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15 March 2018
Nigerian Man Using False Identification Charged with Disaster FraudRead the Press Release
HOUSTON ‐ A man using a false identification in a scheme to obtain a fraudulent government loan for damage sustained from Hurricane Irma is set to appear in federal court, announced U.S. Attorney Ryan K. Patrick.
A grand jury in Houston returned the three-count indictment against Oluseyi Jeremiah Olagoke Adebayo aka Jeremiah Adebayo Oluyesi, 43, a Nigerian man who illegally resided in Houston, on March 8, 2018. He is set to appear before U.S. Magistrate Judge Christina Bryan today at 10:00 a.m.
According to the indictment, from October 2017 to February 2018, Adebayo used the identification of an Orlando, Florida, resident in an attempt to obtain a fraudulent disaster home loan from the Small Business Administration (SBA) in connection to Hurricane Irma.
The SBA provides long-term low-interest loans to businesses and non-profit organizations in the aftermath of a declared disaster. Loan proceeds are to be used solely for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during a declared disaster. Hurricane Irma impacted the Gulf Coast region, including the state of Florida, and was declared a disaster in September 2017.
An application was allegedly submitted to the SBA in October 2017 for a $118,900 home disaster loan which contained several potential fraud indicators. Further, an individual in Houston had attempted to collect on the loan for the Florida property, according to the indictment.
Adebayo appeared at a U.S. Post Office in Houston on Feb. 7, 2018, to obtain the fraudulent loan disbursement check, according to the charges. Adebayo allegedly used a counterfeit passport with the identification of the Florida resident to obtain the check. At that time, the indictment alleges he was also found in possession of a counterfeit U.S. visa.
Adebayo is charged with one count of fraud in connection with a major disaster and forgery or false use of a passport for which he faces up to 20 and 10 years in federal prison, respectively. He also faces a mandatory two years upon conviction of aggravated identity theft which must be served consecutively to any other prison term imposed. All counts also carry a potential $250,000 maximum fine.
SBA-Office of Inspector General and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.New Bedford Man Charged with Federal Drug and Firearms OffensesRead the Press Release
BOSTON – A New Bedford man was indicted today in federal court in Boston on drug and gun charges.
Ryan Holleran, 26, was charged with one count of possession with intent to distribute cocaine, oxycodone, and 28 grams or more of cocaine base; one count of possession of an unregistered firearm; one count of possession of a firearm with an obliterated serial number; and one count of possession of a short-barreled shotgun in furtherance of a drug trafficking crime.
On Nov. 10, 2017, law enforcement arrested Holleran after executing a search warrant at his apartment. Police recovered an unregistered firearm – a 12-gauge Remington model 870 Express Magnum pump action shotgun with a barrel length of less than 18 inches; a firearm with an obliterated serial number – a 5.56mm caliber Stag Arms model Stag-15 semi-automatic rifle; as well as an M-11 pistol and a Smith & Wesson revolver, over 700 rounds of assorted caliber ammunition, and 11 high capacity magazines.
The charge of possession with intent to distribute cocaine and oxycodone provides for a sentence of no greater than 20 years in prison, at least three years and up to a lifetime of supervised release, and a $1 million fine. The charge of possession with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. The charge of possession of an unregistered firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $10,000 fine. The charge of possession of a firearm with an obliterated serial number provides for no greater than five years in prison, three years of supervised release, and a $250,000 fine. The charge of possession of a short barreled shotgun in furtherance of a drug trafficking crime provides for a minimum sentence of 10 years and up to life in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nebraska Man to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired with others to distribute methamphetamine was sentenced March 13, 2018, to sixteen years in federal prison.
Ryan Wilcox, 30, from Omaha, Nebraska, received the prison term after an October 13, 2017, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Wilcox admitted his involvement in a conspiracy that distributed more than 500 grams of methamphetamine in the Sioux City area from January 2017 through about April 29, 2017. During a search of a hotel registered to Wilcox, law enforcement seized a digital scale, approximately 25 grams of methamphetamine, and a bag of syringes in the safe within the room and a large quantity of plastic baggies on top of the safe. During a post-Miranda interview, Wilcox admitted ownership of the methamphetamine and supplies in the hotel room.
Wilcox was sentenced in Sioux City by United States District Court Chief Leonard T. Strand. Wilcox was sentenced to 192 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system. Wilcox is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Mikala M. Steenholdt and investigated by the Tri-State Drug Task Force consisting of officers from the Sioux City Police Department, South Sioux City Police Department, Woodbury County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Iowa Criminalistics, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4044. Follow us on Twitter @USAO_NDIA.
More Than Ten Defendants Charged in Federal Investigation of Drug Trafficking on Chicago’s South SideRead the Press Release
CHICAGO — More than ten defendants are facing federal drug charges for allegedly trafficking fentanyl, heroin and cocaine on Chicago’s South Side.
The investigation, dubbed “Operation Box Car Willie,” centered on drug sales in the city’s Woodlawn neighborhood and resulted in the seizure of distribution quantities of fentanyl, heroin and crack cocaine. The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.
A criminal complaint and affidavit filed Tuesday in federal court in Chicago charges ten defendants with conspiracy to possess controlled substances with intent to deliver. One other defendant is charged individually with possessing controlled substances with intent to deliver, bringing the total number of defendants to eleven.
Several of the defendants were arrested Wednesday. Detention hearings will be held next week before U.S. Magistrate Judge Maria Valdez.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Eddie Johnson, Superintendent of the Chicago Police Department; Leo P. Schmitz, Director of the Illinois State Police; and Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Illinois Secretary of State Police Department and the Illinois Department of Corrections.
According to the charges, JONATHAN MASON, 42, of Chicago, operated a drug trafficking organization in the 6400 block of South Champlain Avenue in Chicago. Mason conspired with DEON PUGH, 37, of Chicago, and KEVIN TWYMAN, 35, of Chicago, as well as others, to obtain wholesale quantities of cocaine, fentanyl, heroin and marijuana for distribution in the Chicago area, the complaint states. The other charged conspirators who allegedly distributed the narcotics include DERRICK WILTZ, 44; EDUARDO ANDERSON, 51; DENNIS MYERS, 59; RYAN PEARSON, 40; ALVIN WILLIAMS, 48; PARIS OBRYANT, 37; and MARTELL WHITE, 31; all of Chicago.
The conspirators allegedly sold drugs inside two stores in the Woodlawn neighborhood – one on East 63rd Street and the other on East 67th Street. On two occasions last month, undercover law enforcement officers purchased cocaine and heroin from Pearson and Obryant inside the 63rd Street store, the complaint states.
The defendant charged individually with possession is WILLIAM RUTLEDGE, 34, of Cedar Rapids, Iowa. Rutledge is identified in the complaint as a customer of Mason and Pugh who allegedly purchased more than 100 grams of crack cocaine from the pair last month.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of life in prison, while the possession charge against Rutledge is punishable by up to 20 years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Matthew Kutcher and Kristen Viglione are representing the government.
Mexican National Facing Federal Charge Based on 40-Pound Cocaine Seizure at Port of Entry in New MexicoRead the Press Release
ALBUQUERQUE – This morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Edgardo Torres-Ruvalcaba, 32, a Mexican national, with a cocaine trafficking offense arising out of the seizure of more than 40 pounds of cocaine at the Santa Teresa, N.M., Port of Entry on March 10, 2018. Torres-Ruvalcaba was remanded into custody pending trial, which has yet to be scheduled.
U.S. Customs and Border Protection officers arrested Torres-Ruvalcaba on March 10, 2018, after seizing approximately 18.4 kilograms (40.4 pounds) of cocaine allegedly concealed in Torres-Ruvalcaba’s vehicle. According to the criminal complaint, the agents found the cocaine while inspecting the vehicle at the Santa Teresa, N.M., Port of Entry.
If convicted of the charges in the criminal complaint, Torres-Ruvalcaba faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of Homeland Security Investigations. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Men from Chardon and Cleveland charged with child pornography crimesRead the Press Release
Two people – one from Chardon, the other from Cleveland – were indicted for unrelated child pornography crimes.
Joshua A. O’Brian, 28, of Chardon, was charged with receiving visual depictions of minors engaged in sexually explicit conduct and transferring obscene materials to minors.
O’Brian knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between March and November 2017. O’Brian also knowingly transferred obscene matter to a minor female in Pennsylvania during the same time period, according to the indictment.
David M. Richards, 61, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Richards in October 2017 knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. On Feb. 21, 2018, Richards possessed an HP Pavilion laptop computer that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
Both cases are being prosecuted by Assistant U.S. Attorney Carol M. Skutnik. The O’Brian case was investigated by the FBI while the Richards case was investigated by the Department of Homeland Security, Homeland Security Investigations.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mechanicsburg Man Charged with Possession of A Firearm as A Convicted FelonRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Fishel Jr., age 44, of Mechanicsburg, Pennsylvania, was indicted yesterday by a federal grand jury on firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that on February 5, 2018, Fishel Jr., unlawfully possessed a Bauer, 25 caliber firearm, in Newberry Township, York County, after previously being convicted of a felony.
The case was investigated by the Newberry Township Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The minimum mandatory penalty is 15 years imprisonment and the maximum penalty under federal law for this offense is life 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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Massachusetts Man Sentenced to 30 Months in Prison for Distributing Fentanyl in NorwichRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ELIAS ESCARRAMAN 35, formerly of Springfield and Worcester, Massachusetts, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, an investigation revealed that ESCARRAMAN was traveling from Massachusetts to the Norwich, Connecticut, area approximately twice a week to distribute what he called “china white,” a mixture of heroin and fentanyl. In April and May, investigators made multiple controlled purchases of “china white” from ESCARRAMAN, including on May 4, 2017, when investigators purchased 1,000 bags of the drug for $2,500. Investigators then arranged to purchase 2,000 bags of “china white” from ESCARRAMAN in exchange for $5,000. On May 15, ESCARRAMAN was arrested after he arrived at the meeting location in Norwich in possession of approximately 2,000 bags of the drug.
Lab analysis determined that ESCARRAMAN possessed and distributed more than 66 grams of fentanyl during the investigation.
ESCARRAMAN has been detained since his arrest. On November 15, he pleaded guilty to one count of possession with intent to distribute fentanyl.
As part of the sentence, Judge Bryant ordered ESCARRAMAN to forfeit a 2008 Mercedes-Benz ML350 that ESCARRAMAN drove to the meet location on May 15 and was seized at the time of his arrest.
This matter was investigated by the Federal Bureau of Investigation, the Norwich Police Department and the Springfield Police Department. The case was prosecuted by Assistant U.S. Attorney Dave Vatti.
Maryland Man Sentenced to 12 Years in Prison for His Role in Scheme That Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
WASHINGTON – A Clinton, Md. man was sentenced today to 12 years in prison for his involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; U.S. Attorney Jessie K. Liu for the District of Columbia; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Tony Bryant, 56, was convicted by a jury on Feb. 17, 2017, of one count of conspiracy to commit theft of government funds and to defraud the United States and five counts each of theft of public money and aggravated identity theft. Two co-defendants also were found guilty at trial. They include Bryant’s son, Brian Bryant, 30, formerly of Mount Rainier, Md., and Tarkara Cooper, 37, of Washington, D.C. The verdicts followed a trial in the U.S. District Court for the District of Columbia. Brian Bryant was sentenced earlier this month to a 100-month prison term, and Cooper was sentenced in July 2017 to a 63-month prison term.
Bryant was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
According to the evidence presented at trial, from approximately April 2010 through June 2012, Bryant, his son, Cooper, and others collectively claimed $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717. Specifically, Tony Bryant used bank accounts under his control to negotiate federal income tax refund checks, often with assistance from bank employees who were compensated for their services. The proceeds were usually transferred within a day or two to other bank accounts.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Bryant to serve three years of supervised release and to pay $2,118,139 in restitution to the IRS. She also ordered a forfeiture money judgment of $244,262.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Aisha Keys and Donna Galindo; former Paralegal Specialists Jessica Mundi and Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Advocate Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Man Who Used Fake Identity for 19 Years Pleads Guilty to Making a False Statement on Passport ApplicationRead the Press Release
CINCINNATI – Fred Aundraus Gaston III, 44, of Cincinnati, pleaded guilty in U.S. District Court to a crime related to using a fake identity since 1999.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ben Sides, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service, Chicago Field Office announced the plea entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts, beginning in 1999, Gaston created the identity and assumed the alias “Brandon Jordan Thomas.” Specifically, on May 18, 1999, he applied for a delayed birth certificate in Illinois using the made-up name. In June of that year, the state of Illinois issued the delayed birth certificate.
The next month, Gaston applied for a Social Security card using the name “Brandon Jordan Thomas” and was issued a new Social Security number. He obtained replacement Social Security cards in the fake name in August 1999, April 2007, November 2009 and June 2015.
Gaston also obtained an Ohio driver’s license under the alias and compiled a credit history in that name as well.
In February 2015, Gaston applied for a U.S. Passport at the post office in Milford, Ohio under the false identity and his own photograph. The application was ultimately denied because Gaston failed to respond to a follow-up request from the State Department to submit additional documentation to support the application.
In August 2017, when federal agents visited Gaston’s home, he identified himself as “Shawn Carter.” He was wearing a Rich Snob Entertainment t-shirt, the same company identified as the place of employment on both the “Brandon Jordan Thomas” passport application and a passport application that Gaston submitted under his true identity on a different date.
Gaston pleaded guilty to one count of making a false statement in a passport application. The parties involved in this case have recommended a sentence of one year of probation, and Judge Black will consider that recommendation at a future sentencing hearing. The defendant also agrees to forfeit the Ohio driver’s license, State of Illinois Delayed Record of Birth and Social Security card all in the name of “Brandon Jordan Thomas.”
U.S. Attorney Glassman commended the investigation of this case by the State Department and Special Assistant United States Attorney Timothy Landry, who is representing the United States in this case.
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MS-13 Member Pleads Guilty to RICO Conspiracy and Drug TraffickingRead the Press Release
BOSTON – A member of La Mara Salvatrucha, or MS-13, pleaded guilty yesterday in federal court in Boston to charges of racketeering conspiracy and drug conspiracy.
Rutilio Portillo, a/k/a “Pantera,” 34, a Salvadoran national who resided in Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, as well as conspiracy to distribute marijuana. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for June 7, 2018.
After a three-year investigation, Portillo was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Portillo was a “homeboy,” or full member, of MS-13’s Everett Locos Salvatrucha (ELS) clique. During the investigation, law enforcement officers recorded conversations between Portillo and a cooperating witness in which Portillo discussed ongoing MS-13 activities in Massachusetts and admitted to conspiring with MS-13 members to distribute marijuana.
Portillo is the 34th defendant to be convicted in this case. The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of conspiracy to distribute marijuana provides for a sentence of no greater than five years in prison, a minimum of two years of supervised release, and a fine of no greater than $250,000. Portillo will be subject to deportation upon the completion of their sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Low-Income Housing Developer Charged with Fraud for Allegedly Creating a False Pass-Through Company in Scheme to Defraud Lenders and USDARead the Press Release
DES MOINES, Iowa —A longtime developer of low-income housing in Iowa, Jeffrey W. VOORHEES, has been charged with creating a false pass-through company in order to artificially inflate a loan to rehabilitate a housing development located in various towns and cities in Iowa, announced United States Attorney Marc Krickbaum.
According to the indictment, VOORHEES, acting through his own consulting company and a not-for-profit entity, purchased and rehabilitated seven properties which together formed what was referred to as Candleridge VII. The properties were purchased with a United States Department of Agriculture direct loan, and were rehabilitated with a private bank loan that was guaranteed by USDA in the event of default. Brian L. PITTMAN, the general contractor on the development, is also charged in the scheme with VOORHEES. Together, PITTMAN and VOORHEES are alleged to have artificially inflated construction costs and created a pass-through company, Rural Construction Services, in order to obtain approximately $359,000 in artificially inflated loan proceeds. VOORHEES is also alleged to have artificially inflated other costs in the loan to obtain an additional approximately $318,000 in loan proceeds. The loan proceeds were to be repaid using USDA-subsidized tenant rents.
The purpose of these USDA loan programs is to support the development of rental units for low- and moderate-income individuals and families in rural areas and towns. USDA regulates how the loan proceeds can be spent, and also imposes requirements on the borrowers to disclose any identity of interest relationships. The indictment alleges that VOORHEES knew these regulations but did not follow them in order to unlawfully profit from the USDA loan programs.
VOORHEES and PITTMAN are together charged with five counts of wire fraud affecting a financial institution. Each of those counts is punishable by up to 30 years in prison. The indictment also charges VOORHEES with three felony counts relating to allegedly moving the profits of RCS into bank accounts in his wife’s name, each count of which is punishable by up to 10 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.This investigation was conducted by the USDA-Office of Inspector General, and the case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Long Island Man Charged with Possession with Intent to Distribute over Two Kilograms of HeroinRead the Press Release
A complaint was filed earlier today, in federal court in Central Islip, New York, charging Juan Jimenez, also known as “Jason,” with possession with intent to distribute over two kilograms of heroin in Brentwood. Jiminez was arrested Wednesday night and ordered detained after his initial appearance this afternoon before United States Magistrate Judge Gary R. Brown.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Errol D. Toulon, Jr., Suffolk County Sheriff, and Michael McGowan, Chief, Hempstead Village Police Department, announced the charges.
“As alleged in the complaint, Jiminez was involved in the wholesale trafficking of heroin, contributing to the opioid plague that has caused great suffering on Long Island,” stated United States Attorney Donoghue. “This arrest demonstrates this Office’s commitment to marshalling all available resources necessary to find and prosecute those who peddle these highly addictive narcotics in our communities.”
“DEA worldwide is working together to target opioid traffickers at all levels,” stated DEA Special Agent-in-Charge Hunt. “This investigation demonstrates our commitment to arrest dealers who push heroin onto our local streets and into the hands of users.”
“This case highlights the importance of our investigators partnering with federal authorities to disrupt the international flow of heroin into the local illicit drug market,” stated Suffolk County Sheriff Toulon.
“Hempstead Police Department is proud to be part of a highly motivated and professional task force that has made a substantial impact on the war on drugs in our community,” stated Hempstead Village Police Department Chief McGowan.
According to court papers, DEA agents uncovered a wholesale heroin distribution ring involving Jimenez, involving plans to ship multiple kilograms of heroin from Colombia for distribution on Long Island. As part of those negotiations, Jimenez delivered 2.3 kilograms of Mexican “black tar” heroin.
The arrest was the result of a continuing long-term investigation by the U.S. Drug Enforcement Administration’s Long Island District Office, with the assistance of members of the Suffolk County Sheriffs’ Office and Hempstead Village Police.
The charge in the complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted of the crime charged, the defendant faces a mandatory minimum sentence of 10 years’ imprisonment, and up to life imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Burton T. Ryan, Jr., is in charge of the prosecution.
The Defendant:
JUAN JIMENEZ (also known as “Jason”)
Age: 37
North Babylon, New YorkE.D.N.Y. Docket No. 18-MJ-225
Leader of Redding-Based Methamphetamine Distribution Operation Sentenced to 21 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Rafael Pahua Martinez, 41, a Mexican national residing in Orland, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 21 years in prison for conspiring to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, during a year-long investigation, Martinez, the principal target of that investigation, imported large quantities of methamphetamine from Southern California and then distributed them throughout the Eastern District of California and to other states.
Between September 2014 and July 2015, two undercover agents made four purchases of methamphetamine from Martinez and his couriers. These purchases occurred in Shasta and Tehama counties and totaled less than one pound. In each case, the agent negotiated the price with Martinez, who then sent one of his employees to execute the transaction in a public parking lot.
On two other occasions, Martinez used couriers to take cash to Southern California and return to Tehama County with methamphetamine. The first of these deliveries was completed on June 6, 2015, and brought 14 kilograms of methamphetamine into the Eastern District of California. In the second delivery, completed on about June 14, 2015, Martinez paid $88,200 for 10 kilograms of methamphetamine, which his courier delivered into the district.
Law enforcement officers arrested Martinez on July 7, 2015, in Orland. They seized $49,500 from Martinez and his car. He had intended to use nearly all of this this money to purchase additional methamphetamine.
This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, the Tehama Interagency Drug Enforcement (TIDE) Task Force, and the Shasta Interagency Narcotic Task Force. Assistant United States Attorneys Paul A. Hemesath and Amanda Beck prosecuted the case.
Leader of Mount Vernon Street Gang Sentenced in White Plains Federal Court to 40 Years in Prison for Racketeering Offenses Including Two Murders of Rival Gang MembersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JAMEL UPSON, a/k/a “Flynt,” was sentenced today to 40 years in prison for racketeering offenses arising out of his participation in the “Boss Playa Family” or “BPF” street gang based in Mount Vernon, New York, including the murders of two members of a rival gang in 2008. UPSON pled guilty to a Superseding Information on October 5, 2017, before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Jamel Upson lead a gang that posed a grave threat to the people of Mount Vernon. Upson has admitted to personally slaying two rival gang members in the course of gang activities. Jamel Upson’s disturbing indifference to the lives of others has been met with a fittingly stiff prison sentence that will take him off the streets for 40 years.”
According to the Superseding Information, the Indictment, other documents filed in this case, and statements made during court proceedings:
UPSON was the leader of the BPF street gang, a criminal enterprise that operated in the Mount Vernon area from approximately 2007 to 2014. BPF members sought to increase the gang’s power, protect and expand its territory, and enrich its members through an array of criminal activities, including shootings, assaults, larcenies, arson, and the distribution of cocaine and marijuana. In particular, BPF sought to assert its dominance over rival Mount Vernon street gangs, principally the “Goonies” gang, through acts of violence including numerous shootings.
On two occasions in 2008, UPSON murdered a member of the rival Goonies gang. In the early morning hours of August 13, 2008, UPSON shot and killed 19-year-old Shomari Knox, a Goonies member. UPSON, on foot, ambushed a vehicle driven by Knox near Ninth Avenue and Third Street in Mount Vernon. UPSON fired at the vehicle with a handgun, striking Knox in the neck. When first responders arrived at the scene, Knox was dead.
On December 14, 2008, UPSON shot and killed 21-year-old Cory Cabiness, another member of the Goonies. UPSON, on foot and armed with a handgun, ambushed Cabiness near Seventh Avenue and Third Street in Mount Vernon, as Cabiness was walking home from a nightclub in the early morning hours. UPSON shot Cabiness in the head and leg. Cabiness died from the gunshot wounds about two weeks later.
In addition to the murders of Knox and Cabiness, UPSON committed several other shootings targeting members and associates of the rival Goonies gang between 2008 and 2010. UPSON, along with multiple other BPF members, also carried out a theft of jewelry valued at over $40,000 from a mall in Bergen County, New Jersey in January of 2009.
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In addition to the prison term, UPSON, 33, of Mount Vernon, was sentenced to three of supervised release.
To date, five other defendants in this case have been sentenced following guilty pleas to racketeering conspiracy and other offenses arising out of their participation in the BPF gang. Samuel Carlos, 29, of Mount Vernon, was sentenced to three years in prison and three years of supervised release; Tyrone McCallum, 30, of Mount Vernon, was sentenced to 105 months in prison and five years of supervised release; Portland Ramseur, 33, of Mount Vernon, was sentenced to seven years in prison and three years of supervised release; Gorham Valentine, 33, of Mount Vernon, was sentenced to four years in prison and three years of supervised release; and Jason White, 34, of Mount Vernon, was sentenced to 160 months in prison and five years of supervised release.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the Mount Vernon Police Department. He also thanked the Westchester County District Attorney’s Office for its participation and support in this case.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney George D. Turner is in charge of the prosecution.
Las Cruces Man Arrested on Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Steven Vaillancourt, II, 45, of Las Cruces, N.M., made his initial appearance today in federal court on a criminal complaint charging him with distribution of child pornography. Vaillancourt remains in federal custody pending a preliminary hearing and a detention hearing, which are scheduled for March 20, 2018.
The criminal complaint alleges that Vaillancourt distributed child pornography in March 2018, in Dona Ana County, N.M. According to the criminal complaint, Homeland Security Investigations executed a search warrant on an email account, which revealed that Vaillancourt had been communicating with a person with two minor children. Vaillancourt allegedly communicated with the individual about sharing and producing child pornography of the individual’s minor children. The complaint further alleges that Vaillancourt sent the individual three images of child pornography through text message on a cellular phone.
The statutory penalty for a conviction on a distribution of child pornography charge is a mandatory minimum of five years and maximum of 20 years of imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Las Cruces Police Department. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Knoxville Man Charged in Recent Suntrust Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – On Tuesday, March 13, 2018, Mark A. Stallings, 58, of Strawberry Plains, Tennessee, was arrested for the March 5, 2018, robbery of the Suntrust Bank on Andrew Johnson Highway in Knoxville. Stallings appeared before the Honorable Dennis H. Inman, U.S. Magistrate Judge on March 14, 2018. He will remain in custody pending a preliminary hearing scheduled for March 21, 2018.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on March 5, 2018, Stallings entered the Suntrust Bank and passed a note to the teller demanding money.
The arrest of Stallings is the result of the joint efforts of the FBI Safe Streets Task Force, comprised of the FBI, Knoxville Police Department, Knox County Sheriff’s Office, and Knox County Major Crimes Unit. Assistant U.S. Attorney Kelly A. Norris will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Kenner Man Pleads Guilty to Arson and Possessing a Destructive DeviceRead the Press Release
U.S. Attorney Duane A. Evans announced that RYAN SCOTT, age 39, of Kenner, has pleaded guilty to federal arson and weapon violations.
According to the indictment, SCOTT committed arson of an apartment building in LaPlace, Louisiana, on August 13, 2017, in violation of Title 18, United States Code, Section 844(i). SCOTT also possessed a destructive device in violation of Title 26, United States Code, Section 5861(d) on the same date.
The Court set sentencing in this matter for June 14, 2018. SCOTT faces, as to count one, a minimum of 5 years and a maximum of 20 years of imprisonment, 3 years supervised release after imprisonment, a fine of $250,000, and a $100 special assessment. As to count two, SCOTT faces a maximum term of imprisonment of 10 years, a fine of $10,000, three years supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorney Maria M. Carboni.
Joint Federal-State Investigation Results in Second Arrest in Armed Bank Robbery CaseRead the Press Release
SAVANNAH, GA: On March 13, 2018, members of the Federal Bureau of Investigation’s Southeast Georgia Violent Crimes Task Force arrested Robert Kimble, also known as “Bam” and “Ibn Yusuf,” on federal charges of armed bank robbery, brandishing a firearm during a crime of violence, and possession of a firearm by a convicted felon. According to a superseding indictment that the federal grand jury returned last week, Kimble brandished a nine-millimeter semiautomatic pistol and used force, violence, and intimidation to steal $15,647.00 from a Navy Federal Credit Union branch on October 11, 2017.
Kimble is the second of two individuals to be charged with offenses related to the Navy Federal Credit Union robbery. On January 10, 2018, the federal grand jury charged Jerrell Antonio Roberts, also known as “Zaiky Abdul Nabil,” with the same offenses for which Kimble was indicted more recently. Savannah-Chatham Metropolitan Police Department detectives and officers apprehended Roberts within approximately 30 minutes of the robbery. Roberts was arrested in the backyard of Kimble’s home in the Forest Park neighborhood of Savannah after Roberts ran from a vehicle that he had crashed while attempting to flee from police. From Roberts’s vehicle, police officers recovered $15,647.00 in cash and a loaded nine-millimeter semiautomatic pistol.
If convicted of armed bank robbery, Kimble could be sentenced to 25 years in prison and a $250,000 fine. In addition, the defendant faces a consecutive sentence of seven years’ imprisonment for brandishing a firearm during a crime of violence. Possession of a firearm by a convicted felon is punishable by 10 years in prison. All federal sentences must be served without the possibility of parole.
United States Attorney Bobby L. Christine praised the FBI and Savannah Police Department for working together to combat firearms-related violence: “This Office remains committed to protecting the citizens of this community through its partnerships with federal law enforcement and local police to ensure that armed robbers and those who abet them are brought to justice swiftly.”
Savannah Police Chief Mark Revenew stated, “This is an excellent example of our partnership with federal counterparts who join us in our commitment to remove armed criminals from our community.”
U.S. Attorney Christine emphasized that an indictment is only an accusation and is not evidence of guilt. Both defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Theodore S. Hertzberg is prosecuting the case on behalf of the United States. FBI Task Force Officer Michael Rowan is leading the federal investigation. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Japanese Fiber Manufacturer to Pay $66 Million for Alleged False Claims Related to Defective Bullet Proof VestsRead the Press Release
Toyobo Co. Ltd. of Japan and its American subsidiary, Toyobo U.S.A. Inc., f/k/a Toyobo America Inc. (collectively, Toyobo), have agreed to pay $66 million to resolve claims under the False Claims Act that they sold defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies, the Justice Department announced today.
The settlement resolves allegations that between at least 2001 and 2005, Toyobo, the sole manufacturer of Zylon fiber, knew that Zylon degraded quickly in normal heat and humidity, and that this degradation rendered bullet proof vests containing Zylon unfit for use. The United States further alleged that Toyobo nonetheless actively marketed Zylon fiber for bullet proof vests, published misleading degradation data that understated the degradation problem, and when Second Chance Body Armor recalled some of its Zylon-containing vests in late 2003, started a public relations campaign designed to influence other body armor manufacturers to keep selling Zylon-containing vests. According to the United States, Toyobo’s actions delayed by several years the government’s efforts to determine the true extent of Zylon degradation. Finally, in August 2005, the National Institute of Justice (NIJ) completed a study of Zylon-containing vests and found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. Thereafter, the NIJ decertified all Zylon-containing vests.
“Bulletproof vests are sometimes what stands between a police officer and death,” said Attorney General Jeff Sessions. “Selling material for these vests that one knows to be defective is dishonest, and risks the lives of the men and women who serve to protect us. The Department of Justice is committed to the protection of our law enforcement officers, and today’s resolution sends another clear message that we will not tolerate those who put our first responders in harm’s way.”
“This settlement sends a strong message to suppliers of products to the federal government that they must be truthful in their claims, particularly with regard to health and safety,” said Carol Fortine Ochoa, Inspector General of the General Services Administration.
This settlement is part of a larger investigation undertaken by the Civil Division of the body armor industry’s use of Zylon in body armor. The Civil Division previously recovered more than $66 million from 16 entities involved in the manufacture, distribution or sale of Zylon vests, including body armor manufacturers, weavers, international trading companies, and five individuals. The settlement announced today brings the Division’s overall recoveries to over $132 million. The United States still has lawsuits pending against Richard Davis, the former chief executive of Second Chance, and Honeywell International Inc.
The settlement announced today resolves allegations filed in two lawsuits, one brought by the United States and the other filed by Aaron Westrick, Ph.D., a law enforcement officer formerly employed by Second Chance who is now a Criminal Justice professor at Lake Superior University. Dr. Westrick’s lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in 2005 in Dr. Westrick’s case. Dr. Westrick will receive $5,775,000.
This case was handled by the Justice Department’s Civil Division, along with the General Services Administration, Office of the Inspector General; the Department of Commerce, Office of Inspector General; the Defense Criminal Investigative Service; the U.S. Army Criminal Investigative Command; the Department of the Treasury, Office of Inspector General for Tax Administration; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; and the Defense Contracting Audit Agency.
The claims settled by this agreement are allegations only; there has been no determination of liability. The lawsuits resolved by the settlement are captioned United States ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (PLF) (D.D.C.) and United States v. Toyobo Co. Ltd., et al., No. 07-1144 (PLF) (D.D.C.).
Jackson Man Charged in Large Scale Vehicle Odometer Roll Back SchemeRead the Press Release
Jackson, Miss. – Mark Longgrear, 53, of Jackson, Mississippi was arrested yesterday and charged in a federal criminal complaint with rolling back the odometers of multiple high mileage vehicles and selling such fraudulently altered vehicles with doctored titles, announced U.S. Attorney Mike Hurst and Supervisory Special Agent David W. Sparks with the U.S. Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation.
Longgrear appeared in court today for an initial appearance on the criminal complaint before U.S. Magistrate Judge Linda R. Anderson.
According to the criminal complaint and affidavit, for at least the last four years, Mark Longgrear, operating individually and through his company Southern Auto Buyers LLC, bought more than 50 late model, high mileage vehicles from auctions, dealerships, and/or individuals, thereafter illegally altered the odometers of such vehicles to show lower mileage, forged and fraudulently created paperwork to secure new titles showing false lower mileage for these vehicles, and then sold said vehicles directly to individuals and automobile dealerships at much higher prices. He used internet websites to sell some of these vehicles directly to consumers, and also used employment and wholesale relationships with large Mississippi automobile dealerships in Jackson and Vicksburg to sell these fraudulently altered odometer vehicles to these dealerships, who in turn unknowingly sold them to consumers with this false information.
"Vehicle odometer fraud affects us all, whether directly as consumers purchasing vehicles and being defrauded out of thousands of dollars or as the general public who can be endangered by these potentially unsafe vehicles. I commend the agents and prosecutor for rooting out this far-reaching scheme. In order to protect consumers and safeguard the general public, our office will relentlessly pursue and vigorously prosecute those whom break federal law by rolling back vehicle odometers," said U.S. Attorney Hurst.
Each violation of Sections 32703(2) and 32705(a)(2) of Title 49 carries a penalty of three years in prison and/or a $250,000 fine. The conspiracy charge, 18 U.S.C. § 371, is punishable by 5 years in prison and/or a $250,000 fine.
The case was investigated by United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, with assistance from the United States Postal Inspection Service, and the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
The public is reminded that a criminal complaint is a formal charge against a defendant. It is merely an accusation and each defendant is presumed innocent unless and until proven guilty in a court of law.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (720) 963-3127.
Individual Pleads Guilty to Attempting to Provide Material Support to IsisRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, pleaded guilty yesterday to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1). Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami. Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (“CHS”) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Individual Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, pleaded guilty yesterday to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1). Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami. Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (“CHS”) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indictment Alleges Florida Developer and Real Estate Attorney Scammed Foreign InvestorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven returned a 20-count indictment yesterday charging ROBERT V. MATTHEWS, 60, and LESLIE R. EVANS, 70, both of Palm Beach, Florida, with various fraud and money laundering offenses stemming from a scheme that defrauded foreign investors
Matthews and Evans were arrested this morning in Florida and appeared in U.S. District Court for the Southern District of Florida, in West Palm Beach. Matthews was detained pending a detention hearing that is scheduled for March 19 at 10 a.m. Evans was released on a $250,000 bond.
According to the indictment, Robert Matthews, a real estate developer who maintained residences in both Florida and Connecticut, was the developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach. Evans is a real estate attorney.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
The indictment alleges that Robert Matthews, Evans and others defrauded EB-5 investors, SARC and the one-percent owner of PHH by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use either into an account controlled by Robert Matthews, Evans and their agents, or into Evans’ Interest on Trust Account (“IOTA”) that was used to maintain his clients’ funds.
The indictment alleges that, while Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. The indictment further alleges that Robert Matthews, Evans and others used EB-5 funding for purposes not related to the PHH project, including for Robert Matthews’ personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.
As part of this alleged scheme, Robert Matthews, Evans and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert Matthews’ credit card debts, to assist in Matthews’ purchase of a 151-foot yacht, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Evans, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
The indictment charges Robert Matthews with eight counts of wire fraud, and offense that carries a maximum term of imprisonment of 20 years, one count of bank fraud, an offense that carries a maximum term of imprisonment of 30 years, one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years, and 10 counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years.
The indictment charges Evans with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, and one count of illegal monetary transactions.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
On March 7, 2018, Gerry Matthews, 57, of Middlebury, Connecticut, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud. On March 12, 2018, Laudano, 48, of Boynton Beach, Florida, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Illegal alien from Mexico arrested in Calcasieu Parish pleads guilty to illegally reentering countryRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that an illegal alien from Mexico pleaded guilty Tuesday to reentering the United States after being deported.
Raul Delacruz-Valdez, 31, of Mexico, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry of a previously deported alien. According to the guilty plea, Louisiana State Police conducted a traffic stop on Delacruz-Valdez’s vehicle on March 20, 2017 in Calcasieu Parish. He was arrested for suspicion of driving while intoxicated. After his arrest, law enforcement agents discovered that he was an illegal alien who had reentered the United States without obtaining permission. He had previously been removed October 18, 2010.
Delacruz-Valdez faces up to two years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for July 26, 2018.
Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that MARVIN OYUELA LOPEZ, age 31, a citizen of Honduras, pleaded guilty to a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
At sentencing, which is set for June 14, 2018, OYUELA LOPEZ faces a maximum term of imprisonment of not more than ten (10) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, OYUELA LOPEZ is subject to a period of supervised release after imprisonment of up to three years.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran Citizen Indicted for Conspiracy to Defraud the Internal Revenue Service of Payroll TaxesRead the Press Release
Jacksonville, Florida – A federal grand jury has returned a superseding indictment charging Oscar Arnelson Rodriguez-Cruz (40, Honduras) with conspiracy to defraud the Internal Revenue Service (IRS) of federal payroll taxes, specifically the Federal Insurance Contributions Act (FICA), Social Security, and Medicare taxes. He faces up to five years in federal prison. Rodriguz-Cruz was previously charged on January 31, 2018, with multiple counts of wire fraud. Rodriguez-Cruz is a Honduran citizen who is illegally present in the United States.
The indictment alleges that Rodriguez-Cruz facilitated employment in the construction industry of individuals living and working illegally in the United States. Construction contractors and subcontractors entered into an agreement with a shell company established by Rodriguez-Cruz to provide workers, most of whom were illegal aliens, for the contractors and subcontractors. By obtaining and paying the workers through the shell company, the contractors and subcontractors could disclaim responsibility for ensuring that required payroll taxes were paid.
The contractors and subcontractors wrote payroll checks to the shell company for work performed by the workers. Rodriguez-Cruz cashed the checks and distributed cash to construction crew leaders, who then paid the workers in cash. During the period of the scheme, Rodriguez-Cruz allegedly cashed payroll checks totaling $15,670,438. Neither Rodriguez-Cruz nor the contractors and subcontractors remitted payroll taxes to the IRS. According to the IRS, the estimated total amount of payroll taxes due on the total wages is approximately $3,964,621.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Hearing Set for Thomas Lawton Evans Jr. in Federal CourtRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced today that a hearing for Thomas Lawton Evans Jr., age 37, of Boiling Springs, South Carolina, has been set for Friday, March 16, 2018, at 11:00 A.M. in the federal courthouse, 85 Broad St., in Charleston, SC. The hearing was recently rescheduled from a later date. Evans is currently charged in a three count indictment and is scheduled to be arraigned on those charges March 16, 2018.
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Guatemalan National Who Reentered U.S. after Being Deported for Sex Assault Conviction is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIMAS ESCOBAR, 41, a citizen of Guatemala last residing in New Britain, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment for illegally reentering the U.S. after being deported for a sex assault conviction.
According to court documents and statements made in court, ESCOBAR was admitted to the U.S. as a lawful permanent resident in November 2004.
In October 2011, ESCOBAR was convicted in state court of sexual assault in the second degree and was sentenced to eight years of incarceration, execution suspended after 18 months, and 10 years of probation. He also was subject to mandatory sex offender registration.
In May 2013, ESCOBAR was deported from the U.S. to Guatemala.
On June 7, 2017, Plainville Police alerted ICE to ESCOBAR’s presence in the U.S. On June 14, ICE officers arrested ESCOBAR following a traffic stop in New Britain.
ESCOBAR has been detained since his arrest. On December 21, 2017, he pleaded guilty to one count of reentry of a removed alien.
Judge Thompson ordered the sentence to run concurrently with a two-year state sentence that ESCOBAR is currently serving for a probation violation.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Greenwich Man Pleads Guilty to Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that PASQUALE F. FURANO, 48, of Greenwich, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of tax evasion.
According to court documents and statements made in court, FURANO is the sole owner of Pasquale Furano Landscaping, which generated business income by providing landscaping and snowplowing services to approximately 150 to 200 commercial and residential customers in Fairfield County, Connecticut, and Westchester County, New York. For the 2009 through 2013 tax years, FURANO underreported more than $2.5 million in gross receipts on his federal tax returns. For those five years, FURANO falsely reported total taxable income of $264,697 when his actual total taxable income was $1,751,727. Consequently, he only paid a total of $44,213 in federal taxes when he actually owed an additional $540,182.
The investigation revealed that FURANO evaded the payment of his federal taxes by negotiating approximately 2,436 client checks, totaling approximately $1,295,990.23, at the bank for cash rather than depositing the checks into his business accounts, sometimes cashing up to 38 checks in one day. FURANO also did not disclose to his tax return preparer his receipt of cashed client checks and other deposited client checks.
Judge Meyer scheduled sentencing for June 8, 2018, at which time FURANO faces a maximum term of imprisonment of five years.
On October 16, 2014, IRS special agents conducted a court-authorized search of FURANO’s residence and seized handwritten business records and $613,842 in cash. FURANO has agreed that the seized cash will be applied to his outstanding tax liability. He also has agreed to make restitution to the IRS for the remaining penalties and interest for 2009 to 2013, which, as of February 1, 2018, are estimated to be an additional $480,179. FURANO also has agreed to pay the Connecticut Department of Revenue Services (DRS) $112,360 in sales tax he collected from his customers from 2009 to 2013, but did not pay to the DRS.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on March 14, 2018, by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney David J. Freed, Carmelino Verdugo-Torres, age 30, of Mexico, was previously deported from the United States to Mexico in February 2011. He is alleged to have illegally re-entered the United States sometime after February 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Juan Carlos Munguia, age 29, of Honduras, was previously deported from the United States to Honduras in October 2009. He is alleged to have illegally re-entered the United States sometime after October 2009, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Oscar Cash-Cash, age 29, of Mexico, was previously deported from the United States to Mexico in September 2013. He is alleged to have illegally re-entered the United States sometime after September 2013, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Evaristo Feregrino-Fortanell, age 27, of Mexico, was previously deported from the United States to Mexico in July 2015. He is alleged to have illegally re-entered the United States sometime after July 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Verdugo-Torres, Munguia, Cash-Cash and Feregrino-Fortanell all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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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Four Individuals Indicted on Charges of Conspiracy to Possess with Intent to Distribute Meth and Burglary in Jefferson CountyRead the Press Release
St. Louis, MO – Kathleen Marie Hydar, 30; Courtney Anarian Brown, 36; Paris John Earnest Devine, 25; and Raymond Christopher Seay, 39; were indicted today on charges of conspiracy to possess with the intent to distribute over 500 grams of methamphetamine.
According to the indictment, Brown and Devine were further charged with discharging a firearm that resulted in the death of Ramone Thomas, of St. Louis, on October 11, 2017. Ramone Thomas had been a participant in an attempted burglary of a trailer located at 765 Chancellor Lane in Jefferson County, Missouri when he was killed. Devine is further charged with an armed carjacking that occurred on September 28, 2017 in the City of St. Louis.
The owner of that trailer, Chad Coffman, 36, has been charged separately for possession with the intent to distribute over 500 grams of methamphetamine, as well as being a felon in possession of a firearm.
Hydar is charged with one count of conspiracy to possess with intent to distribute methamphetamine; Brown is charged with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime resulting in death; Devine is charged with one count of conspiracy to possess with intent to distribute methamphetamine, one count of discharging a firearm in furtherance of a crime of violence and one count of carjacking; and Seay is charged with one count of conspiracy to possess with intent to distribute methamphetamine.
If convicted, the charge of conspiracy to possess with intent to distribute methamphetamine carries a minimum penalty of 10 years in prison and a $10,000,000 fine; the charge of possession of a firearm in furtherance of a drug trafficking crime resulting in death carries a penalty of death or life in prison and a $250,000 fine; the charge of brandishing a firearm in furtherance of a crime of violence carries a minimum penalty of 7 years in prison and a $250,000 fine; and the charge of carjacking carries a maximum penalty of 25 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office, the Major Case Squad and the Jefferson County Prosecutor’s Office. Special Assistant United States Attorney Angie Danis is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Four Indicted for Cocaine TraffickingRead the Press Release
BOSTON – Four Worcester men were indicted today in federal court in Worcester in connection with a cocaine trafficking scheme.
Deibby Garcia, 36; his brother, Japhet Garcia, 33; Erick Cruz, 28; and Jose Gonzalez, 37, all of Worcester, were charged with conspiring to distribute and possess with the intent to distribute more than five kilograms of cocaine, and possession with the intent to distribute in excess of 500 grams of cocaine. Deibby Garcia, Japhet Garcia, and Cruz were arrested on Jan. 17, 2018. Deibby Garcia and Cruz have been detained since, while Japhet Garcia was released on conditions on Feb. 12, 2018. Gonzalez was arrested on Jan. 30, 2018, and has been detained since.
According to court documents, in early December 2017, Japhet Garcia and Gonzalez entered a Worcester postal facility and attempted to retrieve a package, addressed to Gonzalez that had been shipped from Puerto Rico and had been found to contain approximately three kilograms of cocaine.
A court-authorized wiretap of a phone belonging to Deibby Garcia revealed discussions between Deibby Garcia and an unidentified individual concerning the delivery of two packages from Puerto Rico on Jan. 16, 2018. The intercepts further revealed that Deibby Garcia made arrangements with Erick Cruz, a U.S. Postal Service letter carrier, to retrieve the packages once they arrived in Massachusetts.
As alleged in court documents, during the course of communications between Jan. 9, 2018, and Jan. 13, 2018, Cruz texted Deibby Garcia two addresses, both of which were on Cruz’s assigned route as a letter carrier. Deibby Garcia, in turn, forwarded the addresses to what authorities believed to be his cocaine source in Puerto Rico. On Jan. 12, 2018, two packages were sent from Puerto Rico to the addresses provided by Cruz and Deibby Garcia. On Jan. 15, 2018, one package was searched pursuant to a federal search warrant and was found to contain three kilograms of cocaine. The following day, federal agents permitted the second package to be provided to Cruz for delivery under the surveillance of federal agents.
Agents thereafter intercepted discussions between Cruz and Deibby Garcia in which they discussed arrangements for Deibby Garcia to have the second package picked up, and they speculated about what had happened to the package that had been seized and searched by agents. Wiretap intercepts also revealed communications in which Deibby coordinated with Gonzalez to arrange for a woman to pick up the three kilogram cocaine package from Cruz. When the woman was stopped by police after meeting with Cruz, she was found in possession of the second package, which contained another three kilograms of cocaine.
The charge of conspiring to distribute in excess of five kilograms of cocaine provides for a mandatory minimum sentence of 10 years in prison and up to life, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charge of conspiring to distribute in excess of 500 grams of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Eileen Neff, Special Agent in Charge of the United States Postal Inspection Service, Office of the Inspector General; Massachusetts Attorney General Maura Healey; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Social Security Employee SentencedRead the Press Release
SOUTH BEND - Sharon Ramos, age 56, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for ten counts of making false entries in government records, two counts of conversion of government money, and one count of wire fraud, announced U.S. Attorney Thomas L. Kirsch II.
Ramos, convicted after a four-day jury trial in November 2017, was sentenced to 46 months’ imprisonment and ordered to pay restitution to the Social Security Administration in the amount of $550,383.66.
According to testimony during the trial, from approximately January 2008 and continuing until around December 2013, Ramos devised a scheme to defraud the Social Security Administration by means of materially false and fraudulent pretenses, representations, and promises. Ramos, then an employee of the Social Security Administration, made numerous false and fictitious representations in Supplemental Security Income (SSI) accounts of numerous SSI claimants. These improper entries in the accounts resulted in numerous SSI claimants obtaining payments they were not eligible to receive. As a result, Ramos fraudulently converted money belonging to the Social Security Administration.
Upon conviction, United States Attorney Kirsch said, “When a public employee misuses her position to break the law and violate the public trust, we will hold the employee accountable for her actions by prosecution. This case is an example of the outstanding work done by the Social Security Administration, Office of Inspector General to root out fraud and corruption, and in this case, to hold Ms. Ramos accountable for her conduct.”
This case was the result of an investigation by the Social Security Administration, Office of Inspector General. This case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Frank E. Schaffer.
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Former Siemens Executive Pleads Guilty to Role in $100 Million Foreign Bribery SchemeRead the Press Release
The former Technical Manager of the Major Projects division of Siemens Business Services GmbH & Co. OGH (SBS), a wholly owned subsidiary of Siemens Aktiengesellschaft (Siemens AG), pleaded guilty today to conspiring to pay tens of millions of dollars in bribes to Argentine government officials to secure, implement and enforce a $1 billion contract to create national identity cards.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.
Eberhard Reichert, 78, of Munich, Germany, was employed by Siemens AG from 1964 until 2001. Beginning in approximately 1990, Reichert was the Technical Manager of the Major Projects division of SBS. Reichert pleaded guilty today in the Southern District of New York to one count of conspiring to violate the anti-bribery, internal controls and books and records provisions of the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Reichert was arraigned last December on a three-count indictment filed in December 2011 charging him and seven other individuals. He will be sentenced by U.S. District Judge Denise L. Cote of the Southern District of New York, who accepted his plea today.
“Far too often, companies pay bribes as part of their business plan, upsetting what should be a level playing field and harming companies that play by the rules,” said Acting Assistant Attorney General Cronan. “In this case, one of the largest public companies in the world paid staggeringly large bribes to officials at the uppermost levels of the government of Argentina to secure a billion-dollar contract. Eberhard Reichert’s conviction demonstrates the Criminal Division’s commitment to bringing both companies and corrupt individuals to justice, wherever they may reside and regardless of how long they may attempt to avoid arrest.”
“Eberhard Reichert tried to sidestep laws designed to root corruption out of the government contracting process,” said U.S. Attorney Berman. “As he admitted in Manhattan federal court today, Reichert helped to conceal tens of millions of dollars in bribes that were paid to unfairly secure a lucrative contract from the Argentine government. Today’s plea should be a warning to others that our office is committed to bringing corrupt criminals to justice, no matter how long they run from the law.”
In 1998, the government of Argentina awarded to a subsidiary of Siemens AG a contract worth approximately $1 billion to create state-of-the-art national identity cards (the Documento Nacional de Identidad or DNI project). The Argentine government terminated the DNI project in 2001. In connection with his guilty plea, Reichert admitted that he engaged in a decade-long scheme to pay tens of millions of dollars in bribes to Argentine government officials in connection with the DNI project, which was worth more than $1 billion to Siemens. Reichert admitted that he and his co-conspirators concealed the illicit payments through various means, including using shell companies associated with intermediaries to disguise and launder the funds.
Reichert also admitted that he used a $27 million contract between a Siemens entity and a company called MFast Consulting AG that purported to be for consulting services to conceal bribes to Argentine officials.
In 2008, Siemens AG, a German entity, pleaded guilty to violating the books and records provisions of the FCPA; Siemens Argentina pleaded guilty to conspiracy to violate the books and records provisions of the FCPA; and Siemens Bangladesh Limited and Siemens S.A. – Venezuela each pleaded guilty to conspiracy to violate the anti-bribery and books and records provisions of the FCPA. As part of the plea agreements, the Siemens companies paid a total of $450 million in criminal fines. The U.S. Securities and Exchange Commission (SEC) also brought a civil case against Siemens AG alleging that it violated the anti-bribery, books and records and internal controls provisions of the FCPA. In resolving the SEC case, Siemens AG paid $350 million in disgorgement of wrongful profits. The Munich Public Prosecutor’s Office also resolved similar charges with Siemens AG that resulted in a fine of $800 million. In August 2009, following these corporate resolutions with U.S. and German authorities, Siemens AG withdrew its claim to the more than $200 million arbitration award.
The FBI’s International Corruption Squad in Washington, D.C. is investigating the case. The case is being prosecuted by Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Niketh Velamoor of the Southern District of New York. The Criminal Division’s Office of International Affairs, the SEC, Croatian authorities and the Munich Public Prosecutor’s Office also provided significant assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Siemens Executive Pleads Guilty in Manhattan Federal Court to $100 Million Foreign Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, announced that EBERHARD REICHERT, a former executive at Siemens Aktiengesellschaft (“Siemens AG”), pled guilty today in Manhattan federal court to conspiring to pay $100 million in bribes to senior Argentine government officials to secure, implement, and enforce a $1 billion contract between Siemens and the Argentine government to produce national identity cards. He is the second individual defendant to plead guilty in the massive scheme. REICHERT, a citizen of Germany, pled guilty to one count of conspiring to violate the Foreign Corrupt Practices Act’s anti-bribery, internal controls, and books and records provisions, and to commit wire fraud, before U.S. District Judge Denise L. Cote. His guilty plea followed his September arrest in Croatia and subsequent voluntary extradition to the United States in December.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Eberhard Reichert tried to sidestep laws designed to root corruption out of the government contracting process. As he admitted in Manhattan federal court today, Reichert helped to conceal tens of millions of dollars in bribes that were paid to unfairly secure a lucrative contract from the Argentine government. Today’s plea should be a warning to others that our office is committed to bringing corrupt criminals to justice, no matter how long they run from the law.”
Acting Assistant Attorney General John P. Cronan said: “Far too often, companies pay bribes as part of their business plan, upsetting what should be a level playing field and harming companies that play by the rules. In this case, one of the largest public companies in the world paid staggeringly large bribes to officials at the uppermost levels of the government of Argentina to secure a billion-dollar contract. Eberhard Reichert’s conviction demonstrates the Criminal Division’s commitment to bringing both companies and corrupt individuals to justice, wherever they may reside and regardless of how long they may attempt to avoid arrest.”
According to the Indictment and statements made at today’s plea hearing:
REICHERT was employed by Siemens AGfrom 1964 until 2001. Beginning in approximately 1990, REICHERT was the Technical Manager of the Major Projects division of Siemens Business Services GmbH & Co. OGH (“SBS”), a subsidiary of Siemens AG.
In 1994, the government of Argentina issued a tender for bids to replace an existing system of manually created national identity booklets with state-of-the-art national identity cards (the DNI project). The value of the DNI project was $1 billion. In order to obtain the project, Siemens committed to paying nearly $100 million in bribes to sitting officials of the Argentine government, members of the opposition party, and candidates for office who were likely to come to power during the performance of the project. In 1998, the Argentine government awarded the DNI project to Siemens, and REICHERT was one of the individuals in charge of the project.
REICHERT and his co-conspirators worked to approve and conceal the illicit payments through various means, including by funneling the payments through shell companies associated with bribe recipients to disguise the true purpose for the payments. REICHERT also admitted to approving a $27 million sham contract between a Siemens entity and a company called MFast Consulting AG that was being used as a vehicle to funnel money to Carlos Sergi, REICHERT’s co-defendant, for bribe payments. Several years after leaving the company, SERGI initiated a Swiss arbitration to collect on the contract. REICHERT testified on SERGI’s behalf and, ultimately, REICHERT’s co-conspirators caused Siemens to pay an additional $8.8 million in 2007 to settle the arbitration.
In May 1999, the Argentine government suspended the DNI project, due in part to instability of the local economy and an impending presidential election. When a new government took power in Argentina, and in the hopes of getting the DNI project resumed, members of the conspiracy committed Siemens to paying additional bribes to the incoming officials, and to satisfying existing obligations to officials of the outgoing administration, many of whom remained in influential positions within the government. When the project was terminated in May 2001, members of the conspiracy nevertheless sought to recover the anticipated proceeds of the DNI project by causing Siemens AG to file a fraudulent arbitration claim against the Republic of Argentina in Washington, D.C. Members of the conspiracy also continued the bribe scheme, in part to prevent disclosure of the bribery in the arbitration but also to ensure Siemens’ ability to secure future government contracts in Argentina and elsewhere in the region. In four installments between 2002 and 2007, members of the conspiracy allegedly caused Siemens to pay approximately $28 million in further satisfaction of the obligations.
Siemens’s corrupt procurement of the DNI project was not exposed during the lifespan of the conspiracy, and, in February 2007, the arbitration tribunal in Washington sided with Siemens AG, awarding the company nearly $220 million on its DNI claims, plus interest. The company, however, never claimed the award money, because after Siemens reached corporate resolutions with the U.S. and German authorities, Siemens AG agreed to forego its right to receive the award.
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REICHERT, 78, of Munich, Germany, faces a maximum sentence of five years in prison and three years of supervised release. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Andres Truppel, who was charged in the same indictment, pleaded guilty in 2015 and is yet to be sentenced. Charges against the other individuals named in the indictment – Uriel Sharef, Herbert Steffen, Ulrich Bock, Stephan Signer, Carlos Sergi, and Miguel Czysch – are pending. The charges and allegations against these other individuals are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
On December 15, 2008, Siemens AG and Siemens Argentina entered guilty pleas to criminal violations of the FCPA. As part of the plea agreement, Siemens AG and Siemens Argentina agreed to pay fines of $448.5 million and $500,000, respectively.
Mr. Berman praised the Federal Bureau of Investigation’s New York and Washington D.C. Field Offices for their work on the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Niketh Velamoor and Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section are in charge of the prosecution.
Former Sacramento Area Youth Gymnastics Coach Pleads Guilty to Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Derek Swede Godfrey, 48, formerly of Rocklin, pleaded guilty today to possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in October 5, 2006, law enforcement agents executed a search warrant at Godfrey’s home in Rocklin. On his computer, agents located more than 400 videos and 5,000 still images depicting the sexual abuse and exploitation of minors. The day after, Godfrey, a youth gymnastics coach, left the United States for the Netherlands where he had dual-citizenship. On January 25, 2007, a grand jury in Sacramento indicted Godfrey, charging him with one count of possession of child pornography.
In 2012, Godfrey was located in Perth, Australia, where he was once again found to be coaching children’s gymnastics. At that time, Australian authorities arrested Godfrey on charges unrelated to the charges in the United States. In April 2016, Australian authorities agreed to extradite Godfrey to the United States to face the charges pending in Sacramento.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Godfrey is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 7, 2018. Godfrey faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Partner in Global Consulting Firm Sentenced to Two Years in Federal Prison for Billing $586,000 in Bogus Consulting Work and Travel ExpensesRead the Press Release
CHICAGO — A former Chicago-based partner in a global consulting firm has been sentenced to two years in federal prison for scheming with a client to bilk their companies out of hundreds of thousands of dollars in purported consulting work that was never performed.
NAVDEEP ARORA, a former partner in the Chicago office of McKinsey & Company Inc., plotted with a former internal consultant at State Farm Mutual Automobile Insurance Co. to defraud both companies out of phony consulting fees. Arora also fraudulently obtained money from McKinsey, State Farm and other McKinsey clients in the form of purported work-related travel reimbursements for expenses that were actually incurred on Arora’s personal trips. Arora falsely expensed personal trips to Scottsdale, Ariz.; Vail, Colo.; Las Vegas, Nev.; London, England; Prague, Czech Republic; Munich, Germany; and elsewhere. He took the State Farm employee, MATTHEW SORENSEN, on two personal vacations – to Napa, Calif. and New York, N.Y. – and expensed them to State Farm as business expenses. The costs included flights, hotels, meals, car services and other items.
Arora, 53, of London, England, and formerly of Chicago, was arrested in 2016 at JFK International Airport in New York after arriving on an overseas flight. He pleaded guilty last year to one count of wire fraud. U.S. District Judge Ronald A. Guzman imposed the sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Arora and Sorensen “concocted a fraudulent scheme to benefit themselves during their employment,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “The defendants’ actions have caused both companies to undertake time and expense uncovering this fraud, destroyed a longstanding relationship between these two companies, and caused reputational harm.”
Sorensen, of Bloomington, Ill., also pleaded guilty to a wire fraud charge. Judge Guzman in September 2017 sentenced Sorensen to one year and one day in prison.
Arora and Sorensen had a longstanding business relationship through Arora’s work overseeing the consulting services McKinsey provided to State Farm. At State Farm, Sorensen provided input and recommendations about whether to hire outside consultants for company projects and who to retain.
According to the charges, their fraud scheme began in 2007. Arora and Sorensen used two corporate entities – “Gabriel Solutions” and “Andy’s BCB” – to defraud their employers out of the phony fees. Sorensen billed McKinsey for the bogus work purportedly performed by the companies, while Arora allocated the fees to the State Farm projects to which he was assigned. As a result, McKinsey and State Farm paid $38,265 for consulting services purportedly performed by “Andy’s BCB,” and $452,710 in fees billed by “Gabriel Solutions.”
Sorensen pocketed a large majority of the money, while Arora received a substantial salary and benefits from McKinsey for maintaining its business relationship with State Farm.
Former Oregon Department of Energy Employee Pleads Guilty to Money Laundering ConspiracyRead the Press Release
PORTLAND, Ore. – On Thursday, March 15, 2018, Joseph J. Colello, 57, of Salem, Oregon, pleaded guilty to one count each of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, conspiracy to defraud the IRS and filing a false income tax return.
According to court documents, between June 2012 and March 2015, Colello was employed as a pass-through program manager for the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program. In his role, Colello helped owners of BETCs sell their credits by locating buyers and facilitating transfers.
In 2012, Colello and a coconspirator devised a plan whereby Colello would give the coconspirator the names of BETC sellers and interested buyers—information he had access to as an ODOE employee. Colello would then contact the sellers and buyers to negotiate credit transfers, but made it appear as though the coconspirator had brokered the deals. Colello and the coconspirator agreed to have the coconspirator create a sham company in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Colello and the coconspirator charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar credit transfers. Colello would receive a portion of this fee as a kickback.
Between 2012 and 2015, the coconspirator deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. The coconspirator would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello. Over the course of the conspiracy, the coconspirator purchased and issued approximately 58 cashier’s checks to Colello or his girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme.
Colello faces a combined maximum sentence for all three charges of 28 years in prison, more than $1 million in fines and up to three years of supervised release. He will be sentenced on July 2, 2018 before U.S. District Court Judge Michael W. Mosman.
The case was investigated by IRS Criminal Investigation and the FBI and is being prosecuted by Claire M. Fay and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
Former Nashville Judge Indicted on Additional Federal Obstruction and Theft ChargesRead the Press Release
A federal grand jury returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee made the announcement.
Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment returned yesterday adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release. Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges.
According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases. Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations. Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation. According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.
According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland. In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.
Former Nashville General Sessions Judge Indicted on Additional Federal Obstruction and Theft ChargesRead the Press Release
A federal grand jury yesterday, returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain. U.S. Attorney Don Cochran for the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release. Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges.
According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases. Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations. Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation. According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.
According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland. In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section.
Former Marion County, Kentucky, Resident Sentenced to 57 Months in Prison for Conspiracy to Manufacture and Possess Marijuana with the Intent to DistributeRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of John Robert Boone, in United States District Court, by Senior Judge Charles R. Simpson III, to 57 months in prison, having pleaded guilty to manufacture and possession of marijuana with the intent to distribute. There is no parole in the federal system.
"Manufacture, possession, and distribution of marijuana are violations of federal criminal law – plain and simple. As the Chief Federal Prosecutor for the Western District of Kentucky, I want to make it very clear that this office remains committed to enforcing all federal criminal laws associated with marijuana,” stated U.S. Attorney Russell Coleman. “Our Commonwealth is in the throes of a deadly addiction to heroin and illicit drugs and Marijuana is a young person’s gateway to a lifetime of drug abuse and associated crime.”
John Robert Boone a/k/a Johnny Boone, 74, formerly of Marion County, Kentucky, pled guilty to a Superseding Information, containing a single charge, on December 19, 2017. Boone admitted that on May 27, 2008, in Washington County, Kentucky, he conspired with other persons to possess more than 1000 marijuana plants, intending to cultivate and grow the plants and distribute the marijuana when the plants were harvested. In furtherance of the conspiracy, Boone watered and fertilized the plants, and concealed them on a farm in Washington County on Walker Lane near his residence.
According to the Criminal Complaint, in May of 2008, the plants were spotted during an aerial operation in the Springfield and Washington County area of Kentucky, by Kentucky State Police, for the purpose of spotting outdoor marijuana propagation activities.
Boone was a fugitive for nearly eight years until his arrest in Montreal, Canada in December of 2016. He’s remained in the custody of the United States Marshals service since being deported in April of 2017.
This case was prosecuted by Assistant United States Attorney Larry Fentress and was investigated by the DEA and Kentucky State Police.
Former Lumber Executive Sentenced for Embezzling over $800,000Read the Press Release
BECKLEY, W.Va. – A former Chief Financial Officer for a Beckley lumber company who embezzled over $800,000 was sentenced to 41 months in federal prison and ordered to pay full restitution, announced United States Attorney Mike Stuart. James Matthew Miller, 43, previously pled guilty to two counts of wire fraud on December 6, 2017. Stuart praised the investigative work of the Federal Bureau of Investigation.
“Unscrupulous employees – be that rank and file workers or top executives -- can cause substantial financial harm to their employers. The prosecution of these crimes is vital to the success of West Virginia businesses,” said United States Attorney Mike Stuart.
Miller formerly worked as an executive for a lumber company until September 2013. In his role as Chief Financial Officer, his responsibilities included oversight of log inventories from vendors. From approximately December 31, 2007, to August 30, 2013, Miller admitted that he issued payments to a sham vendor, a close friend of Miller’s, and falsely inflated log inventories to conceal the fraud. He created a fictitious log vendor that has never hauled or delivered logs to the lumber company. Miller also admitted that he created false payment requests and then drafted and signed checks from the lumber company to the fake vendor. The fictitious vendor cashed the checks or deposited the checks in his bank account, then provided Miller with the money, minus a small amount Miller permitted the vendor to keep. During the course of the fraud, Miller was responsible for 160 checks totaling $822,396.63 from the company to the sham vendor. Miller admitted that he concealed the fraud and committed wire fraud by submitting company reports based on artificially inflated log inventories, and then emailed the reports to a lumber mill manager in Tennessee and a BB&T in Georgia.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. United States District Judge Irene C. Berger handed down the sentence.
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Former Harris County Deputy Enters Guilty Plea to Federal Child Pornography ChargesRead the Press Release
HOUSTON – A 31-year-old former law enforcement official has entered a guilty plea to production and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Andrew Craig Sustaita, of Spring, was previously a Harris County deputy sheriff at the time of the offense, but is no longer employed there.
A federal grand jury indicted Sustaita Feb. 1, 2017, on charges of possession and production of child pornography. He appeared in court shortly thereafter, at which time the court found him to be a danger to the community and a risk of flight and ordered him into custody.
Today, Sustaita pleaded guilty to both counts as charged.
As part of his plea, Sustaita admitted he posted child erotica images to a known child pornography website and had commented on other similar images on that same site. The investigation led to Sustaita whose online presence included a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices attributable to Sustaita. The court heard that one video includes a known young girl showering. Other images contain Sustaita’s genitalia placed on or near the identified young female victim’s head while she appears to be sleeping and others that include Sustaita attempting to expose that child’s genitalia.
Further investigation led to the discovery of the identified victim’s images on a computer in Milwaukee, Wisconsin. Sustaita admitted he had distributed the images via the internet.
U.S. District Judge Sim Lake accepted the pleas and set sentencing for June 6, 2018. At that time, Sustaita faces a mandatory minimum sentence of 15 and up to 30 years in federal prison for sexual exploitation of a child (production of child pornography) as well as another 10-year-maximum sentence for possessing child pornography. The charges are also punishable by a possible $250,000 maximum possible fine. Upon completion of any prison term imposed, Sustaita could also face up to life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. Sustaita would also be required to register as a sex offender.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which 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."
Former Bookkeeper Failed to Report Money Embezzled from Employers and Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A former bookkeeper pled guilty today in federal court for failing to report to the Internal Revenue Service (“IRS”) millions of dollars that she embezzled from her employers.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Lauren Ransom, 58, of Deerfield Beach, pled guilty to three counts of making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant’s sentencing hearing is scheduled for May 22, 2018 at 10:00 a.m., before U.S. District Judge Federico A. Moreno in Fort Lauderdale. At sentencing, Ransom faces a maximum possible statutory sentence of three years in prison for each count, a $100,000 fine for each count and restitution.
According to stipulated facts filed with the court, for 33 years, the defendant worked as a bookkeeper at two South Florida insurance companies. Ransom embezzled money from one of the company’s business accounts where she used her signatory authority on the accounts and wrote unauthorized company checks payable to “Cash” and “Lauren Ransom.” She then cashed these checks or deposited them into her personal checking account. Court information revealed that the defendant used the money to pay for her credit cards, mortgage and auto loans, insurance, and other personal living expenses. Casino records also revealed that the defendant gambled and lost approximately $1,410,276.95 from December 1, 2008 to January 31, 2014 by playing slot machines. The defendant concealed the embezzlement by altering numerous copies of these cancelled checks by “whiting out” and then changing the payee sections to create so-called legitimate business expenses for the insurance companies. The defendant created false hand-written entries in the companies’ cash disbursement journals to further conceal the fraud.
In the stipulated facts filed with the court, Ransom admitted she filed false individual tax returns, Forms 1040, for tax years 2011, 2012, and 2013 because she knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. The false statements resulted in tax losses. As part of the plea agreement filed with the court, the defendant has further agreed to pay the tax losses and restitution to her former employers.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Woman Pleads Guilty to Making a False Statement to a Firearms DealerRead the Press Release
U.S. Attorney Duane A. Evans announced that KIMBERLY TREMBLAY, age 31, of Florida, pled guilty today to a one-count bill of information with making a false statement to a federally licensed firearms dealer, in violation of 18 U.S.C. § 924(a)(1)(A).
According to court documents, TREMBLAY made false statements to a federally licensed firearms dealer, in which she indicated that she was the actual buyer of a firearm, and that she was not under indictment in any court for a felony, whereas in fact she acquired the firearm for a convicted felon and was herself under a bill of information for a felony in East Baton Rouge Parish.
TREMBLAY faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
Judge Lance M. Africk set sentencing for June 14, 2018.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorneys Myles Ranier and Nicholas Moses are charge of the prosecution.
Five more people indicted for role in drug conspiracy in which $2.1 million and five firearms were seizedRead the Press Release
Five people were added to a now 39-count indictment for their roles in a conspiracy to distribute at least 220 pounds of marijuana and 345 pills of Oxycodone in Northeast Ohio, law enforcement officials said.
Indicted are Amer Jabir, 37; Ahmad Jabir, 22; Aymen Abdelrahim, 28, and Gerald Knox, 37, all of Cleveland.
Added to the indictment are Jaber Hammouda, 33, of North Olmsted, Amran Jabir, 30, of Chicago; Ahmad Abukhalil, 37, of Lakwood; Mohamed Mansour, 27, of Olmsted Falls, and Alaa Hassan, 23, of Westlake. All nine are charged with conspiracy to possess with intent to distribute least 100 kilograms of marijuana and 345 pills of Oxycodone between 2015 and 2018.
There are additional charges for distribution of marijuana, distribution of Oxycodone, and related charges. Knox is charged with possession of a firearm related to drug trafficking and being a felon in possession of a firearm.
The indictment also seeks to forfeit more than $2.1 million in cash, five firearms, a 2015 Range Rover, a $5,000 casino poker chip and miscellaneous jewelry seized from locations in Cleveland, North Olmsted and Chicago as part of the investigation.
Amer Jabir was the leader of an organization that brought hundreds of pounds of marijuana from grow operations in California to Chicago and then Cleveland. The marijuana was hidden in secret trap compartments in vehicles that were then placed in the back of car haulers, according to court documents.
Some of the pills and marijuana were sold by Aymen Abdhelrahim, from a gas station on West 25th Street where Abdelrahim worked as a clerk, according to court documents.
“This case demonstrates how drugs are moved across the country, from California to a gas station on West 25th Street,” U.S. Attorney Justin Herdman said. “It also exemplifies how drug traffickers use firearms to protect their millions of dollars in drug profits.”
“This group of individuals profited millions of dollars from transporting and selling oxycodone and marijuana in our community,” said FBI Special Agent in Charge Stephen D. Anthony. “They drove fancy cars and utilized an expensive apartment in Chicago to store their illegal narcotics. The FBI applauds the cooperative efforts by all law enforcement agencies involved in this investigation.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, the North Olmsted Police Department, the Westlake Police Department, the Ohio State Highway Patrol, U.S. Customs and Border Protection and the Westshore Enforcement Bureau. It is being handled by Assistant U.S. Attorneys Justin Seabury Gould and Robert F. Corts.
An charge is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Individuals Charged with Operating Interstate Prostitution RingRead the Press Release
BOSTON – Five individuals were arrested in three states today and charged in connection with operating a long-running interstate prostitution ring.
Yoon I. Kim, 36, of Haymarket, Va.; Taehee Kim, a/k/a “Hyunsook Kim,” 46, of Haymarket, Va.; Jineok Kim, 38, of Watertown, Mass.; Kyung Song, 52, of Lexington, Mass.; and Susan Bashir, a/k/a “Susan Redmon,” a/k/a “Susan Redmond,” 41, of Stone Mountain, Ga., were charged in a criminal complaint with one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution. The defendants were arrested today and appeared in federal courts in Boston, Virginia, and Atlanta.
According to the criminal complaint, beginning in at least November 2015, the defendants operated an interstate prostitution network with multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia. They advertised appointments with Asian women primarily on three websites: www.bostonasiandolls.com, www.exoticasiansatlanta.com, and www.redhotflowers69.com. The women advertised on the websites were moved from city to city within the network, working as prostitutes for the organization. Co-conspirators collected the cash earnings from the women working at the brothels and made bulk deposits—sometimes thousands of dollars at a time in cash—at ATMs near the brothels, funneling the money into accounts controlled by other co-conspirators. Co-conspirators also used U.S. Postal money orders and the U.S. Mail to transport proceeds from the prostitution network.
The charge of conspiracy to persuade, induce, entice, or coerce women to travel in interstate commerce to engage in prostitution provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fitchburg Man Pleads Guilty to Dealing OxycodoneRead the Press Release
BOSTON – A Fitchburg man pleaded guilty today in federal court in Worcester to dealing Oxycodone.
Marc Merchant, 53, pleaded guilty to three counts of distribution and possession with intent to distribute Oxycodone. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 7, 2018.
On three occasions, Merchant distributed Oxycodone to an undercover agent in transactions that were audio and video recorded. On two instances, Aug. 9, 2016, and Feb. 17, 2017, Merchant distributed 100 pills to the agent, and on March 8, 2017, Merchant distributed 200 pills to the agent. Merchant was arrested on April 3, 2017, and was found in possession of over $4,000 in cash and approximately 40 Oxycodone pills.
The charge provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
Felon from Farmington Pleads Guilty to Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – David Lawrence Krueger, 39, of Farmington, N.M., pled guilty yesterday in federal court to violating the federal firearms laws by unlawfully possessing firearms. At sentencing, Krueger faces a maximum penalty of ten years of imprisonment unless the court determines that he is an armed career criminal. In that event, Krueger will face an enhanced sentence of a statutory mandatory minimum penalty of 15 years of imprisonment and a maximum of life imprisonment.
Krueger is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing them from communities in New Mexico for as long as possible.
Krueger was arrested on Sept. 28, 2017, on a two-count indictment charging him with being a felon in possession of a firearm on Jan. 25, 2017, in Sandoval County, N.M., and on Feb. 1, 2017, in San Juan County, N.M. Krueger was prohibited from possessing firearms or ammunition because of his prior felony convictions, which include convictions for armed robbery, aggravated robbery, domestic abuse, assault, and battery.
During yesterday’s change of plea hearing, Krueger pled guilty to the indictment. In entering the guilty plea, Krueger admitted selling four firearms to an undercover law enforcement agent on Jan. 25, 2017. Krueger also admitted selling two firearms to an undercover law enforcement agent on Feb. 1, 2017. Krueger acknowledged that he was prohibited from possessing firearms or ammunition because he was a convicted felon. Krueger remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.