustrate what “it’s like for a young girl to have sex.” Thornburg is a two-time convicted sex offender and was on probation in Illinois for possession of child pornography at the time of the offenses in this case.
“This case should reassure the public that HSI is paying close attention to the safety of our children,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI special agents will continue to take child predators off our streets.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
It is another case 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 United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Men Indicted for Scheme to Export Firearms to Kurds in IraqRead the Press Release
Two men were indicted by a federal grand jury in Seattle late yesterday for three federal felonies in connection with their scheme to smuggle dozens of firearms to Turkey and Iraq in violation of the Arms Export Control Act, announced U.S. Attorney Annette L. Hayes. PAUL STUART BRUNT, 51, of Bellevue, Washington, and RAWND KHALEEL ALDALAWI, 29, of Seattle, were arrested on a criminal complaint January 24, 2018. They will be arraigned on the indictment on February 8, 2018.
According to records filed in the case, between October 2016 and November 2017, BRUNT and ALDALAWI engaged in a scheme to smuggle firearms from the U.S. to people associated with the Peshmerga military in Kurdistan, a part of Iraq. BRUNT purchased the firearms at gun stores and gun shows around the Puget Sound region. The men then attempted to ship the guns from the Port of Seattle through Turkey and on to Iraq, hidden in the side panels of vehicles. In the first shipment in February 2017, some 30 guns were hidden in three cars. In the second shipment in November 2017, 47 firearms were concealed in two vehicles. That second shipment was discovered by authorities in Turkey, and the shipment was traced back to BRUNT and ALDALAWI. The men had not obtained any export licenses for the firearms and smuggled them in violation of the Arms Export Control Act.
The conspiracy is punishable by up to five years in prison and a $250,000 fine. Violating the Arms Export Control Act is punishable by twenty years of imprisonment.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Thomas Woods. The U.S. Department of Justice National Security Division is assisting with the prosecution.
brunt_and_aldalawi_indictment.pdfTwo Men Illegally Residing in Lexington Convicted of Drug Trafficking, Firearms, and Immigration OffensesRead the Press Release
LEXINGTON, Ky. – Two Mexican nationals, illegally residing in Lexington, were convicted by a federal jury yesterday, following a two-day trial in U.S. District Court. Fernando Rafael Lara Salas, who had previously used the alias of Jesus Ruiz Vega, age 40, and Jorge Macias Pedroza, age 30, were each convicted of conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute multiple controlled substances, including fentanyl, methamphetamine, and tramadol, as well as being an alien in possession of a firearm. In addition, Lara Salas was also convicted of possession with intent to distribute more than five kilograms of cocaine, possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and unlawfully entering the United States after previously being deported for a felony drug possession offense.
The joint investigation by federal and state law enforcement into the drug trafficking activities of both defendants began in August 2016 and culminated with the execution of search warrants, at the homes of both defendants and a cargo trailer used by both men. The searches resulted in the seizure of 6 kilograms of cocaine, 4 kilograms of tramadol, residual amounts of fentanyl, more than 50 grams of methamphetamine, and two 9 mm firearms. Lara Salas also had approximately $110,000 in U.S. currency seized from his residence. Lara Salas was illegally present in the United States at the time of his arrest, due to his prior deportation resulting from a previous conviction on a federal drug possession charge. Macias Pedroza was also illegally present in the United States at the time of his arrest. The investigation was a cooperative effort led by investigators with the Drug Enforcement Administration (DEA); the Department of Homeland Security, Immigration and Customs Enforcement (ICE); and the Lexington Police Department.
“The defendants in this case were dealing in massive quantities of dangerous drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The number of overdose deaths in our community continues to rise, and the quantities of illegal drugs involved in this criminal conspiracy were placing many lives in danger. Without the outstanding work of our law enforcements partners, this prosecution would not have been possible. Their efforts removed these drugs from our streets, made our community safer, and saved lives. Prosecuting those who deal in this scourge to our community will continue to be a core priority of our Office.”
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Shawn Byers, Assistant Field Office Director, ICE; and Ron Compton, Acting Chief of Police, Lexington-Fayette County Division of Police, jointly announced the jury’s verdict.
The sentencing hearings for both defendants are currently scheduled for May 4, 2018, at the federal courthouse in Lexington. Lara Salas faces 25 years to life in prison and Pedroza faces 10 years to life. The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutes before imposing sentence.
Two Honduran Citizens Plead Guilty to Scheme to Facilitate Employment of Undocumented Aliens in Construction Industry, Evasion of Payroll TaxesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Anyi (“Angie”) Artica-Romero (32) and Milton Noel Romero (35), both of Orlando, have pleaded guilty to conspiracy to commit wire fraud. Both are Honduran citizens who do not have legal status in the United States, and each faces up to 20 years in federal prison. As part of their guilty pleas, both have agreed to forfeit $812,149, the amount of proceeds obtained as a result of the offenses, and $127,624 that was seized in cash and from bank accounts.
According to the plea agreements, Artica-Romero and Noel Romero facilitated the employment in the construction industry of undocumented aliens living and working illegally in the United States. Construction contractors and subcontractors entered into an agreement with shell companies controlled by the defendants to provide workers, most of whom were undocumented aliens, for the contractors and subcontractors.
By obtaining and paying the workers through the shell companies, the contractors and subcontractors could disclaim responsibility for ensuring that (1) the workers were legally authorized to work in the United States, (2) required state and federal payroll taxes were paid, and (3) adequate workers’ compensation insurance was provided.
After creating the shell companies, Artica-Romero and Noel Romero applied for workers’ compensation insurance policies covering the period from September 2, 2015, through July 27, 2017. In the applications, they represented that the policies would cover 6 to 19 employees, and estimated annual payrolls of $100,000 to $410,800. The insurance companies issued policies with annual premiums of $20,002 to $38,860, based on the payroll information in the applications. They then “rented” the insurance policies to numerous construction contractors and subcontractors who employed hundreds of workers, causing the insurance companies to send certificates of insurance to the contractors and subcontractors as purported proof of sufficient workers’ compensation insurance.
The contractors and subcontractors wrote payroll checks to the shell companies for work performed by the workers. Artica-Romero and Noel Romero cashed the checks and distributed the cash to construction crew leaders, who then paid the workers in cash. No state or federal payroll taxes, such as for Medicare and Social Security, were deducted from the workers’ pay, in violation of Florida and federal law.
Artica-Romero and Noel Romero kept approximately 4% of the amount of each payroll check as a “rental” fee. During the scheme, they cashed payroll checks totaling $20,303,737, with the 4% fee totaling $812,149. The annual premium for a workers’ compensation insurance policy covering a payroll of $20,303,737 would have been more than $2,800,000.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Financial Services, Division of Insurance Fraud. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Defendants Charged with 1997 Double Murder for Hire in the BronxRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a federal indictment charging ROBERT ACOSTA and JOSE DIAZ, a/k/a “Cano,” with the December 22, 1997, murders of Alex Ventura, 25, and Aneudis Almonte, 20.
U.S. Attorney Geoffrey S. Berman said: “Today’s indictment alleges that more than two decades ago, Robert Acosta orchestrated, and Jose Diaz carried out, the murders of Alex Ventura and Aneudis Almonte. Now, thanks to the outstanding work of the NYPD and FBI, the long arm of the law has reached back over two decades to charge Acosta and Diaz with those terrible crimes.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “This case proves why there is no time limit on holding someone responsible for murder; taking a human life is the worst crime a person can commit. Our agents and law enforcement partners work daily, pursuing suspects in crimes that seem unsolvable. The time and dedication make it worth the effort.”
NYPD Commissioner James P. O’Neill said: “After more than twenty years on-the-run, NYPD detectives and FBI agents have arrested two defendants for a double homicide in the Bronx. The focus and precision this case embodies is what has enabled this city to become the safest city in America. We will continue rooting out crime and violence wherever we find it, until every neighborhood and block of this city is safe.”
According to the Indictment unsealed in Manhattan federal court:[1]
In late 1997, ACOSTA agreed with DIAZ and others to pay DIAZ and others to kill persons who had stolen drug money from ACOSTA. As a result of this agreement, Alex Ventura and Aneudis Almonte were murdered by DIAZ and others on December 22, 1997, in the vicinity of 2769 University Avenue in the Bronx, New York.
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ACOSTA, 46, of Yonkers, New York, and DIAZ, 52, of the Bronx, New York, were arrested this morning by the NYPD and the FBI. The defendants will be presented later today before United States Magistrate Judge Kevin Nathaniel Fox. The case has been assigned to United States District Judge P. Kevin Castel.
The Indictment charges each of the defendants in six counts: murder while engaged in a conspiracy to distribute five and more kilograms of cocaine and aiding and abetting the same (Counts One and Two); murder-for-hire conspiracy (Count Three); murder-for-hire and aiding and abetting the same (Counts Four and Five); and use of a firearm to commit murder in furtherance of a drug trafficking crime and aiding and abetting the same (Count Six). ACOSTA and DIAZ each face a maximum sentence of life in prison or death. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Laurie A. Korenbaum, Michael Kim Krouse, and Nicholas Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Two Additional Defendants Charged in Monroe County-Based Drug and Sex Trafficking ConspiraciesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton returned a second superseding indictment on January 30, 2018, charging two additional defendants, Arthur Taylor, age 35, of Tobyhanna, PA and Jordan Capone, age 23, of Mt. Pocono, PA, with participating in Monroe County-based drug and sex trafficking conspiracies.
According to United States Attorney David J. Freed, the second superseding indictment charges Taylor, Capone, and Jamiell Sims, age 29, of East Stroudsburg, PA, with conspiring with each other and others, to distribute and possess with intent to distribute cocaine base (“crack”), percocet, molly (MDMA), and heroin in an operation that allegedly stretched from New York to Stroudsburg, Pennsylvania to the state of Maine. The second superseding indictment alleges that the drug trafficking conspiracy began in 2010, and continued until the present.
The case was unsealed today following the arrest of Taylor and Capone. Sims had been charged in a previous indictment in October 2016. All three defendants are in custody.
It is alleged that the defendants were involved in trafficking more than 100 grams of heroin, which is approximately equivalent to more than 4,000 retail bags. Sims is also charged with four counts of distributing heroin in September-October 2016, and Capone is charged with possession with intent to distribute “molly” (MDMA) during 2012-2014.
The second superseding indictment further alleges that Taylor, Capone, and Sims conspired with each other and others to commit sex trafficking by force, fraud and coercion. All three defendants are also charged with four counts of sex trafficking by force, fraud and coercion taking place between 2011 and 2014.
The second superseding indictment alleges that the defendants were part of a street gang known as the “Black P-Stones,” whose members allegedly were “beaten-in” or “sexed-in” to the gang.
According to the second superseding indictment, the defendants and/or their co-conspirators obtained heroin and other drugs from suppliers in New York and elsewhere, and distributed the drug to others in Monroe County, Pennsylvania, and Maine.
It is further alleged that the defendants used intimidation and drugs to coerce females to engage in prostitution at hotels and motels in the Monroe County area, and posted advertisements on the adult entertainment section of a website to solicit customers for prostitution.
Sims is also charged with attempting to tamper with a witness connected to the case. Taylor is charged with conspiracy to interfere with commerce (drugs and money) by robbery.
The charges against the defendants resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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.
If convicted of the drug conspiracy charge, the defendants face a mandatory minimum sentence of five years’ imprisonment and a potential maximum sentence of 40 years’ imprisonment. The drug distribution counts against Sims and Capone each carry a potential maximum sentence of 20 years’ imprisonment. The sex trafficking offenses carry a mandatory minimum sentence of 15 years’ imprisonment and a potential maximum sentence of life imprisonment. Sims’ witness tampering charge carries a potential maximum sentence of 20 years’ imprisonment. Taylor’s charge of interference with commerce by robbery carries a potential maximum sentence of 20 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Stockton Man Charged with Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jason Solomon, 42, of Stockton, charging him with distribution of child pornography and possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in July 2016, Solomon distributed images of children engaged in sexually explicit conduct. On January 9, 2018, Solomon also possessed a video depicting a child engaged in sexually explicit conduct. Solomon has been in custody since his arrest on January 9, 2018.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted of distribution of child pornography, Solomon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The possession of child pornography count carries a maximum statutory penalty of 10 years in prison and a $250,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
St. Louis Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – William T. Hopmeier, 47, St. Louis, was indicted on February 1, 2018.
The indictment alleges that Hopmeier produced child pornography. Specifically, it alleges that during the time of July 2017, to January 31, 2018, Hopmeier video recorded minors engaged in sexually explicit conduct.
If Hopmeier is convicted, this charge carries a maximum penalty of not more than 30 years, and not less than fifteen years, and a fine of up to $250,000, along with a supervised release of not less than 5 years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines.
This case is being investigated by the St. Louis County Police Department, Des Peres Police Department and the Federal Bureau of Investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Francis Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Omalewin Neck, age 24, was indicted on January 17, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 1, 2017, Neck unlawfully killed another human being, while operating a motor vehicle, in a grossly negligent manner.
The charge is merely an accusation and Neck is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Neck was released on bond pending trial. A trial date has not been set.
St. Charles Man Indicted on Charges of Firearms ViolationsRead the Press Release
St. Louis, MO – Taylor Wilson, 26, St. Louis, was indicted on February 1, 2018.
The indictment alleges various firearms offenses. Specifically, it alleges that during the time of September 2015, through December 23, 2017, Wilson possessed a fully automatic machinegun and a rifle, neither of which were registered to him in the National Firearms Registration and Transfer Record. It also alleges that the machine gun had a defaced and obliterated serial number.
If Wilson is convicted, counts one, three and four of the indictment carry a maximum penalty of 10 years in prison and a $250,000 fine. Count two of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. 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 Federal Bureau of Investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Springfield Sex Offender Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a registered sex offender in Springfield, Mo., pleaded guilty in federal court today to receiving and distributing thousands of images of child pornography over the Internet.
Anthony Richard Salois, 51, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a July 22, 2014, federal indictment. Salois, who has a prior state conviction for sexual abuse involving a minor, has remained in federal custody since his arrest in July 2014.
By pleading guilty today, Salois admitted that he received and distributed child pornography over the Internet between Sept. 16 and 20, 2013. Salois utilized a peer-to-peer file-sharing network to download child pornography.
Law enforcement officers executed a search warrant at Salois’s residence on Oct. 13, 2013, and seized two desktop computers. Investigators found 3,973 images of child pornography, 50 multimedia files of child pornography, 641 images of child erotica and 39 multimedia files of child erotica on those computers.
Under federal statutes, Salois is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to 40 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
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."
South Carolina Man Sentenced for Fraud and Money LaunderingRead the Press Release
St. Louis, MO – Daniel Stimmel, 52, of Goose Creek, South Carolina, was sentenced to 46 months imprisonment and ordered to pay more than $4,000,000 in restitution for running a car theft scheme while employed as a fleet manager of Emerson Network Power (ENP) of Columbus, Ohio, from 2003 to 2016. ENP, now known as Vertiv, was formerly an operating subsidiary of Emerson Electric Company and became an independent entity after Stimmel’s scheme concluded.
Stimmel admitted in his 2017 plea agreement that he diverted hundreds of cars from the fleet management contract between ENP and two different fleet management companies through the use of fraudulent paperwork and straw parties until a car could be sold and titled in the name of a third-party buyer. The proceeds of these sales, which were hidden from ENP, were usually returned to Stimmel in cash.
Stimmel used the proceeds of his scheme to acquire real estate and pursue his interest in motor sports. As a part of the investigation, the St. Louis Division of the FBI, the St. Louis Office of the U.S. Postal Inspection Service and the U.S. Marshals Service for the Southern District of Ohio, forfeited numerous automobiles, motorcycles, a boat and a luxury automotive storage facility in Plain City, Ohio.
Tom Albus handled the case for the U.S. Attorney’s Office.
South Carolina Man Arraigned on Charge of Mailing Firearms to St. ThomasRead the Press Release
St. Thomas, USVI – Steven Baxter, 31, of South Carolina, was arraigned Wednesday in District Court on the charge of sending firearms through the mail, United States Attorney Gretchen C.F. Shappert announced. Baxter, who was indicted by a federal grand jury on June 7, 2017, was extradited from South Carolina based on an arrest warrant issued by the District Court the same day. U.S. Magistrate Judge Ruth Miller ordered Baxter detained pending further proceedings.
According to the indictment, on or about March 29, 2017, Baxter caused two firearms to be shipped from South Carolina to a third person in St. Thomas, knowing that the third person was not a licensed firearms dealer. If convicted, Baxter faces a maximum sentence of five years in prison and a $250,000 fine.
This case is being investigated by Homeland Security Investigations and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Shappert emphasized that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Six Southern Ohio Individuals Charged with Running Heroin Trafficking RingRead the Press Release
CINCINNATI – Five Southern Ohio men and one woman have been charged by criminal complaint with conspiracy to possess and distribute more than 1,000 grams of heroin.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges, which were unsealed today.
Those charged include:
Name
Age
City of Residence
Miguel Monroy-Cuadros
29
Fairfield, Ohio
Annel Reyes-Valdes
28
Fairfield, Ohio
Armando Gonzalez-Rosas
25
Fairfield, Ohio
Felix Garcia-Rosas*
30
Liberty Township, Ohio
Omar Santos
37
Oxford, Ohio
Armando Reyes
36
Oxford, Ohio
*Defendant is currently a fugitive
Gonzalez-Rosas and Garcia-Rosas are also charged with distribution of heroin. Monroy-Cuadros, Santos and Reyes are each also charged with possession with intent to distribute more than 100 grams of heroin. In addition, Santos and Reyes were each also charged with unlawful possession of firearms by an illegal alien and unlawfully possessing firearms in furtherance of a drug trafficking crime.
According to the affidavit filed in support of the criminal complaint, the six men were conspiring to operate a heroin-trafficking ring in the Cincinnati area from at least October 2017 until this week.
After DEA agents conducted a controlled purchase of heroin from Gonzalez-Rosas in September 2017, U.S. District Judge Michael R. Barrett authorized the interceptions of wire communications on cell phones used by the defendants. Communications led agents to believe Monroy-Cuadros was likely the source of supply for the group and Reyes-Valdes wired the group’s drug proceeds to Mexico. The farm on which Santos and Reyes lived in Oxford, Ohio was allegedly used as a stash location for the drug and drug proceeds.
Investigators intercepted calls and observed drug buys on numerous occasions between October 2017 and January 2018.
On January 9, troopers with Ohio State Highway Patrol discovered more than $132,446 in three separate locations in a vehicle. One of the locations included a plastic bag with more than $50,000 that is believed to have been delivered to the vehicle by Monroy-Cuadros.
On January 25, the Butler County Sheriff’s Office K9 unit conducted a traffic stop of Monroy-Cuadros. Following a positive indication by the K9, the vehicle was searched and $10,000 was discovered in a white plastic bag. Monroy-Cuadros was given a ticket for a moving violation.
Agents learned on Monday that Monroy-Cuadros and Reyes-Valdes were in Chicago. Agents from DEA Chicago observed Monroy-Cuadros board a bus, which was traveling to Mexico.
Search warrants obtained on Tuesday were executed at the farm in Oxford and a residence in Fairfield, Ohio. Several firearms – strategically located as-if for defense against home invasion – were found in the home in Oxford, as well as 300 grams of heroin. Agents discovered several money transfer receipts at the home in Fairfield.
Five of the defendants were arrested yesterday, including Monroy-Cuadros, who was arrested in Dallas when officers with the Dallas Police Department interdicted the bus. Garcia-Rosas remains at large.
U.S. Attorney Glassman commended the investigation of this case by the DEA and the assistance of DEA Chicago and Dallas, Immigration and Customs Enforcement (ICE), Ohio State Highway Patrol, Butler County Sheriff’s Office, Oxford, Fairfield, Springdale and Dallas Police Departments, as well as Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Six Sentenced in Connection with Organized Criminal Ring Profiting from Prostitution EnterpriseRead the Press Release
Six people have now been sentenced in U.S. District Court in Seattle for their roles in an organized crime ring involved with prostitution, announced U.S. Attorney Annette L. Hayes. The leader of the ring, FANG WANG, 29, of Queens, New York, was sentenced last month to 30 months in prison. At her sentencing hearing, U.S. District Judge Thomas S. Zilly said the “nature of the offense is very troubling to the court.”
YONGGUANG WU, 28, of Seattle and STEVEN THOMPSON, 59, of Renton, Washington, were each sentenced to 8 months in prison. YUNZHONG CHEN, 45, and YAOAN HE, 33, of Seattle, were each sentenced to one year in prison. ZHAOFENG ZHANG, 23, of Seattle, was sentenced today to 21 months in prison. ZHANG continued to post advertisements, rent apartments, and connect customers with ringleader WANG even after being contacted by law enforcement.
According to records in the case, federal and local law enforcement partners worked jointly to investigate a criminal ring making hundreds of thousands of dollars through the prostitution of Asian sex workers. In partnership with the FBI, the King County Sheriff’s Office (KCSO), and police departments in Bellevue, Redmond, Renton, Seattle, and Tukwila identified numerous brothel locations through their analysis of Backpage.com, cell phone, and other business records. The joint team of local and federal investigators then conducted surveillance of the ring’s activities. Law enforcement determined that multiple locations were linked to the organization via ads placed with websites such as Backpage.com. The investigation revealed that the same internet protocol (IP) addresses were used for placing many of the ads, and phone numbers associated with the ads were linked as well – in some instances to call centers located in New York and Washington, D.C. In other cases, the law enforcement agencies followed up on citizen complaints about apartments being operated as prostitution locations and confirmed that the organization was in fact conducting prostitution in those locations.
The investigation revealed that FANG WANG – the apparent leader of the operation – spent approximately $100,000 to increase the traffic to her ads on the Backpage.com site. Other defendants played different roles – renting apartments, transporting sex workers to various locations, purchasing supplies, collecting money from the sex workers, and placing ads. Prostitution activities associated with the ring occurred in apartments or hotels located in Bellevue, Kent, Kirkland, Lynnwood, Olympia, Lacey, Puyallup, Renton, Tukwila, Seattle, and Federal Way. Other locations where the ring operated include eastern Washington cities such as Richland, Kennewick, Wenatchee, and Spokane. The sex workers were frequently moved throughout the area.
The case was jointly investigated by the FBI, the Bellevue Police Department, the King County Sheriff’s Office, the Redmond Police Department, the Renton Police Department, the Seattle Police Department, the Tukwila Police Department, and Homeland Security Investigation (HSI).
The case was prosecuted by Assistant United States Attorney Kate Crisham.
Sioux Falls Man Found Guilty of Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that Orlando Dones-Vargas, a/k/a “Landy,” age 32, of Sioux Falls, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine as a result of a federal jury trial in Sioux Falls, South Dakota. The jury returned the verdict on January 30, 2018.
The conspiracy charge, involving over 500 grams of a mixture containing methamphetamine, carries a mandatory minimum penalty of 10 years and a maximum of life in custody and/or a $10 million fine, mandatory minimum of 5 years and a maximum of life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The possession with intent charge, involving more than 5 grams of pure methamphetamine, carries a mandatory minimum penalty of 5 years and a maximum of 40 years in custody and/or a $5 million fine, mandatory minimum of 4 years and a maximum of life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dones-Vargas was indicted by a federal grand jury on September 6, 2017, and a Superseding Indictment was filed January 9, 2018.
Dones-Vargas was arrested on August 20, 2017, for driving with a suspended license. During the booking process at the Minnehaha County Jail, it was discovered that he was concealing more than 13 grams of methamphetamine (96% pure) in his groin area. Further investigation revealed Dones-Vargas’ extensive involvement in the distribution of methamphetamine in the Sioux Falls area.
This case was investigated by the Sioux Falls Area Drug Task Force, the South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for April 23, 2018. The defendant was remanded to the custody of the U.S. Marshals Service.
Seven Arrested on Marijuana Trafficking ChargesRead the Press Release
SYRACUSE, NEW YORK – Seven upstate men were arrested today on federal drug conspiracy charges alleging that they arranged to transport, store, and distribute hundreds of pounds of marijuana between Franklin County in Northern New York and Onondaga and Oswego Counties, announced United States Attorney Grant C. Jaquith, Oswego County District Attorney Gregory S. Oakes, and U.S. Homeland Security Investigations (HSI)-Buffalo Field Office, Special Agent in Charge Kevin Kelly.
All seven defendants appeared today in United States District Court for the Northern District of New York in Syracuse. They are charged in two criminal complaints.
Charged in a criminal complaint alleging a conspiracy to possess with intent to distribute one hundred kilograms (approximately 220 pounds) or more of marijuana in Onondaga County from January 2017, through November 2017 are:
William Sullivan, 38, of Jamesville, New York
Jamie Phillips, 35, of Syracuse, New York
Alexander Elliott, a/k/a Alexander Camacho, 46, of Syracuse, New York
Alexander Steeprock, 21, of Syracuse, New York
Chadwick Swamp, 48, of Hogansburg, New York
Winston Francis, 26, of Hogansburg, New York
The complaint also charges Jamie Phillips with possessing a firearm after a previous conviction for a felony offense.
The drug conspiracy charge carries a minimum sentence of 5 years and a maximum sentence of up to 40 years imprisonment, a fine of up to $5 million and period of supervised release of at least four years and up to life. The charge of possessing a firearm after previously having been convicted of a felony offense against Jamie Phillips carries a maximum sentence of up to 10 years imprisonment, a fine of up to $250,000.00, and a term of supervised release of up to 3 years.
Jason Altpeter, 35, of Fulton, New York, is charged in a separate criminal complaint alleging a conspiracy to possess with intent to distribute fifty kilograms (approximately 110 pounds) or more of marijuana in Oswego County from July 2017, through November 2017. This charge carries carries a maximum sentence of up to 20 years imprisonment, a fine of up to one million dollars and period of supervised release of at least three years and up to life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This investigation was initiated by the Oswego County Drug Task Force, comprised of Special Agents of U.S. Homeland Security Investigations (HSI), members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol. Additional agencies involved in the investigation include the U.S. Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the City of Syracuse Police Department, the New York State Police-CNET Central, the St. Regis Mohawk Tribal Police Department (USA), the Akwasasne Mohawk Police Service (Canada), and the Oneida Indian Nation Police Department. This case is being prosecuted by Assistant U.S. Attorneys Carla Freedman and Robert Levine, in coordination with the Oswego County District Attorney's Office.
Sanford Man Sentenced to More Than 30 Years for Child Sexual Exploitation OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andrew Goldberg (35, Sanford) to 30 years and 5 months in federal prison for attempting to entice minors to engage in sexual activity and distributing child pornography. As part of the sentence, the Court also ordered him to serve a life term of supervision following his release from prison.
Goldberg pleaded guilty on October 30, 2017.
According to court documents, Goldberg was the administrator of two online social networking groups that he created to distribute child pornography. The groups had over 120 members. An FBI agent acting in an undercover capacity infiltrated the groups and met Goldberg online. During their communications, Goldberg arranged to have sex with the undercover agent’s fictitious daughters, ages 9 and 11, for his birthday. Goldberg planned to meet the undercover agent and the fictional children at a restaurant. When he arrived at the restaurant, agents arrested him. Goldberg was carrying condoms and a jar of vasoline. Subsequently, the agents located 84 videos of child pornography in Goldberg’s e-mail account and 405 images of child pornography on his smartphone.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case 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 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 Internet safety education, please visit www.justice.gov/psc.