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12 March 2018
Inmate Sentenced to 46 Months in Prison for Assaulting and Resisting a Federal EmployeeRead the Press Release
DENVER - A federal prison inmate already serving multiple federal sentences was sentenced to serve an additional 46 months in prison for assaulting and resisting a federal employee, announced U.S. Attorney Bob Troyer of the United States Attorney’s Office for the District of Colorado.
James Wilson, 36, of Pitt County, North Carolina, was sentenced on March 9, 2018, by U.S. District Court Judge William J. Martínez, who also ordered Wilson to serve three years of supervised release following his prison sentence. Previously, Wilson pleaded guilty on Dec. 7, 2017, to one count of assaulting and resisting a federal employee.
According to court filings, on January 2, 2017, Wilson intentionally and forcibly assaulted, resisted, opposed, or impeded an officer with the Federal Bureau of Prisons at the United States Penitentiary in Florence, Colorado (USP Florence). Before being escorted to a lieutenant’s holding cell, Wilson was ordered to stop and submit to a pat search. Wilson ignored the order and ran. Another correctional officer observed a weapon — a cell-made shank — in Wilson’s hand as he fled. After a struggle, Wilson was placed on the ground, where he continued to actively resist. As Wilson resisted, he punched an officer multiple times in the chest. Following the incident, a review of the officer’s polo shirt showed at least one puncture hole over his left breast. The officer’s protective vest, which had several indentations from the assault, protected the officer from sustaining substantial bodily injury.
The Federal Bureau of Investigation and the Special Investigative Service of the Federal Bureau of Prisons investigated this case. This case was prosecuted by Assistant U.S. Attorney Juan G. Villaseñor, and Special Assistant U.S. Attorney Clay C. Cook, of the District of Colorado.
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Illegal Alien is Sentenced for Further Illegal ReentryRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty and has been sentenced in federal court to 10 months imprisonment on his conviction of illegal re-entry after deportation, United States Attorney Scott C. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Rene Hilerio-Ballina, age 33, of Mexico.
According to the information presented to the court, Hilerio-Ballina, a native and citizen of Mexico, was formally removed from the United States by the United States Immigration and Customs Enforcement on April 23, 2010, June 9, 2010, May 10, 2013, and October 29, 2013. Hilerio-Ballina was found to be illegally present in Pittsburgh, Pennsylvania, on December 19, 2017, when he was arrested by the United States Immigration and Customs Enforcement.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) for the investigation leading to the successful prosecution of Hilerio-Ballina.
Guatemalan Man Sentenced for Immigration FraudRead the Press Release
ALBANY, NEW YORK – Juan Luis Ortiz Jimenez, age 32, and a citizen of Guatemala, was sentenced today to time served (74 days in jail) for possessing a fraudulent green card.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Ortiz Jimenez admitted that he possessed a counterfeit permanent residency card (“green card”) in Colonie, New York, on December 28, 2017. ICE Officers found Ortiz Jimenez to be in possession of the counterfeit green card when they arrested him on December 28 for being unlawfully present in the United States.
Following his sentencing, Ortiz Jimenez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Four Members of an Armed Robbery Crew have been Indicted for Committing Robberies throughout Western Tennessee, Resulting in One FatalityRead the Press Release
Memphis, TN – Four individuals have been indicted for conspiracy to commit robberies of drug dealers in the Western District of Tennessee, one of which resulted in a fatality. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
On March 7, 2018, a federal grand jury returned the indictment, which remained sealed until the defendants’ arrest. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This indictment follows a four-month investigation involving agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as other federal and state agencies. These defendants participated in a conspiracy to rob drug dealers throughout the Western District of Tennessee.
The four defendants listed are currently in custody:
Marcus Danner, 38, Memphis, Tennessee
Quintez Agnew, 33, Memphis, Tennessee
Shuntario Johnson, 37, Memphis, Tennessee
John Lott, 29, Memphis, TennesseeCount 1 charges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott with conspiracy to obstruct, delay and affect commerce by robbery, in that the defendants did
plan on robbing persons engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 2 charges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott with conspiracy to possess with the intent to distribute 5 kilograms or more of a mixture of substance containing a detectable amount of cocaine.
Count 3 charges Shuntario Johnson with carjacking by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 4 charges Shuntario Johnson with carrying and discharging a firearm, during and in relation to a crime of violence, that is, the taking a motor vehicle, that had been transported, shipped and received in interstate commerce by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 5 charges Shuntario Johnson with using and discharging a firearm, during and in relation to a crime of violence, that is, the taking of a motor vehicle, that had been transported, shipped and received in interstate commerce by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 6 charges Shuntario Johnson with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 7 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott being aided and abetted by the other did unlawfully obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob an individual then engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 8 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott, being aided and abetted by the other did knowingly carry and discharge a firearm, during and in relation to a crime of violence, that is, to obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob B.B., an individual then engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 9 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott, being aided and abetted by the other did knowingly use and discharge a firearm, during and in relation to a crime of violence to obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob B.B., an individual then engaged in interstate commerce, that is narcotics trafficking, of drugs and drug proceeds by threats of physical violence.
Count 10 charges Marcus Danner with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 11 charges Quintez Agnew with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 12 charges Shuntario Johnson with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 13 charges John Lott with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 14 alleges Marcus Danner; Quintez Agnew and Shuntario Johnson being aided and abetted by the other, did knowingly possess a firearm, in furtherance of a drug trafficking crime, that is, conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing a detectable amount of cocaine.
Count 15 alleges Marcus Danner; Quintez Agnew and Shuntario Johnson, being aided and abetted by the other, did knowingly carry a firearm, in furtherance of a drug trafficking crime, that is, conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing detectable amount of cocaine.
Count 16 alleges Marcus Danner having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affect interstate commerce with a firearm.
Count 17 alleges Quintez Agnew having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting interstate commerce with a firearm.
Count 18 alleges Shuntario Johnson, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting interstate commerce with a firearm.
During this investigation, agents seized multiple firearms; approximately $2,000 in U.S. currency; and approximately 28 grams of crack cocaine.
If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Memphis Police Department, Multi Agency Gang Unit and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proved guilty.
Former Spring Hill Police Officer Sentenced to Prison for Federal Civil Rights ViolationRead the Press Release
Former Spring Hill Police Officer Christopher Patrick Odom, 27, of Spring Hill, Tennessee, was sentenced on Friday in U.S. District Court to 12 months in prison, followed by one year of supervised release, for deprivation of rights under color of law, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
Odom was indicted in July 2017 and pleaded guilty in October 2017 to engaging in unwanted sexual contact with a female motorist while on duty as a police officer.
U.S. District Judge Aleta A. Trauger sentenced Odom to the maximum penalty under the statute and noted that Odom’s behavior was outrageous and that he displayed a pattern of conduct that abused his position as a police officer.
According to court documents, Odom initiated a traffic stop on the female victim during the late evening hours of June 25, 2016. Upon approaching the victim’s car, Odom ordered her to write her name and phone number or date of birth on a piece of paper. Thereafter, Odom ordered the victim out of her car and brought her to the side of his patrol car. He then tried to kiss the victim and attempted put his hands down her pants. He then grabbed the victim’s hand and placed it on his penis. Odom also lied to the victim about his name before finally allowing her to leave the scene.
Odom previously pleaded guilty to state charges of sexual battery and official misconduct regarding the victim in this case and another female motorist in Maury County and served 78 days in jail. He is facing similar state charges in Williamson County.
This case was investigated by the Tennessee Bureau of Investigation in consultation with the Department of Justice Civil Rights Division. Assistant United States Attorneys Henry Leventis and Sara Beth Myers are prosecuting the case.
Former Settlement Agent Gets 12 Years in Prison for Mortgage Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A former settlement agent from Wyckoff, New Jersey, was sentenced today to 144 months in prison for defrauding banks out of $1.1 million using phony loan applications for properties in Bergen and Morris Counties, New Jersey, and for failing to pay over $450,000 in personal income taxes, U.S. Attorney Craig Carpenito announced.
Mark Andreotti, 47, was previously convicted on all six counts of an indictment charging him with bank fraud, conspiracy to commit bank fraud, tax evasion, and failure to file tax returns. He was convicted following a two-week trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
In January 2010, Andreotti submitted a loan application to a bank requesting $625,000 to refinance the mortgage on his house in Wyckoff. Andreotti, who owned and operated Metropolitan Title and Abstract (Metropolitan), used Metropolitan as the settlement agent on the transaction. After the bank transferred the $625,000 for the refinance to Metropolitan’s escrow account, Andreotti spent the money on personal expenses instead of paying off the first mortgage on the house.
In April 2011, Andreotti conspired with another individual who worked as a real estate attorney to obtain $480,000 by claiming that the money would be used to refinance the mortgage on the attorney’s house in Montville, New Jersey. After the bank transferred the money for the refinance to Metropolitan’s escrow account, Andreotti kept $110,000 for himself before transferring the remaining funds to the other conspirator.
In 2010, the IRS initiated collection actions against Andreotti for unpaid personal income taxes. Despite numerous liens and levies and having five rental income properties in addition to his primary residence, Andreotti continued to evade his taxes. He also failed to file tax returns for the tax years 2010 and 2011.
In addition to the prison term, Judge Wigenton sentenced Andreotti to five years of supervised release and ordered him to pay restitution of over $2.1 million.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; and special agents with the U.S. Attorney’s Office, with the investigation.
The government is represented by Assistant U.S. Attorney Shana Chen in of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing and Finance Agency – Office of Inspector General.Defense counsel: Marc Neff, Esq., of Marlton
Former Marshall Resident Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that an Arkansas man, formerly of Marshall, Mo., was sentenced in federal court today for possessing child pornography.
Kenneth Larrechea, 48, formerly of Marshall, was sentenced by U.S. District Judge Beth Phillips to 13 years in federal prison without parole. The court also sentenced Larrechea to a 10-year term of supervised release following incarceration.
Larrechea, who pleaded guilty on Nov. 20, 2017, to possessing child pornography, was identified as one of 158 individuals who received child pornography through Kik (an instant messaging and chat application) from a New York man, who pleaded guilty in a separate case in the Northern District of New York. An FBI agent executed a search warrant at Larrechea’s Marshall residence on Dec. 8, 2015, and seized several electronic media devices, including computers, hard drives and cell phones.
Investigators discovered several images on an SD card in Larrechea’s cell phone of a child victim, approximately 10 or 11 years old, getting in and out of a shower. The images were screen shots taken from a video file. Larrechea was acquainted with the child victim and investigators believed he produced the images with a hidden camera. The child victim told investigators she was not aware that she was being video recorded or photographed.
More than 400 videos and more than 70 images of child pornography and erotica were also located on Larrechea’s cell phone and SD card.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI and the Marshall, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Felon Charged for Armed Robbery of Cashier Cage at New York-New York Hotel and CasinoRead the Press Release
LAS VEGAS, Nev. – An armed man who robbed a casino floor cashier cage at New York-New York Hotel and Casino in January was charged today in federal court, announced United States Attorney Dayle Elieson of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department.
Cameron James Kennedy, 26, of Las Vegas, is charged with one count of interference with commerce by robbery.
According to allegations contained in the criminal complaint, Kennedy was on federal supervision for a bank robbery charge and he was required to wear a GPS monitoring bracelet. On January 10, 2018, about three hours after he cut off his GPS monitoring bracelet, Kennedy demanded money from a casino floor cage cashier at the New York-New York Hotel and Casino. He lifted his hooded jacket and displayed a black semiautomatic handgun in his waistband. He told the cashier: “I want all your hundreds and don’t mess around. I am not kidding, I want all the hundreds.” He stole approximately $23,367 and fled in a taxi cab.
If convicted, the maximum statutory penalty is 20 years in prison and a $250,000 fine.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Violent Crimes Task Force and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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Former Fairview Township Police Officer Sentenced to 42 Months’ Imprisonment on Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyson Baker, age 43, of Etters, Pennsylvania, was sentenced today by United States District Court Judge Sylvia H. Rambo to 42 months’ imprisonment and two years’ supervised release for theft of seized money that was evidence in two separate drug cases.
Judge Rambo also ordered Baker to pay $1,000 restitution to Fairview Township Police Department and $330 restitution to the FBI. Baker is to report to the Bureau of Prisons on April 2, 2018.
According to United States Attorney David J. Freed, Baker, a former 17 year veteran police officer with the Fairview Township Police Department, was convicted on September 14, 2017, after a four-day trial before Judge Rambo. Baker was convicted of two counts of theft of drug money that was subject to seizure and forfeiture, one count of falsifying or altering records to impede, obstruct or influence a federal drug investigation regarding the first incident, one count of theft of federal property, and one count of presenting a false police report to the FBI.
The Federal Bureau of Investigation (FBI) in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. On December 16, 2015, the FBI arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015, Baker was arrested by the FBI and confessed to both incidents.
“Because of his status as a law enforcement officer, Baker’s actions not only violated state and federal laws, but also had a direct negative impact on state and federal cases where he served as an investigator or witness,” said United States Attorney Freed. “The excellent cooperative investigation followed by Judge Rambo’s sentence send a strong message that this type of conduct will be vigorously prosecuted and punished.”
“When an officer shrugs off his sworn oath, breaking the law to pad his paycheck, he betrays the people of his community – and all of us who wear a badge,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Removing rogue officers from the ranks is vital. The FBI will continue to investigate police corruption and bring those responsible to justice. No one is above the law.”
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department. Assistant United States Attorneys William A. Behe and Michael Consiglio prosecuted the case.
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Former Anchorage Resident Charged with Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Mitchell Zong, 45, a former Anchorage resident, has been charged in federal court with one count of conspiracy to commit money laundering.
According to the allegations in the Felony Information, between Sept. 8, 2013, and April 4, 2014, Mitchell Zong allegedly conspired with others to commit money laundering violations in excess of $10,000, with the funds being the result of violations of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transaction and Sanctions Regulations (ITSR).
Mitchell Zong’s father, Kenneth Zong, is currently under indictment in the District of Alaska for similar violations of IEEPA, ITSR, and money laundering. Kenneth Zong is currently in custody in the Republic of South Korea for violations of Korean law.
The maximum penalty for conspiracy to commit money laundering is 20 years in prison, and a fine of $250,000. An arraignment date has not yet been set.
The FBI and IRS-Criminal Investigation conducted the investigation leading to the charges in this case. This case is being prosecuted by Deputy Criminal Chief Steven E. Skrocki.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Essex County, New Jersey, Father and Daughter Charged in Food Stamps SchemeRead the Press Release
NEWARK, N.J. – Two individuals who operate a Newark grocery store were charged today with fraudulently exchanging over $885,000 in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Maria Teresa Venegas, 25, and her father, Manuel Venegas, 53, both of Newark, are charged by complaint with SNAP benefits fraud. Both were arrested this morning and appeared in the afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. They were released on $200,000 unsecured bond.
According to the complaint:
Since November 2011, the defendants managed Jenny’s Deli, a small grocery store in Newark that was authorized to accept SNAP benefits, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash.
Manuel and Maria Teresa Venegas allegedly exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018. In addition to the high volume of SNAP redemptions for Jenny’s Deli indicating fraud, law enforcement officers used an undercover agent who engaged in approximately 20 “purchases” at Jenny’s Deli where one or both defendants allegedly exchanged cash for SNAP benefits.
The SNAP benefits fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel: Maria Teresa Venegas: Linda Foster, Esq., Assistant Federal Public Defender, Newark
Manuel Venegas: Laurie Fierro Esq., Kinnelon, New JerseyEast Bay Resident Sentenced to over Four Years in Prison for Wire Fraud, Bank Fraud, and Related Charges in Embezzlement SchemeRead the Press Release
OAKLAND – Celia Nipper, aka Celia Arrand, was sentenced this afternoon to 51 months in prison for committing wire fraud, bank fraud, and filing false tax returns in connection with a scheme to embezzle funds from a real estate technology company, announced Acting United States Attorney Alex G. Tse; Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, following Nipper’s entry of a plea agreement on September 18, 2017.
According to her plea agreement, Nipper, 62, from Discovery Bay, Calif., admitted that while employed as an office manager, she used her position of financial control at the company to redirect funds intended for her employer to accounts that she controlled. Nipper acknowledged that from 2005 to 2011, while she managed her company’s accounts payable and accounts receivable, invoicing, and bill paying, she opened bank accounts in the name of her employer without disclosing their existence to her employer. She then directed customer payments to those accounts and used that money for her own personal gain. Nipper also admitted as part of the plea agreement that she misappropriated funds from her employer’s legitimate corporate bank accounts and used money belonging to her employer to pay for her own personal expenses and deposited funds into her personal bank accounts. Nipper acknowledged that her scheme defrauded the company of more than $2 million.
In addition, as part of the plea agreement, Nipper admitted that she overstated her income in connection with two mortgage loan applications in June of 2008. Further, Nipper admitted that she filed false U.S. Income Tax Returns for the tax years 2009, 2010, and 2011. In each case, she understated her income, resulting in a failure to report more than $1 million of income and a tax loss to the United States of at least $290,000.
On April 7, 2016, a federal grand jury charged Nipper by Superseding Indictment with three counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344(2); and three counts of filing a false tax return, in violation of 26 U.S.C. § 7206(1). Pursuant to her plea agreement, Nipper pleaded guilty to three counts of wire fraud, two counts of bank fraud and two counts of filing a false tax return.
In addition to the prison term, Judge Gilliam issued a forfeiture money judgment in the amount of $2,029,068 against Nipper and has ordered an April 30, 2018 hearing to determine the amount Nipper will be ordered to pay in restitution. In addition, Judge Gilliam ordered Nipper to serve 36 months of supervised release following her prison term during which time the defendant may not undertake, without prior permission, a position of fiduciary capacity. Nipper currently is released on a bond and has been ordered to self-surrender on or before April 30, 2018, to begin serving her prison term.
Assistant United States Attorney Tom Green is prosecuting this case with the assistance of Noble Hughes and Katie Turner. This prosecution is the result of an investigation by the FBI and the IRS.
Doctor Allegedly Prescribed Opioids for Dead and Incarcerated People in “Pill Mill” Operation; Doctor and Seven Others Arrested and ChargedRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – March 12, 2018
SAN DIEGO – Egisto Salerno, a medical doctor, who owns and operates a medical office on El Cajon Boulevard in San Diego, and seven others have been arrested on federal charges stemming from their alleged roles in a conspiracy to possess with the intent to distribute hydrocodone as part of a ‘pill mill’ operation.
Special agents with the Drug Enforcement Administration arrested Dr. Egisto Salerno, 73, of San Diego; Stephen Toney, 57, of San Diego; April Cervantes, 27, of San Diego; David Apple, 25, of Chula Vista; Amber Horne, 28, of El Cajon; Lonnell Ligon, 55, of San Diego; Shalina Latson, 47, of San Diego; and LaJuan Smith, 38, of San Diego. Each is charged with one count of conspiracy to possess with the intent to distribute a controlled substance.
The complaint alleges that, beginning not later than November 2014, defendant Stephen Toney and others recruited individuals, often homeless or of limited means, to pose as “patients” at the office of Salerno to obtain hydrocodone prescriptions. Salerno, who received an office visit fee for each “patient,” performed a cursory or no physical examination and prescribed the hydrocodone despite the lack of any legitimate medical purpose and outside the usual course of professional practice. The “patients” were paid for turning over their hydrocodone tablets to defendants. The defendant recruiters arranged transportation of these “patients” to Salerno’s office, to a pharmacy to pick up the hydrocodone, and then returned them to or near homeless shelters or their residences. Toney and other co-conspirators intended to further distribute these hydrocodone tablets.
Salerno is alleged to have prescribed hydrocodone for, among others, dead “patients” and “patients” who were in jail and who could not, therefore, have been in Salerno’s office when they were allegedly examined by Salerno and hydrocodone was prescribed in their names. For example, one patient died in October 2015 and Salerno allegedly saw that patient and prescribed hydrocodone in that patient’s name five times after death, including two prescriptions written more than a year after the death.
According to the charging documents, Salerno and two of his medical assistants allegedly falsified chart notes and medical records to justify these hydrocodone prescriptions and further the conspiracy. In one instance, the medical chart for an undercover agent who visited the clinic was seized by agents during execution of a search warrant. That chart included a set of medical examination notes in Salerno’s handwriting and signed by him purporting to document a visit that never occurred. The charging documents allege that hydrocodone was prescribed on that date in the name of the undercover agent and the tablets were picked up from the pharmacy by defendant Stephen Toney.
Hydrocodone is the generic name for a narcotic analgesic that is sold under a variety of brand names such as Vicodin, Norco and Lortab. When legally supplied by a licensed practitioner for a legitimate medical purpose in the usual course of professional practice, hydrocodone is used to combat moderate pain. It is a Schedule II controlled substance (narcotic) that is widely abused and it is frequently diverted from legitimate medical channels and distributed illicitly on the street for profit and abuse.
“The opioid crisis is ravaging families in San Diego and Imperial Counties and is part of a national epidemic,” said U.S. Attorney Adam Braverman. “We are and will continue to zealously prosecute and bring to justice those doctors, pharmacies, medical providers and others who are furthering this epidemic to line their own pockets.”
“Patients trust their doctors to give them the best care possible,” said DEA San Diego Acting Special Agent in Charge Steve Woodland. “It’s DEA’s responsibility to ensure that DEA registrants are worthy of that trust. DEA will keep conducting these investigations to ensure that registrants are following all the rules when prescribing these potentially deadly drugs.”
Anyone with information about opioid abuse/diversion or other drug diversion should report that to the Drug Enforcement Administration at https://apps.deadiversion.usdoj.gov or contact the DEA hotline at 1-877-RX-Abuse (1-877-792-2873).
DEFENDANTS Case Number 18mj1080
Egisto Salerno Age: 73 San Diego, CA
Stephen Toney Age: 57 San Diego, CA
April Cervantes Age: 27 San Diego, CA
David Apple Age: 25 Chula Vista, CA
Amber Horne Age: 28 El Cajon, CA
Lonnell Ligon Age: 55 San Diego, CA
Shalina Latson Age: 47 San Diego, CA
LaJuan Smith Age: 38 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Unlawfully Distribute and Dispense a Controlled Substance, 21 U.S.C. 846
Maximum penalty: 20 years’ imprisonment; $1,000,000 fine or twice the pecuniary gain or loss, whichever is greater, and five years’ supervised release.
INVESTIGATING AGENCIES
Drug Enforcement Administration
Internal Revenue Service
Health and Human Services-Office of Inspector General
California Department of Health Care Services
San Diego County Sheriff’s Department
California Department of Justice
San Diego Police Department
*The charges and allegations contained in a Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Detroit Drug Dealer Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught with heroin and a firearm in July 2017 was sentenced today by United States District Court Judge Robert C. Chambers to 151 months in federal prison, announced United States Attorney Mike Stuart. Antonio Newson, 43, previously pled guilty to possession with intent to distribute 100 grams or more of heroin.
“Thanks to the tireless work of the Huntington FBI Drug Task Force, yet another Detroit drug dealer has been taken off the streets of Huntington. Together with our law enforcement partners, we are taking Huntington back, one Detroit drug dealer at a time,” said United States Attorney Mike Stuart. Continued Stuart, “At the pace we’re locking up Detroit thugs, the State of Michigan should be sending us money to help pay prison costs.”
On July 10, 2017, officers with the Huntington FBI Drug Task Force executed a search warrant at Newson’s residence, 1748 Jefferson Avenue, Apartment 1, in Huntington, West Virginia. During the search, officers located approximately 983 grams of heroin in a closet. Officers also located a firearm in the closet. As part of the plea agreement, Newson admitted that the heroin and the firearm belonged to him. Newson also admitted to the other drug activity charged in the indictment. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
Des Moines Man Sentenced to Prison for Enticement of a Minor ChildRead the Press Release
DES MOINES, Iowa – On March 8, 2018, Dale Alan Grau, age 52, of Des Moines, Iowa, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to 120 months in prison following his plea of guilty to enticement and attempted enticement of a minor to engage in elicit sexual activities announced United States Attorney Marc Krickbaum. Grau was ordered to serve a ten-year period of supervised release to follow his prison term.
According to the plea agreement, Grau admitted between the dates of February 20 and 23, 2017, he attempted to persuade and entice a 14 year-old boy, using the Internet, to engage in sexual activity with him.
This investigation was conducted by the Marion County Attorney’s Office, Marion County Sheriff’s Office, Knoxville Police Department, Pella Police Department, Pleasantville Police Department, Warren County Sheriff’s Office, Indianola Police Department, Mid Iowa Narcotics Task Force, Iowa Division of Criminal Investigation, United States Department of Homeland Security – Homeland Security Investigations, and the United States Marshals Service.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the 24-hour Iowa Sexual Abuse Hotline at 1-800-284-7821. The National Center for Missing and Exploited Children (NCMEC) also operates a Cyber Tip line at www.cybertipline.com that allows parents and children to report child pornography and other incidents of sexual exploitation of children by submitting an online form.
Department of Justice to Hold Roundtable on Criminal Antitrust ComplianceRead the Press Release
On April 9, the Department of Justice’s Antitrust Division will hold a public roundtable discussion to explore the issue of corporate antitrust compliance and its implications for criminal antitrust enforcement policy.
The roundtable will provide a forum for the Antitrust Division to engage with inside and outside corporate counsel, foreign antitrust enforcers, international organization representatives, and other interested parties on the topic of antitrust compliance. Participants will discuss the role that antitrust compliance programs play in preventing and detecting antitrust violations, and ways to further promote corporate antitrust compliance. The format of the program will be a series of panel discussions with featured speakers. Audience participation in the discussions will be encouraged.
The Roundtable will take place in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, DC, from 1:00 p.m. to 5:00 p.m. EDT. The agenda can be found here.
“Corporate compliance is key to the Antitrust Division’s ultimate goals of preventing and uncovering criminal antitrust violations and protecting consumers and small businesses,” said Assistant Attorney General Makan Delrahim. “The Division values continued engagement with corporate counsel, the antitrust bar, and other stakeholders on this important topic.”
The roundtable will be open to the public. Individuals wishing to attend must register on the Department’s website. For more information or to submit questions or comments, please send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected] or by calling 202-307-2016. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Department of Justice, EPA Reach Agreement with Two Idaho Mining Companies to Secure Wastewater Treatment and Remove a Barrier to New Mining OperationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement with the owner of the Bunker Hill Mine, Placer Mining Company, Inc. (Placer Mining), resolving Placer Mining’s cleanup liability in Idaho’s northern panhandle. The Department of Justice and EPA have concurrently reached a settlement with the lessee of the Bunker Hill Mine, Bunker Hill Mining Corp. (BHMC), removing a barrier to new operations at the Mine.
The settlement:- Protects area waterways and ecosystems, through the continued treatment of 1,300 gallons of acid mine drainage discharged per minute;
- Reduces the financial burden on federal taxpayers by shifting the responsibility for future wastewater treatment to the new operator;
- Paves the way for a new mining enterprise, with the prospect of more jobs in Idaho’s Silver Valley;
- Offers more regulatory certainty for current and future mine owners/operators; and
- Resolves close to three decades of litigation surrounding the cleanup of contaminated mine waste in Idaho’s Silver Valley.
“Today’s settlement ends years of litigation, recoups for taxpayers millions of dollars in cleanup costs, and ensures a better environment for the people of Idaho, while also spurring economic growth and job creation in the northern panhandle region,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We are pleased to work with our partners at EPA to bring this longstanding matter to a good resolution.”
"Through this settlement, EPA is clearing the way for a new operator to resume mining, bringing jobs back to the community, while also securing the ongoing cleanup of contaminated water and recovery of EPA's past cleanup costs," said EPA Administrator Scott Pruitt. "EPA is delivering on its Superfund Task Force commitments."
As part of the settlement, BHMC will pay EPA up to $20 million, on behalf of Placer Mining, in satisfaction of EPA’s past costs claim against Placer Mining. Placer Mining also agrees drop its “takings” case against the United States. This settlement of claims between EPA and Placer Mining also enables BHMC to return the Bunker Hill Mine to production after a hiatus of more than two decades. For nearly a century, the Bunker Hill Mine was one of the most productive mines in the Coeur d’Alene Mining District. As part of the agreement, BHMC has agreed to pay for future treatment of acid mine drainage coming from the mine. BHMC has also agreed to undertake various maintenance and monitoring tasks to help ensure previous cleanup work at the Superfund Site remains protective and is not adversely impacted by new mining operations.
By innovatively approaching this complex situation involving multiple parties and interests, EPA and the Department of Justice addressed a host of complex legal and technical issues that arise when a third party locates a business within a Superfund site where response actions and litigation are pending. These issues were resolved through a combination of a consent decree for cost recovery and a prospective purchaser agreement to govern the performance of ongoing response actions.
The Bunker Hill Mine sits amidst the Bunker Hill Mining and Metallurgical Complex Superfund Site (https://go.usa.gov/xnm9K0), running next to Interstate 90 from near the Montana state line, then along the Coeur d’Alene River, and reaching into the state of Washington. The historic Jesuit Cataldo Mission is also within the Site, which has been home to the Coeur d’Alene Tribe for millennia.
EPA first listed the Site on its National Priorities List (NPL) in 1983. Soon after being added to the NPL, cleanup of mine waste contamination in surface water, groundwater, soil, and sediment began across the Site. EPA and the state of Idaho jointly lead the project. Currently, EPA and the state of Idaho are coordinating approximately $25-$30 million in cleanup projects annually.
The site-wide cleanup was spurred by the toxic side effects of widespread lead (and other metals) contamination which began showing up in the 1970s in routine blood lead screenings for children who lived in the area. Some of the highest blood lead readings ever documented in North America were measured in local children in the 1970s and 1980s. Following years of a comprehensive approach that includes a large-scale cleanup, outreach, education, and health interventions, local blood lead levels are now within the national average.
Funding from this settlement will help reimburse EPA for past costs incurred related to the Central Treatment Plant (CTP) in Kellogg, Idaho. The CTP has been treating acid mine drainage from the Bunker Hill Mine since 1995. The settlement agreement is structured to recover up to 82% of the past costs for water treatment and result in payment for all future water treatment costs.
The consent decree, lodged in the District Court of Idaho, is subject to a 30-day federal public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information about the settlement, please visit: https://www.epa.gov/enforcement/case-summary-third-party-settlement-bunker-hill-site-secure-wastewater-treatment-and.
Defendant pleads guilty in international business email compromise scamRead the Press Release
ATLANTA - Kerby Rigaud, who participated in an international business email compromise scheme, has pleaded guilty to conspiracy to commit wire and bank fraud and money laundering.
“Business email compromise scams continue to inflict serious harm on our citizens and businesses,” said U.S. Attorney Byung J. “BJay” Pak. “We urge everyone to carefully scrutinize any emails they receive directing the transfer of money via wire. We will continue to pursue justice for the victims of this pernicious financial threat.”
“Rigaud and his co-conspirators used cyberspace to organize a complex criminal scheme that crossed borders and defrauded numerous people right here in Georgia,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service and our law enforcement partners will continue to place a high priority on investigating cases that take advantage of unsuspecting victims.”
According to U.S. Attorney Pak, the charges and other information presented in court: From April 2015 through April 2016, Rigaud served as a key player in an international business email compromise scam impacting victims across the U.S., including in the Northern District of Georgia. In numerous instances, victims, including those identified in the indictment as T.W., A.P., and J.L., received emails that purported to be from trusted sources, including banking representatives and closing agents. The emails directed the victims to wire money to specific bank accounts, some of which were opened in the metro-Atlanta area.
Rigaud’s co-conspirators sent the emails, and in some instances, they hacked into victim’s email accounts. In others, they “spoofed” the email addresses; that is, the co-conspirators took steps to make the email appear as if it were sent by a trusted source, when in reality, it was sent from a different account by a malicious actor.
Rigaud recruited numerous individuals who agreed to let him use their bank accounts for the purpose of receiving large wires from unwitting victims. After receiving the wires, Rigaud directed his recruits on where to send the money, including to a number of financial institutions in Asia. Investigators believe that Rigaud and his co-conspirators attempted to steal over $1 million dollars during the timeframe of the conspiracy.
Sentencing for Kerby Rigaud, 27, of Duluth, Georgia, is scheduled for June 14, 2018 at 10:00 am at before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the U.S. Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendant Sentenced in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
An individual who ran multimillion dollar prize promotion scams was sentenced on March 12, 2018, to serve 87 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 58, of Las Vegas, was sentenced to 87 months in prison, followed by three years of supervised release. U.S. District Judge Jennifer A. Dorsey also ordered Burke to pay $2,785,508.36 in restitution, reflecting the consumer loss from one of Burke’s schemes.
Burke pleaded guilty in December 2017 to criminal contempt of court and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes. Rossi is scheduled to be sentenced on June 25, 2018.
“This case exemplifies the Department’s commitment to halt schemes that target seniors, which the Attorney General announced in an historic elder fraud sweep a few weeks ago,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We are sending a clear message: Perpetrators of telemarketing fraud will be prosecuted and law enforcement will not stop until fraudulent mass mailing practices are halted.”
Burke pleaded guilty to criminal contempt of court for violating a court order prohibiting him from making misrepresentations to consumers. The charge stemmed from Burke’s operation of a mass-mailing fraud scheme that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 – to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
In January 2013, the FTC filed a civil contempt case against Burke for violating the 1998 court order. The district court found Burke in civil contempt and ordered him to pay contempt sanctions of over $20 million, reflecting consumer loss from both the telemarketing and mass-mailing schemes.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Defendant Indicted in Brooklyn Federal Court for Transnational Cyber ScamRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Joshua Philips, also known as “Erick Ayo Kalu,” “Anthony Abongile Baker” and “Johnson Foday Brown,” with conspiring to commit wire and bank fraud and conspiring to commit money laundering, in connection with several business email compromise and confidence fraud scams. Philips was arrested on March 7, 2018, in the Northern District of Georgia and was arraigned this afternoon before United States Magistrate Judge Linda T. Walker at the federal courthouse in Atlanta, Georgia.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, Philips stole hundreds of thousands of dollars from his victims, then laundered the proceeds of his scam,” stated United States Attorney Donoghue. “The rule of law applies in cyberspace just as it does on the street, and this Office, together with our law enforcement partners, is committed to investigating and prosecuting cybercriminals like the defendants who engage in illegal conduct.” Mr. Donoghue expressed his appreciation to the FBI Field Office in Atlanta and the United States Attorney’s Office for the Northern District of Georgia for their assistance in the case.
“As we alleged, Joshua Philips, together with others, was able to swindle more than $800,000 from unsuspecting victims as a result of schemes of deception known as business email compromise and confidence fraud,” stated FBI Assistant Director-in-Charge Sweeney. “Philips, together with others, tricked victims into sending funds to accounts they thought were part of a legitimate business deal. The defendant then transferred his ill-gotten gains to overseas accounts. I commend the work of the Cyber Task Force who worked dutifully to bring this case to justice.”
Business email compromise is a form of cyber-enabled financial fraud. In a typical business email compromise scheme, a malicious actor compromises legitimate business email accounts through computer intrusion techniques or social engineering and uses those accounts to cause the unauthorized transfer of funds. Techniques for perpetrating these schemes include spear phishing, identity theft, spoofing of emails and websites, and the use of malware.
Confidence fraud is another form of cyber-enabled financial fraud. In a typical confidence fraud, a malicious actor befriends, and gains the confidence of, another individual through online communications and uses that confidence to cause the transfer of funds for unauthorized purposes.
As alleged in court documents, individuals in the Eastern District of New York and around the United States were defrauded – through business email compromise and confidence fraud scams – into sending more than $800,000 to the defendant. For example, in or about July 2017 and August 2017, the defendant and others targeted an individual on Long Island (“John Doe 1”) who was engaged in a real estate transaction involving the purchase of property in Massapequa, New York, and his real estate attorney (“John Doe 2”), who facilitated the purchase. On or about August 23, 2017, John Doe 1 received an email from John Doe 2’s email account asking, “With regards to the closing funds, is it currently available?” After responding that the funds were available, John Doe 1 received an email on August 24, 2017 from John Doe 2’s email account instructing him to “to go to your local branch within the day and initiate a wire transfer of the funds to my attorney escrow account.” The email provided information for a bank account that was, in fact, in the control of one of the defendant’s co-conspirators. On August 28, 2017, John Doe 1 sent a wire transfer in the amount of $84,000 to the bank account. The co-conspirator received the money and transferred a portion of it to Philips, who then wired a portion of it overseas. John Doe 2 has informed law enforcement officers that he did not send the August 24 email and that the bank account details did not pertain to any account within his control.
As part of the broader cyber-enabled schemes, Philips unlawfully transferred the fraudulently obtained money overseas, including to various foreign bank accounts and to purchase used cars for an import/export company in Nigeria.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
According to the FBI’s Internet Crime Complaint Center (IC3), business email compromise and confidence fraud scams have continued to rise over the past few years and were the top two types of internet crimes (by reported loss) reported to the FBI in 2016. Such scams have victimized large and small companies, as well as individuals, in every U.S. state and in more than 100 countries around the world.
If you or your company has been victimized by a business email compromise scam or confidence fraud, it is important to act quickly. The FBI’s Internet Crime Complaint Center (IC3) provides the public with a reporting mechanism to submit information concerning suspected Internet-facilitated criminal activity. Individuals and companies who have been victims of Internet crimes are encouraged to file a complaint online at www.ic3.gov. In addition, victims can take steps to mitigate further loss such as contacting banks, credit card companies, and/or credit bureaus to block accounts, freeze accounts, dispute charges, and attempt recovery of lost funds.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Saritha Komatireddy is in charge of the prosecution.
The Defendant:
JOSHUA PHILIPS (also known as “Erick Ayo Kalu,” “Anthony Abongile Baker” and “Johnson Foday Brown”)
Age: 33
Ellenwood, GeorgiaE.D.N.Y. Docket No. 18-CR-121
Danbury Man Sentenced to 30 Months in Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 32, of Danbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by four years of supervised release, for distributing heroin. Judge Shea also ordered CHARON to serve the first six months of his supervised release in home confinement.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2017, the Danbury Police Department responded to a Danbury residence on a report of an untimely death of a woman. Investigators collected from the scene three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp. Testing of the contents of the bag confirmed that it contained heroin.
The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine overdose.
In May 2017, investigators made two controlled purchases of heroin from CHARON. Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.
CHARON has been detained since his arrest on a federal criminal complaint on September 12, 2017. On December 21, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, the Danbury Police Department and the Darien Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. This case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David C. Nelson.
Columbus Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Columbus, Ohio man who sold heroin and an illegal firearm in Huntington in 2016 pled guilty today to a federal gun and drug charges, announced United States Attorney Mike Stuart. Jamal Marsalas Glass, 20, entered his guilty pleas to distributing heroin and carrying a firearm during and in relation to a drug trafficking crime. U.S. Attorney Stuart credited the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and emphasized the importance of the agency’s role in addressing gun crime in the City of Huntington.
“The only thing my Office is more committed to than prosecuting dangerous out-of-state drug dealers is prosecuting drug dealers that carry guns. We are aggressively prosecuting gun toting drug dealers.” said United States Attorney Mike Stuart.
On August 25, 2016, a confidential informant contacted Glass to purchase heroin. The informant also negotiated the purchase of a firearm from Glass. The informant subsequently met with Glass inside an Apartment at the Marcum Terrace housing projects in Huntington. Inside the apartment, Glass sold the informant approximately 3 grams of heroin. Glass also sold the informant a 9mm pistol which had the serial number obliterated in violation of federal law. Glass further admitted as part of his plea agreement that he possessed a separate .38 caliber revolver when he conduct the transaction.
Glass faces up to 20 years in federal prison for the drug charge, and a mandatory minimum consecutive term of at least 5 years in federal prison for the gun charge, when he is sentenced by United States District Judge Robert C. Chambers on June 11, 2018. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
This case is also being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
Clovis Man Pleads Guilty to Running $24M Ponzi SchemeRead the Press Release
FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, pleaded guilty today to mail fraud, wire fraud and money laundering in connection with a real estate investment Ponzi scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, Depiano operated a Ponzi scheme that lured real estate investors to give money to Depiano and the businesses he controlled, including The Rental Group, US Funding and Home Services LLC, and Draymond Homes. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold. In many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. Depiano oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist.
Depiano frequently used the investors’ money to pay his personal expenses, fund his gambling activities, and finance the settlement of the investors’ civil lawsuits against Depiano. He also paid investors purported rental income that, in fact, was money other investors gave to Depiano for investment purposes.
In his plea agreement, Depiano admitted to defrauding investors of approximately $24 million dollars and agreed to pay restitution to approximately 28 investors. Depiano also agreed to forfeit more than $700,000 seized from several bank accounts and cash, and a baseball card collection valued at more than $31,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Depiano is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 29, 2018 at 1:30 p.m. Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, ten years in prison for money laundering, 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.
Chatham Area Transit Contractor Convicted of Twenty-Five Counts of Fraud and BriberyRead the Press Release
SAVANNAH, GA: On February 28, 2018, Anthony Florence, a contractor for the Chatham Area Transit Authority (“CAT”), was convicted by a federal jury on twenty-two counts of mail fraud, two counts of wire fraud, and one count of bribery of a program receiving federal funds. United States District Court Judge William T. Moore presided over Florence’s three-day jury trial.
According to the evidence presented at trial, Florence paid bribes and kickbacks to Chadwick L. Reese, formerly the Executive Director of CAT, and Joel T. Morris, formerly the Director of Maintenance of CAT. Florence paid for over $100,000 worth of work on the personal residences of Reese and Morris. In exchange, Reese awarded contracts to a company operated by Florence over a period of nearly two years. Even though Florence and his company provided little to no work, Reese and Morris approved over $200,000 in payments by Chatham Area Transit to Florence’s company.
Reese and Morris previously pled guilty and were sentenced to 84 months and 20 months, respectively.
United States Attorney Bobby L. Christine stated, “The lesson for contractors doing business in South Georgia is simple: paying a public official to obtain ‘no show’ work is a good way to end up in federal prison. This office will aggressively root out corruption at every level of government.”
“Just because public officials are willing to violate the trust of the people they serve, doesn’t mean contractors can take advantage of their lack of integrity,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to make public corruption cases, and all of those involved, a priority. We ask anyone with information regarding such matters to contact their nearest FBI field office or resident agency.”
U.S. Attorney Christine commended the hard work and dedication of the FBI, which investigated the case. Special Agent Joshua Hayes led the FBI’s investigation.
Assistant United States Attorneys R. Brian Tanner and J. Thomas Clarkson prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Champagne, Illinois, Resident Sentenced to One Year in Prison for Producing and Selling over 80,000 Homemade Tramadol Capsules to Customers Without Verifying PrescriptionsRead the Press Release
OWENSBORO, Ky. – A Champaign, Illinois, resident was sentenced today in United States District Court, by Chief Judge Joseph H. McKinley, to one year in prison, ordered to pay $950.00 restitution and ordered to pay a $5,000 fine for distribution of Tramadol, a Schedule IV controlled substance, introduction of misbranded drugs, and wire fraud, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
According to the plea agreement, Skyler Dean Prahl, 32, imported Tramadol powder from overseas and used an encapsulating machine to create Tramadol capsules. Tramadol is a synthetic opioid drug. For several years Prahl operated an online business marketing and selling Tramadol capsules and other substances to customers throughout the United States. Prahl sold well over 80,000 units of Tramadol to customers without inquiring or verifying that his customers had a valid prescription.
Prahl admitted that on August 31, 2015, he knowingly and intentionally possessed with the intent to distribute, and distributed Tramadol to an undercover agent.
He further admitted that on August 31, 2015, with the intent to mislead and defraud, he introduced a misbranded drug, Tramadol, into interstate commerce by shipping Tramadol from Champaign, Illinois, to Owensboro, Kentucky. The Tramadol was misbranded because its label failed to state the name and place of business of the manufacturer, packer, and distributor., and because it failed to bear adequate directions for use.
Lastly, Prahl admitted that between January 28, 2016, and March 5, 2016, he devised a wire fraud scheme. Specifically, Prahl used email to promise to deliver at least 3,000 Tramadol capsules to “Michael Riley” in return for $950, but failed to deliver the Tramadol capsules even after receiving the funds.
This case was prosecuted by Assistant United States Attorney David R. Weiser and was investigated by the U.S. Food & Drug Administration - Office of Criminal Investigation (Owensboro, Kentucky, domicile) with assistance from the United States Postal Inspection Service (Evansville, Indiana, domicile) and DEA Diversion (Springfield, Illinois, Resident Office), and the Kentucky State Police, DESI-East.
Buffalo Man Indicted on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Emmanuel Lopez, 27, of Buffalo, NY, with possession with intent to distribute, and distribution of, 100 grams or more of heroin and 40 grams or more of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment and a previously filed complaint, between 2016 and December 5, 2017, the defendant sold heroin and fentanyl in the Buffalo area. In October, 2017, the ICE-HSI Border Enforcement Security Team (BEST) conducted a controlled purchase from Lopez. During the buy, the defendant turned over 24 small yellow bags which later tested positive for heroin, fentanyl, and tramadol.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brooke County woman sentenced for embezzling from credit unionRead the Press Release
WHEELING, WEST VIRGINIA – Michelle K. Martin, of Wellsburg, West Virginia, was sentenced today to 24 hours incarceration and five years of supervised release for taking more than $82,000 from a local credit union, United States Attorney Bill Powell announced.
Martin, age 46, pled guilty to one count of “Theft, Embezzlement or Misapplication by Credit Institution Employee” in December 2017. Martin admitted to embezzling approximately $82,000 from the Strip Steal Community Federal Credit Union in Brooke County from October 2016 to May 2017.
Martin was also ordered to pay $82,000 in restitution for the crime.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Bison Protestors Enter Guilty Pleas at the Yellowstone Justice CenterRead the Press Release
Cody J. Cyson, of Minnetonka, Minnesota and Thomas L. Brown of East Hardwick, Vermont, each entered guilty pleas today in US District Court at the Yellowstone Justice Center in Mammoth, Wyoming, to the charges of entering a closed area in Yellowstone National Park and interference with an agency function. Both subjects had been charged on March 6, 2018. Cyson received a sentence of six days in jail with credit for time served, a $250.00 fine on the charge of entering a closed area and a $250.00 fine on the charge of interference with an agency function, a $500.00 community service payment and $50.00 in special assessment. Brown received an identical sentence. Both Cyson and Brown are banned from entry into Yellowstone National Park for a period of five years and will serve five years of unsupervised probation.
Hanna F. Ponder, of Donnelly, Idaho, pleaded guilty to one charge of entering a closed area and was sentenced to six days in jail with credit for time served, fined $500.00, a $500.00 community service payment, $40.00 in special assessment, and banned from Yellowstone National Park for five years and five years of unsupervised probation. She had been charged on March 6, 2018 for entering the bison closure are in the Reese Creek drainage of the park.
All three defendants appeared before and were sentenced by US Magistrate Judge Mark L. Carman.
Beam Bros. Trucking Inc. and Its Principals Agree to Settle Civil False Claims Act AllegationsRead the Press Release
Beam Bros. Trucking Inc. (BBT), and its principals Gerald Beam and Garland Beam, have agreed to pay $1,025,000 to resolve allegations under the False Claims Act that BBT overcharged the U.S. Postal Service (USPS) on contracts to transport mail. BBT is a trucking company located in Mt. Crawford, Virginia.
“The Department of Justice takes seriously its role in protecting the federal procurement process from false claims,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates that we will hold accountable federal contractors engaging in fraud, and will ensure that federal funds are protected from overcharges and abuse.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting the contracting process and overall program costs,” said Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who engage in activities designed to defraud the Postal Service.”
“Contractors working for the federal government are held to the same high ethical standards as full-time employees,” U.S. Attorney for the District of New Jersey Craig Carpenito said. “This settlement will return more than $1 million to the USPS.”
USPS contracts with trucking companies, including BBT, to transport mail throughout the United States. On some contracts, USPS had provided trucking contractors with credit cards, known as Voyager Cards, to pay for fuel. This settlement resolves allegations that BBT misused Voyager Cards to purchase fuel on contracts that did not allow for their use, resulting in inflated charges in violation of the False Claims Act.
The settlement resolves allegations made in lawsuit filed under the whistleblower provision of the False Claims Act by Bobby Blizzard, a former BBT employee. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. Mr. Blizzard’s share of the recovery has yet to be determined.
The settlement was the result of a coordinated effort between the United States Attorney’s Office for the District of New Jersey, the Civil Division of the Department of Justice, and the USPS, Office of the Inspector General.
The lawsuit, which was filed in the District of New Jersey, is captioned United States ex rel. Doe v. Beam Bros. Trucking, Inc., Civil Action No. 10-657 (D.N.J.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Beam Bros. Trucking Inc. and Its Principals Agree to Settle Civil False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – Beam Bros. Trucking Inc. (BBT), and its principals Gerald Beam and Garland Beam, have agreed to pay $1,025,000 to resolve allegations under the False Claims Act that BBT overcharged the U.S. Postal Service (USPS) on contracts to transport mail. BBT is a trucking company located in Mt. Crawford, Virginia.
“Contractors working for the federal government are held to the same high ethical standards as full-time employees,” U.S. Attorney for the District of New Jersey Craig Carpenito said. “This settlement will return more than $1 million to the USPS.”
“The Department of Justice takes seriously its role in protecting the federal procurement process from false claims,” Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division said. “This settlement demonstrates that we will hold accountable federal contractors engaging in fraud, and will ensure that federal funds are protected from overcharges and abuse.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting the contracting process and overall program costs,” Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General, said. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who engage in activities designed to defraud the Postal Service.”
USPS contracts with trucking companies, including BBT, to transport mail throughout the United States. On some contracts, USPS had provided trucking contractors with credit cards, known as Voyager Cards, to pay for fuel. This settlement resolves allegations that BBT misused Voyager Cards to purchase fuel on contracts that did not allow for their use, resulting in inflated charges in violation of the False Claims Act.
The settlement resolves allegations made in lawsuit filed under the whistleblower provision of the False Claims Act by Bobby Blizzard, a former BBT employee. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. Mr. Blizzard’s share of the recovery has yet to be determined.The settlement was the result of a coordinated effort between the United States Attorney’s Office for the District of New Jersey, the Civil Division of the Department of Justice, and the USPS, Office of the Inspector General. The government is represented by Assistant U.S. Attorney Frances Bajada, District of New Jersey, and Trial Attorney Gregory Pearson, Commercial Litigation Branch, Civil Division, U.S. Department of Justice.
The lawsuit, which was filed in the District of New Jersey, is captioned United States ex rel. Doe v. Beam Bros. Trucking, Inc., Civil Action No. 10-657 (D.N.J.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.Auburn Man Charged with Ecstacy and Marijuana TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Tyler Poland, 31, of Auburn, Maine, was arrested and charged by a criminal complaint unsealed today in U.S. District Court with illegal Ecstasy and marijuana trafficking.
According to the complaint, the charges arose from an investigation into a drug trafficking organization located in the Lewiston-Auburn area that is alleged to have grown and distributed large quantities of marijuana in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. The organization cultivated marijuana at numerous warehouses in Androscoggin County and distributed marijuana to people who were not participants in Maine’s Medical Marijuana program, including out-of-state customers, On February 27, 2018, federal, state and local law enforcement agents executed over 20 search warrants in the Lewiston-Auburn area. The defendant’s Merrow Road residence and warehouses were searched. Agents seized about 608 marijuana plants, 366 pounds of processed marijuana, hundreds of Ecstasy pills (weighing more than a kilogram), hundreds of alprazolam pills, and over $156,000.
If convicted, the defendant faces up to 20 years in prison and a $1,000,000 fine.
The defendant is expected to make an initial appearance in U.S. District Court today at 3:30 p.m. in Portland.
The investigation is being conducted by the U.S. Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Maine State Police; and the Lewiston, Auburn, Windham, Biddeford and Scarborough Police Departments.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law
Attorney General Sessions Appoints Six Additional Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions announced the appointment of six new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC), joining the nine members announced on November 13, 2017. The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. It represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management affecting the Offices of the U.S. Attorneys.
The new appointees are U.S. Attorney for the Northern District of Texas Erin Nealy Cox; U.S. Attorney for the Eastern District of New York Richard P. Donoghue; U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr.; U.S. Attorney for the Northern District of Illinois John R. Lausch, Jr.; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; and U.S. Attorney for the District of Delaware David C. Weiss.
“I am pleased to announce these new members of the Attorney General’s Advisory Committee. The Advisory Committee plays an important role in helping us achieve the Department of Justice’s goals, including to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and enforce the rule of law,” said Attorney General Sessions.
A brief biography of each new member is below: Erin Nealy Cox
The Senate confirmed Erin Nealy Cox’s appointment as United States Attorney for the Northern District of Texas in November 2017. Prior to this appointment, Ms. Nealy Cox was a Senior Advisor at McKinsey & Co in the cybersecurity and risk practice and on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as Chief of Staff and Senior Counsel to the Assistant Attorney General in the Office of Legal Policy. Ms. Nealy Cox also previously worked at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the Fifth Circuit Court of Appeals, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas. She received a B.B.A in Finance from the McCombs School of Business at the University of Texas at Austin and her J.D., magna cum laude, from Southern Methodist University Dedman School of Law.
Richard P. Donoghue
On January 5, 2018, the Attorney General appointed Richard P. Donoghue to be interim United States Attorney for the Eastern District of New York. Prior to this appointment, Mr. Donoghue served as the Senior Vice President and Chief Counsel for CA Technologies based in New York. From 2000 to 2011, Mr. Donoghue worked in the United States Attorney’s Office for the Eastern District of New York in various roles, including Criminal Chief and Deputy Criminal Chief. Mr. Donoghue received his B.A., cum laude, from Hofstra University and his J.D., from St. John’s University School of Law.
Louis V. Franklin, Sr.
The Senate confirmed Louis V. Franklin, Sr. to be United States Attorney for the Middle District of Alabama in September 2017. Mr. Franklin has served in the United States Attorney’s Office for the Middle District of Alabama for nearly 27 years, including as Criminal Chief for almost 16 years. Mr. Franklin served as an Assistant United States Attorney from 1990 to 1996 and from 1998 to 2001. From 1996 to 1998, Mr. Franklin was an associate at Sirote and Permutt. Mr. Franklin began his career as a staff attorney at the Legal Services Corporation of Alabama from 1987 to 1990. Mr. Franklin received his B.A. from the University of Alabama, an M.S. from Auburn University at Montgomery, and his J.D. from Howard University School of Law.
John R. Lausch, Jr.
The Senate confirmed John R. Lausch, Jr.’s appointment as United States Attorney for the Northern District of Illinois in November 2017. Prior to his appointment, Mr. Lausch was a partner at Kirkland & Ellis LLP. Previously, he served as an Assistant United States Attorney in the Northern District of Illinois from 1999 to 2010. During his time in the U.S. Attorney’s Office, Mr. Lausch served as a Deputy Chief in the Narcotics and Gangs Section for several years, where he helped lead the District’s Anti-Gang and Project Safe Neighborhoods programs. Mr. Lausch clerked for the Honorable Michael S. Kanne of the United States Court of Appeals for the Seventh Circuit. He received his A.B., cum laude, from Harvard University and his J.D., cum laude, from Northwestern University School of Law.
Andrew E. Lelling
The Senate confirmed Andrew E. Lelling’s appointment as United States Attorney for the District of Massachusetts in December 2017. Prior to this appointment, Mr. Lelling was the senior litigation counsel for the United States Attorney’s Office for the District of Massachusetts and has worked in that office for 12 years, prosecuting white collar crime and international drug trafficking, among other offenses. Mr. Lelling also served as an Assistant United States Attorney in the Eastern District of Virginia. He previously served as counsel to the Assistant Attorney General at the Department of Justice Civil Rights Division. Mr. Lelling clerked for the Honorable B. Avant Edenfield of the United States District Court for the Southern District of Georgia. He received his B.A., magna cum laude, from the State University of New York at Binghamton and his J.D., cum laude, from the University of Pennsylvania Law School.
David C. Weiss
David C. Weiss’s nomination to be United States Attorney for the District of Delaware was confirmed in February. Mr. Weiss previously served as the Acting United States Attorney for the District of Delaware from 2009 to 2011 and 2017 to 2018, and as the First Assistant United States Attorney from 2007 to 2017. Prior to serving in these positions, Mr. Weiss was an Assistant United States Attorney from 1986 to 1989. Mr. Weiss clerked for the Honorable Andrew D. Christie of the Delaware Supreme Court. Mr. Weiss received his B.S. from Washington University and his J.D. from Widener University School of Law.Attorney General Sessions Appoints Six Additional Members to U.S. Attorney Advisory CommitteeRead the Press Release
WASHINGTON - Attorney General Jeff Sessions announced the appointment of six new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC), joining the nine members announced on November 13, 2017. The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. It represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management affecting the Offices of the U.S. Attorneys.
The new appointees are U.S. Attorney for the Northern District of Texas Erin Nealy Cox; U.S. Attorney for the Eastern District of New York Richard P. Donoghue; U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr.; U.S. Attorney for the Northern District of Illinois John R. Lausch, Jr.; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; and U.S. Attorney for the District of Delaware David C. Weiss.
“I am pleased to announce these new members of the Attorney General’s Advisory Committee. The Advisory Committee plays an important role in helping us achieve the Department of Justice’s goals, including to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and enforce the rule of law,” said Attorney General Sessions.
A brief biography of each new member is below: Erin Nealy Cox
The Senate confirmed Erin Nealy Cox’s appointment as United States Attorney for the Northern District of Texas in November 2017. Prior to this appointment, Ms. Nealy Cox was a Senior Advisor at McKinsey & Co in the cybersecurity and risk practice and on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as Chief of Staff and Senior Counsel to the Assistant Attorney General in the Office of Legal Policy. Ms. Nealy Cox also previously worked at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the Fifth Circuit Court of Appeals, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas. She received a B.B.A in Finance from the McCombs School of Business at the University of Texas at Austin and her J.D., magna cum laude, from Southern Methodist University Dedman School of Law.
Richard P. Donoghue
On January 5, 2018, the Attorney General appointed Richard P. Donoghue to be interim United States Attorney for the Eastern District of New York. Prior to this appointment, Mr. Donoghue served as the Senior Vice President and Chief Counsel for CA Technologies based in New York. From 2000 to 2011, Mr. Donoghue worked in the United States Attorney’s Office for the Eastern District of New York in various roles, including Criminal Chief and Deputy Criminal Chief. Mr. Donoghue received his B.A., cum laude, from Hofstra University and his J.D., from St. John’s University School of Law.
Louis V. Franklin, Sr.
The Senate confirmed Louis V. Franklin, Sr. to be United States Attorney for the Middle District of Alabama in September 2017. Mr. Franklin has served in the United States Attorney’s Office for the Middle District of Alabama for nearly 27 years, including as Criminal Chief for almost 16 years. Mr. Franklin served as an Assistant United States Attorney from 1990 to 1996 and from 1998 to 2001. From 1996 to 1998, Mr. Franklin was an associate at Sirote and Permutt. Mr. Franklin began his career as a staff attorney at the Legal Services Corporation of Alabama from 1987 to 1990. Mr. Franklin received his B.A. from the University of Alabama, an M.S. from Auburn University at Montgomery, and his J.D. from Howard University School of Law.
John R. Lausch, Jr.
The Senate confirmed John R. Lausch, Jr.’s appointment as United States Attorney for the Northern District of Illinois in November 2017. Prior to his appointment, Mr. Lausch was a partner at Kirkland & Ellis LLP. Previously, he served as an Assistant United States Attorney in the Northern District of Illinois from 1999 to 2010. During his time in the U.S. Attorney’s Office, Mr. Lausch served as a Deputy Chief in the Narcotics and Gangs Section for several years, where he helped lead the District’s Anti-Gang and Project Safe Neighborhoods programs. Mr. Lausch clerked for the Honorable Michael S. Kanne of the United States Court of Appeals for the Seventh Circuit. He received his A.B., cum laude, from Harvard University and his J.D., cum laude, from Northwestern University School of Law.
Andrew E. Lelling
The Senate confirmed Andrew E. Lelling’s appointment as United States Attorney for the District of Massachusetts in December 2017. Prior to this appointment, Mr. Lelling was the senior litigation counsel for the United States Attorney’s Office for the District of Massachusetts and has worked in that office for 12 years, prosecuting white collar crime and international drug trafficking, among other offenses. Mr. Lelling also served as an Assistant United States Attorney in the Eastern District of Virginia. He previously served as counsel to the Assistant Attorney General at the Department of Justice Civil Rights Division. Mr. Lelling clerked for the Honorable B. Avant Edenfield of the United States District Court for the Southern District of Georgia. He received his B.A., magna cum laude, from the State University of New York at Binghamton and his J.D., cum laude, from the University of Pennsylvania Law School.
David C. Weiss
David C. Weiss’s nomination to be United States Attorney for the District of Delaware was confirmed in February. Mr. Weiss previously served as the Acting United States Attorney for the District of Delaware from 2009 to 2011 and 2017 to 2018, and as the First Assistant United States Attorney from 2007 to 2017. Prior to serving in these positions, Mr. Weiss was an Assistant United States Attorney from 1986 to 1989. Mr. Weiss clerked for the Honorable Andrew D. Christie of the Delaware Supreme Court. Mr. Weiss received his B.S. from Washington University and his J.D. from Widener University School of Law.Attorney General Sessions Announces New Actions to Improve School Safety and Better Enforce Existing Gun LawsRead the Press Release
Today, Attorney General Jeff Sessions announced several steps in support of President Trump’s plan to prevent violence in schools. Through these efforts, the Department of Justice is taking immediate action to protect our schools, better enforce our gun laws, support law enforcement, strengthen the firearms background check system, and improve federal law enforcement’s response to tips. In making the announcement, Attorney General Sessions said: "No child should have to fear going to school or walking the streets of their neighborhood. Today, I am directing the Department of Justice to take a number of new steps that will help make schools and the American people safer from the threat of gun violence.”
“We are increasing the number of school resource officers, improving background checks and more aggressively prosecuting those who illegally attempt to purchase a firearm, and reviewing and enhancing the way our law enforcement agencies respond to tips from the public. Under my tenure as Attorney General, we have already increased federal gun prosecutions to a 10-year high—and we are just getting started. With these new measures in place, we are better positioned to disarm criminals and protect the law-abiding people of this country."
The Attorney General announced the following actions: Improvements to School Safety
- Hire More School Resource Officers. The Department will help state, local and tribal law enforcement agencies hire more School Resource Officers (SROs). The COPS Hiring Program—a competitive grant that helps states and local communities hire more police officers—will prioritize applicants who intend to use the grants for SROs.
- Provide Support For Firearms and Situational Awareness Training to School and Law Enforcement Personnel. By leveraging existing assistance programs, the Department will be able to empower state and local firearms and situational awareness training for school personnel. The Department will continue to provide emergency and crisis training to state, local, and tribal law enforcement through its National Training and Technical Assistance Center and VALOR initiative.
- Fully Participate in the Federal Commission on School Safety. The Department of Justice is committed to working with our federal partners to study, evaluate, and make recommendations on how we can improve school safety.
Aggressively Prosecuting Federal Gun Laws
- Bump Stocks. The Department of Justice is supporting President Trump’s absolute commitment to ensuring the safety and security of every American by submitting to the Office of Management and Budget a proposed regulation to clarify that bump stock type devices are machine guns under federal law, which will effectively ban the manufacture, sale or possession of these devices.
- Swift and aggressive “Lie-and-Try” Prosecutions. Attorney General Sessions has ordered federal prosecutors to swiftly and aggressively prosecute appropriate cases against people who are prohibited from having firearms, and who lie in an attempt to thwart the federal background check system.
- Continue to Increase Violent Crime Prosecutions. In 2017 the Department made some great strides under Attorney General Sessions' leadership, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally based strategies to reduce violent crime. Under this direction, the Department prosecuted more defendants on federal firearms charges than we have in a decade, and more defendants for violent crime than we have in over 25 years – since the Department started tracking a “violent crime” category. Attorney General Sessions is dedicated to ensuring even more violent crime prosecutions, including firearms prosecutions, in 2018.
Supporting Law Enforcement
- Providing Emergency Funding for the Costs of Parkland, Florida Law Enforcement Response. The Department of Justice will provide $1 million in emergency grant funding to the State of Florida to pass through to Broward County and other responding jurisdictions’ law enforcement components. The emergency funding is intended to defray the law enforcement overtime costs related to the response and subsequent crime scene investigation of the tragic shooting at Marjory Stoneman Douglas High School.
Improving Information Available for Firearm Background Checks
- Holding Federal Agencies Accountable. Federal agencies are required by law to report to the National Instant Criminal Background Check System (NICS) relevant records relating to individuals prohibited from possessing a firearm under federal law. Pursuant to his authority, Attorney General Sessions is calling on all relevant agencies to certify within 45 days that they are in full compliance with the law or have a plan to become fully compliant.
- Strengthening Partnerships with State and Local Law Enforcement. The Attorney General is calling on governors and state Attorneys General to improve the reporting of state and local criminal justice data, and other information accessed by the firearms background check system. Because the FBI has identified “missing dispositions” – or arrest records that lack a final disposition – as a significant issue, the Attorney General will provide every state with their respective level of disposition completion with the goal of urging those states who do not have an adequate level of reporting to focus on this issue and improve their reporting.
- Attorney General Sessions has also directed the FBI to identify local jurisdictions that are not reporting arrests to their state repositories as well as jurisdictions that are not providing all of their records identifying persons prohibited from possessing firearms for mental health reasons.
- Improving Access to State Mental Health and Domestic Violence Records. Through the National Criminal History Improvement Program (NCHIP) and NICS Act Records Improvement Program (NARIP) grants, the Department will help states provide more complete, timely, and accurate information to databases accessed by the firearms background check system. The Attorney General has ordered that priority be given to projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
Enhancements to Department Response to Public Information
- Reviewing and reforming the process for handling tips. Attorney General Sessions has ordered an immediate review of the Department’s handling of tips from the public so that they receive prompt and effective responses, especially when doing so could prevent violence.
Technical Assistance to States
- Extreme Risk Protection Orders. The Department stands ready to assist States, at their request, on establishing and implementing extreme risk protection orders.
Click here to view the Attorney General’s memo to the Director of the FBI on Improving State Information sharing.
Click here to view the Attorney General’s memo to US Attorneys on Enforcing Federal Law Against Prohibited Persons Attempting to Purchase Firearms.
Click here to view the Executive Summary of the report provided to the Attorney General in response to his November 22, 2017 Directive to Review NICS.
Associate of La Cosa Nostra Sentenced for Extortion-Related ChargesRead the Press Release
BOSTON – An associate of the Genovese La Cosa Nostra (LCN) crime family was sentenced today in federal court in Worcester on extortion-related charges.
Gerald Daniele, 53, of Longmeadow, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison and three years of supervised release. In December 2017, Daniele pleaded guilty to one count of using extortionate means to collect an extension of credit.
Daniele and co-defendants Ralph Santaniello, John Calabrese, Francesco Depergola, and Richard Valentini were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in the Springfield, Mass., area including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. Daniele admitted that he used violence, exploited his relationship with LCN, and implied threats of physical violence to instill fear in his victims.
Daniele further admitted that during a six-month period in 2015, he extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
Santaniello, Calabrese, and Depergola pleaded guilty to extortion-related crimes. Their sentencings are scheduled for March 20, April 2, and May 11, 2018, respectively. In December 2017, Valentini was convicted by a federal jury of extortion and conspiracy to commit extortion; his sentencing is also scheduled for May 11, 2018.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Lelling’s Springfield Branch Office; Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section; and Assistant U.S. Attorney Katharine Wagner of Lelling’s Springfield Branch Office are prosecuting the case.
Armed Career Criminal from Albuquerque Sentenced to Twenty Years for Federal Firearms and Assault ConvictionsRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Deputy U.S. Marshal Brent Broshow announced today that Nathan Jensen, a 35-year-old armed career criminal from Albuquerque, N.M., was sentenced to 20 years of imprisonment for convictions in two federal cases, and violating the conditions of supervised release in a third case.
Chief U.S. District Judge William P. Johnson sentenced Jensen to an aggregate of 20 years of imprisonment in the following three separate cases late on Friday afternoon (March 9, 2018), after Jensen entered a guilty plea to assaulting a federal officer:
- In the first case, in which Jensen was convicted of being a felon in possession of a firearm, Judge Johnson sentenced Jensen to a mandatory minimum sentence of 15 years of imprisonment. This enhanced sentence was required by Jensen’s status as an armed career criminal and means that Jensen had at least three prior convictions for violent felonies and serious drug offenses when he committed the current offense of conviction.
- In the second case, in which Jensen was convicted of assaulting a federal officer, Judge Johnson sentenced Jenson to 100 months of imprisonment, including 48 months to be served consecutive to the 15-year prison sentence and 52 months to be served concurrent.
- In the third case, in which Jensen admitted violating the conditions of his supervised release on a prior federal felon in possession of a firearm conviction, Judge Johnson sentenced Jensen to 24 months of imprisonment including 12 months consecutive to the 15-year prison sentence and 12 months to be served concurrent.
- Jensen will be on supervised release for three years after completing his prison sentence.
In announcing the sentence, U.S. Attorney Anderson said, “At the age of 35, Nathan Jensen has been involved in the criminal justice system for more than two decades and is a prime example of the violent, repeat offender who needs to be removed from our community. Jensen reoffended less than three weeks after his release from a lengthy federal prison sentence and while still under federal supervision. While awaiting sentencing for that crime, Jensen violently assaulted a federal officer. This prosecution and the sentence will make our community safer.”
“This sentence ensures that Nathan Jensen, an armed career criminal, will spend many years behind bars for assaulting a federal officer,” said ATF Special Agent in Charge Durastanti. “Jensen is a serial offender who has been removed from the community, along with any danger that could result from his actions. The brave men and women of law enforcement risk their lives every day to protect us, and ATF will continue to vigorously pursue anyone who attempts to do them harm.”
“The U.S. Marshals Service is dedicated to removing violent criminals from our communities,” said Chief Deputy U.S. Marshal Broshow. “We work with our local, state, and federal partners on a daily basis to accomplish our mission. Putting career criminals like Jensen behind bars makes our community a safer place to live.”
ATF and the U.S. Marshals Service arrested Jensen in May 2016, on a criminal complaint charging him with being a felon in possession of a firearm. Jensen committed the offense while on supervised release from a prior federal felon in possession of a firearm conviction.
The Court issued a warrant for Jensen’s arrest on May 4, 2016, based on a U.S. Probation Office petition, which stated that Jensen had been released from the custody of the U.S. Bureau of Prisons on April 25, 2016, after completing an 84-month prison sentence. Jensen was to report to his probation officer and a halfway house at which he was to reside for up to six-months. Jensen failed to report either to his probation officer or to the halfway house, and the U.S. Marshals Service’s Southwest Investigative Fugitive Team (USMS-SWIFT) arrested Jensen on the warrant on May 16, 2016.
Jensen subsequently was indicted on June 14, 2016, and was charged with being a felon in possession of a firearm. On Feb. 27, 2017, Jensen pled guilty to the indictment and admitted that he unlawfully was in possession of a firearm and ammunition on May 16, 2016, when the USMS-SWIFT arrested him for violating the conditions of his supervised release.
On Sept. 21, 2017, Jensen was charged in a second indictment with assaulting a federal employee. The indictment was superseded on Dec. 13, 2017, to add Waldo Nahle, 36, of Albuquerque, as a co-defendant. According to the superseding indictment, Jensen and Nahle assaulted a federal employee who was engaged in the performance of his official duties in the Sandoval County Detention Center on May 11, 2017.
Before his sentencing hearing, Jensen pled guilty to the superseding indictment charging him with assaulting a federal employee. In entering the guilty plea, Jensen admitted that on May 11, 2017, while detained at the Sandoval County Detention Center and awaiting sentencing on his firearms guilty plea, he assaulted a federal employee by repeatedly punching him in the face and head while other inmates restrained him. Jensen acknowledged that the victim sustained serious injuries as the result of the assault.
Nahle has entered a plea of not guilty to the charge in the superseding indictment and is currently scheduled for trial in June 2018. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
The firearms case was investigated by the Albuquerque office of ATF and the USMS-SWIFT with assistance from the U.S. Probation Office, and the assault case was investigated by the USMS. Assistant U.S. Attorney Eva M. Fontanez prosecuted Jensen under 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 for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Ansonia Man Pleads Guilty to Crack Cocaine Distribution ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON WALKER, 30, of Ansonia, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
According to court documents and statements made in court, WALKER was a member of a drug trafficking organization that trafficked large quantities of crack cocaine throughout the Naugatuck Valley. The investigation revealed that members of the organization shared the same cellphone to service drug customers in shifts over a 24-hour period. Members of the drug trafficking organization also shared vehicles and serviced customers together. Between May and September 2017, investigators made multiple controlled purchases of crack from WALKER and other members of the drug trafficking organization.
WALKER was arrested on November 15, 2017.
Judge Meyer scheduled sentencing for June 6, 2018, at which time WALKER faces a maximum term of imprisonment of 20 years. WALKER is currently detained.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Ansonia and Derby Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Albuquerque Man Pleads Guilty to Theft of Medical Products Charge Arising Out of Pharmacy RobberyRead the Press Release
ALBUQUERQUE – Abraham Martinez, 36, of Albuquerque, N.M., pled guilty this morning in federal court to theft of medical products charge arising out of the robbery of an Albuquerque-area pharmacy on Oct. 13, 2017.
Martinez was arrested in Oct. 2017, on a criminal complaint charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce and possession of Xanax with intent to distribute. According to the criminal complaint, Martinez committed the offenses by robbing the Walgreens pharmacy located at 2625 San Pedro Dr. NE in Albuquerque, and threatening the pharmacist with a knife while demanding Xanax.
Martinez subsequently was charged in a two-count indictment on Nov. 1, 2017, with violating the Hobbs Act by interfering with interstate commerce by robbery and violence, and theft of medical products.
During today’s proceedings, Martinez pled guilty to the theft of medical products charge. In entering the guilty plea, Martinez admitted that on Oct. 13, 2017, he robbed the Walgreens pharmacy in Albuquerque by approaching the pharmacist’s consultation window, holding out a knife, and demanding Xanax from the pharmacist. Martinez acknowledged that the bottles of Xanax he stole from the pharmacist were not available to the public and thus were considered pre-retail medical products.
At sentencing, Martinez faces a maximum penalty of 20 years in federal prison. Martinez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorney Joel R. Meyers is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Accountant Sentenced for Embezzling More than $3 Million from Houston CompanyRead the Press Release
HOUSTON – An accountant from Georgia has been ordered to federal prison after admitting he committed wire fraud and stole more than $3 million from his former employer and client, announced U.S. Attorney Ryan K. Patrick. Daniel Nathan West, 52, of Duluth, Georgia, pleaded guilty Sept. 15, 2016.
Today, U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, handed West a 108-month sentence to be immediately followed by three years of supervised release. At the hearing, additional evidence was presented including a statement by the president and CEO of Airis Internatioanl Holdings, West’s former employer and client. In handing down the sentence, Judge Hoyt ordered West to pay restitution in the amount of $3,561,166.11.
West was previously employed as the treasurer and chief financial officer for Airis. In this role, he was to manage Airis finances during construction projects, control the company’s monetary assets, administer payments and payroll, among other things.
In 2005, West resigned from Airis to start his accounting firm - Westtree Financial. Shortly thereafter, Airis contracted with Westtree Financial to provide accounting services to Airis. Although West no longer worked directly for Airis, through his company he continued to have signature authority on Airis’ bank accounts and authority to transfer funds on behalf of Airis.
From 2005 to 2012, West embezzled more than $3 million from Airis, admitting he used the monies to purchase a million-dollar home in Georgia, a beach house in Florida, an office building in Georgia and luxury vehicles.
West was first arrested Oct. 13, 2015, and released on bond. However, he was later taken into custody after Judge Hoyt determined West had violated his conditions of release. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
35 Members and Associates of Bloods Gang Plead Guilty to Racketeering Conspiracy and Related Charges, Including Drug Trafficking and Wire FraudRead the Press Release
Thirty-five members and associates of the Nine Trey Gangsters set of the United Blood Nation (UBN) street gang, including a “Godfather” as well as other high-ranking leaders of the organization, have pleaded guilty to racketeering conspiracy and related charges in North Carolina, including drug trafficking, wire fraud, firearm possession, and the use of a firearm in furtherance of a crime of violence and drug trafficking.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
“The pleas announced today are part of an extensive investigation by a broad array of federal, state, and local law enforcement agencies—including the Criminal Division’s Organized Crime and Gang Section—whose goal has been to disrupt and dismantle the Nine Trey Gangsters, a dangerous set of the United Blood Nation street gang,” said Acting Assistant Attorney General Cronan. “By targeting the high-ranking individuals who were directing the gang’s activities—from locations up and down the eastern United States, both within prisons and in our communities—today’s pleas constitute a substantial step towards the gang’s eradication.”
“When my office indicted 83 Bloods gang members and senior leaders, the goal was to deliver a major blow to this organized criminal enterprise responsible for raging turf wars, rampant drug distribution and bloody gang violence,” said U.S. Attorney Murray. “We’ve made significant progress toward that goal but the work is far from over. Communities across Western North Carolina know firsthand the trail of violence and devastation gangs leave behind. We have a duty to protect the public from gang violence and to bring relief to neighborhoods afflicted by gang activity. Working with our law enforcement partners we will continue to combine our efforts and resources to keep our communities safe and to protect our children from violent street gangs.”
“The assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities,” said Special Agent in Charge Strong. “The guilty pleas by these suspects are the next step in securing justice for every innocent person who was impacted by the violent actions of these gangs members.”
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. According to the factual basis of Rosero’s plea agreement, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.” During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang. According to a recorded jail call, Omari Rosero admitted to being, together with Pedro Gutierrez, aka Magoo, and James Baxton, aka Frank White, “the last ones that God put in power” over the UBN. Rosero conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections.
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty today to racketeering conspiracy. Rosero, who has a tattoo of “Mrs. Uno B” on her chest, referring to Omari Rosero, maintained a Facebook account through which private messages were sent from Omari Rosero to other Bloods leaders. According to the factual basis of her plea agreement, Porsha Rosero further admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
In addition to Omari and Porsha Rosero, seven other defendants with high-ranking leadership positions have previously pleaded guilty in this investigation:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Moreover, according to a court-approved wiretap, Coker was recorded discussing a potential murder of a rival gang member;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”
Furthermore, the following defendants have also pleaded guilty in this case:
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
- Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Cedric Surratt, aka Hollywood, aka 5-Star, aka Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.
According to admissions made in connection with the plea agreements, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
Furthermore, the plea agreements note that the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
The convictions are the result of a joint effort by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Internal Revenue Service Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Western District of North Carolina.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
35 Members and Associates of Bloods Gang Plead Guilty to Racketeering Conspiracy and Related Charges, Including Drug Trafficking and Wire FraudRead the Press Release
WASHINGTON – Thirty-five members and associates of the Nine Trey Gangsters set of the United Blood Nation (UBN) street gang, including a “Godfather” as well as other high-ranking leaders of the organization, have pleaded guilty to racketeering conspiracy and related charges in North Carolina, including drug trafficking, wire fraud, firearm possession, and the use of a firearm in furtherance of a crime of violence and drug trafficking.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
“The pleas announced today are part of an extensive investigation by a broad array of federal, state, and local law enforcement agencies—including the Criminal Division’s Organized Crime and Gang Section—whose goal has been to disrupt and dismantle the Nine Trey Gangsters, a dangerous set of the United Blood Nation street gang,” said Acting Assistant Attorney General Cronan. “By targeting the high-ranking individuals who were directing the gang’s activities—from locations up and down the eastern United States, both within prisons and in our communities—today’s pleas constitute a substantial step towards the gang’s eradication.”
“When my office indicted 83 Bloods gang members and senior leaders, the goal was to deliver a major blow to this organized criminal enterprise responsible for raging turf wars, rampant drug distribution and bloody gang violence,” said U.S. Attorney Murray. “We’ve made significant progress toward that goal but the work is far from over. Communities across Western North Carolina know firsthand the trail of violence and devastation gangs leave behind. We have a duty to protect the public from gang violence and to bring relief to neighborhoods afflicted by gang activity. Working with our law enforcement partners we will continue to combine our efforts and resources to keep our communities safe and to protect our children from violent street gangs.”
“The assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities,” said Special Agent in Charge Strong. “The guilty pleas by these suspects are the next step in securing justice for every innocent person who was impacted by the violent actions of this gang’s members.”
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. According to the factual basis of Rosero’s plea agreement, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.” During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang. According to a recorded jail call, Omari Rosero admitted to being, together with Pedro Gutierrez, aka Magoo, and James Baxton, aka Frank White, “the last ones that God put in power” over the UBN. Rosero conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections.
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty today to racketeering conspiracy. Rosero, who has a tattoo of “Mrs. Uno B” on her chest, referring to Omari Rosero, maintained a Facebook account through which private messages were sent from Omari Rosero to other Bloods leaders. According to the factual basis of her plea agreement, Porsha Rosero further admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
In addition to Omari and Porsha Rosero, seven other defendants with high-ranking leadership positions have previously pleaded guilty in this investigation:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Moreover, according to a court-approved wiretap, Coker was recorded discussing a potential murder of a rival gang member;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”
Furthermore, the following defendants have also pleaded guilty in this case:
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
- Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Cedric Surratt, aka Hollywood, aka 5-Star, aka Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.
According to admissions made in connection with the plea agreements, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
Furthermore, the plea agreements note that the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
The convictions are the result of a joint effort by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Internal Revenue Service Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
20-Year-Old Roanoke Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who fled from police following a traffic stop for an expired registration tag, pleaded guilty today in U.S. District Court in Roanoke to a federal drug charge. United States Attorney Rick A. Mountcastle, Tom Chittum Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Washington, D.C. Field Division, Supervisory Senior Resident Agent Jeffrey Taylor from the FBI’s Roanoke Field Office and Resident Agent in Charge Jeffrey Wanner of the Drug Enforcement Administration’s Roanoke Field Office made the announcement.
Michael Antonio David II, 20, pleaded guilty today to one count of possession with the intent to distribute crack cocaine. As part of his plea agreement, the defendant agreed to a term of incarceration of 60 months in federal prison to run concurrent to the 18-month state sentence he is currently serving.
The case against David began on July 8, 2016 when an officer with the Roanoke City Police Department and a trooper with the Virginia State Police initiated a traffic stop for expired registration on the vehicle the defendant was driving. David stopped the car and fled on foot. As he ran, the officers observed the defendant reaching into his waistband.
After pursuing David for several blocks, officers stopped and arrested the defendant. During a search of the defendant, officers discovered a plastic bag containing crack cocaine. In a second plastic bag located in David’s gym shorts, which were under his pants, officers located 14 silver ammunition rounds.
A subsequent search of the area in which the foot pursuit took place was conducted and officers used a K-9 to assist. A semi-automatic, KAHR .40 handgun was located in the vicinity where the defendant had been running. David admitted to throwing the gun from his waistband while running from police.
The investigation of the case was conducted by the Roanoke City Police Department, the Virginia State Police, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Roanoke City Police Department. United States Attorney Rick A. Mountcastle and Assistant United States Attorney Ashley B. Neese are prosecuting the case for the United States.
10 March 2018
Department of Justice Submits Notice of Proposed Regulation Banning Bump StocksRead the Press Release
Today the Department of Justice submitted to the Office of Management and Budget a notice of a proposed regulation to clarify that the definition of “machinegun” in the National Firearms Act and Gun Control Act includes bump stock type devices, and that federal law accordingly prohibits the possession, sale, or manufacture of such devices.
"President Trump is absolutely committed to ensuring the safety and security of every American and he has directed us to propose a regulation addressing bump stocks,” said Attorney General Jeff Sessions. “To that end, the Department of Justice has submitted to the Office of Management and Budget a notice of a proposed regulation to clarify that the National Firearms and Gun Control Act defines ‘machinegun’ to include bump stock type devices.”
This submission is a formal requirement of the regulatory review process. Once approved by the Office of Management and Budget, the Department of Justice will seek to publish this notice as expeditiously as possible.
9 March 2018
York Man Convicted on Drug Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Raul Cotto-Rivera, age 40, of York, Pennsylvania, was convicted yesterday of various drug trafficking offenses after a three-day jury trial held before U.S. District Court Judge Yvette Kane.
According to United States Attorney David J. Freed, Cotto-Rivera was convicted of conspiracy to distribute 100 grams and more of heroin and 500 grams and more of cocaine hydrochloride, distribution of heroin (3 counts), possession with intent to distribute heroin and cocaine hydrochloride, distribution of marijuana and possession with intent to distribute cocaine base, cocaine hydrochloride and marijuana.
The charges stemmed from a number of controlled buys of heroin that were made by and through Cotto-Rivera in September and October of 2015. In October 2015, law enforcement obtained and executed a search warrant and located approximately $20,000 in United States currency, a drug ledger, drug packaging material and distribution quantities of cocaine and heroin all in the defendant’s home. While on release, Cotto-Rivera continued to sell drugs and was engaged in the distribution of marijuana from his store. A second search warrant executed in February of 2017, located distribution quantities of marijuana and cocaine, drug packaging materials and a loaded stolen firearm.
A sentencing date has not yet been scheduled.
The investigation was conducted by the FBI Safe Streets Task Force, the York County Drug Task Force, the Pennsylvania State Police, the York Area Regional Police Department, the West Manchester Township Police Department, the York County Sheriff’s Office, the Springettsbury Township Police Department, and the York County District Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Daryl F. Bloom and Carl Marchioli.
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.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 defendant faces a mandatory term of imprisonment of five years and a maximum term of imprisonment of 160 years, 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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Wilmington Man Federally Indicted and Detained for Illegally Possessing A GunRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Zidre Cephas, of Wilmington, was detained pending trial Friday after being indicted[1] by a federal grand jury earlier this week for illegally possessing a firearm. According to court documents, Cephas was arrested last year by members of the Wilmington Police Department in the area of 6th Street and Jefferson Street, in Wilmington’s West Center City neighborhood. While responding to a citizen complaint, officers found a revolver in Cephas’ pants’ pocket.
U.S. Attorney Weiss commented, “Effectively combatting gun violence before shots are fired requires the cooperation of local, state, and federal law enforcement. My office is committed to working tirelessly with the Wilmington Police Department to investigate and prosecute firearms crimes in the City of Wilmington generally, and the neighborhood of West Center City in particular.”
Charges in this case were brought by Bureau of Alcohol, Tobacco and Firearms and Explosives (“ATF”). This case is being prosecuted by Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe and Assistant U.S. Attorney Jennifer Welsh.
[1] The charges in the Indictment are only allegations. The Defendant is presumed innocent until, and unless, proven guilty beyond a reasonable doubt.
Virginia Man Sentenced to Two Years in Prison for Scheme to Manipulate the Market for Fitbit StockRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROBERT WALTER MURRAY was sentenced today to 24 months in prison for manipulating the market for the stock of Fitbit, Inc. (“Fitbit”), by filing a sham tender offer with the Securities and Exchange Commission (“SEC”) in November 2016. MURRAY’s sham tender offer resulted in a temporary change in Fitbit’s market capitalization of over $100 million. MURRAY pled guilty on November 7, 2017, before U.S. District Judge Katherine B. Forrest, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Robert Murray manipulated the market in Fitbit stock by making a false filing with the SEC about a tender offer. Hoping to take a quick profit from trading in Fitbit stock options, Murray’s attempt to game the system has instead earned him a federal prison sentence.”
According to allegations in a Complaint and Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
On November 8, 2016, MURRAY, falsely purporting to be an officer at a China-based entity called ABM Capital, created an account on the SEC’s Electronic Data Gathering, Analysis, and Retrieval (or “EDGAR”) system. The next day, MURRAY submitted a filing on EDGAR that reported that ABM Capital had offered to purchase Fitbit for approximately $12.50 a share, a significant premium to the price of Fitbit stock at the time. This filing was made public on November 10, 2016, and, when it was, Fitbit’s stock temporarily increased in response to the news. While Fitbit’s stock had closed at approximately $8.55 a share on November 9, 2016, it reached a high of approximately $9.27 per share, with significantly increased trading volume, after MURRAY’s fake tender offer filing was made public. This resulted in a temporary increase of Fitbit’s market capitalization of around $100 million. The tender offer that MURRAY filed, however, was entirely fictitious, and was instead meant only to increase the value of options in Fitbit stock that MURRAY had purchased just days earlier.
MURRAY also took significant steps to hide his connection to the tender offer filing. For example, he created a separate email account to register with the SEC and to file the sham tender offer, and took efforts to disguise his IP address when accessing that account.
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In addition to the prison sentence, MURRAY, 25, of Chesapeake, Virginia, was sentenced to two years of supervised release. The Court further ordered MURRAY to forfeit a sum of $3,914.08.
Mr. Berman praised the exceptional work of the Office’s criminal investigators, and thanked the U.S. Postal Inspection Service and the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
United States Customs Officer Charged with Lying About Citizenship Relating to His Federal EmploymentRead the Press Release
TUCSON, Ariz. – On March 7, 2018, the grand jury returned an indictment charging Marco Antonio De La Garza Jr., 37, of Hereford, Ariz., with three counts related to passport fraud and false statements on his federal law enforcement background application. Specifically, it is alleged that De La Garza is a Mexican citizen who knowingly used a fraudulently obtained Texas birth certificate to apply for a United States passport. Additionally, the indictment charges he knowingly and willfully used the same fraudulently obtained birth certificate to assert United States citizenship on his five-year background check to maintain employment as a United States Customs and Border Protection Officer.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by the Department of State-Diplomatic Security Service and the Department of Homeland Security-Office of Inspector General. The prosecution is being handled by Lori Price and Heather Siegele, Assistant U.S. Attorneys, District of Arizona.
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CASE NUMBER: CR-18-00353-TUC-RCC
RELEASE NUMBER: 2018-024_Franco
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
United States Attorney’s Office Reaches Settlement with Dauphin County, Pa, over Polling Place Access for VotersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today a settlement with Dauphin County under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney David J. Freed, in the May 19, 2015 primary election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed a portion of the county’s polling place locations. The survey resulted in a finding that many of the county’s polling places contain barriers to access for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Dauphin County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day. Dauphin County has indeed taken steps since the May 19, 2015 election to ensure polling place accessibility.
“The right of individuals to participate in our democratic system of government includes full and equal access to polling sites,” said U.S. Attorney Freed. “Under this agreement, voters with disabilities will now be able to cast their ballots in person at their polling places alongside their neighbors.”
This investigation was handled by Assistant United States Attorney Michael J. Butler with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section). Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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Two Men Plead Guilty to Roles in Trans-National Methamphetamine Trafficking RingRead the Press Release
BOSTON – Two men pleaded guilty yesterday in federal court in Boston to their roles in a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.
Bruce Reisman, 51, of Boston, and Jesse Gillis, 32, previously of Allston and San Diego, Calif., pleaded guilty to drug trafficking charges. Reisman pleaded guilty to possession of methamphetamine with intent to distribute, and Gillis pleaded guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine and conspiracy to launder monetary instruments. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled their sentencings for June 12, 2018, and June 13, 2018, respectively.
In November 2016, Reisman, Gillis, and nine co-defendants were charged with various methamphetamine offenses relating to a transnational trafficking scheme.
Beginning in at least 2013 and continuing to November 2016, Gillis and others participated in a conspiracy to transport significant quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways. Reisman possessed some of that methamphetamine with the intent to distribute it to others.
The charge of possession of methamphetamine with intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine 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 conspiracy to launder monetary instruments provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a fine of up to $500,000 or twice the value of the property laundered. 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 J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; and the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorney Karen Beausey of Lelling’s Narcotics & Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two District Men Found Guilty of Charges in Shooting at Southeast Washington Barber ShopRead the Press Release
WASHINGTON - Terrance Atchison, 22, and Barry Bloomfield, 29, both of Washington, D.C., have been found guilty by a jury of numerous charges stemming from a shooting at a barber shop in Southeast Washington, in which a father and his 21-month-old child were injured.
The verdicts were announced by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Atchison and Bloomfield were found guilty on March 8, 2018, of charges of aggravated assault while armed, assault with significant bodily injury while armed (of a minor), assault with a dangerous weapon, and related offenses. The verdicts followed a multi-week trial in the Superior Court of the District of Columbia. The defendants face sentencing on May 18, 2018 before the Honorable Judge Danya A. Dayson.
According to the government’s evidence, on Friday, Feb. 12, 2016, at approximately 1:40 p.m., three masked gunmen opened the doors of Wrenn’s Barber Shop, in the 1000 block of Eighth Street SE, and began firing a total of eight rounds. At the time of the shooting, the shop was bustling with customers, and the toddler and his father were waiting for a haircut. The father, who was holding his son, was shot three times, and one wound shattered his ankle. A bullet grazed the child’s leg. Witnesses observed the gunmen run to a waiting white sport utility vehicle just around the corner and flee.
Video surveillance showed the defendants getting into a white Toyota RAV 4 about 20 minutes before the shooting and travelling to the barber shop. The defendants were on GPS monitoring because they were on post-conviction supervision, and their tracks placed them directly in front of the barber shop at the time of the shooting, as well as mirrored the RAV 4’s travel to and flight from the barber shop.
Atchison was arrested on Feb. 17, 2016, and Bloomfield was arrested on Feb. 18, 2016. They have been in custody ever since.
In announcing the verdicts, U.S. Attorney Liu and Chief Newsham commended those who investigated the case from the Metropolitan Police Department. They also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Lisa N. Walters and Thomas Saunders, who investigated the case, Paralegal Specialist Antoinette Sakamsa, Information Technology Specialist Leif Hickling, and Criminal Investigators Nelson Rhone and Melissa Matthews. Finally, they commended the work of Assistant U.S. Attorneys Brittany Keil and Melissa Jackson, who prosecuted the case.