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8 March 2018
Mexican National Indicted for Smuggling 53 Aliens in Tractor TrailerRead the Press Release
CORPUS CHRISTI, Texas – A Mexican National on a visitor visa is set to appear in court on charges he attempted to smuggle illegal aliens behind a load of produce, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment against Luis Valero-Carrizales, 39, Feb. 28. He is expected to make his initial appearance before U.S. Magistrate Judge Jason Libby at 9:30 a.m. today, at which time the government expects to request his continued detention pending further criminal proceedings.
The charges allege Valero-Carrizales conspired to transport illegal aliens hidden behind a load of produce in the trailer portion of the 18-wheeler he was driving. On Dec. 16, 2017, Valero-Carrizales allegedly drove a freightliner and approached the primary inspection lane at the U.S. Border Patrol Checkpoint near Falfurrias. During a routine immigration inspection, a service canine alerted to the trailer, according to the charges.
The indictment alleges that during a subsequent search of the vehicle, authorities discovered 53 illegal aliens hidden inside. The temperature inside the refrigerated trailer was allegedly 54 degrees.
He was taken into custody at that time, upon the filing of a criminal complaint.
If convicted, Valero-Carrizales faces a maximum of 10 years in federal prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Mexican National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that RAMIRO MARTINEZ-RAMIREZ, age 43, a citizen of Mexico, 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 16, 2018, RAMIRO MARTINEZ-RAMIREZ was found to have reentered the United States after having been previously removed.
If convicted, RAMIRO MARTINEZ-RAMIREZ faces a term of imprisonment of up to ten years, a fine of up to $250,000, and up to three years of supervised release after imprisonment.
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 Chandra Menon is in charge of the prosecution.
Marion County man and Harrison County man indicted on firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Marion County, West Virginia, man and a Harrison County, West Virginia, man were indicted this week by a federal grand jury on unlawful firearm possession charges, United States Attorney Bill Powell announced.
William D. Fulmer, of Rivesville, age 62, was indicted on one count of “Unlawful Possession of a Firearm.” Fulmer, who had previously been convicted of crimes in Venango County, Pennsylvania, is accused of having a .308 caliber rifle in July 2017 in Marion County.
In a separate case, Christopher Dent, of Bridgeport, age 32, was indicted on one count of “Unlawful Possession of a Firearm.” Dent, who had previously been convicted of crimes in New Jersey, is accused of having a 9mm caliber pistol in May 2017 in Harrison County.
Fulmer and Dent each face up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the Fulmer case on behalf of the government. Assistant U.S. Attorney Zelda E. Wesley is prosecuting the Dent case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated both cases. Bridgeport Police Department assisted in the Dent investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Sentenced to Eighteen Years in Federal Prison for Possessing a Molotov Cocktail, Interstate Stalking, and Possessing Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Cameron C. Butler, age 38, formerly of Broward County, Florida, was sentenced after having pleaded guilty on November 9, 2017, to Possession of an Unregistered Destructive Device (a Molotov cocktail), Interstate Stalking, and Possession of Child Pornography. Chief United States District Judge Thomas O. Rice sentenced Butler to an eighteen-year term of imprisonment, to be followed by a twenty-year term of court supervision after he is released from Federal prison. Upon release from prison, Butler will be required to register as a Sex Offender for the rest of his life.
According to facts disclosed during court proceedings, in the early morning of July 21, 2016, Butler threw multiple Molotov cocktails (glass beer bottles filled with gasoline and lit with a wick) at a residence occupied by his former girlfriend and four other people in Spokane, Washington. One Molotov cocktail broke a window and ignited a small fire in the residence, but Spokane Police Department officers quickly arrived and extinguished it. A Spokane Fire Department Arson Investigator recovered burned, broken, and unbroken Molotov cocktails at the scene. Investigators determined that Butler sent threatening messages to at least one of the residents the day before, and identified him as a suspect. One resident told investigators that the Molotov cocktail and ensuing fire caused her to fear for her life and the lives of other occupants.
Later that day, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agents determined that Butler had outstanding arrest warrants from Broward County, Florida. The United States Marshals Service Fugitive Task Force developed information that Butler was in the Moses Lake, Washington area, and arrested him. Butler admitted making six Molotov cocktails in a hotel room in Ritzville, Washington, and then driving to Idaho and the Spokane residence of his former girlfriend, where he lit and threw the Molotov cocktails. When arrested, Butler also possessed a smartphone containing multiple images of child pornography as defined by federal law.
United States Attorney Harrington said, “Butler is a dangerous and violent criminal. The crimes he committed could have resulted in tragic deaths and injuries. The Court’s sentence will protect the community, punish Butler, and deter others who might consider committing similar crimes in our community. Ultimately, the positive resolution of this case demonstrates the essential partnerships between federal, state and local law enforcement that keep our community safe. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively and seek appropriate punishment for violent crimes and child pornography offenses.”
Darek G. Pleasants, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Seattle Field Division, said, “The investigation and conviction of Butler is a reflection of a successful joint investigation with state and federal partners. The Bureau of Alcohol, Tobacco, Firearms and Explosives remains committed to partnering with our local, state, and federal agencies and the United States Attorney’s Office to investigate violent crime. This case demonstrates the success that law enforcement agencies can have when focusing on violent criminals and child predators.”
Brian Schaeffer, Fire Chief, Spokane Fire Department, said, “The Spokane Fire Department is extremely thankful to the Bureau of Alcohol, Tobacco, Firearms and Explosives, for their leadership and expertise in this case and throughout our long partnership. A case with this high level of legal complexity and with so many jurisdictional boundaries clearly demonstrates the importance of the collaboration between the Spokane Fire Department and our Federal partners. I firmly believe that all law and fire agencies should continue to collaborate and share expertise in order to have similar results as Mr. Butler’s conviction.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Marshals Service; Spokane Police Department Domestic Violence Unit; and, Spokane Fire Department Special Investigations Unit. The case was prosecuted by James A. Goeke, an Assistant U.S. Attorney for the Eastern District of Washington.
Man Sentenced to 36 Months for Conspiracy to Possess with the intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – Stephen Bernier, 53, of St. Croix, was sentenced today for conspiracy to possess with the intent to distribute marijuana, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Bernier to 36 months in prison, followed by three years of supervised release, and ordered him to pay a $100 special assessment and perform 300 hours of community service.
On November 3, 2017, Bernier pleaded guilty to conspiracy to possess with the intent to distribute marijuana. According to documents filed in court, between January 10, 2016 and March 8, 2017, Bernier and other co-conspirators possessed and distributed approximately 140 kilograms of marijuana through the United States Postal Service.
The case was investigated by the United States Postal Inspection Service and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Los Angeles man guilty of drug traffickingRead the Press Release
ELKINS, WEST VIRGINIA – ELKINS, WEST VIRGINIA – A federal jury sitting in Elkins found Cesar Navarro, of Los Angeles, California, guilty of conspiracy to distribute methamphetamine and other counts for mailing methamphetamine through the U.S. mail, United States Attorney Bill Powell announced.
After less than two hours of jury deliberations, Navarro, age 39, was found guilty of one count of “Conspiracy to Distribute More than 50 Grams of Methamphetamine,” two counts of “Unlawful Use of Communication Facility,” and two counts of “Distribution of Methamphetamine.”
Navarro often mailed at least one pound of crystal methamphetamine at a time to drug dealers in Grant and Hardy Counties and in Frederick County, Virginia, in exchange for large amounts of cash. Over a period of two years, Navarro was responsible for trafficking into West Virginia approximately fifty pounds of highly pure crystal methamphetamine.
“Methamphetamine distribution is an increasing threat to the communities in the district. We will not waiver in our commitment to prosecute these offenses to the fullest extent of the law. I greatly appreciate the hard work of our trial team and all of the law enforcement agencies which led to the guilty verdicts,” said Powell.
Navarro faces up to life in prison and a $4,000,000 fine for the conspiracy count, up to four years incarceration and a fine of up to $30,000 for each of the communication counts, and faces up to 20 years incarceration and a fine of up to $1,000,000 for the each of the distribution counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Stephen Warner and Andrew R. Cogar prosecuted the case on behalf of the government. The United States Postal Inspection Service, The West Virginia State Police Bureau of Criminal Investigations, and the Frederick County, Virginia Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Lockport Woman Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy Jr. announced today that Kathyln Ventura, 25, of Lockport, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that in late December 2014, the defendant became a drug runner for Oliver Kimmons, who is named in a separate indictment on charges of narcotics distribution and human sex trafficking. Ventura drove Kimmons’s vehicle to conduct drug deals on his behalf.
On January 21, 2015, the defendant sold crack cocaine to a confidential source working for the DEA. On January 30, 2015, the defendant met with an individual identified as H.C. at a bowling alley in Lockport, New York and sold drugs to H.C. H.C. died hours later from a fentanyl overdose.
On February 12, 2015, the Niagara County Drug Task Force executed a New York State search warrant on Kimmons’s car which Kimmons was driving. The defendant was a passenger. Law enforcement officers seized fentanyl from inside the car. Kimmons and Ventura were arrested.
On March 4, 2015, a DEA confidential source again bought crack cocaine as well as heroin from the defendant.Charges are pending against Oliver Kimmons. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Lockport Police Department, under the direction of Chief Michael Niethe, and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
Sentencing is scheduled for June 7, 2018, at 11:30 a.m. before Judge Geraci.
Leavitt Pleads Guilty to Wire Fraud, Money Laundering in Connection with Affinity Fraud SchemeRead the Press Release
SALT LAKE CITY -- Ronald Wayne Leavitt, age 61, of Stansbury Park, Utah, who targeted friends, members of his church, and some of their relatives in a fraud scheme, pleaded guilty to wire fraud and money laundering in connection with the affinity fraud scheme Wednesday in federal court.
The plea agreement includes a stipulated sentence of 36 months in federal prison, which is subject to the approval and acceptance of the Court. Leavitt agreed that the total loss amount for the fraud was $679,420.55. He returned $160,000 of the money he obtained by fraud to three of the victims. He has agreed to pay $519,420.55 in restitution as a part of the plea agreement. U.S. Magistrate Judge Brooke Wells took the change of plea Wednesday. Sentencing in the case is set for June 4, 2018, before U.S. District Judge David Nuffer.
In a court document filed as a part of the plea agreement, Leavitt acknowledged that he told a variety of lies to friends and neighbors to get them to invest in his schemes. He told some that he owned several limousines while telling others he was the executor of large trust fund and that he owned property worth millions of dollars. He also told some victims he had inherited millions of dollars from his parents. He also told victims that the investment opportunity was limited and, if they were lucky, he could get them a spot in the investment. He told others victims that an investor had pulled out and, although other investors would be upset, he would allow them to invest and make it work.
After gaining their trust, Leavitt admitted he convinced several individuals to invest in one of three different ventures. Leavitt pitched a real estate venture in California, a high-end real estate development venture in Moab called Hidden Mesa, and a sugar substitute start-up company.
According to documents filed as a part of the plea agreement, Leavitt admitted that the real estate venture in California was an investment he fabricated.
The Hidden Mesa real estate development venture was an idea that Leavitt had discussed with an individual who had purchased land in Moab. This individual discussed with Leavitt the possibility of developing the land and talked with Leavitt about seeking investors for the project. However, without this individual’s knowledge, Leavitt used the concept of the venture to pitch the investment opportunity to some of his neighbors and some of their family members, eventually persuading some of them to invest in the venture. He promised them returns as large as 300 percent within 60 to 90 days. Leavitt admitted that once they made an investment in the project, he never provided any of that money to the individual who had purchased the land in Moab.
The sugar substitute start-up company is an actual company that Leavitt’s brother was involved in. Leavitt had talked with his brother and another individual about trying to find investors. As a part of his scheme to defraud, Leavitt admitted he convinced individuals to invest in the company. Once they did, he did not inform the company of their investment or give them the money. Like the other two ventures, Leavitt admitted he kept the funds for himself and spent them.
Leavitt admitted at the plea hearing Wednesday that he spent the majority of the money he took from victims of the fraud schemes rather than investing it in anything.
Special agents of the FBI and members of its Financial Crimes Task Force are investigating the case. An IRS Criminal Investigation agent, assigned to the task force, is also investigating the case. It is being prosecuted by the U.S. Attorney’ Office in Salt Lake City.
Leader of Cocaine Trafficking Organization Sentenced to 135 Months in PrisonRead the Press Release
COLUMBUS – William M. Totten, 55, of Canal Winchester, Ohio was sentenced in U.S. District Court today to serve 125 months in prison for leading a drug trafficking organization in central Ohio that distributed more than 20 kilograms of cocaine. Totten and four others were charged following a cooperative investigation by federal, state and local law enforcement in Columbus and Franklin County, Ohio.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the sentence imposed today by U.S. District Judge Michael H. Watson.
According to court documents, Totten used a residence in Columbus and his residence in Canal Winchester to store narcotics and to conduct cocaine transactions. During a search warrant conducted at Totten’s residence when agents arrested him on December 6, 2013, investigators found 10 plastic wrapped packages, each containing two kilograms of cocaine powder, concealed in the basement. Agents also seized additional cocaine and kilogram-sized wrappers with residue.
Totten pleaded guilty on September 5, 2014 to one count of conspiracy to distribute more than five kilograms of cocaine and one count of money laundering.
Totten agreed to forfeit the proceeds of the drug activity, which include nearly $95,000 in cash, jewelry and three real properties.
U.S. Attorney Glassman commended the cooperative investigation by the IRS, FBI, Columbus Division of Police and Franklin County Sheriff’s Office, as well as the cooperation of the DEA, which provided information vital to the investigation, and Assistant U.S. Attorney Kevin Kelley, who represented the United States in the case.
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Laurel County Man Sentenced to 20 Years for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — Dustin Higginbotham, 33, of London, Ky., was sentenced Tuesday to 20 years in prison, by United States District Judge Gregory F. Van Tatenhove, for possession with the intent to distribute methamphetamine.
Higginbotham pleaded guilty to the charges in July of 2017. During his guilty plea, Higginbotham admitted that he had possessed more 50 grams of actual methamphetamine that he intended to distribute. These charges were related to the execution of a search warrant at Higginbotham’s residence, during which law enforcement officers recovered 564.6 grams of 100% pure methamphetamine.
Under federal law, Higginbotham must serve 85 percent of his prison sentence; and upon release, he will be under the supervision of the United States Probation Office for 10 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Chris Evans, Special Agent in Charge, Drug Enforcement Administration; John Root, Laurel County Sheriff, and Wayne Bird, Williamsburg Chief of Police, jointly made the announcement.
The DEA Task Force – London, the Laurel County Sheriff’s Office, and the Williamsburg Police Department, conducted the investigation. Assistant United States Attorney Andrew Trimble represented the United States.
Las Vegas Man Convicted of Armed Jewelry Store RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was found guilty by a jury yesterday for robbing two jewelry store employees at gunpoint and stealing more than $450,000 in cash and jewelry, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Following a four-day trial, Joshua Sadat Washington, 37, was found guilty of one count of interference with commerce by robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of transportation of stolen goods. United States District Judge Jennifer A. Dorsey scheduled sentencing for June 11, 2018. At the time of sentencing, Washington faces the statutory maximum penalty of 20 years in prison. The firearms charge carries a mandatory minimum sentence of seven years which must run consecutively to any other sentence imposed.
According to the indictment and other court documents, on August 13, 2016, Washington and co-defendant Fedel Ezekiel Sakers, who was armed with a handgun, stole cash and jewelry from Alfredo’s Jewelry in Las Vegas. The day of the robbery, Washington mailed some of the stolen jewelry to Miami, Florida. The remaining jewelry was mailed by Washington the day after the robbery. A total of approximately $471,000 in cash and jewelry were stolen in the robbery.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department.
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Lackawanna Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that James R. Duncan, 52, of Lackawanna, NY, who was convicted of conspiring to distribute 50 grams or more of methamphetamine, was sentenced to 165 months in prison by Chief U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that Lackawanna Police executed a search warrant at the defendant’s residence on Roland Avenue. Officers recovered methamphetamine, cocaine, hydrocodone, and approximately $53,000 in United States currency.
A co-defendant, Susan Dietrich, has also been convicted.
The sentencing is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Kmart Corporation Pays $525,000 to Settle False Claims Act Allegations of Improper Medi-Cal BillingsRead the Press Release
SACRAMENTO, Calif. — Kmart Corporation has paid $525,000 to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney McGregor W. Scott announced today.
Kmart is an Illinois corporation that provides pharmacy services in several states with approximately a half dozen locations in California over the relevant time period. The Medi-Cal program is administered by the California Department of Health Care Services (DHCS) and relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.
Medi-Cal utilizes a formulary list, commonly known as “Code 1” drugs, which designates certain restrictions for each listed drug, including restrictions pertaining to diagnoses. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. Kmart may bill for drugs prescribed outside of the approved diagnoses only if it submits a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Kmart failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for non-approved diagnoses, then knowingly billed Medi-Cal for these prescriptions.
The allegations resolved by this settlement were first raised in a lawsuit filed against Kmart under the qui tam, or whistleblower, provisions of the False Claims Act by a pharmacist who worked as Pharmacist in Charge at a California Kmart location. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $96,500 of the recovery proceeds.
This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Bureau of Medicaid Fraud and Elder Abuse. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States, with assistance from the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Kentucky Defendants Prosecuted as Part of Nationwide TakedownRead the Press Release
Lexington defendants charged with drug trafficking, money laundering offenses
SAN DIEGO and LEXINGTON, Ky. – Multiple indictments were unsealed today, in San Diego federal court, charging more than 40 members of an international scheme with conspiring to launder millions of dollars in illegal drug proceeds. These indictments are part of a nationwide takedown stemming from a multi-year investigation led by the FBI San Diego Cross Border Violence Task Force and other federal, state, and local law enforcement agencies.
In addition to the federal indictments unsealed today in San Diego, dozens of additional defendants have been charged across the United States related to the investigation. Those include defendants charged in the Southern District of Ohio, the Eastern District of Kentucky, the District of Kansas, and the Eastern District of Washington.
Shontail M. Hocker, 42, of Lexington, Ky., was charged in U.S. District Court for the Southern District of California with conspiring to commit money laundering based on her involvement with individuals implicated in the San Diego investigation. According to the indictment filed in San Diego, Hocker conspired with others to transport drug proceeds, to promote drug trafficking activity and to conceal the nature and ownership of the drug proceeds. If convicted, Hocker faces up to 20 years imprisonment. The indictment against Hocker is an accusation only, and she is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Based on investigations into Hocker’s money laundering activities, law enforcement developed information related to drug trafficking activities occurring in the Eastern District of Kentucky. Multiple law enforcement agencies partnered to conduct the investigations.
On May 18, 2017, the Lexington Police Department and the Kentucky State Police, in coordination with FBI, stopped a Jeep Cherokee towing a trailer. A search of the trailer revealed six kilograms of cocaine. Officers and agents arrested the occupants of the Jeep, Gerardo Mejia-Palacio and Hector Salas-Pina, both from Phoenix. Mejia-Palacio and Salas-Pina were charged in U.S. District Court for the Eastern District of Kentucky with drug trafficking crimes. Further investigation revealed that Mejia-Palacio and Salas-Pina conspired with Ansar I. McIver, and others, to distribute controlled substances in Lexington. On June 12, 2017, FBI, the Kentucky State Police, and the Lexington Police Department executed a federal search warrant at McIver’s residence. During the course of that search, agents seized $586,000 cash, approximately 750 grams of fentanyl and over 100 grams of cocaine. McIver was subsequently charged in federal court with conspiracies to distribute controlled substances and commit money laundering.
On September 15, 2017, Mejia-Palacio pleaded guilty to possession with the intent to distribute five kilograms or more of cocaine. His sentencing is scheduled for May 18, 2018. Mejia-Palacio faces not less than 10 years in federal prison.
On January 24, 2018, McIver pleaded guilty to conspiring to distribute 5 kilograms or more of cocaine, 400 grams or more of fentanyl, and 1,000 grams or more of heroin. McIver also pleaded guilty to conspiring to commit money laundering and agreed to forfeit the $586,000 in cash. In his plea agreement, McIver admitted he has a prior federal felony drug conviction. McIver’s sentencing is scheduled for May 25, 2018. He faces a prison sentence of not less than 20 years.
On February 5, 2018, Salas-Pina was found guilty by a jury of a conspiracy to distribute controlled substances (5 kilograms or more of cocaine; 400 grams or more of fentanyl; and 1,000 grams or more of heroin) and possession with intent to distribute five kilograms or more of cocaine. Salas-Pina also pleaded guilty to unlawful reentry, after having been deported following a conviction for an aggravated felony offense. Salas-Pina’s sentencing is scheduled for May 18, 2018. He faces not less than 10 years in federal prison.
“Through cooperative efforts, law enforcement personnel disrupted significant drug trafficking operations in Kentucky,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “McIver, Salas-Pina, and Mejia-Palacio were involved in distributing large amounts of deadly drugs, including fentanyl, in our community. Due to the cooperation of several federal, state, and local law enforcement agencies, large quantities of deadly drugs were removed from our streets and likely saved many lives. I commend our law enforcement partners for their tremendous cooperation and effort.”
The Court will impose any sentences for McIver, Salas-Pina, and Mejia-Palacio after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
In addition to the money laundering charges from San Diego, Hocker is also facing federal drug trafficking charges in Lexington. On February 9, 2018, DEA and the Kentucky State Police arrested Hocker, David Morris, and Kim Davis. Then, on March 1, 2018, a federal grand jury returned an indictment against Hocker, Morris, and Davis, charging them with conspiring to distribute five kilograms or more of cocaine, and possessing 500 grams or more of cocaine with intent to distribute it, for conduct alleged to have occurred in Shelby County, Kentucky. Hocker was also charged with possessing fentanyl with intent to distribute it. The indictment also seeks the forfeiture of $105,880 in cash. Hocker, Morris, and Davis each face imprisonment for not less than 10 years on the cocaine conspiracy charge.
Hocker, Morris, and Davis are scheduled to be arraigned on these charges on March 8, 2018, in United States District Court in Lexington.
United States Attorney Duncan; Amy Hess, Special Agent in Charge, FBI Louisville; Chris Evans, Special Agent in Charge, DEA Louisville; Richard Sanders, Commissioner Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Kentucky State Police, and Lexington Police Department conducted the investigations in the Eastern District of Kentucky. Assistant United States Attorneys Gary Todd Bradbury and Roger W. West represent the United States in the cases in the Eastern District of Kentucky.
The cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Jefferson County man admits to firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Tyler Hall, of Ranson, West Virginia has admitted to a firearm charge, United States Attorney Bill Powell announced.
Hall, age 26, pled guilty to one count of “Drug User in Possession of a Firearm – Aiding and Abetting.” Hall admits to illegally possessing a Taurus 38 Special handgun. The crime occurred in September 2015 in Jefferson County.
Hall faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Jamestown Man Indicted on Multiple Counts of Enticement, Child Sex Trafficking, and Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 14-count indictment charging James A. Chapman, a/k/a Fatz Guy, a/k/a Perverted Doe, 37, of Jamestown, NY, with enticement of a minor; sex trafficking of a minor; production, distribution, possession, and receipt of child pornography; and making a false statement. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment, between November 24 and November 25, 2014, the defendant attempted to coerce a minor to engage in prostitution and sexual activity. On those same dates, Chapman recruited two minor victims (Victim 1 and Victim 2) to engage in a commercial sex act. In addition, the defendant is accused of producing a visual depiction of their encounter. On multiple occasions between December 14, 2016, and April 7, 2017, Chapman distributed an image of child pornography depicting Victims 1 and 2.
On April 7, 2017, Chapman coerced a third minor victim (Victim 3) to engage in sexually explicit conduct for the purpose of producing a visual depiction. The defendant also received, possessed and distributed child pornography depicting Victim 3.
The indictment further states that on January 24, 2018, the defendant made a false statement to a Special Agent of the Federal Bureau of Investigation claiming that he thought Victim 1 and Victim 2 were 18 years-old, when in truth and in fact, Chapman knew they were minors. In addition, the defendant possessed images of child pornography on his cellular telephone and social media account.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing on March 12, 2018, at 11:30 a.m.
Anyone with information about James Chapman's, a/k/a Fatz Guy, a/k/a Perverted Doe, contact with minors is urged to call the FBI Buffalo office at 716-856-7800 and to press zero (0) and to ask to speak with an agent about James Chapman.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Investment Adviser Convicted of Defrauding InvestorsRead the Press Release
Earlier today, following a four-day trial, Louis F. Petrossi, the founder and president of the Wealth Research Institute, a purported investment research firm, was convicted by a federal jury in the Middle District of Pennsylvania, of securities fraud, investment adviser fraud and wire fraud for his role in a scheme to defraud investors. Petrossi falsely claimed to investors that money they had invested in purported investment funds called Chadwicke would be used to invest in startup companies. Instead, the defendant used the investors’ money to pay for personal expenses, and he issued fraudulent statements that overstated both the cost and value of the securities held by Chadwicke.
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 Division (FBI), announced the verdict. Mr. Donoghue expressed his appreciation to the United States Attorney’s Office for the Middle District of Pennsylvania for their assistance with the case.
The evidence at trial established that between January 2015 and January 2017, Petrossi solicited more than $1.8 million in investments in one of the Chadwicke funds from more than 25 investors, including one who resides in the Middle District of Pennsylvania. Petrossi promoted Chadwicke as providing the opportunity to invest in high-profile startup 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 payment of 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 sitting 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 when he is sentenced by United States Chief District Judge Christopher C. 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.
The government’s case is being prosecuted by 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.
The Defendant:
LOUIS F. PETROSSI
Age: 77
Residence: Reno, NevadaM.D.P.A. Docket No. 17-CR-192 (CCC)
Illegal Alien Sentenced for Unlawful Reentry and Possession of a FirearmRead the Press Release
KNOXVILLE, Tenn. - On March 7, 2018, Ludwin Leonel Monterroso-Lemus, a/k/a Ludwid Lemus, 31, a native of Guatemala most recently residing in Lenoir City, Tennessee, was sentenced by the Honorable Pamela Reeves, U.S. District Judge, to serve 24 months in prison.
Monterroso-Lemus pleaded guilty in October 2017 to a three-count indictment charging him with illegally reentering the United States after being deported and illegally possessing a firearm and ammunition.
According to documents on file with the U.S. District Court, Monterroso-Lemus, a native of Guatamala, was deported from the United States near Hidalgo, Texas, in May 2010, by the U.S. Department of Homeland Security. He reentered the United States without the consent of Homeland Security and was arrested in Lenoir City, Tennessee in June 2017, after officers responded to a shots fired report. At the time of his arrest, he was in possession of a firearm and ammunition. Monterroso-Lemus admitted to discharging the firearm after a dispute with three males.
“This case emphasizes the commitment of the U.S. Attorney’s Office to enforcing immigration laws and reducing violent crime, two top priorities of the Department of Justice and Attorney General Jeff Sessions,” said U.S. Attorney J. Douglas Overbey.
Agencies involved in the investigation of this case include the Lenoir City Police Department and U.S. Department of Homeland Security Investigations. Assistant U.S. Attorney Bart Slabbekorn represented the United States during court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Illegal Alien Sentenced for Trafficking in Counterfeit Identity Documents and Alleged Document Producer ArrestedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Gerard Ibarra (57, Mexico) to 10 months in federal prison for fraud and misuse of visas, permits, and other documents. The court also ordered him to forfeit $5,752, which is traceable to proceeds of the offense. Ibarra pleaded guilty on September 25, 2017.
According to court documents, in May 2017, the U.S. Secret Service (USSS) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) received information from local law enforcement about an individual known as “Perfume Cuco” (later determined to be Ibarra) who was selling fraudulent identification documents to illegal immigrants in Kissimmee. These documents were being sold for $150 to $200 a piece, and included immigrant visas (i.e., “Green Cards”), social security cards, and Florida driver licenses. Agents from HSI and the USSS conducted an undercover investigation during which Ibarra sold a counterfeit Green Card and a counterfeit social security card to an undercover agent. Ibarra was arrested on August 16, 2017, following a second undercover purchase. A subsequent search of his vehicle revealed 10 counterfeit Green Cards, 21 counterfeit social security cards, a counterfeit California driver license and $5,752 in cash. Ibarra later told agents that he had been selling counterfeit cards for about two years and that “business was good.” He estimated that he had sold approximately 2,000 cards.
Further investigation revealed that an individual named “Jimmy,” later identified as Jaime Gaspar (37, Kissimmee), had been supplying the counterfeit cards to Ibarra. On March 7, 2018, Gaspar was arrested and charged by criminal complaint for his involvement in the scheme.
According to court records, Ibarra sent photos and biographic information to Gaspar using a cellphone app. Upon Gaspar’s arrest, agents located his cellphone in his room and confirmed it was the same phone used to perpetuate the fraud with Ibarra.
“HSI places a high priority on investigating document and benefit fraud,” said HSI Tampa Special Agent in Charge James C. Spero. “This crime poses a threat to national security and public safety because it creates a vulnerability that may enable criminals and illegal aliens to gain entry to and remain in the United States.”
“The results of this investigation are a testament to the Secret Service’s commitment to strong partnerships between local and federal law enforcement agencies,” said Gerard Doret, Special Agent in Charge of the U.S. Secret Service Orlando Field Office.
A criminal complaint 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 Homeland Security Investigations and the U.S. Secret Service as result of HSI’s Document and Benefit Fraud Task Force (DBFTF), which was created to combat visa fraud and other similar crimes by building upon existing partnerships with other federal and state law enforcement investigators with document and benefit fraud expertise. It was prosecuted by Special Assistant U.S. Attorney Christina R. Downes, who is on assignment from the Office of the Principal Legal Advisor, ICE.
Illegal Alien Pleads Guilty to Re-entering United States After Previous Felony ConvictionRead the Press Release
Gulfport, Miss. – Oscar Alfredo Burgon-Urrea, 39, a citizen of Honduras, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr., to unlawful re-entry by a removed alien previously convicted of a felony, announced U.S. Attorney Mike Hurst and David Rivera, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) in New Orleans.
Burgon-Urrea is scheduled to be sentenced by Judge Guirola on June 5, 2018. He faces a maximum penalty of ten years in prison and a $250,000 fine.
On December 4, 2017, during Department of Homeland Security criminal alien program duties at the Jackson County Adult Detention Center, an ICE Deportation Officer arrested Burgon-Urrea, who was being held by local officials for public drunkenness after Moss Point police officers found him by the side of Interstate 10 in an intoxicated condition.
Further investigation revealed that Burgon-Urrea had been lawfully removed from the United States in 2005, and had illegally re-entered the United States on six subsequent occasions. In 2011, he was convicted in the U.S. District Court for the Western District of Texas of re-entry by a deported alien, a felony. He had been known by multiple variations of his name including Oscar Alfredo Burgos-Urrea, Oscar Alredo Burgos Ureea, Oscar Alfredo Burgos, Oscar Burgos and Oscar Alfredo.
"ERO is committed to pursuing and apprehending those who choose to violate our immigration laws," said ICE ERO Field Office Director David Rivera, "ERO will continue to work with our law enforcement partners to ensure criminal aliens are arrested and removed."
The case was investigated by U.S. Immigration and Customs Enforcement, the Moss Point Police Department, and the Jackson County Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorney Stan Harris.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that EDY GARCIA-BANEGAS, age 32, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien after deportation, in violation of Title 8, United States Code, Section 1326.
According to the Bill of Information, EDY GARCIA-BANEGAS reentered the United States on or about December 14, 2017, after having been previously removed therefrom on or about January 6, 2012.
EDY GARCIA-BANEGAS faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for April 18, 2018.
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 Irene González is in charge of the prosecution.
Hayward Resident Sentenced to Two Years in Prison for Making Harassing and Obscene Telephone Calls to Law Enforcement Agencies WorldwideRead the Press Release
OAKLAND– Sammy Sultan was sentenced to two years in prison for making hundreds of obscene and harassing phone calls to law enforcement agencies, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Phyllis J. Hamilton, Chief U.S. District Judge, handed down the sentence yesterday, after Sultan entered a guilty plea on December 13, 2017.
According to his plea agreement, from February 2015 through September 2017, Sultan, 44, of Hayward, Calif., admitted he made hundreds of obscene or harassing phone calls to various law enforcement agencies throughout the United States and abroad, including Canada and Great Britain. He typically requested to speak with a female officer or sergeant. Sultan further admitted that he made a variety of false claims to convince officers that he was a threat to others or himself; he did so, in part, to engage the female officers in protracted conversations. Sultan admitted that he sometimes would claim to have escaped from a mental hospital and that he might harm himself or others if the person on the other end of the line refused to answer his questions. He sometimes claimed he possessed a handgun, an AK-47, or an automatic rifle. At times, he claimed he had a women hostage.
Sultan also admitted he took several steps to conceal his identity. He acknowledged he did not disclose his identity during the calls and refused to inform the persons he called of his identity when asked. Sultan also admitted he knew his calls would result in extensive efforts by law enforcement officers, in the United States and abroad, to trace the calls and try to identify him, his location, and the location and identity of any hostage. In an effort to avoid being detected, he used a variety of different phones and routed calls over the internet using Voice Over Internet Protocol (“VOIP”) technology and “spoofing” services to create “burner” phone numbers so that the actual phone numbers for his phones would be concealed. He also admitted he knew his actions would result in a substantial disruption of public, governmental, and business functions.
On November 21, 2017, Sultan was charged by information with one count of making obscene or harassing telephone calls, in violation of 47 U.S.C. § 223(a)(1)(C), and one count of making threatening interstate communications, in violation of 18 U.S.C. § 875(c). Pursuant to his plea agreement, Sultan pleaded guilty to making obscene or harassing calls and the threat charge was dismissed.
In addition to the prison term, Chief District Judge Hamilton also ordered Sultan to serve a year of supervised release following his incarceration, during which time he has been ordered to enroll in a computer monitoring program and participate in mental health counseling. Sultan has been in custody since September 12, 2017, and will begin serving his sentence immediately.
Assistant U.S. Attorney Thomas Green is prosecuting the case. The prosecution is the result of an investigation by the FBI.
Gunsmoke Gun Shop Owner Sentenced to 78 Months for Conspiracy and Tax FraudRead the Press Release
DENVER – Richard Wyatt, age 54, of Evergreen, Colorado was sentenced today by U.S. District Court Chief Judge Marcia S. Krieger to serve 78 months in prison followed by three years of supervised release for conspiracy to deal in firearms without a license and for tax fraud, announced United States Attorney Bob Troyer, IRS-Criminal Investigation (IRS-CI) Denver Field Office Special Agent in Charge Steven Osborne, and Bureau of Alcohol, Tobacco, Firearms, and Explosives Denver Field Division Special Agent in Charge Debora Livingston. As part of today’s sentencing, the Court found that 490 firearms were involved in the commission of Wyatt’s offenses. Those firearms were ordered forfeited. The amount of restitution to the Internal Revenue Service will be determined at a future hearing.
According to the indictment and evidence presented at trial, Wyatt operated Gunsmoke, a store in Wheat Ridge, Colorado, displaying firearms and firearm accessories for sale. Wyatt was the principal decision maker for the store and controlled the store’s bank account. In addition to holding itself out as a business that bought and sold firearms, Gunsmoke provided gunsmithing services. Wyatt aggressively publicized his business by posting videos on YouTube and by appearing in a reality television series that appeared on the Discovery Channel. The reality TV show aired from 2011 through 2012, showing a total of 26 episodes.
In April 2012, Wyatt surrendered Gunsmoke’s federal firearms license due to violations of federal laws and regulations. After Gunsmoke surrendered its federal firearms license, Gunsmoke changed the address of the federal firearms license of another store known as Triggers Firearms LLC’s (Triggers) to the Gunsmoke address, but did not play any role in managing the store or receive any profits. Thereafter, Wyatt continued to operate Gunsmoke as a retail firearms store that also offered gunsmithing services, but Wyatt never held an ownership interest in Triggers or assumed management of Triggers. Wyatt and other conspirators submitted false paperwork to the ATF to hide that Triggers was acting as a straw licensee for Gunsmoke.
Without a federal firearms license, Wyatt ran his business by directing Gunsmoke employees to enter firearm sales in Gunsmoke’s computer point of sales software system as “miscellaneous” sales rather than firearm sales. Customers who shopped at Gunsmoke were able to look at numerous firearms that were displayed throughout the store. Customers were able to speak with Gunsmoke employees, including Wyatt, about the features of particular firearms. Finally, customers selected and purchased firearms from Gunsmoke and were able to have gunsmithing services performed on firearms at the Gunsmoke premises. After receiving payment for firearms, Gunsmoke employees directed customers to another firearms store which had a valid federal firearms license, where the customers filled out the background check paperwork and the customers took possession of the firearm(s) they had purchased at Gunsmoke. Customers who wanted gunsmithing services left their firearms with Gunsmoke. After the gunsmiths at Gunsmoke completed their work, they returned the firearms to the customers. The customers paid Gunsmoke directly for this service. Wyatt, without the federal firearms license, continued to order new guns for sale to keep the business going.
After a 3-week jury trial last year, a Denver jury convicted Wyatt of two counts of conspiracy of dealing in firearms without a license, filing a false tax return, and multiple counts of failure to file. Specifically, Wyatt failed to pay over $500,000 in income tax for years 2009-2012, and did not file tax returns for years 2009, 2010 and 2012. For 2011, Wyatt willfully filed a tax return he knew to be false, stating that he lost money, when in fact he made at least $350,000 that he failed to disclose.
“A man has to make a choice, and Wyatt chose wrong,” said U.S. Attorney Bob Troyer. “Unless your ambition is to serve a long sentence in the Federal Bureau of Prisons, selling guns illegally and cheating on your taxes are going to be bad choices.”
“Even television reality stars are not exempt from the reality of our nation’s tax laws,” said Internal Revenue Service Criminal Investigation Denver Field Office Special Agent in Charge Steve Osborne. “IRS-CI will continue focusing our investigative efforts on individuals who attempt to thwart their tax responsibilities and do not comply with the law. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
“Wyatt’s willingness to operate outside of the law is not only an affront to public safety, but also to all Federal Firearms Licensees that follow federal firearm laws and regulations every day,” said Special Agent in Charge Debora Livingston of the Denver Field Division for the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “The sentence today demonstrates that ATF will investigate those who attempt to circumvent those laws and regulations.”
This case was investigated by IRS-CI and ATF. The case was prosecuted by Assistant United States Attorneys Suneeta Hazra, Peter McNeilly, and Anna Edgar. Assistant United States Attorney Tonya Andrews is handling the forfeiture of assets associated with the case.
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Gulfport Man Sentenced to Almost Nine Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Tony D. Crawford, 24, of Gulfport, was sentenced by U.S. District Judge Sul Ozerden today to serve 105 months in federal prison followed by three years supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. He was also ordered to pay a $5,000 fine.
Crawford pled guilty on April 20, 2017, to possession of a Ruger 9 mm pistol, a Drago, 7.62 caliber pistol, a Taurus 9 mm pistol, and a Hi-Point .45 caliber rifle. He admitted that he unlawfully possessed at least some of the firearms when he was conducting narcotics trafficking.
Crawford had purchased three of the firearms through straw purchasers, that is, people without felony criminal records who purchased one or more firearms from a legal firearms dealer and then resold to Crawford.
One of those straw purchasers, Isaac Q. Coleman, pled guilty to knowingly making a false statement in connection with the purchase of a firearm. Following his guilty plea and conviction, Coleman was sentenced by Judge Ozerden to serve seven months in federal prison and five months of home confinement, followed by two years of supervised release. He was also ordered to pay a $3,500.00 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Department, along with the City of Biloxi, City of D’Iberville, City of Gulfport and City of Pass Christian Police Departments. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Ghanaian National Arrested for Identity TheftRead the Press Release
BOSTON - A Ghanaian national was arrested yesterday and charged in federal court in Worcester with illegal possession of identification documents and aggravated identity theft.
Yaw Okyere, 33, a citizen of Ghana residing in Worcester, was charged by criminal complaint with being illegally in possession of five or more identification documents and aggravated identity theft. Okyere appeared before Chief U.S. Magistrate Judge David H. Hennessy, who ordered Okyere detained pending a probable cause and detention hearing scheduled for March 13, 2018.
According to court documents, on March 7, 2018, federal agents executed a search warrant at Okyere’s apartment in Worcester, where they seized computers and a printer. An initial forensic review of one of the computers revealed files containing more than 190 Massachusetts driver’s licenses with various names and photographs.
During the execution of the search warrant, agents interviewed Okyere, who stated that he was a citizen of Ghana, had arrived in the United States a few years earlier on a visa, that he had overstayed his visa, and was unsure of his immigration status.
The charge of illegally possessing five or more identification documents provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison, which must be served consecutive to any other sentence imposed by the sentencing court. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit 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.
Gardnerville Man Arrested and Indicted for Butane Hash Oil ExplosionRead the Press Release
RENO, Nev. – A Gardnerville, Nevada, man was arrested and made his initial appearance in federal court today for causing an explosion at his apartment while trying to illegally make butane hash oil, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Adam Fitzgerald-Wermes, 22, is charged with one count of endangering human life while manufacturing a controlled substance. United States District Magistrate Judge Valerie P. Cooke scheduled a jury trial to begin on May 8, 2018.
According to the indictment, on January 14, 2018, Fitzgerald-Wermes allegedly caused an explosion in his kitchen by trying to make butane hash oil containing a high potency of THC (tetrahydrocannabinol). The chemical extraction process is dangerous because it involves the use of butane, a highly flammable and odorless gas, to burn parts of marijuana to draw concentrated THC from the plant into a wax-like substance. THC is a psychoactive chemical in marijuana that produces the “high” feeling users seek.
If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the DEA and Douglas County Sheriff’s Office. Assistant U.S. Attorney James Keller is prosecuting the case.
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Franklin County Couple Pleads Guilty to Removing Aluminum Braces from Railroad CarsRead the Press Release
St. Louis, MO – Jacob C. Brewer and Michelle L. Phipps pled guilty to removing aluminum stabilizing braces from railroad cars.
According to court documents, between February 1 and February 22, 2017, Brewer and Phipps disabled railroad on-track equipment by removing aluminum stabilizing braces from railroad freight cars. The braces are designed to keep the freight cars from derailing when fully loaded and moving. The railroad freight cars are owned by Ameren UE and were used to transport coal from the State of Wyoming to the State of Missouri. The couple later sold the aluminum braces to local recycling centers.
Brewer, 30, from Beaufort, Missouri, and Phipps, 27, from Washington, Missouri, both pled guilty to one felony count of disabling on-track railroad equipment. They appeared in federal court today before United States District Judge Stephen N. Limbaugh, Jr. Sentencing has been set for June 6, 2018.
This charge carries a maximum penalty of 20 years’ imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Franklin County Sheriff’s Department. Assistant United States Attorney Gil Sison is handling the case for the U.S. Attorney's Office.
Four Individuals Indicted for Trafficking in Counterfeit GoodsRead the Press Release
SAN JUAN, P.R. – On March 7, 2018, a Federal grand jury returned a 28-count indictment charging four individuals with mail and wire fraud conspiracy, mail fraud, trafficking in counterfeit goods, introducing misbranded articles into interstate commerce, distribution of a controlled substance, international money laundering, and smuggling, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), Immigration and Customs Enforcement-Homeland Security Investigation, and US Postal Inspectors were in charge of the investigation with the collaboration of Customs and Border Protection (CBP) and the Puerto Rico Department of Treasury (Departamento de Hacienda).
According to the indictment, defendants Carlos Enrique Velázquez-Gines, Mayra Evelise Gines-Otero, Noriam Ivette Flores-Deleon, and Vanessa Marrero-Hernández marketed and offered numerous purported “dietary supplements” for male enhancement or weight loss, which were in fact “drugs” under the Federal Food, Drug, and Cosmetic Act (FDCA) for sale to American consumers. Defendants marketed and sold the products through “online stores” on platforms such as eBay.com and Bonanzo.com, using seller name “lostchildinpr” and “deleon1988.” The products listed in the indictment include: Foreign-labeled product, XXXplosion, Power, Hard Ten Days, Zhansheng Weige, ExtenZe, ExtenZe Plus, La Pepa Negra, Lang Yi Hao, FX3000, Shark Extract, Black Storm, USA Power, Plant Vigra, Para Hombres Paradise, Jack Rabbit, Rhino 12 Titanium, Rhino 69, African Black Ant, Paradise Ultra Plus, Figa XP, U-fit, Natural Max Slimming Advanced – Appetite Reducer, and Natural Max Slimming Advanced – Fat Burner.
Many of the counterfeit male-enhancement pills contain the active pharmaceutical ingredient (sildenafil), found in popular and well-known products such as “Viagra” and “Cialis,” and these products do not advertise that pharmaceutical ingredient. Defendants also sold counterfeit condoms. Male latex condoms are medical “devices” under the FDCA.
The defendants also marketed and offered for sale purported Kylie Cosmetics brand products, including lipstick kits. Lipstick is a “cosmetic” under the FDCA. Analysis of the purported Kylie Lip Kit distributed by defendants was conducted by FDA/manufacturer, which confirmed that the lipstick and its labeling were counterfeit.
The object of the conspiracy was for defendants to unlawfully enrich themselves by purchasing from overseas suppliers, illegally importing into the United States, and subsequently selling to American consumers, FDA-regulated products that were counterfeit and/or misbranded. From at least on or about October 3, 2013 defendants purchased from overseas suppliers located in China, and imported into the United States “dietary supplements,” latex condoms, and make-up, that were counterfeit and/or misbranded under the FDCA. In an effort to evade detection by law enforcement, when ordering the illegal products from China, defendants had the packages shipped to a trans-shipper located in Miami, Florida, who would then re-package and/or re-label the parcels and send them to defendants in Puerto Rico.
Defendants mailed and caused to be mailed through the United States Postal Service numerous packages to customers across the United States containing counterfeit and/or misbranded products. They used a residence located in Villa Blanca, Manatí, P.R. as a warehouse to store and distribute the unlawful products they purchased from overseas suppliers and re-sold to customers. The defendants also distributed wholesale quantities of the counterfeit and/or misbranded products imported from overseas to wholesale buyers. Defendant Carlos Enrique Velázquez-Gines, initiated numerous wire transfers of funds to overseas suppliers to pay for the unlawful products purchased and imported by the defendants.
“These defendants sold counterfeit and misbranded medical devices, as well as counterfeit and misbranded male-enhancement pills. Some of these medications contained drugs that the consumers were not aware of and could cause danger to their health, including heart attacks or strokes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to work with the FDA to protect the public from adulterated and misbranded products, and to ensure that dietary supplement sellers provide accurate information about their products.”
“Americans must have confidence that the FDA-regulated products they use are authentic, safe and properly labeled,” said Justin D. Green, Special Agent in Charge, FDA OCI’s Miami Field Office. “We remain fully committed to aggressively pursuing those who place unsuspecting U.S. consumers at risk by distributing illegal drugs, devices or cosmetics.”
“The trafficking of counterfeit goods is simply illegal and in some cases, as this, it becomes a problem of public health and safety and at times threatens national security,” said Orlando Baez, the acting special agent in charge who oversees HSI operations throughout Puerto Rico and the U.S. Virgin Islands. “This illegal activity represents a triple threat as it delivers substandard and often dangerous goods into the economy, rob citizens of good-paying jobs, and generate proceeds that are often funneled back into other criminal enterprises. HSI will continue to work with its enforcement partners to combat the distribution of counterfeit products especially those who that endanger public health.”
Consumers can contact FDA’s MedWatch program at 1-800-FDA-1088 to report suspected serious adverse events, product quality problems, or product use errors associated with the use of an FDA-regulated product, as well as suspected counterfeit medical products.
Defendants are facing a forfeiture allegation of $3,699,901.94, six properties or homes, two bank accounts, one Pay Pal account, and three certificates of deposit. If convicted, the defendants face a maximum possible sentence of 30 years for the conspiracy charges, 10 years for trafficking counterfeit goods, three years for introducing and receiving misbranded products in interstate commerce. Velázquez-Gines is also facing up to 20 years in prison for international money laundering and 20 years for smuggling. The case is being prosecuted by Assistant U.S. Attorney Edward Veronda. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Four Additional Members and Associates of Clarksville, Tennessee Mongols Motorcycle Gang Charged with Crimes Related to Racketeering Conspiracy, Murder, Kidnapping and Drug TraffickingRead the Press Release
A 62-count, second-superseding indictment was returned by a federal grand jury in Nashville, Tennessee yesterday, charging 19 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking and other crimes, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
A superseding indictment returned in January 2018 charged 15 of the defendants with various crimes related to this investigation, including racketeering conspiracy murder, kidnapping, and large-scale drug trafficking. As of January 18, 2018, all of the defendants were in custody with the exception of Stephen Cole, a/k/a “Lurch.”
Yesterday’s indictment charges four additional members and associates of the Clarksville Mongols with the kidnapping and murder of Stephen Cole and additional crimes. The four additional defendants are:
- William Nelper, aka “Flip,” 49, of Trenton, Kentucky;
- William Boylston, aka “JC,” 27;
- Jason Meyerholz, aka “Country,” 43; and
- Christopher Wilson, 35, all of Clarksville, Tennessee.
The indictment details allegations of violent, criminal activity and drug trafficking in and around the Clarksville, Tennessee area beginning in or about March 2015 and continuing until the return of the indictment.
This indictment alleges that, among other crimes, on November 19, 2017, Boylston, Meyerholz and Wilson kidnapped Stephen Cole, a member of the Clarksville Mongols, at gunpoint, stripped him of his personal property, including his shoes, wallet, and cell phones. Boylston and Meyerholz then transported Cole to Nelper’s residence in Trenton, Kentucky, where they murdered him, disposed of his body and burned evidence of the crimes. All four defendants are charged with the kidnapping of Cole that resulted in his death. Additionally, Boylston, Meyerholz and Nelper are charged with murdering Stephen Cole in aid of racketeering. If convicted, all defendants face a minimum of life in prison and possibly the death penalty.
The indictment also charges Nelper, Boylston and Meyerholz with the racketeering conspiracy and charges Nelper with large-scale drug trafficking and money laundering. The indictment further charges Meyerholz with being a convicted felon in possession of a firearm.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Clarksville Police Department; the Tennessee Bureau of Investigation; and the Kentucky State Police. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the DOJ Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Former Starkey President and Business Associate Found Guilty of Massive Fraud Perpetrated Against Starkey LaboratoriesRead the Press Release
JEROME RUZICKA and JEFFREY TAYLOR were convicted by a federal jury of charges related to stealing more than $15 million from the Eden Prairie-based Starkey Laboratories, Inc. (Starkey) and its principal owner William F. Austin, as well as one of Starkey’s suppliers, Sonion. RUZICKA is the former President of Starkey. U.S. District Court Chief Judge John Tunheim presided over the trial, which lasted nearly six weeks in Minneapolis. Former Starkey Chief Financial Officer (CFO) Scott Nelson and another former Starkey executive Jeff Longtain previously pleaded guilty in connection with this case.
United States Attorney Gregory G. Brooker, announcing the convictions, today, said, “It was pure greed that motivated these defendants. The FBI, IRS, and U.S. Postal Inspection Service meticulously uncovered the depth of the fraud, which lasted nearly a decade, and the trial team successfully presented the complex case to the jury. The jury was able to cut through the complexity and distractions and get to the truth. I want to also want to commend the victims in this case, Bill Austin, the employees of Starkey, and the Sonion Company, for their cooperation with this prosecution.”
“As proven at trial, defendants Jerry Ruzicka and W. Jeff Taylor misused their extensive corporate knowledge and positions of trust over a period of years to steal millions from Starkey Laboratories,” said Acting Special Agent in Charge Robert C. Bone II of the FBI Minneapolis Division. “Corporate fraud such as this not only negatively impacts individual companies and institutions but risks overall stability of the marketplace as fraud losses accumulate. The FBI will continue to work closely with our criminal justice partners to detect corporate fraud and hold those responsible to account for their crimes.”
“IRS Criminal Investigation is committed to investigating individuals who use corporations as personal piggy banks. Corporate fraud impacts many levels of society from investors to the honest, hardworking Americans who pay their tax obligations,” said Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge.
“Today’s verdict reaffirms the critical role the U.S. Postal Inspection Service plays in partnering with our fellow law enforcement partners at the FBI and IRS-CID in protecting the American consumer from these types of fraudulent schemes,” said Craig Goldberg, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service, which includes Minnesota. “Postal Inspectors are committed to ensuring that the nation’s mail stream is not used by criminals to prey upon our citizens,” said Goldberg.
As proven at trial between 2006 and September 2015, RUZICKA, TAYLOR and others schemed to embezzle and misappropriate money and business opportunities belonging to Starkey and Sonion, a major supplier of hearing aid components to Starkey. The defendants deployed various tactics to steal from Starkey, including controlling a complicated web of sham companies and dummy entities, surreptitiously awarding themselves restricted stock in Starkey’s retail affiliate, and embezzling money from the company by causing payments to be made by Starkey for the benefit of the defendants and others.
RUZICKA and TAYLOR controlled a dummy entity, Archer Acoustics. TAYLOR falsely represented to Sonion this entity was a Starkey affiliate, thereby securing Starkey’s discounted pricing on hearing-aid components for Archer Acoustics. RUZICKA and TAYLOR used Archer Acoustics to purchase the discounted products that they later re-sold to other manufacturers to obtain illicit profits. At times, the illicit profits came in the form of fraudulent commissions and rebates. The defendants obtained at least $600,000 in profits, commissions and rebates by fraudulently leveraging Starkey’s purchasing power for their own benefit.
Another facet of this scheme was related to Starkey’s retail affiliate, Northland US, LLC, which Austin created in 2002. He was the sole owner. The purpose of Northland LLC was to acquire and operate retail hearing aid establishments. In 2006, without Austin’s knowledge, RUZICKA surreptitiously transferred Northland LLC’s assets to a new entity they controlled, Northland Hearing Centers, Inc. RUZICKA and former Starkey CFO Scott Nelson forged Austin’s signature to complete the transfer of assets, later awarded themselves restricted stock, and ultimately paid themselves and Jeff Longtain approximately $15 million in exchange for terminating the restricted stock grants.
As proven at trial, in 2014, RUZICKA embezzled $200,000 from Starkey under the guise of “officer’s insurance.” He used those funds to pay his state and federal personal income taxes. RUZICKA also stole a 2011 Jaguar automobile that Starkey purchased for his use at a cost of $119,188.77. Starkey paid the fees, insurance premiums, and other costs associated with the automobile. Nevertheless, in July 2015, RUZICKA transferred ownership of the car from Starkey to himself by signing the title as both representative of the seller and also as the buyer. He did not pay Starkey for the vehicle, nor was it reported as a taxable benefit.
In total, RUZICKA and TAYLOR are alleged to have conspired to steal more than $15 million from Starkey and Sonion.
When some details of the scheme were discovered in September 2015, RUZICKA was terminated by Starkey. TAYLOR was also terminated by Sonion when Sonion became aware of the fraud.
Lawrence Miller and Lawrence Hagan, also charged in this case, were acquitted by the jury. While we had hoped for a different outcome, we respect the jury’s verdict and thank them for their service during this long and complex trial.
This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner, Lola Velazquez-Aguilu, and Surya Saxena are prosecuting the case.
Defendant Information:
JEROME C. RUZICKA, 61
Plymouth, Minn.Convicted:
- Mail fraud, 4 counts
- Wire fraud, 3 counts
- Tax fraud, 1 count
W. JEFFREY TAYLOR, 57
Cologne, Minn.
Convicted:- Mail fraud, 1 counts
- Wire fraud, 2 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Former PA Police Officer Sentenced to One Year in Prison for Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Marco DeCamillo, age 41, of Reading, Pennsylvania today to 12 months in prison, followed by three years of supervised release, for mail fraud stemming from the sales of misbranded body armor. Judge Blake also ordered DeCamillo to pay $124,000 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Philadelphia and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, De Camillo was a former police officer in West Reading, PA. During his tenure as a police officer, DeCamillo also owned and operated a business called Mad Dragon Tactical (MDT). MDT sold law enforcement tactical gear, including body armor rifle plates, primarily on auction and shopping websites. DeCamillo, through MDT, sold approximately $169,000 worth of body armor that was falsely classified as certified by the National Institute of Justice (NIJ). The NIJ conducts ballistic testing on body armor.
DeCamillo falsely claimed that certain MDT body armor shields would protect against armor piercing rounds, and that certain products were made with the more robust HY80 and A4600 Steel. DeCamillo used his status as a police officer to sell the misbranded body armor rifle plates, understanding that several of his buyers were in law enforcement and/or military or defense and were relying on DeCamillo’s representations regarding the quality and safety of his products.
According to the plea agreement, on December 17, 2015, a defense contractor and NIJ accredited laboratory (“victim lab”) contacted the FBI with a complaint regarding the misuse of one of their ballistic data test sheets by MDT. The FBI verified that DeCamillo, through MDT, had advertised online a set of body armor plates with an altered ballistic test sheet from the victim lab that had been completed in 2013. The original 2013 test sheet provided the results of ballistic testing on a ballistic test shield, not steel body armor plates as advertised by MDT. FBI agents viewed several MDT listings online and observed photographs of altered ballistic test sheets uploaded to each listing.
In January and February 2016, the FBI in Maryland set up controlled purchases of the body armor online from MDT through an undercover identity. All three shipments purchased listed DeCamillo’s home address in West Reading, PA as the return address and were delivered from Pennsylvania to Maryland via US Mail. Inside each package was a hard copy of the altered ballistic test sheet (originating from the victim lab). The HY80 altered ballistic test sheet included an additional hand-written note in the bottom margin stating, “Note-During testing Armor plate stopped (2) .308 Armor piercing Black Tip AP and (3) 7.62x39 Chinese Steel Core Armor Piercing AP rounds.”
Numerous ballistics sheets that had been fraudulently altered with “white out” or other redactions were recovered from DeCamillo’s residence during the execution of a search warrant by HSI.
DeCamillo was interviewed by HSI and the FBI and admitted that he knew that his MDT body armor was not NIJ certified.
Acting United States Attorney Stephen M. Schenning commended HSI and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser who is prosecuting the case.
Former Nurse Assistant Charged with Civil Rights Offense for Striking Residents of the Memphis Veterans Affairs Medical CenterRead the Press Release
Memphis, TN – The Justice Department today announced that a federal grand jury returned an indictment charging Adrian Wiggins, 53, a former Nurse Assistant at the Memphis Veterans Affairs Medical Center, with a civil rights offense. The indictment alleges that on January 8, 2017, Wiggins repeatedly struck an individual identified by the initials W.B., a resident of the Memphis Veterans Affairs Medical Center, and caused bodily injury as a result.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys David Pritchard and Reagan Taylor of the Western District of Tennessee and Trial Attorney Rachel Kincaid of the Justice Department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former Nurse Assistant Charged with Civil Rights Offense for Striking Resident of the Memphis Veterans Affairs Medical CenterRead the Press Release
The Justice Department today announced that a federal grand jury returned an indictment charging Adrian Wiggins, 53, a former Nurse Assistant at the Veterans Affairs Medical Center in Memphis, Tennessee, with a civil rights offense. The indictment alleges that, on Jan. 8, 2017, Wiggins repeatedly struck an individual identified by the initials W.B., a resident of the Memphis Veterans Affairs Medical Center, and caused bodily injury as a result.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation Memphis Field Office, and is being prosecuted by Assistant U.S. Attorneys David Pritchard and Reagan Taylor of the Western District of Tennessee and Trial Attorney Rachel Kincaid of the Justice Department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former NASCAR driver indicted for attempting to entice a minor to engage in sexual activityRead the Press Release
Orlando, Florida – A grand jury has returned an indictment charging Richard Hoyt Crawford, Jr. (59, Port Orange) with attempting to entice a minor to engage in sexual activity. If convicted, he faces a minimum mandatory penalty of 10 years, up to life, in federal prison. The indictment also notifies Crawford that the United States intends to forfeit an iPhone, which was used in furtherance of the offense.
According to court documents, between February 10 and February 28, 2018, Crawford engaged in email and text communications with an undercover agent acting as the father of a 12-year-old girl. Crawford asked the “father” for a photo of the “child” and negotiated a price to have sex with her. He offered to pay between $50 and $75 for the sexual encounter and asked that the “girl” be nude in the back of the “father’s” car and ready for sexual activity. On February 28, 2018, Crawford traveled from Port Orange to Seminole County to meet the “child,” and was arrested by federal agents.
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 the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Former Liberty Man Sentenced for $2.2 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a former Liberty, Mo., man was sentenced in federal court today for an investment fraud scheme.
Henry Thomas Hammond, 61, of Ponte Vedra Beach, Fla., formerly of Liberty, was sentenced by U.S. District Judge Stephen R. Bough to one year and one day in federal prison without parole. The court also ordered Hammond to pay $2,266,325 in restitution to his victims.
Hammond, who pleaded guilty to conspiracy to commit wire fraud on Jan. 13, 2017, owned, operated or was involved in several businesses, including Longhorn Construction, Inc.; Longhorn Properties, LLC; Longhorn Development Group, Inc.; Longhorn Construction, North American Investment Group, Inc., and others.
Hammond admitted that he participated in a fraudulent investment scheme from June 2009 through July 2010 in which eight victim investors lost a total of $2,266,325. Some of the money invested by victims of the scheme was used by Hammond for his personal benefit.
Co-Conspirator A (who is not identified) promoted himself to Hammond and others as an international financier who could provide financing for substantial building projects. With the housing and economic collapse in 2008, conventional borrowing scaled back, making it difficult for individuals, businesses and developers to obtain financing. Alternative financing programs became more prominent. Some claimed to employ leveraged bank instruments and Collateralized Mortgage Obligations (a mortgage-backed security that contains a pool of mortgages bundled together, broken down into tranches and sold as investments) and European trading platforms. Co-Conspirator A also claimed to have a Strategic Investment Program that was connected with the Maranatha Platform (a trading platform connected to the Maranatha Church that engaged in leveraged investments), one of the major European trading platforms.
This program and others promoted by Co-Conspirator A were nonexistent and Co-Conspirator A operated each of them opaquely and as a fraud scheme.
According to court documents, Hammond was willfully blind to the fact that the investment program was a fraudulent scam. Hammond knew or should have known the material information that he passed on to investors was false and turned a blind eye to warning signs that the investment programs were a fraudulent scam. As a result of these actions, Hammond and his co-conspirators lulled the investors into investing additional money and/or discouraged them from withdrawing from the investment program and seeking a refund of their invested funds.
In July 2010, Hammond told certain investors the Strategic Investment Program would not be paying and offered to roll investor funds into a hotel project; the hotel project was never completed.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Sentenced to Prison for Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan was sentenced today to 100 months in prison for soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney John E. Childress of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois Field Office; Special Inspector General for Afghanistan Reconstruction John F. Sopko; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Mark E. Miller, 49, of Springfield, was sentenced by U.S. District Judge Richard H. Mills of the Central District of Illinois, who also ordered Miller to serve three years of supervised release following his prison sentence and forfeit $180,000 and a Harley-Davidson motorcycle. Miller previously pleaded guilty to a one-count information charging him with seeking and receiving bribes.
As part of his guilty plea, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012, and maintained a residence in Springfield during that time. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. He was the site manager and a contracting officer representative for a number of construction projects in Afghanistan.
On Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and, if so, authorizing progress payments to the company by the USACE, he admitted.
Also as part of his guilty plea, Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited from the owners of the company approximately $280,000 in bribes in return for making things easier for the company on the road project, including making sure the contract moved along and was not terminated. He further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU, with assistance from the U.S. Postal Inspection Service, Fort Worth Division. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Former Employee of House Member Sentenced to Prison Term on Charges in Cyberstalking CaseRead the Press Release
WASHINGTON –A former staff employee of a member of the U.S. House of Representatives was sentenced today to serve a year and a day in prison for the circulation of private, nude images and videos of the member and the member’s spouse, announced U.S. Attorney Jessie K. Liu and Matthew R. Verderosa, Chief of the United States Capitol Police.
Juan R. McCullum, 36, of Washington, D.C., pled guilty in January 2018 to two federal cyber-related charges and two District of Columbia offenses, including conspiracy to disclose sexual images and attempted first-degree unlawful publication of a sexual image. He was sentenced by the Honorable John D. Bates in the U.S. District Court for the District of Columbia.
McCullum’s plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of one year and 361 days of incarceration, with all but one year and a day suspended on the condition that he successfully completes two years of supervised probation. During his probation, McCullum will be required to perform 100 hours of community service. Judge Bates accepted the plea and sentenced McCullum accordingly.
A co-defendant, Dorene Browne-Louis, 45, of Upper Marlboro, Md., pled guilty in January 2018 to one federal cyber charge and the District of Columbia offense of conspiracy to disclose sexual images. She is to be sentenced on April 23, 2018.
According to statements of offense filed as part of the defendants’ guilty pleas, McCullum worked from April 2015 until June 2016 in the House member’s legislative office in Washington, D.C. Browne-Louis worked in the same office from January 2015 until April 2016.
According to the documents, during the course of his employment, McCullum offered in March 2016 to assist the House member in repairing the member’s malfunctioning, password-protected iPhone by taking the device to a local Apple store. The House member provided McCullum with the device solely to have it repaired. The House member later provided the password so that the device could be unlocked by the Apple store solely for the purpose of having the iPhone repaired. McCullum was not given permission to take, copy, or distribute any of the contents of the iPhone. The iPhone contained the private, nude images and videos.
In July 2016, the documents state, after McCullum left the House member’s staff, he engaged in a course of conduct that included creating a Hotmail account and a Facebook social media account, using a fictitious name, to distribute and post the private, nude images and videos. In addition, he made Browne-Louis aware that he was in possession of the images from the iPhone. Further, McCullum encouraged others on social media to redistribute the private, nude images and videos in the member’s congressional district. Browne-Louis assisted by providing McCullum with e-mail addresses and other contact information to distribute the images. Browne-Louis also distributed one of the private, nude images to a person who was working on the campaign of a challenger to the member’s primary election. McCullum and Browne-Louis understood their actions did cause, and were likely to cause, emotional harm to the House member and spouse, as well as negative impact on the member’s re-election, the plea documents state.
Both defendants were indicted in July 2017 following an investigation by the United States Capitol Police.
In announcing the sentence, U.S. Attorney Liu and Chief Verderosa commended the work of those who investigated the case from the United States Capitol Police. They also acknowledged the efforts of those who assisted with the case at the U.S. Attorney’s Office, including former Assistant U.S. Attorney Natalia Medina, Criminal Investigator John Marsh, Paralegal Specialists Bianca Evans, Diane Brashears, and Matthew Ruggiero, Victim/Witness Advocate Yvonne Bryant, and Litigation Technology Specialists Leif Hickling, Thomas Royal, and Paul Howell. Finally, they commended the work of Assistant U.S. Attorneys Tejpal S. Chawla, Youli Lee, and Veronica Jennings, who investigated and prosecuted the case.
Former Duson Housing Authority director pleads guilty to stealing more than $110,000Read the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced today that the former Duson Housing Authority director pleaded guilty to stealing more than $110,000 in funds.
Patsy Clark, 60, of Duson, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna on one count of federal program theft. The plea will become final after it is approved by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, Clark was the executive director of the Duson Housing Authority from 1990 to November 2014. A routine financial audit conducted in 2014 found that Clark stole $93,270 in tenant payments from 2012 to 2014. Additionally, Clark made $11,780.33 in personal purchases using the Housing Authority’s credit card. She also deposited $4,954 in tenant security deposit refund checks and rent payments into her personal bank account. Clark caused a total of $110,113.33 in losses to the United States.
Clark faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of July 13, 2018.
The U.S. Department of Housing and Urban Development-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Former Controller Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Jason Arnold pled guilty to bank fraud and money laundering charges related to a scheme to defraud a financial institution and the company he worked for as a controller.
According to court documents, Arnold created a fictitious company that had the same name as his employer. He then opened a fraudulent bank account for the fictitious company. Between October 2009 and November 2017, Arnold deposited into the fraudulent bank account 53 checks totaling more than $7.3 million, all of which was owing to his employer. Arnold then used the proceeds from the scheme to defraud for his personal gain, including to purchase artwork and wine.
Arnold, 38, of Clayton, pled guilty to one felony count of bank fraud and two felony counts of money laundering before U.S. District Judge Catherin D. Perry. Sentencing has been set for June 14, 2018.
He now faces a penalty range of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Florida Man Sentenced to Four Years in Prison for Laundering Proceeds of Bank FraudRead the Press Release
OKLAHOMA CITY – Lyle Livesay, of Delray Beach, Florida, has been sentenced to 48 months in federal prison for laundering the proceeds of fraud against banks in Oklahoma and elsewhere, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to an indictment filed on May 2, 2017, Livesay owned and operated Beta Capital Group, LLC, of Boca Raton, Florida. In the fall of 2015, a resident of Yukon, Oklahoma, signed a consulting agreement with Beta Capital to obtain funding from various financial institutions. Under this agreement, Beta Capital would help the Yukon resident obtain bank loans in exchange for 30% of the loan proceeds, which the resident and another conspirator planned to use as financing to open a used car business.
The indictment alleged that to secure these loans, Livesay, working with others, submitted false loan applications in October 2015 to Pentagon Federal Credit Union, Navy Federal Credit Union, Allegiance Credit Union, MidFirst Bank, Oklahoma Employees Credit Union, Alliant Credit Union, and USAA Federal Savings Bank, all of which were federally insured. In particular, he misrepresented the purpose of the loans by claiming the Yukon resident would use the money to purchase cars from True Cars Express, a purported luxury car dealership associated with Livesay in Weston, Florida. To support these fraudulent applications, Livesay created and provided his conspirators with fake pay stubs that inflated the Yukon resident’s income, as well as purchase agreements from True Cars Express and certificates of titles for the vehicles that would supposedly be purchased with loan proceeds. Livesay and others also failed to disclose the existence of previous and pending loans on the applications they submitted. Livesay was involved in applying for more than half a million dollars in fraudulent loans. The indictment charged him with two counts of laundering portions of the loan proceeds through an account at TD Bank in the name of True Cars Express.
According to the indictment, when Livesay learned in early 2016 that the FBI was investigating, he told the Yukon resident to lie about the nature of the loans and not to disclose information requested in a federal subpoena.
Livesay was arrested in Florida in June 2017 and has been detained in the custody of the U.S. Marshals Service since then. On August 2, 2017, he pleaded guilty to laundering the proceeds of bank fraud. In particular, he admitted that on October 30, 2015, he transferred $87,000 from his True Cars Express account to an account in the name of Beta Capital, after that money had been obtained from Navy Federal Credit Union through fraud.
On March 7, 2018, U.S. District Judge Timothy D. DeGiusti sentenced Livesay to 48 months in prison, to be followed by three years of supervised release. The court also ordered him to pay a total of $415,000 in restitution to Pentagon Federal Credit Union, USAA Federal Savings Bank, Navy Federal Credit Union, Allegiance Credit Union, and MidFirst Bank. The court found that Livesay’s criminal conduct involved $555,000 in bank-fraud proceeds and that Livesay employed sophisticated means in fabricating loan documentation and moving funds between bank accounts he controlled.
This case is the result of an investigation by the FBI. Assistant U.S. Attorney Julia E. Barry prosecuted the case.
Reference is made to public filings for further information.
Florida Man Indicted for International Email Impersonation and Fraud ScamRead the Press Release
BOSTON – A Florida man was indicted yesterday in federal court in Boston in connection with a scam in which he and co-conspirators defrauded victims by pretending to be employees of the Securities and Exchange Commission.
Frank Gregory Cedeno, 27, of Ocoee, Fla., was indicted for conspiracy to commit wire fraud and conspiracy to commit money laundering. In January 2018, Cedeno was charged by criminal complaint and arrested.
The indictment alleges that, from at least April 2016 through November 2017, Cedeno conspired with others to defraud victims by pretending to be employees of the Securities and Exchange Commission (SEC). Under that guise, members of the conspiracy allegedly demanded money from victims, directing them to send it to members of the conspiracy, including Cedeno. The conspirators who received the money generally withdrew it from bank accounts quickly, then forwarded much of it to individuals in the Dominican Republic. In one common version of the scam, victims received e-mails that used official-seeming documentation and the SEC seal to induce the victim to pay a fee in order to receive a portion of a legal settlement. In another version, victims received e-mails and official-seeming documents labeling the victim a defendant in a civil lawsuit, in which the victim owed tens of thousands of dollars in supposed disgorgement, penalties, and fees. The documents gave the victim a choice of either appearing in court to contest the lawsuit or paying a smaller fee.
Co-conspirator Leonel Alexis Valerio Santana, 28, of Boston, was previous charged by criminal complaint in connection with the scheme and remains detained pending trial. That complaint alleged that, between June 2015 and June 2017, there were at least 95 victims targeted by the scam, with fraudulent solicitations exceeding $1.3 million and actual losses of more than $235,000.
The charge of conspiracy to commit wire fraud provides for a sentence no greater than 20 years in prison, three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss in the offense, and restitution. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on 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; Carl. W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission’s Office of Inspector General; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Criminal Division is prosecuting the case.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon from Raton Sentenced for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Mark William Elliot, 46, of Raton, N.M., was sentenced today in federal court in Albuquerque, N.M., to 51 months in prison for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Elliot will be on supervised release for three years after completing his prison sentence.
Elliot was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition and possession of methamphetamine with intent to distribute on March 25, 2016, in Bernalillo County, N.M. According to the indictment, Elliot was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving or transferring stolen vehicles, tampering with evidence, forgery, and shooting at an occupied building.
According to court documents, on March 25, 2016, Albuquerque Police Department (APD) officers found Elliot asleep on the sidewalk next to his motorcycle, which was illegally parked in the road next to a stop sign. After waking Elliot, the officers observed a bulge in Elliot’s right front pocket. When the officers realized there was a firearm in Elliot’s pocket, the officers arrested Elliot as he attempted to flee. APD officers recovered a loaded firearm and ammunition, approximately 18 grams of methamphetamine, and drug paraphernalia from Elliot’s jacket during a search incident to his arrest.
On Sept. 28, 2017, Elliot pled guilty to Count 1 of the indictment charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Elliot admitted possessing a loaded firearm in his right front pocket during an interaction with APD officers on March 25, 2016. Elliot acknowledged that he was prohibited from possessing firearms or ammunition on March 25, 2016, because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Federal Prosecutors Charge Huntsville Man with Material Support to Foreign Terrorist OrganizationRead the Press Release
BIRMINGHAM – Earlier this week, federal prosecutors filed a terrorism charge against a Huntsville man who has acknowledged that he bought bomb-building ingredients last year, stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal, and attempted to form a cell to conduct violent acts within the United States.
U.S. Attorney Jay E. Town, Assistant Attorney General for National Security John C. Demers, and FBI Special Agent in Charge Johnnie Sharp Jr. announced the charge and today’s guilty plea.
The U.S. Attorney’s Office filed a one-count information charging AZIZ IHAB SAYYED, 23, with attempting to provide material support or resources to a foreign terrorist organization. According to the charge and an accompanying plea agreement, Sayyed attempted to provide services and personnel (himself) to ISIS – the Islamic State of Iraq and al-Sham – knowing that ISIS is a designated foreign terrorist organization. Sayyed pled guilty to the charge before U.S. District Judge Abdul Kallon. Sayyed’s plea agreement stipulates a 15-year prison sentence. The judge scheduled Sayyed’s sentencing hearing for June 20.
“The successful resolution of this case can be entirely attributed to the robust cooperation between local, state and federal members of law enforcement,” Town said. “The Madison County District Attorney’s Office, HPD, UAHPD, and especially the FBI played key, complimentary roles in this investigation and all contributed significantly in bringing Aziz Sayyed to justice. The National Security Division of the Department of Justice also played an important role in the investigation and prosecution of Sayyed. Moreover, Sayyed was brought to our attention because citizens saw something, so they said something. If we are to keep our cities safe, no matter the type of suspicious activity, our community must play an active role,” Town said.
“I want to commend the work of the FBI’s Joint Terrorism Task Force, the Huntsville Police Department, the Madison County District Attorney’s Office, and our many other law enforcement partners that worked to bring Mr. Sayyed to justice,” Sharp said. “The citizens of north Alabama can rest assured that the FBI will continue to work with our partners and the community to gather, share, and act upon threat information as it comes to our attention.”
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts, according to the court documents. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material, then he purchased the necessary ingredients for the explosive, and professed his aspiration to use TATP in an explosive belt and/or a car bomb, according to his plea agreement.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. In fact, the person was an undercover employee (UCE) of the FBI. Sayyed and the UCE discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered to personally carry out attacks on behalf of ISIS.
The FBI investigated the case in conjunction with the Huntsville Police Department, Madison County District Attorney’s Office, Madison County Sheriff's Office, U.S. Army 902 MI Group, Redstone Arsenal’s Garrison Command, University of Alabama at Huntsville Police Department, Alabama Law Enforcement Agency, U.S. Immigration and Customs Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Henry Cornelius and Davis Barlow are prosecuting the case with the assistance of the National Security Division’s Counterterrorism Section.
Federal Probe in Kansas Ties Drug Traffickers to International Money Laundering SchemeRead the Press Release
KANSAS CITY, KAN. – A federal investigation in Kansas has tied drug traffickers to an international money laundering scheme, U.S. Attorney Stephen McAllister announced today.
In San Diego today, federal prosecutors announced charges against 40 alleged members of an international money-laundering scheme that laundered tens of millions of dollars in drug money from drug dealers in the United States to suppliers in Mexico. Two of those defendants in the California case already were indicted by a grand jury in Kansas after being targets of a federal investigation here. Their case is pending in U.S. District Court in Kansas City, Kan.
“Assistant U.S. Attorney Tris Hunt and his team of investigators in Kansas has been working on this for two years,” McAllister said.
The indictment in California charges Juan Duarte-Tello, 44, Kansas City, Mo., and Diana Aurora Holguin-Gallegos, 30, Kansas City, Mo., with working as money couriers who transported large amounts of cash generated from drug trafficking. The California indictment is part of a nationwide takedown stemming from a multi-year investigation led by the FBI San Diego Cross Border Violence Task Force, IRS Criminal Investigation, and the U.S. Attorney’s Office for the Southern District of California.
In addition to the indictments unsealed today in San Diego, dozens of other defendants have been charged across the United States with crimes ranging from drug distribution to money laundering stemming from this investigation, including defendants in Kansas, Ohio, Kentucky and Washington.
According to the indictments and other publicly filed court documents, Jose Robert Lopez-Albarran, a significant money broker for a Mexican based international money laundering organization along with other members of the organization, allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. As a result of the investigation, law enforcement seized more than $6 million in United States currency.
In the Kansas case, Duarte-Tello and Holguin-Gallegos are awaiting trial on charges of conspiracy to distribute methamphetamine and other counts including renting a residences in Kansas City, Kan. and Kansas City, Mo. for the purpose of storing and distributing methamphetamine. The Kansas investigation resulted in seizures of more than 44 kilograms of methamphetamine, three kilograms of cocaine and more than $100,000 in cash.
The Drug Enforcement Administration and FBI investigated the case in Kansas. Assistant U.S. Attorney Tris Hunt is prosecuting.
Federal Jury Convicts Dunn Man of Cocaine and Crack Conspiracy and Money LaunderingRead the Press Release
ELIZABETH CITY – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that, ANTOINE DEWAYNE MYLES a/k/a “Twan”, 42 of Dunn, North Carolina, was convicted after a three-day jury trial before United States District Judge Terrance W. Boyle. The jury found MYLES guilty of Conspiracy to Distribute and Possess with the Intent to Distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base (crack), Money Laundering Conspiracy, and Possession with the Intent to Distribute cocaine and cocaine base (crack).
The evidence at trial showed that from 2011 until his arrest on June 5, 2015, MYLES and his brother Lemont Webb, were leaders in a Drug Trafficking Organization (DTO) responsible for the distribution of kilogram quantities of crack cocaine in Godwin, North Carolina. The evidence showed that MYLES and Webb hired other people to work shifts selling crack cocaine from a trailer in Godwin, NC, 24 hours a day, 7 days per week. In October 2014, the Cumberland County Sheriff’s Office obtained an injunction against the trailer used to distribute the crack cocaine, but MYLES and Webb continued their operation, selling crack cocaine from a Winnebago across the street from the original trailer.
MYLES is scheduled to be sentenced the week of June 11, 2018.
Previously, 17 other defendants have been convicted of various drug and money laundering charges arising from this investigation.
The investigation of this case was conducted by the Drug Enforcement Administration (DEA), the Cumberland County Sheriff’s Office, the Internal Revenue Service-Criminal Investigation (IRS-CI) and the United States Marshal’s Service. Assistant United States Attorney Lawrence Cameron represented the government in this case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—United States Attorney R. Trent Shores announced today the results of the March 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Scott Frederick Arterbury. Possession of Child Pornography. Arterbury, 31, of Broken Arrow, is charged with possessing graphic image files and videos of minors engaging in sexually explicit conduct. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Broken Arrow Police Department are the investigative agencies.
David Octavio Calderon-Carranza. Reentry of Removed Alien. Calderon-Carranza, 29, of Kyle, Texas, is charged with having returned to the United States unlawfully after being deported in August 2010 from San Antonio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Javier Castorena-Dimas. Reentry of Removed Alien. Castorena-Dimas, 37, of Tulsa, is charged with having returned to the United States unlawfully after being deported in January 2012 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Walter Chavez-Ramirez. Reentry of Removed Alien. Chavez-Ramirez, 41, of Claremore, is charged with having returned to the United States unlawfully after being deported in February 2010 from Brownsville, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Joshua Gilchrist. Bank Robbery Using a Dangerous Weapon. Gilchrist, 35, residence unknown, is charged with robbing the Bank of Oklahoma of money and, in doing so, assaulting and putting in jeopardy the lives of bank employees by pointing at them a BB gun resembling a firearm. If convicted, he faces a maximum penalty of 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation, the Tulsa Police Department, and the Joplin, Missouri, Police Department are the investigative agencies.
Adrian Robert Jones. Felon in Possession of Firearms and Ammunition, and Possession of Marijuana With Intent to Distribute. Jones, 26, of Tulsa, is charged with possessing firearms and ammunition after prior felony convictions and with possessing marijuana with intent to distribute. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine for the felon in possession of firearms and ammunition charge, and a maximum penalty of five years in prison and a $250,000 fine for the possession of marijuana with intent to distribute charge. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tulsa Police Department are the investigative agencies.
Juan Pablo Martinez-Martinez. Reentry of Removed Alien. Martinez-Martinez, 36, of Tulsa, is charged with having returned to the United States unlawfully after being deported in June 2013 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Christopher Parrett. Distribution of Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Parrett. 41, of Miami, Oklahoma, is charged with possessing a firearm in furtherance of the distribution of methamphetamine. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine for the distribution of methamphetamine charge, and a statutory mandatory minimum five years in prison or a maximum penalty of life in prison and a $250,000 fine for the possession of a firearm in furtherance of a drug trafficking crime charge. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Miami Police Department, and the Ottawa County District Attorney’s Office are the investigative agencies.
Pedro Rojo-Ramirez. Reentry of Removed Alien. Rojo-Ramirez, 53, of Tulsa, is charged with having returned to the United States unlawfully after being deported in April 2005 from Nogales, Arizona. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Duval County High School Teacher Arrested and Charged with Distribution of Child PornographyRead the Press Release
Jacksonville, Florida – Jeremy Scott Clark (44, Ponte Vedra) was arrested today and charged by federal criminal complaint with distributing child pornography. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential lifetime of supervision. Clark has been detained pending a hearing scheduled for March 13, 2018, in Jacksonville.
According to the criminal complaint, on February 22, 2018, an individual using the screen name “LLCoolJack1973” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children. This message had been posted by an undercover FBI agent. The user (LLCoolJack1973), later identified as Jeremy Scott Clark, began an online conversation with the undercover FBI agent. After some conversation about sexual activity with children, the user sent an image of an adult male on a bed displaying his penis, and later sent a link to the FBI agent that contained images of prepubescent children engaged in sexually explicit conduct. Further investigation revealed that the internet protocol address used by “LLCoolJack1973” traced back to Clark’s residence in Ponte Vedra, and that Clark was a teacher at First Coast High School in Jacksonville.
On March 8, 2018, FBI agents and other law enforcement officers executed a federal search warrant at Clark’s residence and seized several items of computer media and at least one Apple iPhone. Through interviews, agents were able to confirm that the picture of the naked male sent to the undercover FBI agent depicted Clark on his bed, in a bedroom at his residence. Clark was placed under arrest.
A criminal complaint 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 the FBI and the St. Johns County Sheriff’s Office. Anyone with information regarding this investigation should contact the FBI Jacksonville office at (904) 248-7000. This case is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Durant Man Pleads Guilty to Conspiring to Sell Stolen FirearmsRead the Press Release
Jackson, Miss. – Darnell Branch, 33, of Durant, pled guilty yesterday before U.S. District Judge Carlton W. Reeves, to conspiring to sell stolen firearms, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Around 2:30 a.m. on July 28, 2014, Estelle Cook and co-defendant Corey Hughes tore a hole in the side of Central Mississippi Firearms, a gun store in Kosciusko, Mississippi, and stole 41 guns. Darnell Branch, Corey Hughes, Estelle Cook, and others sold at least a dozen of the stolen guns in Durant and Lexington, Mississippi. Branch participated in the sale of at least nine of the stolen guns to six different buyers. Branch also bought one of the stolen guns.
On October 3, 2017, a federal grand jury indicted Hughes, Cook, Branch, and Frederick Russell for their unlawful conspiracy to possess and sell stolen firearms. On the same day, a federal grand jury indicted Jermaine Griffin for receiving and possessing one of the stolen guns.
At today’s hearing, Branch became the fifth defendant to plead guilty to his role in the conspiracy. He will be sentenced by Judge Reeves on June 11, 2018, and faces a maximum penalty of five years in prison and a $250,000 fine.
Co-defendant Frederick Russell pled guilty on January 10, 2018, to conspiracy to possess and sell stolen firearms. He will be sentenced by Judge Reeves on May 30, 2018, and faces a maximum penalty of five years in prison and a $250,000 fine.
Co-defendant Estelle Cook pled guilty on February 8, 2018, to being a felon in possession of a firearm. He will be sentenced by Judge Reeves on May 15, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine.
Co-defendant Corey Hughes pled guilty on February 13, 2018, to being a felon in possession of a firearm. He will be sentenced by Judge Reeves on June 11, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine.
Jermaine Griffin pled guilty on January 18, 2018, to possession of a stolen firearm. He will be sentenced by Judge Tom S. Lee on May 31, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Jennifer Case.
Dunkirk Woman Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that a Minerva Maestre, 49, of Dunkirk, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroder to possessing with intent to distribute 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on April 28, 2017, Dunkirk Police, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration executed a search warrant at 51 E. Second Street in Dunkirk, which is the residence of the defendant. During the search, officers seized 60 grams of crack cocaine, 42 grams of cocaine, plastic baggies, and $171,962 in cash.
The plea is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Dunkirk Police Department, under the direction of Chief David Ortolano.
Sentencing will be scheduled at a later date before Senior U.S. District Judge William M. Skretny.
Dominican Republic Man Sentenced to 24 Months for Possession of a Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – Cristian Lopez-Moncion, 36, of the Dominican Republic, was sentenced today for possession of a firearm by an illegal alien, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Lopez-Moncion to 24 months in prison, followed by three years of supervised release, and ordered him to pay a $100 special assessment.
On June 14, 2017, Lopez-Moncion pleaded guilty to possession of a firearm by an illegal alien. According to documents filed in court, on August 6, 2016, the Virgin Islands Police Department (VIPD) responded to a report of shots fired on Main Street in St. Thomas. The investigation revealed that Lopez-Moncion was in possession of a Glock 9 mm firearm. The firearm was recovered and analyzed. A forensic examination determined that the firearm had been modified to operate in a fully automatic capacity. Lopez-Moncion is not a legal resident of the United States and is not licensed to possess a firearm in the Virgin Islands.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the VIPD. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.