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9 March 2018
Orlando Man Sentenced to Seven Years and Four More Indicted for Scheme Involving Impersonating Homeland Security Agents and Wire FraudRead the Press Release
Orlando, Florida – U.S. District Court Judge Carlos E. Mendoza has sentenced Ronnie Rolland Montgomery (28, Orlando) to seven years in federal prison for conspiracy to commit wire fraud. He pleaded guilty to the offense on September 6 2017. Five others were previously charged in this conspiracy, have pleaded guilty, and are awaiting sentencing.
According to court documents, from at least August 1, 2015, through July 6, 2017, Montgomery was a manager/leader in a criminal organization that demanded money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). The scheme typically began by one of the conspirators placing a fraudulent post on adult dating websites claiming to be a “nerdy girl seeking nerdy guy.” When the victims responded to the ads, the conspirators would continue to pretend that they were a female seeking companionship. A couple of days later, the conspirators would contact the victims pretending to be federal agents assigned to the “C3 Child Exploitation Division” or other components of DHS. They would accuse the victims of soliciting a minor on the internet and falsely claim that there was an outstanding warrant for the victims’ arrest. Victims were contacted from fraudulent email addresses that appeared to be from a law enforcement agency. The conspirators also used spoof apps on the victims’ phones to make it appear as if they were calling from a law enforcement number. After contact, victims were told that they could pay a “fine” or “fees” so that the purported warrant would be “purged” or “cleared.” To pay these “fines” or “fees,” victims were instructed to go to a money service business, and use either Ria, MoneyGram, or Western Union to wire money to satisfy their “fines” or “fees.” Victims were directed to address these wire transfers to a real name of one of the conspirators or to one of their aliases, after which the defendants would take turns picking up the payments. Victims were then traded among the conspirators to continue deriving more money from the scheme. The victims, many of which were members of the military, or elderly, would send multiple extortion payments, ranging from $200 to $1,900, per transaction because they feared arrest. Law enforcement estimates that the scheme generated over $342,000 in profits.
In addition, on March 7, 2018, a grand jury returned an indictment charging Donte Sherrick Harris (30, Kissimmee), Jean David Jules, a/k/a ‘Zoe,” a/k/a “Zoe Chappo” (33, Haitian national), Jonathan Wayne Thorne (27, Kissimmee), and Jason Tyiwuan Green (21, Orlando) with wire fraud for their involvement in the same scheme.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility, and Homeland Security Investigations (HSI/San Diego), with assistance from the following partnering agencies – the Naval Criminal Investigative Service (San Diego), and the Osceola County Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, who are both on assignment from the Office of the Principal Legal Advisor, ICE.
Orange City Man Sentenced for Manufacturing Anabolic SteroidsRead the Press Release
An Iowa State University student was sentenced on Monday, March 5, 2018, to 2 years’ probation with a condition that he spend two consecutive weeks in jail.
James Nhan, 23, from Orange City, Iowa, received the sentencing after a November 20, 2017 guilty plea to one count of manufacturing anabolic steroids.
In a plea agreement, Nhan admitted that, from late 2014 until December 15, 2015, he manufactured anabolic steroids and intended to distribute some of the steroids to various customers. In December 2015, law enforcement executed a search warrant on Nhan’s residence and seized numerous vials containing anabolic steroids, as well as laboratory equipment, packing material, labels, and sheets of papers listing the names and addresses of individuals who had purchased or intended to purchase anabolic steroids. Nhan admitted to importing the raw materials from China.
Nhan was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Nhan was sentenced to 2 years’ probation with a condition that he spend two consecutive weeks in jail. A special assessment of $100 was imposed.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Iowa Division of Criminal Investigations, Sioux County Attorney’s Office, Department of Homeland Security, Nebraska State Patrol, and Food and Drug Administration – Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4050-LTS.
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Nottingham Man Convicted of Conspiracy to Distribute CocaineRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On March 8, 2018, a federal jury convicted Corey Hammond, age 30, of Nottingham, Maryland of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Field Office; Commissioner Darryl DeSousa of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police.
Evidence presented at the four-day trial included intercepted coded cellular telephone calls in which Hammond discussed with another co-conspirator “2 Peyton Mannings,” which an expert Task Force Officer with the Drug Enforcement Administration (DEA) interpreted to mean a kilogram of cocaine. Peyton Manning’s jersey was 18. 18 ounces of cocaine equals 504 grams or one-half a kilogram. The jury also saw an intercepted text message from yet another co-conspirator which read: “256000 total at 32000.” Evidence at trial established the price of each kilogram of cocaine was valued at $32,000. The text message, according to the sender of the text and who testified at trial, represented 8 kilograms: 256,000 divided by 32,000 equals 8. Upon receiving the text, Hammond sent a text of his own, which read “Don’t Text. We already agreed. We’re on the same page.”
During the course of the trial, the jury also saw evidence of a seizure of almost 15 kilograms of cocaine, along with more than $520,000 in cash seized from Hammond’s co-conspirators.
Hammond, who previously had been convicted of a narcotics related offense in Baton Rouge, Louisiana, is facing a minimum mandatory sentence of 20 years, without parole.
Acting United States Attorney Stephen M. Schenning commended the DEA, the Baltimore City and Baltimore County Police Departments for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Christopher J. Romano and Special Assistant United States Attorney Jeffrey Hann, who prosecuted the case.
Nez Perce Tribal Member Sentenced to 24 Months in Prison for StrangulationRead the Press Release
COEUR D'ALENE – Roy James Broncheau, 35, of Kamiah, Idaho, was sentenced yesterday in federal court in Coeur d’Alene to 24 months in prison for strangulation, U.S. Attorney Bart M. Davis announced. Chief U.S. District Court Judge B. Lynn Winmill also ordered three years of supervised release following Broncheau’s release from prison.
On December 6, 2017, Broncheau, an enrolled Nez Perce tribal member, pleaded guilty to the federal crime of strangulation. His guilty plea stemmed from his strangulation or attempted strangulation of his female partner. The assault occurred on the Nez Perce tribal reservation.
The federal crime of strangulation, codified at 18 U.S.C. § 113(a)(8), became effective in March 2013. As in this case, the crime is most often used by federal prosecutors to charge defendants who commit non-fatal strangulation offenses against a spouse, intimate partner or dating partner. The statute defines "strangling" as "intentionally, knowingly, or recklessly impeding the normal breathing or circulation of the blood of a person by applying pressure to the throat or neck, regardless of whether that conduct results in any visible injury or whether there is any intent to kill or protractedly injure the victim." The statute also covers suffocation and attempted strangulation or suffocation.
The case was investigated by the Nez Perce Tribal Police Department and the Federal Bureau of Investigation.
New York Man Sentenced to 5 Years in Federal Prison for Trafficking Cocaine in Fairfield CountyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DOMINICK PACIFICO, 34, of Stony Point, New York, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in May 2017, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force began an investigation into the Stamford-area cocaine trafficking activity of Stephen Mazzo. On May 31, 2017, investigators conducting surveillance on Mazzo observed Mazzo exit a Norwalk hotel carrying a plastic shopping bag that he had not been carrying when he had entered the hotel. Law enforcement stopped Mazzo’s vehicle a short time later on Route 15 south in Stamford. A search of the vehicle and the plastic shopping bag revealed more than 400 grams of cocaine. Mazzo was arrested on state charges at that time.
Investigators returned to the hotel and determined that Mazzo had met with PACIFICO, who had been residing at the hotel for several weeks. A search of PACIFICO’s hotel room revealed items used to package drugs for distribution, and a search of PACIFICO’s vehicle revealed approximately 959 grams of cocaine separated in multiple packages for distribution, and $34,525 in cash.
On December 7, 2017, PACIFICO pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine.
Mazzo has pleaded guilty to a related charge and awaits sentencing.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members of the DEA, Connecticut State Police and the Norwalk, Stamford, Stratford and Milford Police Departments. The case is being prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.
New York Investment Adviser Convicted of Defrauding InvestorsRead the Press Release
HARRISBURG – Louis F. Petrossi, age 77, the founder and president of the Wealth Research Institute, a purported investment research firm, was convicted yesterday by a federal jury in the Middle District of Pennsylvania, on three counts of securities fraud, investment adviser fraud, and wire fraud for his role in a scheme to defraud investors. The four-day trial was held before Chief United States District Court Judge Christopher C. Conner in Harrisburg.
David J. Freed, United States Attorney for the Middle District of Pennsylvania and Richard P. Donoghue, United States Attorney for the Eastern District of New York, jointly announced the verdict.
The evidence at trial established that Petrossi falsely claimed to investors that money they had invested in purported investment funds, Chadwicke Partners LLC (“Chadwicke Partners”) and Chadwicke Ventures LLC (“Chadwicke Ventures”), would be used to invest in startup companies. Instead, the defendant used the investors’ money to pay for personal expenses and issued fraudulent statements that overstated both the cost and value of the securities held by Chadwicke.
The evidence also showed that between January 2015 and January 2017, Petrossi solicited more than $1.8 million in investments in Chadwicke Partners from more than 25 investors nationwide including an investor residing in the Middle District of Pennsylvania. Petrossi promoted Chadwicke as providing the opportunity to invest in high-profile startups companies such as Lyft, Inc., Maplebear Inc., Pinterest Inc., Spotify Technology SA, and Palantir Technologies, Inc. among others. Petrossi invested approximately $665,400 in privately held startup companies but used more than $1.1 million in investor funds to pay for personal expenses, including payments to BMW, renovations to his home and to pay his personal legal fees. In or around August 2016, Petrossi sent emails to Chadwicke investors attaching a spreadsheet that contained false and misleading statements about the purchase price and value of the securities held by the Chadwicke funds in order to conceal his misappropriation of investor money.
On May 3, 2016, Petrossi was arrested in Nevada pursuant to an indictment returned by a federal grand jury in the Eastern District of New York for his role in a securities fraud scheme involving the securities of ForceField Energy Inc. Under the terms of Petrossi’s pre-trial release, the defendant was prohibited from employment “directly involving the handling of investors.” Between May 3, 2016 and approximately January 2017, Petrossi continued to engage in the Chadwicke scheme by emailing the August 2016 spreadsheet and soliciting $210,000 in investor funds.
Petrossi faces a maximum of 20 years’ imprisonment on each count of conviction when he is sentenced by Chief Judge Conner of the Middle District of Pennsylvania.
Petrossi was convicted in May 2017 by a federal jury in Brooklyn for his role in the ForceField Energy Inc. market manipulation scheme. He faces a maximum sentence of 20 years’ imprisonment when he is sentenced by United States District Judge Brian M. Cogan of the Eastern District of New York.
Assistant United States Attorney Mark E. Bini of the Eastern District of New York and Special Assistant United States Attorney John O. Enright of the United States Securities and Exchange Commission’s Enforcement Division prosecuted the case.
The matter was investigated by the United States Securities and Exchange Commission’s Enforcement Division.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Bedford Seafood Manager Sentenced for Tax EvasionRead the Press Release
BOSTON – A New Bedford seafood manager was sentenced today in federal court in Boston for failing to report $75,000 in earnings on his tax returns.
Orlando Cardoso, 44, was sentenced by U.S. District Court Chief Judge Patti B. Saris to one year of probation, 10 months of which will be served in home confinement. Judge Saris also ordered Cardoso to pay $24,998 in restitution to the United States government. In November 2017, Cardoso pleaded guilty to two counts of filing a false income tax return.
Cardoso swore on his 2012 and 2013 tax returns that the only income he had received was from his employer. However, Cardoso had received over $75,000 in cash and checks from his employer’s supplier and failed to report the income on his tax returns.
United States Attorney Andrew E. Lelling and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Lelling’s Economic Crimes Unit prosecuted the case.
Multiple Defendants Sentenced for Violent Crimes and Drug TraffickingRead the Press Release
OXFORD – A Clarksdale man, the final defendant in a multi-defendant conspiracy, has been sentenced to 400 months in federal prison resulting from his role in a murder and heroin distribution conspiracy in the Northern District of Mississippi. Derrick Jones was sentenced for his crimes in United States District Court Thursday afternoon.
Multiple fatal opioid overdoses and hospitalizations in the Mississippi Delta spurred an investigation between the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Bureau of Narcotics, and the United States Attorney’s Office. This investigation unveiled a large heroin and cocaine trafficking organization, operating predominately in Coahoma County, Mississippi. This joint investigation involved numerous search warrants, arrests, and convictions. In all, twelve defendants were sentenced in federal court for their roles in this drug trafficking conspiracy.
William C. Lamar, U.S. Attorney for the Northern District of Mississippi, Joseph Frank, Supervisory Special Agent for the Oxford Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Warner Benson, Resident Agent in Charge of the Oxford Office of the DEA, Terry Spillers, Captain of the Mississippi Bureau of Narcotics Oxford District Office and the Mississippi Bureau of Investigation made the announcement.
“Under the leadership of Attorney General Sessions and Deputy Attorney General Rosenstein, our mission is to make our neighborhoods safe. With the dismantling of this organization, Clarksdale, Mississippi, is safer. Pursuant to Project Safe Neighborhood, Organized Crime Drug Enforcement Task Force, and other programs, we, with our state and local partners, will continue to pursue dangerous organizations and individuals to the fullest extent in every corner of our district,” said U.S. Attorney William C. Lamar.
Below, are the twelve co-conspirator’s charges and sentences, made possible by the Project Safe Neighborhood Initiative and OCDETF investigation:
- Derrick Jones pleaded guilty in July of 2017 to one count of conspiracy to distribute heroin and one count of murder. U.S. District Judge Debra M. Brown sentenced Jones to a total of 400 months imprisonment, followed by 5 years of supervised release.
- Steven Haynes pleaded guilty in June of 2017 to one count of conspiracy to distribute heroin in excess of 100 grams and one count of conspiracy to commit money laundering. Judge Brown ordered Haynes to serve a total of 240 months in custody, followed by 5 years of supervised release.
- Heroin supplier, Errick Hackler, of Chicago, Illinois, pleaded guilty in April of 2016 to one count of conspiracy to distribute heroin in excess of 100 grams and one count of conspiracy to commit money laundering. Judge Brown ordered Hackler to serve a total of 67 months in custody, followed by 5 years of supervised release.
- Craig Haynes of Clarksdale, Mississippi, pleaded guilty in June of 2017 to one count of conspiracy to distribute heroin in excess of 100 grams. Judge Brown ordered Haynes to serve 85 months in custody, followed by 5 years of supervised release.
- Mark Connor of Clarksdale, Mississippi pleaded guilty to accessory to murder, after the fact, during and in relation to a drug trafficking crime. In November of 2016, U.S. District Judge Neal B. Biggers, Jr. sentenced Connor to 70 months in custody, followed by 3 years of supervised release.
- Cordarell Johnson of Clarksdale, Mississippi, pleaded guilty in April of 2016 to one count of conspiracy to distribute heroin in excess of 100 grams. Judge Brown ordered Johnson to serve 75 months in custody, followed by 5 years of supervised release.
- Octavious Conner of Clarksdale, Mississippi, pleaded guilty in April of 2016 to one count of conspiracy to distribute heroin in excess of 100 grams. Judge Brown ordered Conner to serve 35 months in custody, followed by 5 years of supervised release.
- Antonio Lewis of Clarksdale, Mississippi, pleaded guilty in April of 2016 to one count of conspiracy to distribute heroin in excess of 100 grams. Judge Brown ordered Lewis to serve 84 months in custody, followed by 5 years of supervised release.
- Frank Williams of Clarksdale, Mississippi, pleaded guilty in April of 2016 to one count of conspiracy to distribute heroin and one count of possession of a firearm as a felon. Judge Brown ordered Williams to serve a total of 67 months in custody, followed by 3 years of supervised release.
- Reginald Murray of Clarksdale, Mississippi, pleaded guilty in January of 2016 to two counts of distribution of heroin. Judge Brown ordered Murray to serve 37 months in custody, followed by 3 years of supervised release
- Sidney Avant, Jr. pleaded guilty in July 2017 to corruptly obstructing an investigation by the DEA, ATF and Federal Grand Jury. Judge Brown ordered Avant to serve 18 months in custody, followed by 3 years of supervised release.
- Sidney Avant III pleaded guilty in July 2017 to corruptly obstructing an investigation by the DEA, ATF and Federal Grand Jury. Judge Brown ordered Avant to serve 14 months in custody, followed by 3 years of supervised release.
These charges were the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a federal multi-agency, multi-jurisdictional task force that provides supplemental funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations pursuant to the Project Safe Neighborhood anti-violent crime initiative. Several agencies were crucial to this investigation, including the DEA, ATF, the U.S. Marshals Service, FBI Crime Laboratory, the Clarksdale Police Department, Mississippi Bureau of Narcotics, Mississippi Bureau of Investigations, Mississippi Highway Patrol, Mississippi National Guard Counter-Drug Unit, Quitman County, Mississippi Sheriff’s Department, and the Coahoma County Mississippi Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorneys Scott Leary, Clyde McGee, Jamiel Wiggins and Sam Wright, with the assistance of Intelligence Specialist, Paul Rowlett.
Muksedur Rahman, Md. Rafiqul Islam and David Trung Quoc Phan Sentenced for Mail Fraud, Fraud in Foreign Labor Contracting, and Visa FraudRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Muksedur Rahman, Mohammad Rafiqul Islam, and David Trung Quoc Phan were sentenced today by designated Senior District Court Judge John C. Coughenour from the Western District of Washington, on two counts of Mail Fraud, three counts of Fraud in Foreign Labor Contracting, and one count of Visa Fraud.
Defendant Muksedur Rahman was sentenced to 48 months in prison, three years of supervised release after incarceration, and restitution to the victims in the amount of $188,426.00. Defendant Mohammad Rafiqul Islam was sentenced to 18 months in prison, three years of supervised release after incarceration, and restitution to the victims in the amount of $188,426.00. Defendant David Trung Quoc Phan was sentenced to 8 months in prison, and two years of supervised release after incarceration.
The defendants defrauded Bangladeshi men by promising them good-paying jobs in the United States, as well as ‘Green Cards’. The victims paid over $15,000.00 each, but when they arrived in Saipan in April of 2016, they were not given work as promised. Defendant Mohammad Rafiqul Islam and unindicted co-conspirators in Bangladesh recruited the men, collected large fees from them, and deposited them into the bank accounts of defendants’ family members in Bangladesh. Defendant Muksedur Rahman coordinated the recruitment and employment of the victims from Saipan. A necessary part of the scheme required the purported employer, Defendant David Trung Quoc Phan, to mail fraudulent applications to United States Citizenship and Immigration Services in order to obtain CNMI-only work authorization permits. The victims were also ‘coached’ to lie to U.S. Embassy personnel in Dhaka during their visa interviews; the Defendants told the victims not to admit they had paid any fees for their jobs, upon pain of losing all the money they had already paid.
United States Attorney Shawn N. Anderson released the following statement: “The CNMI has been plagued by illegal recruitment scams for more than 20 years. They are difficult and expensive cases to investigate and prosecute because of the need for qualified interpreters, and because many of the transactions occur overseas, diplomatic channels must be used to obtain that evidence.”
“In this case, the victims sold virtually everything they owned, and borrowed large sums of money in order to raise the money to pay the defendants. They and their families in Bangladesh have suffered substantial financial hardship caused by the defendants’ actions. Such crimes also impact the economy of the CNMI, in that every CW-1 permit approved for a sham employer for a non-existent job represents one less nurse at the Commonwealth Health Center, one less power plant operator for the Commonwealth Utilities Commission, or one less worker for the CNMI economy. The United States Attorney’s Office will continue to pursue these cases at every opportunity.”
Part of the evidence in the case consisted of official bank records obtained from the Government of Bangladesh pursuant to a mutual legal assistance letter request (MLAT) prepared by the U.S. Department of Justice’s Office of International Affairs (OIA). The case against Defendant Rahman and his co-defendants is the first NMI District case in which foreign evidence has been obtained through the MLAT process.
Special Agents and Task Force Officers from the Department of Homeland Security, Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorneys James Benedetto and Eric O’Malley prosecuted the case.
Monongalia County woman and Harrison County woman sentenced for their roles in oxycodone distribution ringRead the Press Release
CLARKSBURG, WEST VIRGINIA –Two women were sentenced today to a combined five years incarceration for their roles in an oxycodone distribution operation, United States Attorney Bill Powell announced.
Amanda Gifford, 26, of Morgantown, West Virginia, was sentenced today to 46 months incarceration. Gifford pled guilty to one count of “Unlawful Use of Communication Facility” in November 2017. She admitted to using a telephone to help distribute oxycodone in March 2017 in Monongalia County.
Brandy Miller, of Salem, age 29, was sentenced to 15 months incarceration. Miller pled guilty to “Unlawful Use of Communication Facility” in November 2017. Miller admitted to using a phone to assist others in distributing oxycodone in March 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Mississippi Resident Charged with Making False Statement to United States Coast Guard and for Unlawful Use of Merchant Mariner CredentialsRead the Press Release
JEFFREY M. DESALVO, age 35, a resident of Picayune, Mississippi, was charged today in a five-count indictment for making false statements to the United States Coast Guard and for unlawful use of a merchant mariner license in violation Title 18, United States Code, Sections 1001 and 2197, respectively.
According to court documents, on February 4, 2015, DESALVO entered into a settlement with the U.S. Coast Guard wherein he agreed to surrender his merchant mariner credentials in lieu of having them permanently revoked. In connection with the settlement agreement, DESALVO submitted an affidavit to the U.S. Coast Guard in which he stated that his credentials had been destroyed, when, in truth and fact, his credentials had not been destroyed. In addition to the foregoing, DESALVO illegally used his suspended credentials to obtain work as a boat captain for four different companies that operated on the Mississippi River. If convicted, DESALVO faces a maximum term of imprisonment of not more than five (5) years, a supervised release term of three years, and a fine of $250,000.00 for each count.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Coast Guard in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican citizen sentenced to 5 years in prison for transporting methamphetamine near MonroeRead the Press Release
MONROE, La. – United States Attorney Alexander C. Van Hook announced that a Mexican national was sentenced Tuesday to 60 months in prison for possessing methamphetamine.
Jorge Alberto Morales-Villanueva, 22, of Ciudad Juarez, Mexico, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute methamphetamine. He was also sentenced to three years of supervised release. According to the October 10, 2017 guilty plea, a Louisiana State trooper stopped the van Morales-Villanueva was driving on March 5, 2017, which was traveling eastbound on Interstate 20 near Monroe. The trooper searched the vehicle and found a compartment underneath the front passenger seat that contained 19 packages containing a total of 26 pounds of methamphetamine. The defendant said he was paid $5,000 to transport the drug from Texas to Georgia.
Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Members of Wilmington Bloods Gang Sentenced in Federal CourtRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday, TYKE’EKE MONTE HINES, 19, of Wilmington, North Carolina, was sentenced in federal court by Chief United States District Judge, James C. Dever, III, to 84 months imprisonment after having been convicted of providing a firearm to a convicted felon.
“A top priority of the U.S. Attorney’s Office is to reduce the levels of violent crime and gang activity that are terrorizing communities in our District. This prosecution is an example of how we will combat violent gang members and hold them accountable,” said Robin Pendergraft, Criminal Chief for the U.S. Attorney’s Office.
“The FBI is committed to dismantling the violent gangs that threaten the safety and stability of our neighborhoods. This investigation is an outstanding example of what federal, state, and local law enforcement can accomplish when we combine resources to address a threat,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
An investigation by federal and state law enforcement agencies revealed that HINES was member of the Nine Trey Gangsters (“Nine Trey”), a subset of the United Blood Nation (“UBN”) street gang responsible for widespread drug distribution and violent crime in the Wilmington area.
During the months of July and August of 2016, law enforcement intercepted the communications of Nine Trey gang-leader KEJUAN SMITH pursuant to a federal Title III wiretap order. SMITH was intercepted communicating with subordinate gang members on a daily basis in furtherance of drug transactions, extortion, firearms offenses, and other gang-related crime.
In early-August, 2016, intercepted communications exposed a conflict between SMITH and the leader of a UBN set in Goldsboro. As the conflict escalated, SMITH coordinated with his subordinate gang members to gather firearms belonging to the Nine Trey and to prepare for an armed confrontation.
On August 4, 2016, SMITH, HINES, and others stockpiled firearms and ammunition at a Wilmington residence in anticipation of traveling to Goldsboro the following day to carry out a hit on the rival gang member. That evening, law enforcement executed a search warrant at the residence, resulting in the seizure of firearms and ammunition, including: one AR-22 .22 caliber assault rifle with attached 30 round magazine; one .38 caliber revolver; two stolen 9mm handguns; one stolen .40 caliber handgun; one stolen .45 caliber handgun; one .45 caliber handgun; one .38 caliber Derringer; one .40 caliber handgun loaded with 10 rounds of ammunition; one .22 caliber handgun loaded with 5 rounds of ammunition; one .22 caliber handgun loaded with nine rounds of ammunition; one 12 gauge shotgun; one .223 caliber assault rifle with an attached 30 round magazine; one extended magazine containing 26 rounds of 9mm ammunition; one 29 round magazine containing eight .40 caliber rounds of ammunition; 50 rounds of .223 ammunition; one .40 caliber round of ammunition; twenty-five .22 caliber rounds of ammunition; eleven 9mm rounds of ammunition; 2 magazines containing seven 5.56 rounds of ammunition; one .22 caliber round of ammunition; and one military grade ballistic vest.
Multiple co-defendants were charged and have already been sentenced in federal court in connection with this prosecution:
KEJUAN TIZOM SHABAZZ SMITH was convicted of conspiracy to distribute heroin and firearms offenses and sentenced to 327 months imprisonment. KASHIF ARDE RHODES was convicted of possession of a firearm by felon and sentenced to 102 months imprisonment. KHALIL DJOUR TRUESDALE was convicted of conspiracy to distribute heroin and sentenced to 78 months imprisonment. THEODORE PIERCE was convicted of heroin distribution and firearms offenses and sentenced to 102 months imprisonment. THEODORE HARDY was convicted of heroin distribution and sentenced to 84 months imprisonment. TAKEEM LEINARD COLLINS was convicted of conspiracy to distribute heroin and sentenced to 30 months imprisonment. NYQUAY AKEI ROUSE was convicted of heroin distribution and sentenced to 16 months imprisonment. DAENZAL MURPHY was convicted of heroin distribution and sentenced to 14 months imprisonment. ALICIA RASHAWN JOHNSON was convicted of heroin distribution and sentenced to 13 months imprisonment. DARRELL TYKWAN ATKINSON was convicted of heroin distribution and sentenced to 14 months imprisonment.
This case was brought as a part of an Organized Crime Drug
Enforcement Task Force (OCDETF) Operation investigating narcotics distribution and gang activity.
Investigation of this case was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of the FBI Charlotte Division’s Wilmington Resident Agency, the Wilmington Police Department, New Hanover County Sheriff’s Office, North Carolina State Highway Patrol, Onslow County Sheriff's Office, Jacksonville Police Department, and the Carteret County Sheriff's Office. Assistant United States Attorney Toby Lathan handled the prosecution of this case for the Government.
Mechanicsburg Businessman Sentenced to One Year and One Day in Prison for Failure to Pay Federal Payroll TaxesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas A. Long, age 30, of Mechanicsburg, Pennsylvania, was sentenced on March 8, 2018, to one year and one day and three years’ supervised release by United States District Court Judge Sylvia H. Rambo for willful failure to pay federal payroll taxes.
According to United States Attorney David J. Freed, Long pleaded guilty in October 2017, to an information charging him with the willful failure to pay federal payroll taxes owed by his business, Harrisburg Commercial Interiors, LLC during 2013.
An Internal Revenue Service (IRS) investigation revealed that Long, through his solely owned commercial drywall business, Harrisburg Commercial Interior, LLC (HCI), willfully did not pay $216,304 in payroll taxes during 2013 and 2014. The IRS investigation began when several HCI employees contacted the IRS because they did not receive their 2013 income tax refunds.
As the owner of HCI, Long exercised primary control over the financial affairs of the business, was solely responsible for issuance of all paychecks, and had sole signature authority on HCI's business bank account. Although he issued payroll checks totaling $730,788 in gross wages during 2013 and 2014, Long did not file the requisite Employer's Quarterly and Annual Federal Tax Returns, Forms and 940, with the IRS, nor pay over the $160,399 he withheld from his employees’ pay checks to the government.
Judge Rambo also ordered Long to make full restitution in the amount of $216,304. Long made $140,000 in payments prior to his sentencing leaving $76,304 owed.
“Business owners like Mr. Long have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS,” stated Ed Wirth, Acting Special Agent in Charge. “The failure to do so is a crime, and the Special Agents of IRS Criminal Investigation will continue to vigorously pursue action against those who commit these types of offenses.”
The case was investigated by the Harrisburg Office of the IRS Criminal Investigation and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Martin Shkreli Sentenced to Seven Years’ Imprisonment for Multi-Million Dollar Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Martin Shkreli was sentenced by United States District Judge Kiyo A. Matsumoto of the Eastern District of New York to seven years’ imprisonment for committing securities fraud and securities fraud conspiracy, to be followed by three years’ supervised release. The Court also ordered Shkreli to pay a $75,000 fine and $7.3 million in forfeiture. Earlier this week, the Court signed a Preliminary Order of Forfeiture, which will allow the government to seize substitute assets to satisfy the forfeiture judgment if necessary, including $5 million held in an account that had been used to secure Shkreli’s bail, the “Once Upon A Time in Shaolin” album by the Wu Tang Clan, the “Tha Carter V” album by Lil Wayne, and a Picasso painting.
Shkreli was the founder and managing member of hedge funds MSMB Capital Management LP (MSMB Capital) and MSMB Healthcare Management LP (MSMB Healthcare) and the former Chief Executive Officer of Retrophin Inc. (Retrophin), a biopharmaceutical company that trades under the ticker symbol RTRX. He was convicted by a federal jury in August 2017, following a six-week trial, of two counts of securities fraud and one count of securities fraud conspiracy. In September 2017, the Court found that Shkreli had violated his bail conditions by making online threats against former U.S. Secretary of State Hillary Clinton, and remanded him into custody at the Metropolitan Detention Center, where he is currently incarcerated.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“For years, Shkreli told lie after lie in order to steal his investors’ money, manipulate the stock market and enrich himself,” stated United States Attorney Donoghue. “He will now pay the price for repeatedly violating the trust placed in him by his investors, his employees and the public. It remains a priority of this Office, together with our law enforcement partners, to identify, investigate and bring to justice criminals like Shkreli.” Mr. Donoghue thanked the Securities and Exchange Commission, New York Regional Office (SEC), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their significant cooperation and assistance in this case.
“Martin Shkreli was notoriously ambitious, seeking to enrich himself at the expense of those who unwittingly invested in his lies,” stated FBI Assistant Director-in-Charge Sweeney. “His crimes have been laid bare for all to see, and his intentions, which have been proven true beyond a reasonable doubt, resulted in this sentencing today. While we can now close this chapter of our investigation, our efforts continue to uncover and expose all crimes of this nature that claim innocent victims and defraud our financial markets.”
The evidence at trial established that Shkreli, who was convicted on three counts of the superseding indictment, alleging securities fraud (Counts Three and Six) and securities fraud conspiracy (Count Eight), executed three schemes to defraud investors:
As charged in Count Three, between 2009 and 2014, Shkreli used false representations and omissions to induce investors to invest more than $3 million in MSMB Capital, a hedge fund he founded in 2009. Subsequently, following trading losses, Shkreli sent fabricated performance updates to investors, boasting that the fund had made big profits when, in fact, it had sustained substantial losses. In addition, Shkreli withdrew more than $200,000 from MSMB Capital, far more than the one percent management fee and the 20 percent net profit incentive allocation permitted by the fund’s partnership agreement.
As charged in Count Six, between 2011 and 2014, Shkreli used false representations and omissions to induce investors to invest more than $5 million in MSMB Healthcare, a hedge fund founded by Shkreli after the implosion of MSMB Capital. Additionally, Shkreli used MSMB Healthcare assets to pay obligations that were not MSMB Healthcare’s responsibility. As with the MSMB Capital scheme, Shkreli withdrew more from MSMB Healthcare than the one percent management fee and the 20 percent net profit incentive allocation permitted by the fund’s partnership agreement.
As charged in Count Eight, between 2012 and 2014, Shkreli and his co-defendant Evan Greebel, an attorney who served as outside counsel to Retrophin, engaged in a scheme to defraud investors and potential investors in Retrophin by attempting to illegally control the price and trading volume of Retrophin’s stock. Greebel and Shkreli executed this scheme by, among other things, concealing Shkreli’s beneficial ownership and control of the majority of Retrophin’s free-trading shares. Greebel and Shkreli recruited associates of Shkreli to be nominee shareholders for the majority of Retrophin’s free-trading shares, and they also filed a false document with government regulators to hide the fact that Shkreli controlled those shares. Greebel and Shkreli prevented the nominee shareholders from selling these shares, and also directed that some of the shares be used to settle liabilities owed by the MSMB hedge funds and Shkreli.
In addition, Judge Matsumoto ruled in a decision issued on February 26, 2018 in connection with the sentencing, that the government had also proven by a preponderance of the evidence that Shkreli had engaged in a fourth fraud scheme, the wire fraud conspiracy charged in Count Seven of the superseding indictment. Specifically, the evidence at trial established by a preponderance that between 2011 and 2014, Shkreli conspired with Greebel and others in a scheme to misappropriate Retrophin’s assets in order to pay off defrauded investors in MSMB Capital and MSMB Healthcare. As part of this scheme, Shkreli and Greebel caused Retrophin to enter into so-called “settlement” agreements with certain defrauded MSMB Capital and MSMB Healthcare investors, which caused Retrophin to reimburse those investors more than $2 million in cash and stock for their lost investments in Shkreli’s hedge funds even though Retrophin was not responsible for those losses. Shkreli and Greebel also arranged for certain other defrauded investors to enter into sham consulting agreements with Retrophin as a means to settle liabilities owed by Shkreli and the hedge funds. In total, the settlement and sham consulting agreements caused losses to Retrophin of over $10 million.
In a separate trial in December 2017, Greebel was convicted of wire fraud conspiracy (Count Seven) and securities fraud conspiracy (Count Eight), following an 11-week trial. He is awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Alixandra E. Smith and G. Karthik Srinivasan are in charge of the prosecution, with assistance from Assistant United States Attorneys Laura Mantell and Claire Kedeshian of the Office’s Asset Forfeiture Section.
The Defendants:
MARTIN SHKRELI
Age: 34
Manhattan, New YorkEVAN GREEBEL
Age: 44
Scarsdale, New YorkE.D.N.Y. Docket No. 15-CR-637 (KAM)
Man Charged with Misuse of Social Security Card and Resident Alien CardRead the Press Release
U.S. Attorney Duane A. Evans announced that JESUS MATEHUALA-CABALLERO, a/k/a Francisco Rodriguez, age 40, a resident of Amite, was charged in a two count indictment with fraud and misuse of a social security card and resident alien card, in violation of 18 U.S.C. 1546(a).
According to the indictment, on or about July 10, 2015, JESUS MATEHUALA-CABALLERO, used a fraudulent a social security card and fraudulent resident alien card for the purposes of obtaining employment knowing that he had never been lawfully issued a Social Security card or a resident alien card.
If convicted, JESUS MATEHUALA-CABALLERO faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. The prosecution is being handled by Assistant U.S. Attorney Emily K. Greenfield.
Madawaska Man Pleads Guilty to Illegally Importing Methylphenidate and AlprazolamRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Tristan Nelson, 39, of Madawaska, Maine pleaded guilty Wednesday afternoon in U.S. District Court to illegally importing methylphenidate, which is commonly sold under the trade name Ritalin, and alprazolam, which is commonly sold under the trade name Xanax.
According to court records, on February 22, 2017, a mail package from the Philippines addressed to the defendant arrived at the Madawaska post office. The package contained about 950 methylphenidate pills and about 450 alprazolam pills. The defendant came to the post office and accepted the package. The defendant later admitted to agents that he purchased the pills online, that he knew the pills were shipped to him from outside of the United States, and that he intended to distribute some of the pills.
The defendant faces up to 20 years in prison, between three years and life on supervised release, and a $1,000,000 fine for importing methylphenidate. He faces up to 5 years in prison and between one year and life on supervised release, and a $250,000 fine for importing alprazolam. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration & Customs Enforcement’s Homeland Security Investigations and the U.S. Postal Inspection Service.
Lorton Man Sentenced for Attempted Armed RobberyRead the Press Release
ALEXANDRIA, Va. – A Lorton man was sentenced today to 16 years in prison for attempted robbery, attempted possession of marijuana with intent to distribute, and the use and discharge of a firearm during those crimes.
Thomas Todd, 33, was convicted by a federal jury on Sept. 19, 2017. According to court records and evidence presented at trial, Todd conspired to rob a drug dealer at gunpoint in the basement of an apartment building in Lorton. The drug dealer arrived at the apartment building with an armed associate on the evening of June 24, 2016, and a shootout occurred in the lobby.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Jonathan Fahey and Special Assistant U.S. Attorneys Ankush Khardori and Samuel Lord prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-24
Lincoln Resident Sentenced for Conspiracy to Distribute Drugs and Conspiracy to Launder MoneyRead the Press Release
United States Attorney Joseph P. Kelly announced that on March 9, 2018, Aurelio Martinez Rodriguez, 45, a Mexican national who resided in Lincoln, was sentenced to concurrent prison sentences of nine years, (108 months), for conspiracy to distribute methamphetamine and cocaine and for conspiracy to money launder. Following the prison term, Martinez will serve five years on supervised release. However, he is likely to be deported to Mexico at the conclusion of his prison sentence.
Information provided to law enforcement indicated that between May of 2014 and April of 2017, Martinez was involved in the distribution of methamphetamine and cocaine, which was transported by other members of the conspiracy from Texas to Lincoln, Nebraska. Martinez also helped launder money by depositing cash proceeds from the sale of methamphetamine and cocaine into bank accounts in Lincoln held by other members of the conspiracy who would then withdraw the funds in Texas. Martinez was held responsible for the distribution of at least 150 grams (approximately 5¼ ounces) of pure methamphetamine, at least 1.5 kilograms (approximately 3 pounds) of methamphetamine mixture and at least two kilograms (over 4 pounds) of cocaine. During a search of Martinez’s residence on April 24, 2017, officers found over 190 grams (6¾ ounces) of pure methamphetamine, over 168 grams (6 ounces) of methamphetamine mixture, and over 280 grams (10 ounces) of cocaine, along with a scale and packaging materials.
Martinez agreed to the forfeiture of a credit union account containing more than $11,500, and surrendered an additional $25,000 in return for the government’s agreement not to seek forfeiture of his Lincoln residence.
This case was investigated by the Lincoln/Lancaster County Drug Task Force; the Nebraska State Patrol; the Federal Bureau of Investigation (FBI); the Drug Enforcement Administration (DEA); Homeland Security Investigations (HSI) and the United States Marshals Service.
Lee's Summit Man Sentenced for Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for distributing child pornography over the Internet.
Clark H. Henshaw, 37, of Lee’s Summit, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On June 9, 2017, Henshaw pleaded guilty to one count of distributing child pornography over the Internet.
The investigation began in July 2013 when federal agents contacted a man in Bangor, Maine, who was trading child pornography on a photo-sharing website. Henshaw was identified as one of his primary trading partners to whom he sent images and videos of his sexual abuse of two 6-to-7-year-old boys. Each of those trading partners, he told federal agents, also claimed to have manufactured the child pornography they were sending to him.
Clark received 34 images of child pornography from his trading partner in Maine, including several images of him sexually molesting two prepubescent boys. Investigators learned that Henshaw sent two e-mail messages to other individuals on Aug. 20, 2013, that contained some of those images of child pornography.
On Feb. 13, 2014, federal agents executed a search warrant at Henshaw’s residence. Henshaw and his mother were home during the execution of the search warrant, however, agents had to force entry because no one would answer the door. They seized Henshaw’s cell phone, which contained 10 child pornography movie file downloads.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
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."
Last member of drug conspiracy arrested at Bossier City casino sentenced to 10 years in prisonRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that the last defendant in a Shreveport methamphetamine distribution ring was sentenced Thursday to 120 months in prison.
Carlos Delarosa, 22, of Dallas, Texas, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. He was also sentenced to five years of supervised release.
According to the guilty pleas, Delarosa traveled on March 29, 2017 from Dallas to Shreveport with 454 grams of methamphetamine. He distributed some of the methamphetamine to co-defendant Christopher Hudson, 22, of Greenwood, La. Hudson later traveled to a Shreveport casino and was arrested. After a brief investigation, law enforcement agents arrested Delarosa in addition to co-defendants Amone Louangamath, 42, of Shreveport, La., and Daniel Koelemay, 41, of Bossier City, La., at a casino in Bossier City. Upon Delarosa’s arrest, agents found a drug ledger inside his front right pants pocket. Agents found Louangamath carrying a black bag that contained methamphetamine in clear plastic bags, two cell phones, digital scales and $3,250. Agents also found 196.9 grams of methamphetamine, 33.7 grams of powder cocaine and a .9 mm Makarov semi-automatic handgun with seven rounds of ammunition in a safe in Delarosa’s hotel room. Delarosa admitted to transporting methamphetamine to Shreveport on five separate occasions. On three occasions, he told agents that he transported a total of 756 grams and on two occasions transported a total of 1 kilogram.
The three other defendants previously pleaded guilty to the conspiracy count. Koelmay and Hudson were each sentenced on November 20, 2017 to 46 months in prison and three years of supervised release. Louangamath was sentenced on February 28, 2018 to 37 months in prison and three years of supervised release.
The DEA and Caddo Parish Sheriff’s Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Lakeville Man Indicted for Precious Metals Investment SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the indictment of DAVID THOMAS ROUGIER, 45, on one count of mail fraud and one count of wire fraud. ROUGIER made his initial appearance yesterday before Magistrate Judge Franklin L. Noel in U.S. District Court in Minneapolis, Minn.
As alleged in the indictment, in or around late 2010, ROUGIER began soliciting clients to invest in precious metals by purchasing gold and silver through him. Between 2013 and 2014, ROUGIER began telling his victim-investors that he had found a company, which he identified as “TAUG Limited” (“TAUG”) that would guarantee to purchase their gold and silver for a set price on a designated future date, typically three years from the date they signed a contract with TAUG. ROUGIER presented some of his victim-investors with a purported contract between them and TAUG, under which they were charged various fees, including an annual “asset management fee,” typically between $1,000 and $2,000, in order to avail themselves of the guaranteed purchase price. In reality, the annual fees were always paid to ROUGIER and ROUGIER never purchased any gold or silver for his victim-investors.
As alleged in the indictment, in July 2017, ROUGIER represented that a different company, “Industrial and Commercial Bank of China (Asia) Limited” (“ICBC”), had taken over TAUG’s contracts. ROUGIER represented that ICBC would honor TAUG’s existing contracts and offered new clients essentially the same services.
As alleged in the indictment, between November 2010 and June 2017, more than a dozen individuals paid ROUGIER approximately $740,000 based upon his promises that he was using their money to buy gold and silver and, in some cases, that their investments were protected through the TAUG/ICBC contracts. Instead of purchasing gold and silver as promised ROUGIER spent hundreds of thousands of dollars of victims’ money on shopping trips, entertainment, travel, strip clubs and other personal expenses.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan is prosecuting the case.
Defendant information:
DAVID THOMAS ROUGIER, 45
Lakeville, Minn.
Charges:
- Mail Fraud, 1 count
- Wire Fraud, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Knoxville Resident Charged with Methamphetamine and Fentanyl Conspiracy Resulting in at Least One Overdose DeathRead the Press Release
KNOXVILLE, Tenn. – On March 6, 2018, a federal grand jury returned a four-count indictment against Ricky Davis, 44 of Knoxville, Tennessee, for his role in a conspiracy to distribute methamphetamine and fentanyl analogues resulting in the death of at least one person. Davis appeared in court on March 7, 2018, before U.S. Magistrate Judge H. Bruce Guyton and pleaded not guilty to the charges in the indictment. He was ordered to be held in custody pending a formal detention hearing.
Trial has been set for May 8, 2018, before the Honorable Pamela L. Reeves, U.S. District Court Judge. If convicted, Davis faces life in prison and fines of up to $20,000,000.
In addition to the conspiracy charge referenced above, the indictment alleges that Davis distributed a quantity of methamphetamine and fentanyl analogues that resulted in the death of at least one person, an additional distribution of methamphetamine, and possession of methamphetamine with the intent to distribute.
U.S. Attorney J. Douglas Overbey said, “As the opioid crisis continues, cheaper and more powerful opioid drugs, such as fentanyl, are increasingly being sought by those who became addicted to prescription opioids. These fentanyl drugs are especially deadly, whether taken alone or with other narcotics such as methamphetamine. Recent statistics provided by the AHIDTA Drug Related Death Task Force show that three to four individuals die from overdoses every week in the city of Knoxville alone. This must stop. My office will prosecute aggressively the drug dealers who market this deadly poison on our streets.”
“We appreciate the collaborative team effort that went into this investigation that resulted in the charges in this case,” said Knoxville Police Chief David Rausch. “The deaths associated with the opioid crisis continue to rise and we must hold those responsible for dealing these drugs accountable for their actions. Fentanyl and its derivatives are being combined in all drugs on the street and it is killing too many in our community and families are devastated. The message to the drug dealers should be clear, we will hold you accountable. We appreciate the full support of the U.S. Attorney in this effort,” added Chief Rausch.
This indictment is the result of an investigation by the Knoxville Police Department (KPD) and Appalachia HIDTA Drug Related Death Task Force. The task force includes members of the KPD, Drug Enforcement Administration, Knox County District Attorney’s Office, and Regional Forensic Center. Other components of the KPD, including members of the Violent Crimes Unit and the Patrol Division, as well as other agents of the DEA, also participated in the investigation. Assistant U.S. Attorney Tracy L. Stone will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Jury Convicts Schenectady Man of ArsonRead the Press Release
ALBANY, NEW YORK – A jury today voted to convict Duane Griffin, age 35, of Schenectady, New York, of setting fire to a Union Street building, following a 4-day trial.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The evidence at trial demonstrated that on March 17, 2012, Griffin, while in possession of a hand-held propane torch, climbed the fire escape of the building located at 605 Union Street in Schenectady and entered the building through either a second-story window or doorway. Once inside the building, Griffin used the torch to set the building on fire. Griffin then fled the scene in his pick-up truck – which was captured by nearby bank surveillance video. The resulting fire caused significant structural damage to the building, resulting in a finding that the building was a public safety hazard. The building was demolished a few days after the fire.
Griffin will be sentenced on July 6, 2018 by United States District Judge Mae A. D’Agostino. He faces at least 5 years and up to 20 years in prison and up to 3 years of post-imprisonment supervised release.
This case was investigated by the ATF and Schenectady Fire Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Inmate at FCIBerlin Pleads Guilty to Attempted Drug PossessionRead the Press Release
CONCORD –United States Attorney Scott W. Murray announced today that Antonio Priester, 37, an inmate at FCI-Berlin pleaded guilty to one count of attempting to possess prohibited objects within a federal prison. Priester admitted the prohibited objects he was attempting to possess were Schedule I controlled substances known as DMT and jwh-018.
According to documents filed with the court and statements made at the change of plea hearing, in March 2017 Priester sent a number of emails to several individuals directing them to websites through which the controlled substances could be obtained. He directed one individual to purchase jwh-018 from a particular website. Priester also provided directions for sneaking the substances into the prison.
A sentencing hearing is scheduled for June 15th, 2018 at the United States District Court. According to federal law, any sentence imposed in connection with this charge must be served consecutively to any sentence currently be served by Priester.
The Bureau of Prisons investigated this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Immigration Attorney Sentenced to More Than Six Years in Prison for Fraud Scheme and Identity Theft in Relation to Visa ApplicationsRead the Press Release
An Indianapolis, Indiana immigration attorney was sentenced today to 75 months in prison for defrauding the U.S. Citizenship and Immigration Services (USCIS) and more than 250 of his clients by filing fraudulent visa applications and reaping approximately $750,000 in illegitimate fees. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge James M. Gibbons of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Chicago made the announcement.
Joel Paul, 45, of Fishers, Indiana, was sentenced by U.S. District Judge Jane E. Magnus-Stinson of the Southern District of Indiana. In addition to the prison sentence, Judge Magnus-Stinson sentenced Paul to serve three years of supervised release, and ordered that he pay up to $750,000 in restitution to his victims. In November 2017, Paul pleaded guilty to one count each of mail fraud, immigration document fraud, and aggravated identity theft in connection with a scheme to submit fraudulent U-visa applications.
“Immigration fraud undermines not only the public’s faith in our institutions and the legal profession, it also jeopardizes public safety and compromises national security,” said Acting Assistant Attorney General Cronan. “Attorneys who commit such egregious fraud on our legal system and their own clients will be held accountable.”
“Immigration fraud presents a serious threat to the national security of our country,” said Special Agent in Charge Gibbons. “Illegal schemes like this not only undermine the integrity of our nation’s legal immigration system, but they create potential security vulnerabilities while also cheating deserving immigrants of benefits they rightfully deserve.”
As part of his plea agreement, Paul admitted that from 2013 to 2017, he submitted more than 250 false Applications for Advance Permission to Enter as a Nonimmigrant on behalf of his clients and without their knowledge. Those applications falsely asserted that Paul’s clients had been victims of a crime and had provided substantial assistance to law enforcement in investigating the crime. With approximately 200 of the false applications, Paul submitted unauthorized copies of a certification he had obtained from the U.S. Attorney’s Office (USAO) for the Southern District of Indiana in 2013, using the certification without the USAO’s knowledge to falsely claim that the applicant had provided substantial assistance in a criminal prosecution. In total, Paul charged his clients approximately $3,000 per application.
HSI investigated the case with the assistance of USCIS Fraud Detection and National Security Directorate. Trial Attorneys Molly Gaston, Peter M. Nothstein and Amanda Vaughn of the Criminal Division’s Public Integrity Section prosecuted the case.
Illegal Alien Sentenced to Five Years for Possession of Loaded Firearms and Felony Assault on A Federal OfficerRead the Press Release
Orlando, Florida – U.S. District Court Judge Carlos E. Mendoza today sentenced Oniel Christopher Russell, a/k/a “O G Russell” (40, Jamaican national), to five years in federal prison for possessing two loaded firearms while being in the United States illegally, and for committing a felony assault on a federal law enforcement officer, causing bodily injury. A federal jury found Russell guilty on December 28, 2017, after a two-day trial.
According to testimony and evidence presented at trial, Russell last entered the United States on October 29, 2008, as a non-immigrant visitor for pleasure with subsequent authorization to remain within the United States only until January 3, 2009. However, Russell failed to depart the United States, and he remained without any lawful immigration status thereafter. On August 24, 2013, Orange County Sheriff’s deputies pulled Russell over for a traffic violation. They subsequently conducted a lawful search of his vehicle, where they discovered two loaded firearms, one in the glove compartment box, and another under the passenger seat. Russell confessed to possessing the firearm in the glove compartment, but denied knowledge of the other. He was charged by the State Attorney’s Office for carrying a concealed firearm.
In October of 2016, deportation officers with U.S. Immigration and Customs Enforcement were alerted to Russell’s presence in the United States when he placed a call to U.S. Citizenship and Immigration Services and made several threatening verbal statements. After verifying that he was in the United States illegally, on April 25, 2017, they located Russell and attempted to execute an administrative warrant for his arrest, during which he resisted and a federal officer suffered injuries to his shoulder and ankle.
At sentencing, the Court imposed an upward variance of 30 months, citing Russell’s apparent hatred for the United States, and law enforcement, his actions when arrested, and his lack of remorse or acceptance of responsibility. The Court also specifically noted that it also had taken into consideration the exhibits submitted into evidence by the United States, which included still shots and a transcription of the lyrics from Russell’s YouTube video on October 23, 2015, titled “Cop Killer.” In the still shots from the video, Russell could be seen brandishing a firearm, and mimicking one with his hand, while singing explicit lyrics.
“Russell’s sentence sends a clear message that assaulting a federal officer will not be tolerated and will be prosecuted to the fullest extent of the law. His actions on April 25th showed no respect or regard for our officers and his sentence was fitting of his crime,” said Marc Moore, field office director for U.S. Immigration and Customs Enforcement.
This case was primarily investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office, with assistance from U.S. Citizenship and Immigration Services, U.S. Customs and Border Protection, Homeland Security Investigations, and the Federal Protective Service. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, who is on assignment from ICE’s Office of the Principal Legal Advisor in the Middle District of Florida.
Houma Man Indicted for Receipt of Child PornographyRead the Press Release
THOMAS BROUSSARD (“BROUSSARD”), age 68, of Houma, Louisiana, was indicted today for receipt of child pornography, announced United States Attorney Duane A. Evans.
On January 23, 2018, law enforcement officers with the Louisiana Bureau of Investigation arrested BROUSSARD at his Houma home after finding that BROUSSARD was in possession of several items, including a laptop computer and thumb drive that contained images depicting the sexual victimization of prepubescent children.
U. S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BROUSSARD faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
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 https://www.justice.gov/psc. For more information about internet safety education, please visit https://www.justice.gov/psc and click on the tab "resources."
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and the Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE DECIDERIO ALVARADO-CARDOZA, age 31, a citizen of Honduras, was charged today in a one-count indictment with illegal reentry of a removed alien after deportation, in violation of Title 8 United States Code, Section 1326(a).
According to the indictment, on February 26, 2018, ALVARADO-CARDOZA was found to have reentered the United States after having been previously removed.
If convicted, ALVARADO-CARDOZA faces a term of imprisonment of up to two years, a fine of up to $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Spiro Latsis is in charge of the prosecution.
Head of Stock Trading Operation Admits Role in $3 Million Cross-Country Insider Trading RingRead the Press Release
TRENTON, N.J. -The owner and operator of a stock trading operation today admitted participating in a multi-year insider trading scheme that made over $3 million in illicit profits by exploiting material information in violation of confidentiality agreements, U.S. Attorney Craig Carpenito announced.
Steven Fishoff, 60, of Westlake Village, California, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count Four of an indictment charging him with securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions between May 2010 and August 2013, Fishoff, Ronald Chernin, 69, of Oak Park, California, Steven Costantin, 57, of Farmingdale, New Jersey, Paul Petrello, 56, of Boca Raton, Florida, and Joseph Spera, 56, of Boca Raton, short-sold the securities of numerous public companies using inside information obtained by Fishoff and others.
For each of these offerings, Fishoff or one or more of the day traders that he employed – including his friend, Chernin, and his brother-in-law, Costantin – entered into confidentiality or “wall-crossing” agreements as representatives of Fishoff’s trading entities, whereby they agreed not to disclose or trade on inside information concerning the offerings, such as the name of the issuers and the timing and pricing of the transactions, and were “brought over the wall” for the narrow purpose of determining whether to purchase the offered securities.
In breach of these confidentiality and trading restrictions, Fishoff tipped Petrello and Spera – identified as “CC-1” in the indictment – with the inside information about the confidentially marketed offerings, including the stock trading symbols of the companies and the timing or pricing of the upcoming offerings.
In furtherance of the scheme, Fishoff short sold the stock of the public companies, including Synergy Pharmaceuticals Inc., based on the inside information, in anticipation of a drop in the stocks’ price when the stock offerings were disclosed to the public. Fishoff and his co-defendants traded through the accounts of their respective trading entities or through related accounts that they controlled.
Fishoff and his co-defendants used the inside information to gain more than $3 million in illegal profits over the course of the three-year scheme. Chernin and Costantin, who executed trades using Fishoff’s capital, along with Petrello and Spera, generally split their profits with Fishoff on a 50-50 basis as compensation for the inside information.
Fishoff faces a maximum potential penalty of 20 years in prison and a $5 million fine on the securities fraud charge. Fishoff also agreed to settle the parallel civil forfeiture action, United States of America v. The Contents of Wedbush Securities Account Number 8313 et al., and to forfeit the over $1.6 million in assets sought by the government in that complaint. His sentencing is scheduled for June 20, 2018.
Chernin, Costantin, Petrello, and Spera have all pleaded guilty for their involvement in the scheme and await sentencing.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery and Money Laundering Unit, Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Recovery and Money Laundering Unit.
Defense counsel: Daniel Brown Esq. and Lionel André Esq.
Grand Jury Returns Superseding Indictment Against Jarvis Hardy in Shooting of DEA Task Force OfficerRead the Press Release
U. S. Attorney Duane A. Evans announced that JARVIS HARDY, age 28, a resident of New Orleans, Louisiana, was charged in a nine-count superseding indictment by a Federal Grand Jury for 1) conspiracy to distribute 280 grams or more of cocaine base (“crack”) (Count One); 2) four counts of distribution of quantities of cocaine base (“crack”) (Counts Two through Five); 3) attempted murder of a federal law enforcement officer (Count Six); 4) discharging one firearm during and in relation to a crime of violence and a drug trafficking crime (Count Seven); 5) possession with intent to distribute 28 grams or more of cocaine base (“crack”) (Count Eight); and possessing a second firearm in furtherance of a drug trafficking crime (Count Nine).
According to court documents, on January 26, 2016, agents and task force officers with the Drug Enforcement Administration (DEA) executed a search warrant for 5300 Douglas Street and an arrest warrant for HARDY. During the execution of the warrants, DEA Task Force Officer Stephen C. Arnold was shot multiple times by HARDY. Following the shooting, investigating agents recovered two firearms from HARDY’s residence, as well as amounts of cocaine base (“crack”) and paraphernalia associated with drug trafficking. The execution of the warrants followed an extended investigation of HARDY by the DEA that included multiple undercover purchases of cocaine base (“crack”) from HARDY.
If convicted, HARDY faces a mandatory minimum term of imprisonment of 10 years up to life, a fine of $10,000,000, and at least five (5) years of supervised release following any term of imprisonment as to the cocaine base (“crack”) conspiracy in Count One; a maximum term of imprisonment of twenty years, a fine of $1,000,000 and at least three (3) years of supervised release as to the distributions of cocaine base (“crack”) in Counts Two through Five; a maximum term of imprisonment of twenty (20) years, a fine of $250,000.00 and five (5) years of supervised release as to the attempted murder in Count Six; for the firearm charges in Counts Seven and Nine, a consecutive minimum term of imprisonment of five years up to life imprisonment for one firearm count and a consecutive minimum term of imprisonment of twenty-five years to life imprisonment for the second firearm count; and a mandatory term of at least five years up to forty years, a potential fine of $5,000,000, and at least four (4) years of supervised release for the possession with intent to distribute cocaine base (“crack”) in Count Eight.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office.
U. S. Attorney Evans reiterated that the superseding indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant U. S. Attorneys Elizabeth Privitera, Theodore Carter, and David Haller.
Granby Man Arrested for Sexually Exploiting a ChildRead the Press Release
BOSTON - A Granby man was arrested last night and charged in federal court in Springfield with child exploitation offenses.
Jonathan Monson, 35, was charged with sexual exploitation of a minor, distribution and receipt of child pornography, and possession of child pornography. Monson appeared in federal court today at 3:30 p.m. and was held in custody. A preliminary hearing is scheduled for March 22, 2018.
Monson is alleged to have used a child to produce child pornography, distributed child pornography, received child pornography, and possessed child pornography from February 2018 to March 8, 2018.
The charge of sexual exploitation of a minor provides for a sentence of no greater than 30 years in prison; the charge of distribution and receipt of child pornography provides for a sentence of no greater than 20 years in prison; and the charge of possession of child pornography provides for a sentence of no greater than 10 years in prison. Each charge provides for up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Hampshire County Sheriff Patrick J. Cahillane; and Granby Police Chief Alan Wishart made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fumigation Company Sentenced, Owner Imprisoned After Illegal Pesticide ApplicationsRead the Press Release
AAA Pest Protection Inc. d/b/a AAA Pest Control, Inc. (AAA Pest), and owner William Robles, 59, of Fort Lauderdale, Florida were sentenced today in federal court in Miami before U.S. District Court Judge Beth Bloom in connection with the illegal application of pesticides to treat homes and other buildings for termites over several years.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Andy Castro, Special Agent in Charge, U.S. Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement.
AAA Pest was sentenced to five years of probation, ordered to implement and enforce a comprehensive environmental compliance and employee training plan, and ordered to pay a $35,000 criminal fine. AAA Pest was also ordered to pay restitution to the victims of the crimes. Robles was sentenced to the statutory maximum term of imprisonment of one year and ordered to pay a criminal fine of $30,000. In a related matter, Judge Bloom previously sentenced Pierce Long, 53, of Oakland Park, Florida to a year in prison.
AAA Pest, Robles, and Long previously pled guilty to knowing violations of federal law stemming from their illegal applications of the restricted use pesticide, sulfuryl fluoride, contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136j(a)(2)(G).
According to court documents and statements, the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury or death. Application of these pesticides is limited to certified applicators or those under the direct supervision of certified applicators. Sulfuryl fluoride, a commonly used antimicrobial agent in structural fumigations for termites, is one such restricted use pesticide, registered with the EPA. At the heart of the safe use of such pesticides is compliance with the product label, which includes written, printed, or graphic matter associated with the pesticides that dictates the safe application, aeration, testing, and clearance of the fumigant gas through the use of a properly functioning, maintained, and calibrated low level fumigant detection device.
The investigation revealed that on two separate occasions in 2016, AAA Pest and Long completed structural fumigations without providing residents with the proper warnings prior to introduction of the fumigant gases, did not use personal protective equipment for employees, failed to properly aerate the fumigated spaces, failed to post required hazard warnings, and failed to conduct clearance by ensuring that the fumigated space was free of the toxic gas before residents re-entered. In addition, Robles admitted that between March 21, 2013, and April 17, 2015, he failed to have the required, operable, and properly calibrated fumigant detection device for approximately 580 fumigations.
“Today’s sentencing sends an important message to companies, business owners, and employees that knowing violations of federal environmental laws will not be tolerated. Those who engage in such dangerous and reckless conduct will be prosecuted to the fullest extent of the law in light of the serious consequences for the consumer public,” said Benjamin G. Greenberg. “The Southern District of Florida values its partnership with the EPA, Criminal Investigation Division and the Florida Department of Agriculture and Consumer Services and is committed to working together to investigate and prosecute these crimes to protect the public and ensure that companies who comply with the law are not placed at a competitive disadvantage.”
“It is critical for the health and safety of building inhabitants that pest control companies follow manufacturer instructions when applying pesticides indoors,” said Susan Bodine, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “This case demonstrates that EPA and its law enforcement partners are committed to making sure that businesses apply pesticides legally and safely.”
Today’s sentencing includes the fourth individual defendant to be sentenced to the statutory maximum term of imprisonment in the District’s ongoing effort to address pesticide crimes. It is estimated that there were more than 25,000 structural fumigations in Miami-Dade and Broward counties in 2017. The Court noted that these companies and individuals hold themselves out to the community as specially trained and skilled experts, and that families put their trust – and their lives - in the fumigators hands and should be able to return to such “safe spaces” as one’s home, without concern about whether the device used to measure if toxic gas remained in the fumigated space, was working and maintained as required by law.
Mr. Greenberg commended the investigative efforts of the EPA and the Florida Department of Agriculture and Consumer Services. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Stamford Resident Sentenced to Prison for Operating Extensive Immigration Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID NIKOLASHVILI, 52, a citizen of the Republic of Georgia residing in Queens, New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by two years of supervised release, for operating an immigration fraud scheme. Judge Chatigny also ordered NIKOLASHVILI to pay a $12,000 fine.
According to court documents and statements made in court, NIKOLASHVILI, formerly of Stamford, Connecticut, operated an immigration fraud scheme through which he attempted to obtain false immigration status from U.S. Citizenship and Immigration Services (USCIS) for at least 60 citizens of European countries. As part of the scheme, after aliens paid NIKOLASHVILI between $12,000 and $20,000, he would arrange sham marriages between the aliens and U.S. citizens in order to obtain immigration benefits for the aliens. The U.S. citizens were paid to enter into the sham marriages.
NIKOLASHVILI was arrested on June 21, 2016. On July 26, 2017, he pleaded guilty to one count of making a false swearing in an immigration matter.
NIKOLASHVILI, who is released on a $75,000 bond, was ordered to report to prison on April 27, 2018. He faces immigration proceedings when he is released from prison.
All of the citizenship cases identified in this scheme have been reviewed by USCIS Fraud Detection and National Security and proper adjudicative action was taken.
This investigation was conducted by Homeland Security Investigations, U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security Unit, and U.S. Department of State, Bureau of Diplomatic Security. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Former National Guardsman Sentenced for Threatening to Kill Vice President PenceRead the Press Release
JOHNSTOWN, Pa. – A resident of Berlin, Pa., has been sentenced in federal court to six months incarceration, followed by six months home detention with electronic monitoring; immediate mental health evaluation/treatment program and three years’ supervised release on his conviction of making a threat against the Vice President of the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on William R. Dunbar, 23.
According to information presented to the court, on Sept. 8, 2017, while on military duty in Johnstown, Pa., Dunbar made a threat against the Vice President of the United States, who was to arrive in Johnstown on Sept. 11, 2017. Three witnesses heard Dunbar specifically state he would kill the Vice President.
Assistant United States Attorney Stephanie L. Haines, prosecuted this case on behalf of the government.
Mr. Brady commended the United States Secret Service for the investigation that led to the successful prosecution of Dunbar.
Former Cocoa Company Executives Plead Guilty in Manhattan Federal Court to Defrauding Lenders of $400 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that PETER G. JOHNSON and PETER B. JOHNSON pled guilty today to defrauding a group of lenders (the “Banks”) by submitting false “borrowing base” reports designed to secure and maintain a $400 million line of credit for their cocoa trading company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”). The defendants each pled guilty before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “As they admitted today, Peter G. and Peter B. Johnson, executives of a cocoa company that supplied some of the world’s largest chocolate companies, defrauded lenders out of hundreds of millions of dollars by continuously and repeatedly lying about the collateral According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Transmar was a closely held, family-run cocoa commodity trading company. PETER G. JOHNSON was Transmar’s president and chief executive officer. PETER B. JOHNSON, the son of PETER G. JOHNSON, was an officer of Transmar, as well as responsible for the operations of Transmar affiliate Euromar Commodities GMBH (“Euromar”).
From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million. To secure and maintain these hundreds of millions of dollars in credit, PETER G. JOHNSON, PETER B. JOHNSON, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.
The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension. The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks.
Beginning no later than 2014, Transmar employees, acting with the knowledge and at the direction of PETER G. JOHNSON and PETER B. JOHNSON, manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending. The manipulation involved, among other devices, counting inventory that Transmar had already sold or was otherwise ineligible for inclusion, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions through which amenable third-party intermediaries agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar.
The defendants acknowledged their manipulative devices in internal Transmar correspondence. For example, on or about July 31, 2015, PETER G. JOHNSON sent an email to PETER B. JOHNSON discussing the use of “multiple circles” or “borrowing games” in connection with the BB Reports, and suggesting that Transmar “clean the book of these in due course and before they get questioned and exposed.” On June 14, 2016, PETER B. JOHNSON responded to an email regarding a circle transaction by lamenting, “this is the problem with fake circles and non-existent last minute intermediary deals, there is never a payment to settle them.” PETER B. JOHNSON then suggested that Transmar “reissue the invoices (ie change the date of issuance” because “[t]here isn’t going to be an audit [of the BB Report] for a year and its [sic] causing huge problems to keep writing up fictitious contracts and paperwork.”
Transmar filed for bankruptcy in December 2016. At that time, the Company owed the Banks approximately $360 million.
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PETER G. JOHNSON, 69, of Harding Township, New Jersey, PETER B. JOHNSON, 38, of Morristown, New Jersey, each pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution. That offense carries a maximum prison term of 30 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The defendants are scheduled to be sentenced by Judge Rakoff on August 6, 2018.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Benet J. Kearney and Daniel M. Tracer are in charge of the prosecution.
Federal Grand Jury Indicts Former Insider for Defrauding Baton Rouge CompanyRead the Press Release
U.S. Attorney Brandon J. Fremin announced today that a federal grand jury has indicted KATHERINE T. CANCIENNE, age 40, on multiple counts of wire fraud in connection with a scheme to embezzle more than $387,000 from her employer, Engineers & Constructors International, Inc. (“ECI”), a consulting firm that provides engineering and managerial staffing to oil and gas companies. If convicted, the defendant faces a significant prison term, fines, and restitution orders.
The indictment charges the defendant, who formerly handled accounting matters at ECI, with executing her fraud scheme by, among other things, establishing a shell corporation and bank account under the name Cappo, LLC, which had a similar name to an actual ECI vendor. According to the indictment, the defendant caused ECI to issue checks and make electronic wire payments to her shell corporation by creating and submitting false and fraudulent documents to ECI. As a result of this scheme, the defendant allegedly obtained more than $387,000.
U.S. Attorney Brandon J. Fremin stated, “We take very seriously the economic threats posed by corrupt corporate insiders whose misconduct and betrayal often risks the livelihoods of their coworkers by potentially undermining the financial integrity of their employer. All companies are susceptible to this danger. We commend the victim in this matter for identifying this situation to law enforcement and thus possibly preventing further fraud against others. I appreciate the hard work by all those involved in this important matter.”
This matter is being investigated by the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Pete Smyczek.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Father and Son Convicted Following Trial in $16.7 Million Health Care Fraud SchemeRead the Press Release
DALLAS – Yesterday, following a 10-day trial before U.S. Chief District Judge Barbara M.G. Lynn, a jury convicted Terry Lynn Anderson, 67, and Rocky Freeland Anderson, 37, of Dallas, on multiple felony counts related to a health care fraud scheme they operated, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
The jury convicted the father and son duo on one count of conspiracy to commit health care fraud, eight counts of health care fraud, and four counts of aggravated identity theft. The jury convicted Terry Anderson on two additional health care fraud counts.
The evidence at trial showed that the defendants defrauded Blue Cross and Blue Shield of Texas (Blue Cross) by submitting claims on behalf of employees of American Airlines, Inc. for hearing aids that were not needed and, in many cases, never dispensed to the patient. The fraudulent claims were submitted through Anderson Optical & Hearing Aids Center, the defendants’ family-owned business that had locations in Arlington and Bedford.
To increase the number of claims they could submit to Blue Cross, the defendants engaged in fraudulent marketing practices. For example, the defendants promised patients a free pair of high-end sunglasses or a free pair of prescription eyeglasses in exchange for taking a free hearing test. At the conclusion of these hearing tests, the defendants told patients that they had slight to mild hearing loss and required them to sign an order for hearing aids in order to receive the free glasses. The defendants promised patients that the hearing aids would be provided to them at no cost, and that Anderson Optical & Hearing would waive any applicable copayments, coinsurance, or deductibles. The defendants also offered patients $100 gift cards in exchange for referring family members and coworkers for free hearing tests.
In 2012, the pair brought their fraud scheme into American Airlines’ airport facilities and started offering free hearing tests to aircraft mechanics and fleet services clerks in maintenance hangars and employee breakrooms. Attracted by the offer of free sunglasses, the pair often had long lines of employees waiting to be tested. However, an expert witness who testified for the government explained that the cursory screening tests the defendants performed, which witnesses described as lasting 3-5 minutes, were incapable of producing results upon which one could make a legitimate decision to dispense hearing aids. Witnesses from Blue Cross testified that these cursory screening tests also failed to comply with Blue Cross’s medical policies related to the evaluation of hearing impairment.
The evidence also showed that, in November 2013, Blue Cross conducted an audit of Anderson Optical & Hearing and requested copies of patient records for certain American Airlines employees and their dependents. On January 6, 2014, the Texas Department of State Health Services-Professional Licensing Unit (Professional Licensing Unit) began an investigation regarding a complaint it had received concerning the Andersons. In February 2014, when given the opportunity to respond to the complaint, the defendants submitted several patient records to the Professional Licensing Unit, including some of the same patient records that had been collected by Blue Cross. The patient records submitted to the Professional Licensing Unit had altered test scores and additional notations that were not present when the same records were submitted to Blue Cross in November 2013.
During the period of the conspiracy, Anderson Optical & Hearing submitted claims to Blue Cross for hearing aids on behalf of American Airlines employees totaling more than $27 million. As a result of these claims, Blue Cross paid Anderson Optical & Hearing more than $16.7 million.
At trial, Terry Anderson took the stand in his own defense. In an attempt to shift the blame on to patients who were more interested in his offer of free sunglasses than they were in hearing aids, he testified, “Well, unfortunately among us are people that will take advantage of perhaps any program, if they have an opportunity to.”
The defendants face a maximum statutory penalty of 10 years in federal prison and a $250,000 fine for the conspiracy count and for each of the substantive health care fraud counts. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a fine of up to $250,000.
The superseding indictment includes a forfeiture notice that requires the defendants to forfeit a 300 acre ranch in Bosque County, three vehicles, and more than $3.1 million that was seized from nine financial accounts in December 2015.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Douglas Brasher and Rachael Jones prosecuted.
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Fairfax Bookkeeper Indicted for $500,000 Embezzlement SchemeRead the Press Release
United States Attorney Gregory G. Brooker announced a federal indictment charging THERESA ERNESTINE LINSMEIER with three counts of wire fraud and five counts of filing false tax returns. LINSMEIER will make her initial appearance in United States District Court on March 15, 2018.
According to the indictment, from 1998 to 2016, LINSMEIER was employed as a bookkeeper at Farm Mercantile, Inc., a hardware store located in Fairfax, Minn. In her position, LINSMEIER had access to and was an authorized signatory on Farm Mercantile’s bank accounts and had authority to sign and issue checks on behalf of the company.
According to the indictment, from about 2011 through 2016, LINSMEIER devised a scheme to embezzle more than $500,000 from Farm Mercantile. As part of the scheme, LINSMEIER transferred money to her personal credit cards directly from the bank accounts to which she had access. LINSMEIER attempted to conceal her embezzlement by creating false entries in Farm Mercantile’s general ledger to make it look like the money she stole had actually been used to pay legitimate business expenses. In total, LINSMEIER stole approximately $535,000, which she used for online gambling.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Joseph H Thompson.
Defendant Information:
THERESA ERNESTINE LINSMEIER, 58
Fairfax, Minn.
Charges:
- Wire fraud, 3 counts
- Filing false tax returns, 5 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Receiving, Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count indictment named Adam Gregory Ryzinski, 38, as the sole defendant.
According to the indictment presented to the court, Ryzinski received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Durham Man Who Kidnapped, Robbed Families Pleads GuiltyRead the Press Release
Greensboro, N.C. – A man who kidnapped multiple people over a four-day period and forced them to withdraw money from ATMs and buy items for him pleaded guilty to federal kidnapping charges today, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Rollin Anthony Owens, Jr., 30, of Durham, North Carolina, pleaded guilty to two counts of kidnapping of a minor and one count of kidnapping, in front of the Honorable N. Carlton Tilley, Jr., United States District Judge for the Middle District of North Carolina.
According to court documents, on June 17, 2017, Owens kidnapped a father and his two small children, ages 4 and 18 months, as they were leaving Burch Avenue Park in Durham. Owens pulled out a gun and forced the father to drive to an ATM to withdraw money and to a convenience store to make purchases.
Court documents also indicate that Owens kidnapped two brothers from the parking lot of a residence in Durham on June 18, 2017. When one brother resisted, Owens pistol whipped him with a large gun and threw him in the trunk of one of the brother’s car. Owens then forced the other brother to drive the car to an ATM and withdraw money from both brothers’ accounts and to make a purchase at a convenience store.
Finally, on June 20, 2017, Owens kidnapped a man and woman and their two small children from their home in Durham. Owens knocked on the family’s door asking for money. After the father gave him money, Owens pulled out a gun, and forced the father, his wife, and two children, ages 4 and 2, into the family car. He then directed the father at gunpoint to drive to an ATM to withdraw money and to a Food Lion and convenience store to make purchases and attempt to get cash back. Owens’ crime spree finally ended when he forced the family to go to Target, where the father, while in the store purchasing items for Owens, was able to alert an employee to call the police. Durham Police Department officers apprehended Owens as he was leaving the store with more than $1,000 worth of merchandise.
The sentencing is set for June 15, 2018, at 2 p.m. in Greensboro. Each of the two counts of kidnapping of a minor carries a mandatory minimum sentence of 25 years and a maximum of life in prison. The last count of kidnapping carries a maximum sentence of life.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Department of Treasury Office of Inspector General Task Force, and the Durham Police Department. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank J. Chut, Jr. prosecuted the case.
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Doctor Sentenced for Healthcare Fraud, Accepting Kickbacks to Prescribe Highly Addictive Version of FentanylRead the Press Release
PROVIDENCE, RI — Dr. Jerrold N. Rosenberg, 63 of Warren, the operator of a now-defunct pain management practice in Rhode Island, was sentenced today to 51 months in federal prison for committing healthcare fraud and for conspiring to solicit and receive kickbacks in return for prescribing the drug Subsys, a fast-acting, powerful, and highly-addictive version of the opioid drug Fentanyl.
Subsys is manufactured by Arizona based company Insys Therapeutics, Inc. (“Insys”). This under-the-tongue spray was approved by the U.S. Food and Drug Administration in 2012 exclusively for “the management of breakthrough cancer pain in patients who are already receiving and who are already tolerant of opioid therapy for their underlying persistent cancer pain.” As a result, many insurance companies require a diagnosis of breakthrough cancer pain before approving coverage of the drug, which costs approximately $2,000 to over $16,000 for a thirty day supply.
At today’s sentencing hearing, three former patients of Dr. Rosenberg testified about the severe and debilitating effects they experienced from taking Subsys. Some witnesses testified to the doctor’s indifference to their complaints and pleas to be taken off Subsys.
Rosenberg pleaded guilty on October 25, 2017, to healthcare fraud and conspiracy to receive kickbacks. At the time of his guilty plea, Rosenberg admitted to the Court that between 2012 and 2015, he carried out a healthcare fraud scheme in which he made false representations to insurers, both private and government funded, claiming patients met the insurance criteria of having breakthrough cancer pain when he knew that they in fact did not, in order to secure approvals and payment for prescriptions of Subsys. Rosenberg admitted that, in total, the healthcare fraud scheme resulted in losses of over $750,000; in many cases, the cost of the drug was reimbursed, at least in part, by the Medicare program.
Additionally, Rosenberg admitted that, between 2012 and 2015, he conspired with Insys officials to receive kickbacks, in the form of purported speaker fees, from the manufacturer of the spray. Rosenberg admitted that he accepted these payments, which totaled over $188,000. In addition, according to court documents, Rosenberg’s son was a sales representative for Insys Therapeutics from June 2012 – September 2013, and made substantial amounts in commissions as a result of the defendant’s prescribing Subsys to his patients. Rosenberg admitted that the speaking fees he received from Insys were a significant motivating factor in his decision to prescribe Subsys to his patients.
The U.S. Sentencing guideline range of imprisonment in this matter is 51-63 months. The government recommended the court impose a sentence of 63 months incarceration. At sentencing, the Court also ordered Rosenberg to pay restitution in the amount of $754,736.48 to the Medicare program. Rosenberg’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by U.S. Attorney for the District of Rhode Island Stephen G. Dambruch; Phillip Coyne, Special Agent-in-Charge of the Boston Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and Rhode Island Attorney General Peter F. Kilmartin.
The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Zachary A. Cunha.
The matter was investigated by the United States Attorney’s Office for the District of Rhode Island, the U.S. Department of Health and Human Services Office of Inspector General and the Rhode Island Department of Attorney General’s Medicaid Fraud and Patient Abuse Unit.
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District Teenager Found Guilty of Charges in Two Murders over Four-Month PeriodRead the Press Release
WASHINGTON – Maurice Bellamy, 19, of Washington, D.C., was found guilty by a jury today of two counts of first-degree murder while armed and other charges stemming from the separate killings of an off-duty United States Secret Service officer and a 15-year-old boy.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
Bellamy was found guilty of two counts of first-degree murder while armed, one count of armed robbery, and a weapons offense. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna scheduled sentencing for July 20, 2018.
The jury found that the murder of 15-year-old Davonte Washington was especially cruel, atrocious and heinous. The jurors also found that the murder of off-duty officer Arthur Earl Baldwin Jr. was committed during the course of a robbery. As a result, Bellamy could face sentences of life in prison with no possibility of release for each of those offenses.
According to the government’s evidence, the first murder took place on Dec. 15, 2015 in the 4700 block of First Street SW. Bellamy and two accomplices approached a car parked on the street at approximately 2:50 p.m. Bellamy, armed with a .38-caliber revolver, approached the passenger window. The assailants instructed the driver, Mr. Baldwin, to pop open the trunk. Nothing of value was found. Mr. Baldwin then attempted to push his way out of the driver’s seat, and Bellamy opened fire. One of Bellamy’s accomplices then fired his gun. The three then took Mr. Baldwin’s wallet, cell phone, and iPad. Mr. Baldwin, 30, an off-duty U.S. Secret Service officer, was taken to a hospital, where he died from multiple gunshot wounds.
The second murder took place on Saturday, March 26, 2016, the day before Easter, at the Deanwood Metro station, in the 4700 block of Minnesota Avenue NE. According to the government’s evidence, just before 4 p.m., Bellamy saw Davonte Washington on the platform with his mother and two little sisters also waiting for a train. The family was on the way to getting Davonte’s haircut for Easter. Bellamy mistakenly believed Davonte was “mugging” on him, and he pulled his .38-caliber revolver from his pocket and fired it at close range into Devonte’s chest, killing him. He then fled the station. Davonte died from two gunshot wounds to the torso.
The homicide of Davonte Washington was captured on Metro surveillance video. Bellamy was arrested two days after Davonte’s murder and has been in custody ever since. An investigation determined that the same gun that killed the teenager was used to kill Mr. Baldwin.
In announcing the verdict, U.S. Attorney Liu, Chief Newsham, and Chief Pavlik commended the work of those who investigated the case from the Metropolitan Police Department and the Metro Transit Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Specialist Leif Hickling; Lead Paralegal Specialist Meridith McGarrity; Paralegal Specialist Alesha Matthews; Acting Supervisory Victim/Witness Coordinator Katina Adams-Washington; former Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Supervisory Security Specialist M. Laverne Perry; Victim/Witness Security Specialist Lesley Slade, and Victim/Witness Advocate Marcia Rinker.
Finally, they commended the work of Assistant U.S. Attorneys Deborah Sines and Glenn Kirschner, who investigated and prosecuted the case.
District Man and Woman Found Guilty of Federal Charges for Roles in Regional Drug Trafficking OrganizationRead the Press Release
WASHINGTON – Andrea Miller, 48, and Steven Mason, 48, both of Washington, D.C., have been found guilty by a jury of federal charges stemming from their roles in a narcotics trafficking organization that imported and distributed heroin and other drugs into the Washington, D.C. area.
The announcement was made by U.S. Attorney Jessie K. Liu; Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C.; Robert B. Wemyss, Inspector in Charge, Washington Division, U.S. Postal Inspection Service, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The verdicts followed a trial in the U.S. District Court for the District of Columbia. Miller was found guilty of conspiracy to import 100 grams or more of heroin and a quantity of alprazolam from a foreign country. Both Miller and Mason were found guilty of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and a quantity of alprazolam. The defendants now each face five--year mandatory-minimum sentences and up to 20 years in prison. The Honorable Tanya S. Chutkan scheduled sentencing for June 19, 2018.
Miller and Mason were among a total of 14 defendants indicted in May 2016 following a long-term investigation into a drug trafficking organization with sources of supply in Nigeria and distribution points in Washington, D.C. and Maryland. Eleven others have been convicted of drug trafficking charges and one defendant remains a fugitive.
According to the government’s evidence, between August 2014 and June 2016, Miller conspired to import packages of narcotics into the United States from various countries in Africa, and, Miller and Mason, together with their co-conspirators, conspired to distribute the narcotics throughout the Washington D.C. region.
The drug operation misused the United States Postal Service and the commercial shipping industry to illegally import into the United States and then redistribute significant quantities of drugs, primarily heroin, within the District of Columbia and the greater Washington, D.C., metropolitan area.
For purposes of this criminal activity, the international packages had the controlled substances hidden or secreted within certain items or clothing located inside the packages, and the packages were addressed and emanated from foreign countries, such as India, and listed fictitious names for addresses or locations within the Washington, D.C., area. Higher-level participants in the drug network would either wait for the packages to be delivered to certain addresses by the Postal Service or another commercial shipping business, or these same conspirators would use various civilians to accept packages containing drugs in the mail at their residences or other locations for cash or illegal drugs.
Significant quantities of the heroin were re-distributed in the 11th and H Street NE, Fourth Street and Florida Avenue NE, and 19th and Benning Road NE areas of the District of Columbia, and other locations in the District of Columbia and Maryland.
This case was investigated by Homeland Security Investigations and the Customs and Border Protection Agency of the Department of Homeland Security, the United States Postal Inspection Service and the Metropolitan Police Department. The prosecution was sponsored and supported by the federal Organized Crime Drug Enforcement Task Force (OCDETF).
The case was prosecuted by Assistant U.S. Attorneys Kenneth F. Whitted and Jamila Hodge of the Violent Crime and Narcotics Trafficking Section, and Assistant U.S. Attorney Thomas Swanton of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Paralegal Specialists Candace Battle, Catherine O’Neal, Teesha Tobias, and Mary Downing; Legal Assistants Peter Gaboton and Katie Cowley; Litigation Technology Specialists Ron Royal, Kimberly Smith, and Anisha Bhatia, and Intern Mallory Kruper.
Dallas Man Sentenced to 41 Months in Federal Prison and Ordered to Pay $1.4 Million in Restitution for Corporate Embezzlement SchemeRead the Press Release
DALLAS — Kristopher Brian Anderson, 32, of Dallas, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 41 months in federal prison and ordered to pay $1,412,424.06 in restitution, following his guilty plea in September 2017 to offenses related to a scheme to defraud Pivotal Petroleum Services LLC, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. The total restitution figure included the total amount of funds stolen, as well as additional funds spent to investigate Anderson’s theft of his employer’s funds.
Anderson pleaded guilty to one count mail fraud. Judge Fitzwater ordered Anderson to surrender to the Bureau of Prisons on April 24, 2018.
According to the plea agreement factual resume, Tailwater Capital LLC was a Texas corporation, based in Dallas, Texas that specialized in raising private equity capital for oil and gas investments. Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP were privately held Texas corporations, based in Dallas, Texas that specialized in acquiring and leasing non-operating working interests of oil and gas properties. Tailwater Capital LLC owned Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
P2 Energy Solutions was a privately held company, based in Denver Colorado, with Texas offices in Houston, San Antonio and Fort Worth. P2 Energy Solutions provided various administrative services to the oil, gas and energy industry including financial and accounting management software for revenue processing and check distribution. Pivotal Petroleum Services LLC handled the administrative and accounting services of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP. Pivotal Petroleum Services LLC in tum used the services of P2 Energy Solutions to electronically process incoming vender invoices and to physically prepare hard copy checks payable to the companies listed on the invoice. P2 Energy Solutions then caused checks prepared by P2 Energy Solutions to be sent via the United States Postal Service to the addresses printed on the checks or delivered by a private courier services all at the direction of Anderson.
Empery Resource Consultants, LLC (Empery) was a Texas corporation which Anderson secretly set up and used as part of the scheme to embezzle Tailwater Capital Funds. Over a 33 month period, Anderson repeatedly submitted fraudulent invoices to Pivotal Petroleum Partners falsely claiming payment to Empery Resource Consultants for “landmen” services that were never provided to Pivotal Petroleum Partners.
On May 14, 2014, according to the factual resume, Anderson was hired by Pivotal Petroleum Services as the corporate controller. As controller, Anderson was responsible for the accounting operations of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP. These duties involved the preparation of financial reports, maintaining records involving the receipt and disbursement of funds to ensure that the reported results comply with the generally accepted accounting principles. These duties included the review and approval of vender invoices for payment. As controller, Anderson was clearly responsible to monitor and protect the assets of the Pivotal Petroleum companies. Instead, Anderson used his position of trust as corporate controller to betray his employer Tailwater Capital and ultimately caused total losses of over $1.4 million to Tailwater Capital.
On August 28, 2014, Anderson opened a business bank account in the name Empery Resource Consultants, LLC. Anderson used this account to deposit and later spend funds fraudulently obtained Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
From August 2014 and continuing through May 2017, Anderson submitted 142 fraudulent invoices causing the fraudulent payment of $1,389,991. Simply put, Anderson stole over $1.3 million from his employer. During the approximately 33 month scheme, Anderson spent funds stolen from Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP to support a lavish lifestyle. Anderson fraudulently obtained an average of over $86,000 per month. Among other things, these expenses included $451,683 in total cash withdrawals and $958,091 in credit card and debit card charges.
The United States Postal Inspection Service, Fort Worth investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #Craig Fine Charged with Armed Robbery of First Tennessee BankRead the Press Release
KNOXVILLE, Tenn. – On March 8, 2018, Craig, Fine, 48, of Knoxville, Tennessee, was arrested and charged with armed bank robbery and brandishing and discharging a firearm during a crime of violence. Fine appeared in U.S District Court on March 9, 2018, before the Honorable H. Bruce Guyton, U.S. Magistrate Judge. He will remain in custody pending a preliminary hearing at 1:30 p.m., on March 22, 2018, in U.S. District Court.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on March 6, 2018, Fine entered the First Tennessee Bank on Merchants Drive in Knoxville with a firearm and demanded money from the bank teller. During the incident, Fine discharged a firearm. Additionally, he pointed the firearm directly at the victim teller and customers inside the bank. Before leaving the bank, Fine also claimed to have a pipe bomb.
Through investigative efforts as well an anonymous tip to law enforcement, officers located and arrested Fine on March 8, 2018. Details surrounding the arrest of Fine can also be found in the affidavit on file with U.S. District Court.
This case was the result of an investigation by the FBI Safe Streets Task Force, which consists of FBI Special Agents, Knox County Sheriff’s Deputies, and Knoxville Police Department Officers. Assistant U.S. Attorney Kelly A. Norris will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Chemist for Mexican Drug Cartel Sentenced in Brooklyn Federal Court to 10 Years’ Imprisonment for Conspiring to Distribute Thousands of Kilograms of Illegal NarcoticsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Jose Dagoberto Cortez-Perez, also known as “D.C.P.,” a “chemist” or “cook” of illegal narcotics for a violent Mexican drug trafficking organization, was sentenced by United States District Judge Carol Bagley Amon to 10 years’ imprisonment for his involvement in a large-scale international narcotics distribution conspiracy. Cortez-Perez was apprehended in Minnesota and pled guilty on September 25, 2017 to conspiring to import more than 500 grams of methamphetamine, more than one kilogram of heroin, more than five kilograms of cocaine and more than 1,000 kilograms of marijuana. After serving his sentence, the defendant will face deportation from the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“A Mexican cartel employed Jose Dagoberto Cortez-Perez for his specialized skill improving the quality and purity of illegal and addictive narcotics, in particular methamphetamine,” stated United States Attorney Donoghue. “Cortez-Perez travelled around the country on behalf of the cartel and enhanced the addictive nature of its narcotics, which ultimately increased demand and price for them. Today, drug trafficking organizations are on notice that we will bring the full weight of the law to bear on those activities that destabilize our communities.” Mr. Donoghue extended his grateful appreciation to the United States Attorney’s Office for the District of Minnesota, as well as the Chicago Division of the U.S. Drug Enforcement Administration, for their assistance in the investigation and prosecution.
According to court filings and facts presented during court proceedings, the defendant was a member of a Mexican-based drug trafficking organization, which was responsible for the manufacture, importation and distribution of multi-ton quantities of heroin, methamphetamine, cocaine, and marijuana into the United States, including to locations in the Eastern District of New York. The defendant was a “chemist” or “cook” for the organization, and was sent to the United States to repair (or “clean”) methamphetamine that was not sufficiently pure or had otherwise been contaminated. The defendant created a more desirable product that was then distributed across the United States, including Brooklyn and Queens. In May 2016, DEA agents searched two homes in Minnesota and discovered more than 140 pounds of methamphetamine, more than $130,000 in United States currency, evidence of an ongoing methamphetamine cleaning operation and drug paraphernalia. This seizure demonstrated a highly organized drug network responsible for the distribution of large-scale quantities narcotics.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris, Alicia N. Washington, G. Karthik Srinivasan and Michael P. Robotti are in charge of the prosecution.
The Defendant:
Jose Dagoberto Cortez-Perez
Age: 28
Residence: Sinaloa, MexicoEDNY Docket No. 16-CR-241 (CBA)
Catskill Doctor Arrested for Unlawful Drug DistributionRead the Press Release
ALBANY, NEW YORK – Myra Mabry, age 48, a doctor of osteopathic medicine residing in Catskill, New York, was arrested today and charged with distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.
The announcement was made by United States Attorney Grant C. Jaquith; James J. Hunt, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Field Division; and Joshua Vinciguerra, Director of the New York State Department of Health, Bureau of Narcotic Enforcement.
According to a criminal complaint, Mabry authorized approximately 51 prescriptions for the controlled substance oxycodone, between May 2015 and January 2017, that a co-conspirator filled and picked up at pharmacies in Greene County. Additionally, between November 2015 and June 2017, Mabry authorized approximately 44 prescriptions for the controlled substances oxycodone and hydromorphone, which were issued to another person but which Mabry filled and picked up at a Greene County pharmacy.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mabry appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, who ordered her detained pending a detention hearing on Monday, March 12.
If convicted, Mabry faces up to 20 years in prison, at least 3 years of post-imprisonment supervised release, and a maximum $1 million fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA and the New York State Department of Health, Bureau of Narcotic Enforcement, with assistance from the Catskill Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Cambria County Man Sentenced to 10 Years in Prison for Distributing Heroin that Caused a DeathRead the Press Release
PITTSBURGH - A Cambria County resident has been sentenced in federal court to 120 months imprisonment to be followed by three years supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brad Troup, 39, of Northern Cambria, Pennsylvania.
According to information presented to the court, on January 13, 2016, Mr. Troup distributed and possessed with intent to distribute heroin. Mr. Troup previously admitted that the heroin he distributed caused the death of Jeremiah Huey, who had used heroin he obtained from Troup.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, along with the Pennsylvania State Police, the Offices of the District Attorneys of Allegheny and Indiana Counties, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Troup.
California Man Sentenced for Nationwide Tax Refund FraudRead the Press Release
ALEXANDRIA, Va. – A California man was sentenced today to 64 months in prison for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents, Kefvon Keffen Baker, 42, of Los Angeles, was part of a nationwide bank fraud conspiracy based in Los Angeles in which conspirators have been stealing U.S. Treasury refund checks, using the identities of those taxpayers to open bank accounts, depositing the stolen checks, and withdrawing monies against the deposits. In just one month of activity in the Eastern District of Virginia and nearby Pennsylvania, Baker attempted to steal over $1 million in U.S. Treasury-issued tax refund checks.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Eric M. Thorson, Inspector General for the U.S. Department of Treasury, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Grace L. Hill prosecuted the case.
The Leesburg Police Department, Arlington County Police Department, and the Loudoun County Sheriff’s Office provided significant assistance with this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-264.