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5 March 2018
Five Members of “Central Divisadero Players” Gang Convicted of Various Racketeering Crimes Including MurderRead the Press Release
SAN FRANCISCO - A federal jury convicted Adrian Gordon (aka “Tit”), Charles Heard (aka “Cheese”), Esau Ferdinand (aka “Sauce”), Monzell Harding, Jr., and Jaquain Young (aka “Loc”) today of racketeering, murder, and conspiracy charges, announced Acting United States Attorney Alex Tse and FBI Special Agent in Charge John F. Bennett. The verdict follows a 14-week trial in which the jury heard evidence about the San Francisco gang referred to as Central Divisadero Players, aka Central Divis Playas, aka CDP.
“This office is 100% committed to eradicating violent gang activity from our community, for the safety of all who live and visit the Bay Area,” said Acting U.S. Attorney Tse. “The evidence produced at the trial in this case makes crystal clear why we must not flinch from pursuing this goal with all necessary resources. I want to express my sincere gratitude to the FBI, the police departments of San Francisco and San Pablo, and the San Francisco DA for their partnership, hard work, and commitment to bring these criminals to justice. I also want to acknowledge the brave victims who came forward during trial despite threats against their safety, and the well-being of their loved ones. Combatting gang violence is a dangerous endeavor, and as a community we must work together and stand tall to defeat the gangs.”
“Today marks a victory in our tireless and collective effort to rid our neighborhoods of violent gangs whose brazen activities pervade our community and threaten the safety of our citizens,” said Special Agent in Charge Bennett. “These convictions send a clear message that we are committed to dismantling dangerous criminal enterprises and will hold their members accountable for their actions.”
Gordon, 29; Heard, 33; Ferdinand, 35; Young, 44; and Harding, 26, were the first five defendants to stand trial for crimes alleged in an eleven-defendant, 22-count second superseding indictment filed on August 14, 2014. The indictment described CDP as a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect power, territory, reputation, and profits of the enterprise through the use of intimidation, violence, assaults, and murder. During the trial, the jury heard evidence that the five defendants, all from San Francisco, each played a role in the racketeering conspiracy whose crimes ranged from murder to pimping. The jury concluded that the five defendants were guilty of the following specific crimes:
Defendant
Found Guilty of the Following Charges
Maximum Penalties
All Five Defendants
Racketeering conspiracy
in violation of 18 U.S.C. § 1962(d)
Life in prison and a $250,000 fine
Racketeering, including murder,
in violation of 18 U.S.C. § 1962(d)
Life in prison and a $250,000 fine
Gordon
Attempted racketeering murder of Victim 3 on May 20, 2011,
in violation of 18 U.S.C. § 1959(a)(5)
10 years in prison and a $250,000 fine
Racketeering assault with a dangerous weapon May 20, 2011,
on Victim 3, in violation of 18 U.S.C. § 1959(a)(3)
20 years in prison and a $250,000 fine
Use, carry, brandishing, or discharge of a firearm during a crime of
violence during the May 20, 2011, assault with a deadly weapon
of Victim 3, in violation of 18 U.S.C. § 924(c)
Life in prison with a mandatory minimum of 10 years in prison consecutive to every term of imprisonment for other offenses
Heard
Racketeering murder of Andre Helton on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Mandatory life in prison and a $250,000 fine
Racketeering murder of Isiah Turner on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Mandatory life in prison and a $250,000 fine
Use of a firearm in aid of the August 14, 2008, racketeering murders of Andre Helton and Isiah Turner, in violation of 18 U.S.C. § 924(j)(1)
Life in prison and a $250,000 fine
Young
Racketeering murder of Jelvon Helton on November 1, 2010, in violation of 18 U.S.C. § 1959(a)(1)
Mandatory life in prison and a $250,000 fine
Use, carry, brandishing, or discharge of a firearm in connection with November 1, 2010, murder in aid of racketeering of Jelvon Helton, in violation of 18 U.S.C. § 924(c)
Life in prison with a mandatory minimum of 10 years in prison consecutive to every term of imprisonment for other offenses
Use of a firearm in aid of the November 1, 2010, racketeering murder of Jelvon Helton, in violation of 18 U.S.C. § 924(j)(1)
Life in prison and a $250,000 fine
Attempting to entice and persuade an individual to travel for prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(a)
20 years in prison and fine of $250,000
Attempting to entice and persuade a minor to engage in prostitution (from
August 9, 2012, to March 11, 2013),
in violation of 18 U.S.C. § 2422(b)
Life in prison (10 years mandatory minimum) and fine of $250,000
Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
As described in the chart above, the jury concluded that Charles Heard murdered Andre Helton and Isiah Turner, that Jaquain Young murdered Jelvon Helton, and that Adrian Gordon attempted to murder another victim. The evidence at trial also demonstrated that the gang intimidated victims, potential victims, and community members through violence and threats of violence.
The defendants all are in custody pending sentencing. Judge Orrick has not yet scheduled a date for sentencing.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, Southern, Central, Taraval, and Bayview Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Felon in Possession of a Gun Sentenced in Federal CourtRead the Press Release
United States Attorney Richard Moore of the Southern District of Alabama announced that Sylvester Horn, 46, of Mobile, was sentenced in federal court on the charge of being a felon in possession of a firearm. At the time the gun was discovered in Horn’s possession, he was on federal supervision for a previous federal conviction for attempt to possess with intent to distribute cocaine. He was convicted on that charge in 2009, and served a sentence of 96 months in prison. When Horn was released from prison, he was placed on supervision by the United States Probation office in Mobile, Alabama. He had served two years of a five-year term of supervision when his possession of the gun was discovered. Horn pled guilty to the felon in possession charge in November of 2017. He was also charged with a violation of the terms of his supervised release.
United States District Court Judge Kristi Dubose sentenced Horn to 24 months’ imprisonment, to be followed by another three-year term of supervised release. The judge ordered that sentences on the revocation and on the new case will be served concurrently. Horn will undergo treatment for drug abuse and receive mental health counseling while in prison and as a condition of his supervised release. No fine was imposed, however the judge ordered that Horn pay the $100 special mandatory assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Epsom Man Sentenced to 78 Months for Firearm and drug Trafficking ChargesRead the Press Release
CONCORD - Eric Collins, 44, of Epsom, was sentenced to serve 78 months in prison for firearms and drug trafficking offenses, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February of 2017, Concord police officers executed a search warrant for the defendant’s vehicle and recovered two firearms, over $7,500 in cash and various controlled substances, including fentanyl and methamphetamine. As part of the defendant’s plea agreement, he agreed to forfeit his interest in the cash and firearms.
Collins previously pleaded guilty on November 21, 2017, to using and carrying a firearm during and in relation to a drug trafficking crime and possession of controlled substances with intent to distribute.
This matter was investigated by the Concord Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Detroit man sentenced to federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was part of a group selling heroin in Huntington in 2015 was sentenced today to three years and 10 months in federal prison, announced United States Attorney Mike Stuart. Marquis Tamal Quinton Evans, 26, previously pleaded guilty to possession with intent to distribute 100 grams or more of heroin. U.S. Attorney Stuart commended the investigative efforts of the Huntington FBI Drug Task Force.
“These Detroit drug thugs only learn the hard way,” said U.S. Attorney Stuart. “We will work with law enforcement until drug criminals figure out that selling heroin in Huntington gets you a one way ticket behind bars.”
Between July and October of 2015, Evans and others distributed heroin that was transported from Michigan to the Huntington area. On October 5, 2015, the Huntington FBI Drug Task Force conducted a search at 1826 Old 16th Street Road in Huntington. Agents located Evans inside the residence, as well as two other individuals. During the search, agents seized approximately 300 grams of heroin and over $51,000 in cash. Evans admitted that he and the other individuals intended to sell the heroin.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Department of Justice’s Antitrust Division Announces New Roundtable Series on Competition and DeregulationRead the Press Release
The Department of Justice’s Antitrust Division will hold a series of three public roundtable discussions to explore the relationship between competition and regulation, and its implications for antitrust enforcement policy. The first roundtable will occur on Wednesday, March 14, 2018 in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C. from 10:00 a.m. to 1:00 p.m. EST. The tentative agenda of the first roundtable can be found below.
The series of roundtable discussions will help the Department pursue effective and appropriate competition policy and identify related regulatory burdens on the American economy. The first roundtable will examine exemptions and immunities from the antitrust laws, and their impact on the free market and consumers. It will also include a discussion of the appropriate role of the state action doctrine in light of the broader federal policy favoring competition in interstate commerce.
“Our nation’s antitrust laws contribute to a well-functioning free market economy, and appropriate enforcement minimizes the need for burdensome regulatory intervention in the free markets,” said Assistant Attorney General Makan Delrahim. “Broad, bipartisan agreement for over half a century recognizes that the unrestrained interaction of competitive forces yields the best allocation of economic resources, the lowest prices, the highest quality, and the most innovation. I look forward to a robust exchange of ideas on these important topics.”
The roundtables will provide a forum for industry participants, academics, think tanks, and other interested parties to discuss the economic and legal analyses of competition and deregulation. The Antitrust Division plans to invite panelists from a variety of organizations, including American Antitrust Institute, American Bar Association Section of Antitrust Law, American Enterprise Institute, Association of Corporate Counsel, Business Roundtable, Cato Institute, Consumers Union, Federalist Society, Heritage Foundation, National Association of Attorneys General, Open Markets Institute, Public Knowledge, and the U.S. Chamber of Commerce.
The Department of Justice welcomes comments in advance of each of the roundtables. The Department will accept public comments (not to exceed 20 pages) regarding the first roundtable until March 13, 2018. Interested parties may submit comments to: [email protected]. Submitted comments will be made publicly available on the Department of Justice website.
The second roundtable, which will focus on antitrust consent decrees, will be held on April 26, 2018. The third roundtable will be held on May 31, 2018, and will assess the consumer costs of anticompetitive regulations. Agendas for upcoming roundtables will be posted on the Department of Justice website, along with instructions for submitting public comments for those roundtables.
The roundtables will be open to the public. Individuals wishing to attend must register for each roundtable on the Department’s website, at http://www.justice.gov/atr/CompReg/.
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected] or by calling 202-307-2016. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Decatur Man Sentenced to 60 Years in Prison for Hobbs Act Robbery, Conspiracy, and Firearms ChargesRead the Press Release
URBANA, Ill. – Matthew J. Higgins-Vogt, 25, of Decatur, Ill., was sentenced today to 60 years in prison for his role in an armed robbery of a Decatur Circle K convenience store and the murder of a 19-year-old Decatur woman, in April 2015. A jury convicted Higgins-Vogt’s co-conspirator Kelton Snyder in April 2016. On Oct. 24, 2016, Snyder was sentenced to life in federal prison.
On Oct. 30, 2017, Higgins-Vogt admitted that on April 3, 2015, he and Kelton Snyder robbed the Circle K convenience store at 1685 S. Baltimore in Decatur, and took money, including the contents of the cash register, and alcohol, while Snyder brandished a 12-gauge shotgun. Related to the conspiracy to commit the armed robbery, Higgins-Vogt admitted that he shot and killed Paige Mars on April 5, 2015, because he and Snyder did not want Mars to alert law enforcement about the robbery. Mars had driven the two men to the convenience store, waited in the car while they committed the robbery, and then drove them away.
According to evidence presented by the government, after the robbery, Mars learned of past violence by Snyder, and questioned him about it. Snyder and Higgins-Vogt became concerned that Mars would tell law enforcement that they had committed the robbery. The two men determined that Higgins-Vogt would kill Mars because Snyder and Mars had a brief personal relationship and they believed that law enforcement would suspect Snyder.
Assistant U.S. Attorney Jason Bohm prosecuted the case. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Higgins-Vogt has been in the custody of the U.S. Marshals Service since his initial appearance in federal court on Feb. 17, 2017. Higgins-Vogt was previously in the custody of the Macon County Sheriff’s Office since his arrest on state charges on April 8, 2015.
Connecticut Business Owners Admit to Profiting from Unlawful Exports to PakistanRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MUHAMMAD ISMAIL, 67, of Meriden, and KAMRAN KHAN, 38, of Hamden, pleaded guilty today in Bridgeport federal court to money laundering in connection with funds they received for the unlawful export of goods to Pakistan. A third defendant, Imran Khan, 43, of North Haven, previously pleaded guilty to violating U.S. export laws.
According to court documents and statements made in court, from at least 2012 to December 2016, Ismail, and his two sons, Kamran and Imran Khan, were engaged in a scheme to purchase goods that were controlled under the Export Administration Regulations (“EAR”) and to export those goods without a license to Pakistan, in violation of the EAR. Through companies conducting business as Brush Locker Tools, Kauser Enterprises-USA and Kauser Enterprises-Pakistan, the three defendants received orders from a Pakistani company that procured materials and equipment for the Pakistani military, requesting them to procure specific products that were subject to the EAR. When U.S. manufacturers asked about the end-user for a product, the defendants either informed the manufacturer that the product would remain in the U.S. or completed an end-user certification indicating that the product would not be exported.
After the products were purchased, they were shipped by the manufacturer to the defendants in Connecticut. The products were then shipped to Pakistan on behalf of either the Pakistan Atomic Energy Commission (“PAEC”), the Pakistan Space & Upper Atmosphere Research Commission (“SUPARCO”), or the National Institute of Lasers & Optronics (“NILOP”), all of which were listed on the U.S. Department of Commerce Entity List. The defendants never obtained a license to export any item to the designated entities even though they knew that a license was required prior to export. The defendants received the proceeds for the sale of export controlled items through wire transactions from Value Additions’ Pakistan-based bank account to a U.S. bank account that the defendants controlled.
Ismail and Kamran Khan each pleaded guilty to one count of international money laundering, for causing funds to be transferred from Pakistan to the U.S. in connection with the export control violations. In pleading guilty, Ismail and Kamran Khan specifically admitted that, between January and July 2013, they procured, received and exported to SUPARCO, without a license to do so, certain bagging film that is used for advanced composite fabrication and other high temperature applications where dimensional stability, adherence to sealant tapes and uniform film gage are essential. The proceeds for the sale of the bagging film was wired from Pakistan to the defendants in the U.S.
When they are sentenced, Ismail and Kamran Khan face a maximum term of imprisonment of 20 years. Since the time of their arrests in December 2016, Ismail has been released on a $50,000 bond, and Kamran Khan has been released on a $100,000 bond.
Ismail and Kamran Khan are both citizens of Pakistan and lawful permanent residents of the U.S.
On June 1, 2017, Imran Khan pleaded guilty to one count of violating the International Emergency Economic Powers Act. In pleading guilty, KHAN specifically admitted that, between August 2012 and January 2013, he procured, received and exported to PAEC an Alpha Duo Spectrometer without a license to do so. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Defense Criminal Investigative Service, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service and the U.S. Department of Commerce’s Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Jacabed Rodriguez-Coss and Stephen B. Reynolds, in coordination with Trial Attorney Scott McCulloch of the Justice Department’s Counterintelligence and Export Control Section (CES).
Conference on Mobilizing Law Enforcement to Defeat ISIS ConcludesRead the Press Release
On February 28, 2018, the International Conference on Mobilizing Law Enforcement Efforts to the Defeat Islamic State of Iraq and Syria or Islamic State of Iraq and al-Sham (ISIS) concluded in Washington, D.C. The two-day conference, co-sponsored by the U.S. Department of State, INTERPOL, and the International Institute for Justice and the Rule of Law (IIJ), brought together justice and law enforcement officials and their diplomatic counterparts, responsible for addressing counterterrorism issues from approximately 90 countries and organizations. According to the State Department, the conference would “build on our existing strategy and lay the foundation for the next phase in our effort as we work to confront the evolving ISIS threat.” INTERPOL Washington—the U.S. National Central Bureau—was instrumental in facilitating this event and is leading the sharing of information on Foreign Terrorist Fighters (FTFs) through INTERPOL’s Notice and Diffusion systems.
The first day of the conference featured a speech by the Department of State Coordinator for Counterterrorism, Ambassador Nathan A. Sales, during which he shared an overview of what the United States has been doing to counter ISIS using law enforcement and other civilian capabilities. He announced Secretary of State Rex Tillerson’s decision to give terrorist designations to seven ISIS-affiliated groups and two ISIS-affiliated leaders. Sales called for prosecuting FTFs, collecting and using battlefield evidence, updating laws to more effectively target the threat, implementing tougher border screening and more robust information-sharing within governments and among them, and designating and sanctioning ISIS affiliates and financiers to cut off the flow of money. Read his full remarks here.
Conference breakout sessions addressed subjects such as: Evidence Collection and Prosecutions, Institutional Reform, De-Radicalization and Reintegration, Legal Frameworks, Information Sharing, Tracking Foreign Terrorist Fighters Financial Data, and Preventing Homegrown Terrorism. The conference also sought to identify actions designed to help countries to disrupt potential attacks and to strengthen unity of purpose among the participants.
Ambassador Sales ended of the conference by hosting a teleconference with reporters during which he recapped highlights of the conference and answered questions. A transcript of the teleconference is here.
Columbia Man Sentenced to 51 years on Drug and Gun ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Emanuel Alexander Cheeseboro, a/k/a “Mandoo” was sentenced in federal court in Columbia, South Carolina, for six (6) counts of possession with the intent to distribute a quantity of crack cocaine, a violation of 21 U.S.C. § 841(a)(1), two (2) counts of felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1), two (2) counts of possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c), and one (1) count of possession of a quantity of marijuana, a violation of 21 U.S.C. § 844(a). United States District Judge Joseph F. Anderson, Jr., of Columbia, sentenced Cheeseboro to 622 months (51.8 years) incarceration followed by 6 years of supervised release. Cheeseboro was also fined $5,000 and has to pay an $1100 special assessment.
Evidence presented during the trial established that after numerous complaints from citizens, ATF and the Columbia Police Department began investigating drug dealing in the Martin Luther King Park area of Columbia. Law enforcement made multiple undercover purchases of crack cocaine from Cheeseboro in the spring of 2014. These purchases took place at different houses in the MLK Park area. In each case, Cheeseboro was captured on video selling the undercover police officer crack cocaine. During one purchase, Cheeseboro bragged about and displayed a 9mm Taurus firearm with a laser that he kept during nighttime drug purchases.
Pursuant to a search warrant executed during the investigation at a house where Cheeseboro was present, police found crack cocaine, marijuana, and scales. Law enforcement was also able to locate a firearm sometime after the search warrant that they were able to link to Cheeseboro, a convicted felon.
On June 8, 2016, CPD officers detained Cheeseboro and a female who were both located in a vehicle at a residence in Columbia, known as “the Hole.” During their investigation and search of the car, officers found a Smith and Wesson .38 caliber pistol under the driver’s seat, a quantity of crack cocaine on the female driver, and a quantity of marijuana in the trunk of the car. According to the female occupant, Cheeseboro asked her to hide the crack cocaine on her person and shoved the gun under her seat when the police arrived.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia Police Department. Assistant United States Attorneys William K. Witherspoon and Alyssa Richardson of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project Ceasefire is South Carolina’s continued application of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Cohoes Man Charged with Producing Child PornographyRead the Press Release
ALBANY, NEW YORK – George Muzio, Jr., age 36, of Cohoes, New York, was arraigned Friday on a superseding indictment charging him with the production of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The superseding indictment alleges that in 2014 and 2015, Muzio sexually exploited two child victims, ages 11 and 13, for the purposes of producing child pornography. Muzio also faces charges of distributing and possessing child pornography, for which he was originally indicted in February 2017. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
At a detention hearing on Friday, United States Magistrate Judge Daniel J. Stewart ordered Muzio detained pending trial.
If convicted of producing child pornography, Muzio faces at least 15 years and up to 30 years in prison per count of conviction. If convicted of distributing child pornography, Muzio faces at least 5 years and up to 20 years in prison per count. The Court may also impose a fine of up to $250,000, and must impose a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
If convicted, Muzio would also be required to register as a sex offender.
This case is being investigated by Homeland Security Investigations (HSI) and prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is prosecuted as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Citizen of the Dominican Republic Sentenced to 42 Months in Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MODESTO BARETT-MEDINA, 49, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment, followed by three years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, on October 21, 2016, the Baldwin County Sheriff’s Office in Alabama conducted a motor vehicle stop of a car hauler that was carrying a 2012 Chevrolet Malibu. A search of the Malibu, which was registered to Onel Arana-Gervacio, revealed that it contained a hidden compartment (“trap”), which is commonly used to conceal and transport illegal contraband, including narcotics, firearms and currency. Law enforcement officials obtained court authorization to install tracking devices on the vehicle and, between October 2016 and January 2017, HSI agents observed it at various locations in Connecticut and Rhode Island.
On January 17, 2017, agents located the vehicle at 1091 Maple Avenue in Hartford. On January 20, surveillance officers observed activity on another vehicle located at the Maple Avenue residence consistent with manipulating a mechanical hidden compartment. Officers then observed Arana placing two duffel bags into that second vehicle and then driving off in the vehicle with BARETT. At approximately 8:30 p.m., a Hartford Police cruiser pulled the car over. The vehicle also contained a hidden trap, but a search revealed no contraband.
A subsequent search of 1091 Maple Avenue revealed more than six kilograms of heroin, approximately 500 grams of cocaine and a “finger press,” which is used to process bulk quantities of heroin into 10-gram-bags known as “fingers.” Agents also seized drug distribution materials, including sifters, grinders, scales, vacuum sealers and kilo wrappers, which were coated in heroin residue and field-tested positive for the presence of fentanyl.
Agents then searched the Malibu, which was located in the garage of 1091 Maple Avenue, and recovered approximately $260,000 in cash from inside the trap.
Laboratory testing of the seized heroin revealed that some of it contained fentanyl.
BARETT has been detained since his arrest on January 20, 2017. On September 8, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
BARETT faces immigration proceedings when he completes his prison term.
Arana, who pleaded guilty to related charges, awaits sentencing.
This matter has been investigated by Homeland Security Investigations (HSI), the Hartford Police Department and the Connecticut State Police, with the assistance of the Baldwin County (Ala.) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and David T. Huang.
Chicago man sentenced to over four years in federal prison for role in drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Chicago man was sentenced today to four years and a month in federal prison for his role in a drug trafficking conspiracy, announced United States Attorney Mike Stuart. Richard Fleming previously pleaded guilty to aiding and abetting the attempted distribution of 100 kilograms or more of marijuana. A total of 15 other individuals were successfully prosecuted as a result of the investigation. Additionally, law enforcement seized over a million dollars in drug proceeds and an airplane belonging to this drug trafficking organization.
U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, including the Putnam County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, the Muskingum County Sheriff’s Department in Ohio, the Lawrence County Sheriff’s Department in Ohio, the United States Marshals Service, the Kentucky State Police, the Indiana State Police, the Huntington Police Department, and the Policia Federal Ministerial of Mexico. U.S. Attorney Stuart further commended several Drug Enforcement Administration agents for their investigation this case, including agents from Charleston, Columbus, Phoenix, Tucson, Chicago, Denver, and Hermosillo, Mexico.
“Drug criminals who think they can avoid prison by fleeing the country are dead wrong. If you run, we will work with our law enforcement partners to hunt you down and bring you to justice,” said U.S. Attorney Stuart. “Public safety is a top priority of my office, and we will take whatever measures are necessary to ensure that drug traffickers get the punishment they deserve.”
Fleming admitted that he traveled to Putnam County on March 12, 2010, to pick up approximately $600,000 of drug proceeds from a March 5, 2010, shipment of over 300 kilograms of marijuana on behalf of a drug trafficking organization operating out of Arizona and Mexico. Unbeknownst to Fleming and the drug trafficking organization, law enforcement intercepted the marijuana before it could be delivered. When Fleming arrived in Putnam County to pick up the cash, he actually met with an undercover officer who provided him with a duffel bag he represented contained approximately $600,000 in drug proceeds. Fleming then left the area and began travelling back to provide the money to other members of the drug trafficking organization. A traffic stop was conducted on Fleming’s vehicle in Kentucky and the duffel bag was recovered.
Fleming was originally charged in July 2010 and released on bond. On September 7, 2011, he failed to appear for his trial and a bench warrant was issued for his arrest. Fleming remained a fugitive until he was arrested in Mexico in August 2017. He admitted that he fled the United States to avoid prosecution in this case.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Brazilian National Pleads Guilty to ATM SkimmingRead the Press Release
BOSTON – A Brazilian national pleaded guilty today in federal court in Boston to charges of ATM skimming in the Boston area and North Shore.
Helisson Benazi de Souza, 38, pleaded guilty to one count of using counterfeit access devices (debit cards); one count of possessing 15 or more counterfeit access devices (debit cards); three counts of possessing device-making equipment (ATM skimming devices); one count of illegal transactions with an access device (other persons’ debit cards); and two counts of aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for June 19, 2018.
Benazi de Souza was part of an ATM skimming operation in which he stole the debit card information and personal identification numbers (PIN) of legitimate bank account holders when they used their debit cards at ATMs. Skimming devices made to look like legitimate card access slots were used to record the account information on the magnetic stripes of the debit cards, while secret pinhole cameras recorded the cardholders entering their PINs on the keypads. The stolen account information was then saved on blank plastic cards, including gift cards and hotel key cards, making “clones” of the legitimate debit cards. Benazi de Souza used such cloned cards, and the corresponding PINs, to withdraw $43,000 from ATMs in the Metro Boston area in May 2017.
Benazi de Souza was arrested in May 2017, after law enforcement was alerted by a bank’s fraud investigator. The investigator discovered that someone was making a number of withdrawals that day at three ATMs in Lynn from bank accounts that the investigator knew had been compromised. When police searched Benazi de Souza’s car, they discovered thousands of dollars in cash, all in $20 bills. They also found over 200 gift cards and hotel key cards containing small stickers. Benazi de Souza admitted that the numbers written on the stickers were cardholders’ PINs.
Before the arrest, surveillance video from banks in Malden and Saugus showed an unknown man installing and removing skimming devices and pinhole cameras at the banks’ ATMs. Benazi de Souza admits to being that man.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release, and a fine of up to $250,000. The charge of using counterfeit access devices provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of possessing 15 or more counterfeit access devices provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of possessing device-making equipment provides for sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. The charge of illegal transactions with an access device provides for a sentence of no greater than 15 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 U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Lynn Police Chief Michael A. Mageary made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Biloxi Physician Convicted for Role in $3 Million Compounding Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – A federal jury found a Biloxi, Mississippi physician guilty Friday for his role in an approximately $3 million compounding pharmacy fraud scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi, Field Division and Acting Special Agent in Charge Ted Magee of Internal Revenue Service Criminal Investigation’s (IRS-CI) New Orleans Field Office made the announcement.
Albert Diaz, M.D., 78, was convicted of one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation following a five-day trial. Sentencing has been scheduled for May 22, 2018 before U.S. District Judge Keith Starrett of the Southern District of Mississippi, who presided over the trial.
“Communities place extraordinary trust in medical professionals,” said Acting Assistant Attorney General Cronan. “It is therefore particularly egregious when a physician compromises that trust, as Albert Diaz did when he played a pivotal role in causing millions of dollars in loss to our country’s health care programs. The prosecution of Albert Diaz exemplifies the Criminal Division’s commitment to holding those involved in fraud schemes accountable for their actions.”
“When individuals defraud our military’s healthcare system TRICARE, harming the health and welfare of our men and women in uniform, they will be met with swift prosecution, severe punishment and the loss of their illicit gains,” said U.S. Attorney Hurst. “I applaud the tireless and determined work of these investigators and prosecutors in securing justice in this case. Justice prevailed and justice will continue to roll.”
“In the past five years, health care fraud schemes have cost Mississippi taxpayers hundreds of millions of dollars,” said Special Agent in Charge Freeze. “Today’s verdict should send a strong message that the FBI will continue to expose and investigate those who exploit our health care system at the expense of the taxpayer, and especially physicians who contribute to addiction by prescribing unnecessary controlled substances.”
“The jury found Dr. Albert Diaz guilty of conspiracy to commit healthcare fraud, which sent a message to all criminals seeking to defraud insurance companies – we’re on to you and will hold you responsible for your crimes,” said Acting Special Agent in Charge Magee. “Dr. Diaz’s scheme to steal from TRICARE and other insurance companies not only cost the American taxpayers, but put the lives of his patients in danger.”
According to evidence presented at trial, between October 2014 and December 2015, Diaz participated in a scheme to defraud TRICARE and other insurance companies by prescribing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals he had not examined. The evidence further demonstrated that, based on the prescriptions signed by Diaz, Advantage Pharmacy in Hattiesburg, Mississippi dispensed these medically unnecessary compounded medications and sought and received reimbursement from TRICARE and other insurance companies totaling more than $3 million. The trial evidence further demonstrated that in response to a TRICARE audit, Diaz falsified patient records to make it appear as though he had examined patients before prescribing the medications.
The FBI, IRS-CI, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics and other government agencies investigated the case. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Biloxi Physician Convicted for Role in $3 Million Compounding Pharmacy Fraud SchemeRead the Press Release
A federal jury found a Biloxi, Mississippi physician guilty Friday for his role in an approximately $3 million compounding pharmacy fraud scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi, Field Division and Acting Special Agent in Charge Ted Magee of Internal Revenue Service Criminal Investigation’s (IRS-CI) New Orleans Field Office made the announcement.
Albert Diaz, M.D., 78, was convicted of one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation following a five-day trial. Sentencing has been scheduled for May 22, 2018 before U.S. District Judge Keith Starrett of the Southern District of Mississippi, who presided over the trial.
“Communities place extraordinary trust in medical professionals,” said Acting Assistant Attorney General Cronan. “It is therefore particularly egregious when a physician compromises that trust, as Albert Diaz did when he played a pivotal role in causing millions of dollars in loss to our country’s health care programs. The prosecution of Albert Diaz exemplifies the Criminal Division’s commitment to holding those involved in fraud schemes accountable for their actions.”
“When individuals defraud our military’s healthcare system TRICARE, harming the health and welfare of our men and women in uniform, they will be met with swift prosecution, severe punishment and the loss of their illicit gains,” said U.S. Attorney Hurst. “I applaud the tireless and determined work of these investigators and prosecutors in securing justice in this case. Justice prevailed and justice will continue to roll.”
“In the past five years, health care fraud schemes have cost Mississippi taxpayers hundreds of millions of dollars,” said Special Agent in Charge Freeze. “Today’s verdict should send a strong message that the FBI will continue to expose and investigate those who exploit our health care system at the expense of the taxpayer, and especially physicians who contribute to addiction by prescribing unnecessary controlled substances.”
“The jury found Dr. Albert Diaz guilty of conspiracy to commit healthcare fraud, which sent a message to all criminals seeking to defraud insurance companies – we’re on to you and will hold you responsible for your crimes,” said Acting Special Agent in Charge Magee. “Dr. Diaz’s scheme to steal from TRICARE and other insurance companies not only cost the American taxpayers, but put the lives of his patients in danger.”
According to evidence presented at trial, between October 2014 and December 2015, Diaz participated in a scheme to defraud TRICARE and other insurance companies by prescribing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals he had not examined. The evidence further demonstrated that, based on the prescriptions signed by Diaz, Advantage Pharmacy in Hattiesburg, Mississippi dispensed these medically unnecessary compounded medications and sought and received reimbursement from TRICARE and other insurance companies totaling more than $3 million. The trial evidence further demonstrated that in response to a TRICARE audit, Diaz falsified patient records to make it appear as though he had examined patients before prescribing the medications.
The FBI, IRS-CI, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics and other government agencies investigated the case. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Bastrop woman pleads guilty to stealing more than $40,000 in Social Security benefitsRead the Press Release
MONROE, La. – United States Attorney Alexander C. Van Hook announced today that a Bastrop woman pleaded guilty to stealing more than $40,000 in Social Security Administration (SSA) benefits.
Katie Marie Day, 40, of Bastrop, La., pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of theft of government property. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Day married her husband in February of 2000. She applied for SSA disability benefits in August of 2009 and claimed that she was separated from her husband. If she had claimed to still be living with her husband, their combined income would have been too high for Day to receive the benefit payments. Day’s husband passed away in September of 2016. During an interview following her husband’s death, Day told SSA district office staff on January 9, 2017 in Monroe that she had in fact been living with her husband off and on since their marriage. This caused SSA to overpay Day $40,569 from October 2009 to September 2016.
Day faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of June 13, 2018.
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
3 March 2018
Winner Man Charged with Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Winner, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Michael Lovejoy, Jr., age 35, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 28, 2017, and September 17, 2017, Lovejoy, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under state law, knowingly failed to register and update his registration.
The charge is merely an accusation and Lovejoy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Lovejoy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lower Brule Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Person Incapable of Consent.
Gregory Laroche, Sr., age 52, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, mandatory minimum of 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 14, 2017, Laroche knowingly engaged in, and attempted to engage in, a sexual act with a female victim, who at the time was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act, and Laroche knew she was incapacitated.
The charge is merely an accusation and Laroche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Laroche was released on bond pending trial. A trial date has not been set.
Little Eagle Man Charged with Domestic Assault Appears in Federal CourtRead the Press Release
United States Attorney Ron Parsons announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Milo Reuben Red Tomahawk, age 38, was indicted on February 6, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on February 27, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, Red Tomahawk unlawfully committed a domestic assault upon the victim, when at the time of the domestic assault, he had a final conviction on at least two separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. This assault took place in May of 2017.
The charges are merely accusations and Red Tomahawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs-Office of Justice Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Red Tomahawk was ordered detained pending trial. A trial date has not been set.
Guardians Project Results in Multiple Defendants Facing New Federal Indictments and SentencingRead the Press Release
United States Attorney Ron Parsons announced the indictments and sentencing in cases, all of which are separately noted below, that were brought pursuant to the U.S. Attorney’s Office’s Guardians Project. The Guardians Project is a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities.
The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Six Individuals Facing Federal Charge for Retaliating Against Witness of a Previous Fraud Case
Tally Colombe, age 43, Fort Worth, Texas; Elnita Rank, age 81, Fort Thompson, South Dakota; Kristal Hawk, age 57, Fort Thompson; Ronda Hawk, age 60, Fort Thompson; Tiffany Monteau age 43, Chamberlain; and Stefan Monteau, age 26, Fort Thompson, were indicted on February 6, 2018, for Conspiracy to Retaliate Against a Witness. All of these defendants, except Tally Colombe, appeared before U.S. Magistrate Judge Mark A. Moreno in February 2018, and all pled not guilty to the Indictment.
Tally Colombe is currently serving a federal sentence of imprisonment in Texas, and she will make her appearance at a later date. Colombe was convicted for federal offenses giving rise to and preceding this new Indictment alleging retaliation. The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that from on or about September 8, 2017, and continuing through on or about September 12, 2017, at Fort Thompson and elsewhere, Tally Colombe, Elnita Rank, Kristal Hawk, Ronda Hawk, Tiffany Monteau, and Stefen Monteau conspired and agreed among themselves and each other to commit a certain offense, as follows: to knowingly take action harmful against a certain individual, which interfered with the lawful employment and livelihood of this individual, such conduct being taken with the intent to retaliate against this individual for providing to a law enforcement officer truthful information relating to the commission and possible commission of a federal offense, namely program fraud and wire fraud. The alleged retaliatory conduct took place on the Crow Creek Sioux Tribe’s reservation.
The charge is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann Hoffman is prosecuting the case.
Former Crow Creek Tribal Court Administrator Charged with Embezzlement
LeeAnn Piskule, age 53, was indicted on February 14, 2018, for Embezzlement and Theft from an Indian Tribal Organization. The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleged that from May through August 2017, Piskule embezzled and converted to her own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Crow Creek Tribal Court, Crow Creek Sioux Tribe, an Indian Tribal Organization. During the time of the embezzlement, Piskule was serving as the Crow Creek Tribal Court Administrator.
The charge is merely an accusation and Piskule is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Mission Man and Woman Charged with Wire Fraud
Mark Edward O’Leary, age 35, and Sharli Colombe, age 35, were indicted on February 14, 2018, for Conspiracy to Commit Wire Fraud and Wire Fraud. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 15, 2018, and both pled not guilty to the Indictment. The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 4, 2011, through June 6, 2017, O’Leary and Colombe passed at least 544 checks drawn on a bank account not belonging to either of them. The checks were used for personal items for O’Leary and Colombe and the purchases or deposits were not authorized by the owner of the bank account. Much of the alleged conspiracy and fraud took place on the Rosebud Sioux Tribe’s reservation.
The charges are merely accusations and O’Leary and Colombe are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Former Director of Rosebud Tribal Ranch Sentenced for Embezzlement
Stormy Halligan, age 43, Winner, was sentenced on February 13, 2018, by U.S. Magistrate Judge Mark A. Moreno. Halligan was sentenced to 18 months of federal probation. He was ordered to pay approximately $10,000 in restitution.
According to court documents filed in Halligan’s case, between April 1, 2015, and March 31, 2016, he willfully and knowingly embezzled, misapplied, and converted to his own use monies, funds, credits, goods, assets, and other property belonging to the Rosebud Sioux Tribe Tribal Ranch, an Indian Tribal Organization.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Fort Thompson Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Darrell Touche, age 43, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 20, 2016, and October 21, 2016, Touche knowingly caused and attempted to cause a female victim to engage in a sexual act by the use of force.
The charge is merely an accusation and Touche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Touche was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Federal Jury Convicts Corson County Man of Domestic Assault and Tampering with VictimRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota man, Alexander Oka, 27, was convicted by a federal jury for Domestic Assault by an Habitual Offender and for Tampering with a Victim. The jury returned the verdict on February 23, 2018.
According to court documents and evidence produced at trial, on July 5, 2017, Oka unlawfully committed a domestic assault upon the victim, when at the time of the domestic assault, Oka had a final conviction on at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner.
During this assault, Oka smacked the victim’s head, and then kicked the victim in the back while she was not looking, and while she was feeding the baby she shares with Oka. The kick caused the victim significant pain. After being arrested for the assault, Oka sent a letter from jail to the victim instructing her not to cooperate and not to show-up for court proceedings. Oka had been previously convicted in multiple cases of domestic abuse. These prior convictions took place in tribal and federal court.
The maximum penalty for Domestic Assault by an Habitual Offender is up to five years of imprisonment, and the maximum penalty for Tampering with a Victim is up to twenty years of imprisonment. Each conviction also carries a maximum $250,000 fine and/or imprisonment, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation was conducted by the Bureau of Indian Affairs-Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Oka was ordered detained pending sentencing. A sentencing date has been tentatively set for May 14, 2018, in Pierre.
Eagle Butte Woman Charged with TheftRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from Indian Tribal Organization.
Calynn Gunville, age 27, was indicted on February 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 20, 2017, and August 18, 2017, Gunville willfully and knowingly stole, embezzled, and converted to her own use, money and funds belonging to the Lakota Thrifty Mart, an Indian tribal organization.
The charge is merely an accusation and Gunville is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Gunville was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Charged with Drug and Firearm OffensesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance to Persons Under Age Twenty-One, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Shaun Chayne Condon, age 32, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $750,000 fine, up to 9 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 25, 2017, Condon knowingly and intentionally possessed with intent to distribute and distributed marijuana, a Schedule I controlled substance, to minors. The Indictment also alleges that Condon, having been an unlawful user of, and addicted to a controlled substance, knowingly received and possessed a Smith & Wesson 9mm hand gun.
The charges are merely accusations and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Condon was released on bond pending trial, which has been set to April 17, 2018.
Agency Village Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Sylanus Flute, age 23, was indicted on February 6, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on February 13, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life imprisonment and/or a $250,000 fine, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, between February and April of 2017, Flute engaged in sexual acts with a juvenile female. To perpetrate the sexual assault, Flute used force.
The charges are merely accusations and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Flute was ordered detained pending trial. A trial date has been set for April 17, 2018.
2 March 2018
Woman Sentenced in Prison Bribery and Drug Trafficking CaseRead the Press Release
MISSOULA—Rachel Leanna Ross, 26, of Somerville Tennessee, was sentenced to 14 months in prison, 3 years supervised release, and a $100 surcharge by United States District Court Judge Dana L. Christensen on Friday, March 2, 2018 for conspiracy to possess with intent to distribute and to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison The charges were part of a scheme where Erin Bernhardt, an employee in the prison laundry, smuggled the controlled substances into inmates at the prison in exchange for bribes. The crimes occurred between April and August 2015.
The court previously sentenced other members of the scheme to the following sentences: Cordero Robert Metzker, to three years’ imprisonment; Erin Bernhardt, to 14 months’ imprisonment; Ian Scott Barclay to 92 months’ imprisonment; and Lauren Hoskins to 14 months’ imprisonment.
The charge against Ross is the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, the Montana State Prison Warden and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.
United States Attorney Kurt Alme stated, “I applaud the efforts of the Warden and his staff and the cooperative efforts of law enforcement involved in this investigation to keep drugs out of the Montana State Prison and root out corrupt employees. The sentences issued by the court send a powerful message that those who prey upon the addictions of inmates will be investigated, prosecuted, and imprisoned.”
Woman Sentenced for Injecting Adulterated Liquid SiliconeRead the Press Release
SAN JUAN, P.R. – Senior US District Court Judge Daniel Domínguez sentenced Rosa Betancourt-Farfán to 15 months in prison and one year of supervised release for injecting liquid silicone, an adulterated and misbranded device used for body-contouring, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Betancourt-Farfán was arrested and indicted in December 2016 and pled guilty on May 12, 2017. The US Food and Drug Administration’s (FDA’s) Office of Criminal Investigations (OCI) was in charge of the investigation.
According to the information gathered during the investigation, liquid silicone is sometimes injected into the body to “augment” tissues, such as the buttocks or breasts. When intended for tissue augmentation, liquid silicone is a “device” under the Federal Food, Drug, and Cosmetic Act, and is subject to FDA approval before it can legally be distributed and used for such use in the United States. FDA has not approved any liquid silicone products for injection to augment tissues anywhere in the body. In addition, the injection of liquid silicone into the body for tissue augmentation can result in serious adverse health consequences, including hardening of tissue at the injection site, embolization, and even death.
On or about May 23, 2016, Puerto Rico Board of Health, Legal Division, contacted the FDA-OCI to advise of a complainant who received medical procedures from a female individual who claimed to be a nurse. It was further indicated that the complainant received treatment to enlarge his/her buttocks and that the female individual was identified as “Rosa from Venezuela” (later identified as Rosa Betancourt-Farfán).
The complainant was interviewed by FDA-OCI agents and indicated that she had been injected in both glutes with one (1) vial by Betancourt-Farfán, for which she paid twelve hundred dollars ($1,200.00) in cash, but was having health problems during the summer of 2013. These problems consisted first with trouble breathing and back pain. Her health condition worsened on or about 2015, when she was hospitalized with tendonitis and back spasms.
“Your life is in danger if you have received any of these adulterated treatments. We urge people not to trust those who claim to be medical professionals and offer treatments outside of certified medical offices victimizing patients. The US Attorney’s Office is committed to protecting patients from medical frauds,” stated Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico.
“Liquid silicone injected into individuals’ bodies can cause serious harm and even death, and FDA has not approved any such product for body contouring,” said Justin D. Green, Special Agent in Charge, FDA’s Office of Criminal Investigations’ Miami Field Office. “We will continue to aggressively pursue and bring to justice those who endanger American consumers by offering these hazardous procedures.”
Assistant U.S. Attorney Myriam Fernández prosecuted the case. The case was investigated by the FDA, with assistance from Homeland Security Investigations.
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Winter Haven Resident Convicted of Obtaining U.S. Citizenship by FraudRead the Press Release
Tampa, Florida – A federal jury yesterday found Enite Alindor a/k/a Odette Dureland (56, Winter Haven) guilty of obtaining her naturalization as a United States citizen contrary to law and making false statements in a proceeding relating to naturalization. Her sentencing hearing is scheduled for June 7, 2018.
According to the testimony and evidence presented at trial, Alindor, a citizen of Haiti, applied for asylum with the Immigration and Naturalization Service (INS) in Miami in February 1997. After the INS denied that application, the United States Immigration Court ordered her to be removed from the United States in absentia. Shortly thereafter, Alindor presented herself to the INS as “Odette Dureland” and filed for asylum protection under that new identity. She concealed the fact that she had previously applied for status in the United States as Enite Alindor, and concealed the fact that she was also under a final order of removal from the United States. U.S. Citizenship and Immigration Services personnel, unaware of the Alindor identity and order of removal, approved Dureland for citizenship in July 2012 and she was naturalized as a United States citizen under that name in July 2012.
“When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI places a high priority on investigating document and benefit fraud.”
“The integrity of our nation’s legal immigration system is paramount,” said USCIS Tampa Acting District Director Tracy Tarango. “This conviction sends a clear message that attempting to fraudulently obtain U.S. citizenship will not be tolerated. Our nation’s citizens deserve nothing less.”
The investigation that led to this prosecution was part of “Operation Second Look”, a nationwide investigation conducted by the U.S. Department of Homeland Security, which has reviewed multiple cases across the United States of aliens who gained citizenship by concealing from the INS their prior orders of deportation and orders of removal from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the U.S. Citizenship and Immigration Services Fraud Detection and National Security group in Tampa, and the USCIS Asylum Office in Miami, Florida. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Vicksburg Man Sentenced for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Jermaine Franklin, 36, of Vicksburg, was sentenced today by U.S. District Judge Carlton W. Reeves to 60 months in federal prison followed by three years of 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.
On January 23, 2016, officers with the Vicksburg Police Department conducted a traffic stop on a vehicle driven by Jermaine Franklin. Following the traffic stop, Franklin fled the area on foot but was later apprehended. Officers recovered a loaded 9mm firearm, cocaine and a quantity of U.S. currency from the vehicle. Franklin was arrested and charged.
On June 21, 2017, a federal grand jury indicted Franklin on two counts – being a felon in possession of a firearm and possessing with intent to distribute cocaine hydrochloride. On December 7, 2017, Franklin pled guilty to illegally possessing a firearm as a felon. He had been previously convicted of Accessory After the Fact to Armed Robbery on March 1, 1999, and Being a Felon in Possession of a Firearm on November 19, 2004, in Warren County Circuit Court
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vicksburg Police Department. It was prosecuted by Assistant United States Attorney Erin Chalk.
Utah Man Sentenced to 59 Months for Defrauding Plattsburgh CompanyRead the Press Release
SYRACUSE, NEW YORK – Keith Eric Jergensen, age 58, of Salt Lake City, Utah, was sentenced today to 59 months in prison, to be followed by 3 years of supervised release, for conspiring to defraud a Plattsburgh, New York, company of $2.5 million.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Jergensen and co-defendant Debashis Ghosh, age 53, of Chicago, Illinois, were convicted in October 2017 of wire fraud conspiracy following a 7-day trial presided over by United States District Judge Brenda K. Sannes.
In imposing sentence, Judge Sannes also ordered Jergensen to pay $2.5 million in restitution to his victims. Jergensen was taken into custody following the sentencing.
United States Attorney Grant C. Jaquith stated: “Jergensen stole $2.5 million from investors trying to bring an innovative business and jobs to Plattsburgh, and then tried to cover up his theft with years of lies. Today’s sentence holds Jergensen accountable for his greed and treachery.”
FBI Special Agent in Charge Vadim D. Thomas stated: “Jergensen and Ghosh abused their investors’ trust, as well as their money. The FBI is dedicated to investigating these crimes because of their lasting impact on the lives of the victims and our community as a whole.”
The evidence at trial demonstrated that Jergensen and Ghosh were Co-Chief Executive Officers of Verdant Capital Group, LLC (“Verdant”), based in Chicago.
Plattsburgh-based Laurentian Aerospace Corporation (“Laurentian”) retained Verdant to raise funds for the construction of an airplane maintenance, repair and overhaul facility to be built at the former United States Air Force base in Plattsburgh.
Jergensen and Ghosh asked Laurentian to invest $2.5 million as seed money for the project. They and Laurentian agreed that this money would remain in a Wells Fargo account and could not be moved without the authorization of Laurentian.
Laurentian, drawing on funds contributed by its board members and one outside investor, wired $2.5 million into the Wells Fargo account on December 3, 2010. Five days later, Jergensen and Ghosh began transferring the money out of the account without Laurentian’s authorization. By March 18, 2011 they had transferred all of the $2.5 million out of the account.
Jergensen and Ghosh used Laurentian’s $2.5 million to pay Verdant’s expenses including employees and contractors, and to pay others, including payments totaling $1.75 million to a now-defunct wind turbine company that Ghosh was a minority owner of; transfers of $96,500 to Jergensen’s company Contour Composites, Inc. of Utah; a $55,000 “loan” to a friend that the friend never repaid; and payments totaling $14,500 to an Arizona man who was promising them access to union pension funds.
Having spent the money, and as part of their conspiracy, Jergensen and Ghosh then spent several years falsely assuring Laurentian and its investors that their money was safe and secure, with Jergensen going so far as to forge a memorandum of understanding that purported to show that Laurentian’s money was in a secured bank account at Wells Fargo. The victim investors included a retired United States Air Force colonel, a former New York City Deputy Mayor, a retired law firm partner, and several retired executives from the financial and airline industries. To date, Laurentian has been unable to build the airplane facility in Plattsburgh.
The evidence at trial also demonstrated that Jergensen and Ghosh misappropriated an additional $2.4 million in funds that other businesses had entrusted to them.
Ghosh is scheduled to be sentenced on April 2 in Syracuse.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Union, Missouri Man Sentenced on a Non-Fatal Heroin Overdose ChargeRead the Press Release
St Louis, MO – Rickey Dee McGregory, 37, Union, Missouri, was sentenced to 78 months in prison for distributing heroin to another person causing a non-fatal overdose.
According to court documents, on February 9, 2016, members of the Franklin County Sheriff’s Department were investigating a non-heroin overdose. The victim of the overdose told a deputy that she obtained the heroin from Rickey Dee McGregory. Investigators went to McGregory’s residence where they found items consistent with the distribution of heroin. He admitted that he gave the victim the heroin which caused her overdose.
McGregory pled guilty in October to one felony count of distributing heroin and appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the Franklin County Sheriff’s Department.
U.S. Attorneys Jay Town, Richard Moore and Donald Cochran to Speak at Friday Symposium at Alabama Law SchoolRead the Press Release
TUSCALOOSA – U.S. Attorney Jay E. Town will be among current and former U.S. Attorneys visiting the University of Alabama School of Law on Friday to discuss the role lawyers play in government.
The law school’s symposium, “The Role of Lawyers in Good Government,” will be from 8:30 a.m. to 1:30 p.m. in Room 287 of McMillan Lecture Hall on the University of Alabama campus.
Town will participate with current U.S. Attorneys Richard W. Moore of the Southern District of Alabama and Donald Q. Cochran of the Middle District of Tennessee in the first of the symposium’s three panels. Former Middle District of Alabama U.S. Attorney Leura Canary, now general counsel for the Retirement Systems of Alabama, will moderate the panel in which members will discuss their role as the chief federal law enforcement official in their respective districts.
“It is an honor to appear alongside my colleagues at the University of Alabama Law School,” Town said. “I think there is great benefit to those learning the law to have former and current United States Attorneys gather to discuss issues in criminal justice. I know I speak for all of us when I thank my predecessor for providing this platform and organizing such a first class symposium.”
Former Northern District of Alabama U.S. Attorney Joyce White Vance, now a Distinguished Visiting Lecturer in Law at the UA law school, will moderate the day’s second panel, which will address the role of lawyers as executive agency leaders. Leslie Proll, former director of the Departmental Office of Civil Rights for the U.S. Department of Transportation, Sarah R. Saldana, former director of U.S. Immigration and Customs Enforcement and former U.S. Attorney for the Northern District of Texas, and David K. Bowsher, a partner with Adams and Reese and former acting general counsel and deputy general counsel at the United States Department of Commerce will comprise the panel.
The third panel will address the role that U.S. Attorneys play in shaping criminal justice policy. Panelists will be Peter F. Neronha, former U.S. Attorney for Rhode Island and a candidate for Rhode Island attorney general, Emily Gray Rice, former New Hampshire U.S. Attorney, now city solicitor for Manchester, N.H., and Greg R. Davis, former Southern District of Mississippi U.S. Attorney, now a partner with Goss & Williams. Meg Reiss, executive director, Institute for Innovation in Prosecution, will moderate the panel.
The event is open to the media. For more information, contact Monique Fields at [email protected] or 205-348-5195.
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U.S. Attorney Jay Town Providing LE Training on Warrant, Arrest and Trial IssuesRead the Press Release
TUSCALOOSA – U.S. Attorney Jay E. Town will conduct training Friday in Tuscaloosa for west Alabama law enforcement on constitutional protections concerning search warrants, arrests and trials.
The training will be from 1 p.m. to 3 p.m. in the Bedsole Moot Courtroom at the University of Alabama School of Law, 101 Paul Bryant Drive East.
“I consider it my responsibility to provide robust training to prosecutors and members of law enforcement regarding issues we are seeing in both state and federal courts,” Town said. “I consider it an honor to be amongst those who selflessly put themselves in harm’s way for the safety of all Alabamians and those prosecutors who ensure that our worst offenders find a bed in prison. This training will have the net effect of improving our investigations and strengthening our prosecutions at all levels.”
The U.S. attorney will provide an update for police officers, sheriffs and district attorneys on individual protections provided by the 4th, 5th and 6th Amendments of the U.S. Constitution, including matters related to search and seizure and right to counsel.
The 4th Amendment guarantees the right of individuals to be free from unreasonable search and seizure. The 5th Amendment in criminal cases provides the right to a grand jury, forbids double jeopardy, and protects against self-incrimination. The 6th Amendment protects the rights of criminal defendants, including the right to a public trial without unnecessary delay, the right to counsel and the right to an impartial jury. The 6th Amendment also guarantees defendants the right to know the nature of the charges and evidence against them, and who their accusers are.
The training is for law enforcement only and will be closed to the media. Town will be available to the media before the training, between 12:30 p.m. and 1 p.m., outside the moot courtroom.
For more information, contact Peggy Sanford at [email protected] or 205-244-2020, or Stacy Crane at [email protected], or 205-244-2015.
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Two Men Convicted Following Trial Related to Extortion/Kidnapping PlotRead the Press Release
Fort Worth, Texas – Following a trial before U.S. District Judge Reed O’Connor, two men have been convicted for their role in an extortion and kidnapping scheme that occurred in Fort Worth in October 2017, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Nygul Anderson, 19, and Albert Gonzalez, 18, were each convicted of one count of a conspiracy to use an interstate facility to commit a travel act violation. Currently, they each face a maximum penalty of five years in prison and a fine of $250,000. Judge O’Connor reserved ruling on the two remaining counts, following the one-day bench trial.
According to the evidence presented at trial and the documents filed in this case, on September 22, 2017, a victim began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he had kidnapped the victim’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed. The next day the ransom demand was lowered to $40,000 and then again to $20,000. Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
On September 29, 2017, the same victim received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them. The deadline for the second ransom drop was Friday, October 13, 2017.
On October 13, 2017, the kidnappers in Mexico and the victim agreed to a location at a Home Depot in Fort Worth for the money drop. At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location.
Shortly thereafter, four individuals – Anderson, Gonzalez, Fernando Cabrera (who previously pled guilty), and a 17 year-old minor – were arrested as they attempted to collect the ransom money.
During trial, the government proved that these four individuals believed that they were collecting $20,000 in unlawful proceeds. The four conspirators had met in McAllen, Texas, and then drove to Houston, then to Dallas, and then to Fort Worth in an attempt to collect the money. These four conspirators communicated with other conspirators in Mexico during the trip about the location of the money pick, the amount of money to be retrieved, and precautions that should be taken to avoid detection.
The FBI and the North Richland Hills Police Department investigated the case. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe prosecuted.
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Two Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On February 28, 2018 a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged with conspiracy to import a controlled substance, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Caribbean Corridor Strike Force (CCSF) is in charge of the investigation, with the U.S. Coast Guard Investigative Services as the lead agency, and the collaboration of Customs and Border Protection, Caribbean Air and Marine Branch (CAMB) Marine Patrol Aircraft (MPA).
The indictment alleges that on or about February 20, 2018, defendants Jamaico Jedi, a.k.a. “Jan Michael Jedi”, and Rafael Britto Paulino, a.k.a. “Rafael Britto/Raffi Britto/Raffy Britto,” conspired to possess with intent to distribute five (5) kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States; and conspired to import five (5) kilograms or more of cocaine to Puerto Rico
The defendants are also facing one charge of conspiracy to destroy property subject to forfeiture. The defendants were navigating a 33ft “yola-type” vessel when agents from the U.S. Coast Guard detained them approximately four nautical miles from Rincon in Puerto Rico. The defendants threw overboard square objects that the USCG crewmembers identified as bales of suspected illegal narcotics. Upon further investigation, cocaine was found to be present both on the surface of the vessel and the defendants’ hands. Defendants are also facing a charge of attempted improper entry into the United States.
Assistant U.S. Attorney Laura Montes and Special Assistant U.S. Attorney Sean R. Gajewski are in charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years up to life in prison for the drug conspiracy charges. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
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Two Executives Arrested for Pump and Dump Securities Fraud SchemeRead the Press Release
Dennis Mancino, the President and Chief Executive Officer of HD View 360, Inc. (“HDVW”) and William Hirschy, the Chief Executive Officer of WT Consulting Group, LLC, were arrested yesterday on charges that they conspired to commit securities fraud by manipulating the price and trading volume of HDVW, a publicly-traded company that purported to distribute and install security surveillance systems. The defendants are scheduled to make their initial appearances this afternoon in the Southern District of Florida at the federal courthouse in Miami.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged in the complaint, the defendants engaged in a classic pump and dump designed to defraud the investing public and make millions of dollars for themselves by manipulating the price and volume of a publicly traded stock,” stated United States Attorney Donoghue. “The charges announced today demonstrate the commitment of this Office, together with our law enforcement partners, to protecting the investing public by prosecuting pump and dump fraudsters.” Mr. Donoghue thanked the Securities and Exchange Commission, both the New York Regional Office and the Washington, D.C. Office, for their significant cooperation and assistance during the investigation.
“As alleged, Mancino and Hirschy tricked their victims into investing in HDVW under false pretenses, profiting from an orchestrated loss to those who unwittingly participated in this scheme,” stated FBI Assistant Director-in-Charge Sweeney. “People have the right to trade in an uncorrupted market, and today’s charges are proof of the FBI’s continued determination to root out those who unlawfully interfere with this process.”
According to court filings, between July 2017 and February 2018, Mancino and Hirschy engaged in a scheme in which they agreed to artificially control the price and trading volume of shares in Mancino’s company, HDVW. As part of the scheme, the defendants conspired to “pump” HDVW’s stock price by executing fraudulent trades and having HDVW issue weekly press releases and then, once HDVW’s stock price had increased, to “dump” the stock for a multi-million dollar profit. The defendants further agreed to pay kickbacks to stock brokers who would execute manipulative trades designed to increase the price and trading volume of HDVW’s stock. In furtherance of the scheme, the defendants executed numerous fraudulent matched trades designed to create the false appearance that HDVW’s stock price had risen as a result of genuine market demand.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Michael T. Keilty and David Gopstein are in charge of the prosecution.
The Defendants:
DENNIS MANCINO
Age: 46
Residence: Miami, FloridaWILLIAM HIRSCHY
Age: 41
Residence: Ocala, FloridaE.D.N.Y. Docket No. 18-MJ-184
Tickfaw Man Pleads Guilty to Possession of Child PornographyRead the Press Release
VERNON SWEENEY, JR. (“SWEENEY”), age 52, of Tickfaw, Louisiana, entered a plea of guilty today for possession of child pornography, announced United States Attorney Duane A. Evans.
On October 12, 2017, law enforcement officers with the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, arrested SWEENEY during the execution of a state search warrant at his Tickfaw home after finding that SWEENEY was in possession of several items, including a laptop computer, thumb drives and cellular phones that contained images depicting the sexual victimization of prepubescent children.
Court records also revealed that SWEENEY was previously convicted in Tangipahoa Parish Criminal District Court for pornography involving juveniles on August 1, 2012. Due to his prior conviction, if convicted, SWEENEY faces a mandatory minimum penalty of ten (10) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
Sentencing will be held on July 12, 2018 before U.S. District Judge Eldon E. Fallon.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Texas Man Sentenced to Three Years in Prison for Defrauding Immigrants by Claiming He Could Provide Legal Status for MoneyRead the Press Release
A 50-year old El Paso, Texas man was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release for his scheme to defraud immigrants who he scammed out of more than $400,000, announced U.S. Attorney Annette L. Hayes. ALEJANDRO GURANY, collected thousands of dollars from immigrants across the U.S. after telling them he worked for a government immigration office and could provide the immigrants with legal status for a fee. GURANY was never employed by a federal immigration agency. Law enforcement identified more than 30 victims in Washington and Ohio. GURANY was ordered to pay them $140,550 in restitution.
“This defendant preyed on vulnerable people, exploiting their fear of deportation to line his pockets with their hard-earned wages,” said U.S. Attorney Hayes. “He stole not only their money, but their American dream of education and a better life for themselves and their children.”
According to records in the case, between at least December 2011 and March 2015, GURANY pretended to be an employee of the United States and told immigrants he could get them legal status in the U.S. in exchange for money. GURANY traveled to SeaTac, Washington, and met with immigrants at an airport hotel. GURANY took personal identifying information, including photographs and fingerprints from the immigrants seeking green cards or citizenship. Some of the immigrants paid GURANY thousands of dollars believing he would provide them legal status. When no legal status was provided, the victims were afraid to complain about GURANY, since he had all their personal information and they believed he could get them deported.
Judge Robert S. Lasnik accepted the defendant’s claim that Mexican cartels threatened him and his family, demanding that he pay them money. But added that such a claim does not excuse his conduct. “It was a very insidious and awful crime that Mr. Gurany committed. You cannot justify it by saying ‘I need to protect my family’ and then preying on other families.”
“Unscrupulous immigration practitioners not only exploit the trust of their often-unwitting victims,” said Shawn Fallah, resident agent in charge for ICE’s Office of Professional Responsibility, “but by filing fraudulent immigration applications, they create security vulnerabilities and compromise the integrity of our legal immigration system. We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”
The U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR) received information from a detainee in 2013 that GURANY was posing as an immigration official. Law enforcement began a financial investigation that revealed the extent of the fraud. The investigation revealed $412,775 had been paid in cash or funneled into GURANY’s bank accounts from Washington, Colorado, California, Arizona, Wyoming, Oregon, and New Mexico. Knowing of the cash payments, and the approximate dollar figures GURANY demanded, investigators believe the number of victims is likely far more than the 30 they have been able to identify.
The case was investigated by U.S. Immigration and Custom Enforcement’s Office of Professional Responsibility. The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.
Tampa Woman Sentenced to More Than Four Years in Prison for Tax FraudRead the Press Release
Tampa, Florida – United States District Judge Elizabeth Kovachevich today sentenced Samika Garcia (39), formerly of Riverview, to four years and three months in federal prison on one count of wire fraud and one count aggravated identity theft in connection with income tax fraud. As part of her sentence, she was also ordered to pay restitution to the Internal Revenue Service. Garcia pleaded guilty to these charges on November 15, 2017.
According to court documents, in February and March 2014, Garcia electronically filed false and unauthorized tax returns in other peoples’ names from a laptop computer, claiming fraudulent tax refunds that were then deposited onto debit cards, in an amount totaling over $192,000. In doing so, Garcia unlawfully used those individuals’ personally identifying information, and kept track of this information in detailed ledgers at her residence.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
State Senator Pleads Guilty to Conspiracy and Theft ChargesRead the Press Release
A state senator pleaded guilty today to conspiracy and theft crimes, announced United States Attorney Matthew Schneider.
Joining Schneider in the announcement were Jeffery E. Peterson, Acting Special Agent in Charge, Detroit Division of the FBI and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Pleading guilty was Bertram Johnson, Jr., 44, of Highland Park, Michigan
According to court records, from approximately March 2014 through January 2015, Johnson, Jr., a Senator for the State of Michigan, conspired to commit theft, and did commit theft, of monies under the care, custody, and control of the State of Michigan.
Johnson borrowed thousands of dollars in cash from an unnamed co-conspirator, and later placed that co-conspirator on the public payroll as a member of his staff, knowing that the co-conspirator was a “ghost employee” who contributed no work on behalf of Johnson’s staff. The indictment alleges that Johnson placed this “ghost employee” on the public payroll solely to pay off Johnson’s personal loan debt, and that the ghost employee was paid over $23,000 in taxpayer money.
“Public officials, especially those elected by the people, cannot treat the people’s money as their own,” stated United States Attorney Schneider. “The defendant in this case treated taxpayer money as his own, to repay his personal debt. Such an egregious abuse of power will not be tolerated.”
“This investigation and subsequent plea reinforces the FBI’s commitment to hold public officials accountable by exposing those who engage in criminal conduct at taxpayer expense,” said Jeffery E. Peterson, Acting Special Agent in Charge of FBI Detroit. “We ask that anyone who has information regarding similar actions by any public official contact Detroit or their nearest FBI field office.”
“Senator Johnson made a conscious decision to violate the trust and confidence of the constituents that he was elected to represent,” stated Special Agent in Charge Manny J. Muriel, IRS Criminal Investigation. “As today’s guilty plea shows, IRS-CI, along with our law enforcement partners will continue to hold those who use fraud and deceit to line their pockets by stealing from our nation’s taxpayers accountable.”
Johnson faces a statutory maximum penalty of ten years in prison and is scheduled to be sentenced on August 7, 2018.
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Lee Carlson
Six People Sentenced to Federal Prison for Fraud that Targeted Elderly VictimsRead the Press Release
Six people from the Dubuque, Iowa, area were sentenced on March 1, 2018, to federal prison for participating in a fraud that victimized more than 250 elderly victims across the United States.
Evidence at the sentencing hearings and prior court hearings showed that Tobey Hines, Tiffany Reynolds, Joshua Willis, Payton McCarville, Morgan Cornell, and Paul Chase were all involved in a scheme to defraud victims, who were generally elderly, around the country. All six previously admitted that while they never made calls to victims, other individuals involved in the scheme called victims on the phone and told these victims that a relative was in jail. The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released. They further admitted that the money was being wired to various participants in the fraud who would pick up the wire transfers. Each admitted that they were participants in and around Dubuque who received wire transfers from the victims. Hines and Reynolds also admitted they sent the proceeds of the fraud via wire transfer to other participants of the scheme located in the Dominican Republic. The scheme victimized more than 250 victims across the country. These victims lost more than $750,000 as a result of the fraud.
“The perpetrators of this scheme shamelessly preyed upon vulnerable individuals in our society by exploiting their generosity,” said United States Attorney Peter E. Deegan, Jr. “We will continue to work with our law enforcement partners to hold accountable those who seek to victimize and financially exploit the elderly.”
Tobey Hines, age 33, from Dubuque, Iowa, was sentenced to 33 months in federal prison after a October 19, 2017, guilty plea to one count of wire fraud. At his sentencing hearing, the judge found Hines had victimized at least 17 individuals and was responsible for nearly a $120,000 in loss. Between January 2016 and April 2016, Hines sent $119,985 via wire transfer to the Dominican Republic as part of the scheme. Hines was also ordered to pay $47,059.94 in restitution to the victims.
Tiffany Reynolds, age 33, from Dubuque, Iowa, was sentenced to 19 months in federal prison after a November 15, 2017, guilty plea to one count of wire fraud. At her sentencing hearing, the judge found that Reynolds was responsible for the losses of 15 victims, totaling nearly $40,000 in losses. In sentencing her, the judge also noted Reynolds’s extensive criminal history, including prior convictions for OWI and assault. The judge also ordered her to pay $37,587 in restitution to the victims.
Joshua Willis, age 21, from Dubuque, Iowa, was sentenced to 23 months in federal prison after a November 15, 2017, guilty plea to one count of wire fraud. At his sentencing hearing, the judge found that Willis was responsible for the losses of 26 victims, totaling more than $60,000 in losses. In sentencing Willis, the judge also noted his extensive criminal history, including multiple prior convictions for assault. The judge also ordered him to pay $64,302.80 in restitution to the victims.
Payton McCarville, age 23, from Dubuque, Iowa, was sentenced to 8 months in federal prison after a November 17, 2017, guilty plea to one count of wire fraud. At her sentencing hearing, the judge found that McCarville was responsible for the losses of 13 victims, totaling nearly $40,000 in losses. The judge also ordered her to pay $39,369.31 in restitution to the victims.
Morgan Cornell, age 21, from Dubuque, Iowa, was sentenced to 14 months in federal prison after a November 16, 2017, guilty plea to one count of wire fraud. At her sentencing hearing, the judge found that Cornell was responsible for the losses of 15 victims, totaling over $30,000 in losses. The judge also ordered her to pay $33,129.60 in restitution to the victims.
Paul Chase, age 34, from Dubuque, Iowa, was sentenced to 15 months in federal prison after a November 20, 2017, guilty plea to one count of wire fraud. At his sentencing hearing, the judge found that Chase was responsible for the losses of 14 victims, totaling more than $40,000 in losses. In sentencing Chase, the judge also noted his extensive criminal history, including multiple prior convictions for OWI. The judge also ordered him to pay $42,152.46 in restitution to the victims.
The prosecutions are part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.
All four individuals were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Each must also serve a three-year term of supervised release after being released from prison. There is no parole in the federal system.
Hines, Reynolds, Willis, McCarville, and Cornell are being held in the United States Marshal’s custody until each can be transported to a federal prison. Chase was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Department of Homeland Security - Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1038.
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Six Individuals and Four Corporate Defendants Indicted in $50 Million International Securities Fraud and Money Laundering SchemesRead the Press Release
A multi-count indictment was unsealed yesterday, in federal court in Brooklyn, against Panayiotis Kyriacou, Arvinsingh Canaye, Adrian Baron, Linda Bullock, Matthew Green, and Aristos Aristodemou; Beaufort Securities Ltd (“Beaufort Securities”), a brokerage firm located in London, United Kingdom; Beaufort Management Services Ltd (“Beaufort Management”), an off-shore management company located in Mauritius; Loyal Bank Ltd (“Loyal Bank”), an off-shore bank with offices in Budapest, Hungary and Saint Vincent and the Grenadines; and Loyal Agency and Trust Corp. (“Loyal Agency”), an off-shore management company located in Saint Vincent and the Grenadines.
The charges include conspiracy to commit securities fraud and money laundering conspiracy. Canaye was arrested yesterday and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged in the indictment, the defendants engaged in an elaborate multi-year scheme to defraud the investing public of millions of dollars through deceit and manipulative stock trading, and then worked to launder the fraudulent proceeds through off-shore bank accounts and the art world, including the proposed purchase of a Picasso painting,” stated United States Attorney Donoghue. “The charges announced today reflect that this Office, together with our law enforcement partners, is committed to holding accountable those who defraud investors, regardless of the complex schemes they use to hide their ill-gotten gains.” Mr. Donoghue thanked the U.S. Securities and Exchange Commission (SEC), both the New York Regional Office and the Washington, D.C. Office, the City of London Police, the U.K.’s Financial Conduct Authority and the Hungarian National Bureau of Investigation for their significant cooperation and assistance during the investigation.
“As alleged, in a series of unscrupulous and illegal trading practices, the defendants contrived a scheme to defraud investors of U.S. publicly traded companies by manipulating stock prices and masking the true ownership of their clients’ financial interests,” stated Assistant Director-in-Charge Sweeney. “In order to discreetly receive their illegal proceeds, the defendants focused their efforts on laundering the money through a variety of means, including the art world, which they believed was a market free from direct regulation. Bringing to justice securities fraudsters and money laundering facilitators who engage in these types of schemes is and will remain a priority for the FBI and our law enforcement partners worldwide.”
“Since the Foreign Account Tax Compliance Act has been enacted, the financial expertise of our criminal investigators is needed now more than ever in this global economy,” stated IRS-CI Special Agent-in-Charge Robnett. “These allegations outline an intricate scheme to obscure beneficial ownership and launder illicit proceeds. This behavior harms the financial world abroad and here at home.”
Securities Fraud and Money Laundering Scheme
As alleged in the indictment, between March 2014 and February 2018, Beaufort Securities, Beaufort Management, and managers Kyriacou and Canaye, collectively the “Beaufort Defendants,” together with their co-conspirators, engaged in a scheme to defraud investors and potential investors in various U.S. publicly traded companies by concealing the true ownership of various U.S. publicly traded companies and manipulating the price and trading volume in the stocks of those companies.
Beginning in or about October 2016, an Undercover Agent contacted Kyriacou and stated that he was interested in opening brokerage accounts at Beaufort Securities from which he could execute trades in several multi-million dollar stock manipulation deals.
In furtherance of the scheme, the Beaufort Defendants opened brokerage accounts for their clients in the names of off-shore shell companies with nominee shareholders and directors, and then conducted manipulative trading of stocks of U.S. publicly traded companies listed on U.S. over-the-counter exchanges. Beaufort Securities facilitated at least ten “pump and dump” schemes involving U.S. publicly traded stocks, generating over $50 million in proceeds for its clients. Notably, Beaufort Securities had affirmed to the Financial Conduct Authority (“FCA”) in the United Kingdom in July 2016 that it had taken remedial measures to correct deficiencies in the firm’s financial crime controls and anti-money laundering processes.
Additionally, between January 2011 and February 2018, the Beaufort Defendants; Loyal Bank; Loyal Agency; Baron, the Chief Business Officer of Loyal Bank and a Director of Loyal Agency; and Bullock, the Chief Executive Officer of Loyal Bank and a Director of Loyal Agency, together with their co-conspirators, devised and engaged in a scheme to launder securities fraud proceeds for their clients. To facilitate this scheme, Beaufort Securities transferred funds to corporate bank accounts at Loyal Bank opened in the names of off-shore shell companies that were controlled by the bank’s clients. Loyal Bank then provided debit cards to its clients to withdraw funds from those accounts in an untraceable manner to hide the source of the money and facilitate ongoing securities fraud.
Money Laundering Through Purchase and Sale of Art
Separately, between October 2017 and February 2018, Kyriacou; Aristodemou, the uncle of Kyriacou; and Green, the owner of an art gallery in London, United Kingdom, together with their co-conspirators, agreed to launder £6.7 million, the equivalent of over $9 million dollars, which the Undercover Agent represented to be the proceeds of securities fraud. After initially proposing the use of real estate investments to launder the funds, the co-conspirators devised a scheme to “clean up the money” through the purchase and subsequent sale of art. Aristodemou described the art business as the “only market that is unregulated,” and that art was a profitable investment because of “money laundering.” The defendants proposed the Undercover Agent could purchase from Green a painting by Pablo Picasso entitled “Personnages, Painted 11 April 1965,” and provided paperwork for the painting’s purchase. The money laundering scheme was halted prior to the transfer of ownership of the painting.
The FCA also took regulatory action yesterday against Beaufort Securities and a related clearing firm, including halting all regulated activities and initiating insolvency proceedings against both firms. The SEC filed a civil complaint today against Beaufort Securities and Kyriacou
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Michael T. Keilty and David Gopstein are in charge of the prosecution. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Defendants:
PANAYIOTIS KYRIACOU, also known as “Peter Kyriacou”
Age: 26
Residence: London, EnglandARVINSIGH CANAYE, also known as “Vinesh Canaye”
Age: 30
Residence: MauritiusADRIAN BARON
Age: 63
Residence: Budapest, HungaryLINDA BULLOCK
Age: 57
Residence: St. Vincent/GrenadinesARISTOS ARISTODEMOU
Age: 49
Residence: London, EnglandMATTHEW GREEN
Age: 50
Residence: London, EnglandBEAUFORT SECURITIES LTD
London, EnglandBEAUFORT MANAGEMENT SERVICES LTD
MauritiusLOYAL BANK LTD
Budapest, Hungary and St. Vincent/GrenadinesLOYAL AGENCY AND TRUST CORP.
St. Vincent/GrenadinesE.D.N.Y. Docket No. 18-CR-102 (ENV)
Six Former Employees of Chicago Post-Secondary School Indicted for Allegedly Swindling Federal Financial Aid Program out of MillionsRead the Press Release
CHICAGO — Six former employees of a non-profit Chicago post-secondary education institute schemed to enroll fake students in classes as part of a conspiracy to swindle federal financial aid programs out of millions of dollars, according to an indictment returned in federal court in Chicago.
The six defendants were employed at the Chicago campus of the Center for Employment Training, a California-based institution of post-secondary, non-degree, vocational and technical education with campuses throughout the country. From 2005 to 2013, the defendants applied for and obtained federal grants and loans for students who were ineligible to receive the funds, the indictment states. One of the purported students was marked present at CET classes even though the student was deceased at the time, the indictment states.
The scheme caused the U.S. Department of Education to disburse to CET millions of dollars in fraudulent financial aid, the indictment states.
The indictment was returned Thursday. It charges the defendants with one count of conspiracy to fraudulently obtain federal financial assistance, one count of fraudulently obtaining federal financial assistance, and three counts of wire fraud. The defendants are MARIE PICKETT, 59, of Chicago; JANIE BLAKENEY, 63, of Chicago; DEBORAH WILLIAMS, 58, of Chicago; JENNY MORALES, 36, of Cicero; HEATHER SMITH, 43, of Cicero; and TAMAURA BALARK, 45, of Chicago. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Thomas D. Utz, Jr., Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office. The government is represented by Assistant U.S. Attorney John Mitchell.
According to the charges, Pickett served as the Director of CET’s Chicago campus; Blakeney was the Admissions Advisor; Williams and Morales were Financial Aid Officers; and Smith and Balark were instructors in the Medical Assistance Program. As part of the conspiracy, some of the defendants created and furnished to the Department of Education phony Free Application for Federal Student Aid (FAFSA) applications on behalf of purported students who were not eligible to receive financial aid because they had not graduated from high school or received an equivalency certificate, the charges state. For one purported student, the conspirators created a fictitious diploma that fraudulently alleged the student had graduated from a Chicago public high school, the indictment states. The fictitious diploma was then placed in the student’s CET file in an effort to meet the Department of Education’s requirements for financial aid, according to the indictment.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison, while the financial assistance fraud counts carry a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Seven Set to Appear in Court for Their Alleged Involvement in Violent Crimes Throughout Houston AreaRead the Press Release
HOUSTON – A grand jury in Houston has returned three separate indictments charging a total of eight Houston men with robbery and using firearms during these crimes of violence, announced U.S. Attorney Ryan K. Patrick. The indictments represent a joint initiative aimed at reducing violent takeover robberies of local businesses by organized crews of armed robbers.
The eight men had been in state custody on related charges. All but one - Joe Gutierrez, 19 - are set to appear today at 10:00 before U.S. Magistrate Judge Dena Palermo. The separate, but similar indictments were all returned Feb. 21, 2018.
Those charged in the first case include Gutierrez, Derrick Isaiah Stewart, 19, and Patrick Earl Cooper Jr., 20. A father and son are charged in a separate indictment - Marcus Hargove, 45, and Christopher Michael Carmon, 26, while the remaining three - Deamonta Frederick Taylor, 22, Joshua Marquise Turner, 22, and Kevin Eugene Harrison, 22 – are charged together in the third case.
The first indictment alleges four specific robberies of local pawn shops, during which the defendants stole firearms, cash and jewelry. Stewart, Gutierrez and Cooper are charged with aiding and abetting interference with commerce by robbery and aiding and abetting use, brandishing and discharging a firearm during and in relation to a crime of violence. Specifically, on Sep. 28, 2017, Cooper and others allegedly robbed the Cash America Pawn at gunpoint on 6015 Lyons Street, during which time a firearm was discharged. Six days later, Stewart and others allegedly robbed the Cash America Pawn at gunpoint on 5219 Airline Drive. The indictment alleges that later in October, Stewart and Cooper joined forces to rob the Cash America Pawn at 8223 North Freeway at gunpoint. Cooper, Stewart and Gutierrez were finally captured and arrested Oct. 31, 2017, after allegedly robbing the Cash America Pawn at 1816 North Durham Street at knifepoint.
Hargove and his son - Carmon - are charged in the second case with aiding and abetting interference with commerce by robbery and aiding and abetting use and brandishing a firearm during and in relation to a crime of violence. Specifically, they are suspected in multiple armed robberies of MetroPCS stores which occurred between October and November 2017. The son is charged in three robberies, two of which were allegedly committed with his father. The indictment alleges that during each of the robberies, they took turns going into the store and ordered employees to give them cash from the cash register.
In the final case, Taylor, Turner and Harrison are charged in connection with a spree of commercial robberies occurring in November 2017. Taylor is charged with five counts of interference with commerce by robbery and five counts of aiding and abetting use and brandishing a firearm during and in relation to a crime of violence, while Turner and Harrison are charged with one count each of these crimes. Between Nov. 2-8, 2017, Taylor is alleged to have robbed three different MetroPCS stores and one Subway restaurant in the Northwest Houston area, while Taylor, Turner and Harrison allegedly robbed a Cricket Wireless store in Northwest Houston on Nov. 9, 2017. Taylor, Turner and Harrison were apprehended Nov. 9, 2017, immediately after the commission of their last robbery, according to the indictment.
If convicted, the men face a sentence of up to 20 years on the robbery charges. The firearms offenses carry a minimum of seven years for the first conviction, while an additional conviction carries a 25-year minimum sentence. Those charges must also be served consecutively to any other sentence imposed. They also face up to $250,000 in fines for any of the offenses.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department were involved in all three of the investigations. The Harris County Precinct One Constable’s Office assisted with the Cash America robbery investigations, while the Harris County Sheriff’s Office and Texas Department of Public Safety were the co-investigators on the other two matters.
Assistant U.S. Attorneys Heather Winter, Jennie Basile and Richard Hanes are prosecuting the three cases, respectively.
The indictments are an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The cases are brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In late 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Port Allen Man Charged with Drug TraffickingRead the Press Release
U.S. Attorney Duane A. Evans announced that DEVONTA DUNN, age 23 of Port Allen, was indicted by a federal grand jury.
According to the indictment, DUNN possessed with intent to distribute five hundred grams or more of a mixture containing methamphetamine. If convicted, DUNN faces a term of imprisonment of at least 10 years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.
Pittsfield Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Pittsfield man was charged in federal court in Springfield yesterday with failing to register as a sex offender.
Anthony Robertson, 36, was indicted on one count of failing to register as a sex offender. Robertson was arrested and originally charged by complaint in February 2018; he has been detained since.
According to court documents, Robertson is required to register as a sex offender as a result of two prior convictions: in 2001, second degree rape; and in 2006, third degree rape. In 2014, Robertson was convicted in a New York state court of failure to register as a sex offender.
In approximately May 2017, Robertson traveled from New York to Pittsfield, Mass., where he established residence. In June 2017, a New York detective informed Robertson that he was wanted in New York for failing to register as a sex offender and was advised to turn himself in. Robertson neither turned himself in, nor registered as a sex offender in Massachusetts until after he was arrested on Aug. 25, 2017, on unrelated drug and firearm charges.
The charge of failure to register provides for a sentence of no greater than 10 years in prison, up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pasadena Police Lieutenant Charged in Federal Indictment with Illegal Sales of ‘Off-Roster’ Guns and Other Weapons OffensesRead the Press Release
LOS ANGELES – A lieutenant in the Pasadena Police Department was taken into custody this morning on federal charges related to the illegal sale of approximately 100 firearms.
Vasken Kenneth Gourdikian, 48, of Sierra Madre, who is currently on administrative leave, self-surrendered this morning to federal authorities.
Gourdikian was named by a federal grand jury yesterday in a four-count indictment that accuses him of engaging in the business of dealing in firearms without a license, making false statements on ATF Forms, and possessing an unregistered short-barreled rifle.
The federal indictment charges that, from March 2014 through February 2017, Gourdikian sold over 100 firearms without a license. Gourdikian allegedly used his official status as a police officer to purchase firearms that were not available to the general public, and then sold the “off-roster” firearms through third-party transfers to members of the public, according to the indictment.
Gourdikian’s status as a police officer also enabled him to purchase more than one handgun in a 30-day period. Moreover, upon obtaining the requisite authorizations from his employer, Gourdikian’s status as a police officer allowed him to take possession of a firearm before the otherwise applicable ten-day waiting period lapsed.
“In these days of escalating gun violence, it is important to enforce our firearms laws vigorously,” said United States Attorney Nicola T. Hanna. “Those who sell guns illegally need to be held accountable, especially those who abuse a position of public trust.”
Gourdikian is also charged with twice having falsely certified on ATF forms that he was the actual buyer of a firearm, when at the time of the certification he had already agreed to sell the firearm to another person.
Special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a federal search warrant at Gourdikian’s residence in Sierra Madre in 2017 and seized approximately 62 firearms, including an unregistered short-barreled rifle. The indictment further charges Gourdikian with illegally possessing this unregistered weapon.
“This investigation started through routine analysis of multiple sales and trace reports by ATF’s LA Crime Gun Intelligence Center,” said Bill McMullan, Special Agent in Charge of the ATF Los Angeles Field Division. “As alleged in the indictment, Mr. Gourdikian used his position as a law enforcement officer to buy firearms from gun dealers that the general public could not. He then repeatedly sold those firearms at a profit. Bringing a case against a law enforcement officer is never pleasant, but we hold public safety and a commitment to justice above everything. We are grateful for the Pasadena Police Department’s cooperation in this case.”
Gourdikian is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charge of dealing firearms without a license, Gourdikian would face a statutory maximum sentence of five years. Convictions of making a false statement and possessing an unlicensed firearm each carry a maximum sentence of ten years. If convicted on all four counts, Gourdikian would face a statutory maximum sentence of thirty-five years in federal prison.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorneys Jennifer Chou of the Violent & Organized Crime Section and Elisa Fernandez of the Public Corruption & Civil Rights Section.
Owner and Operator of Carlsbad Smoke Shop Pleads Guilty to Sale of Drug Paraphernalia ChargesRead the Press Release
ALBUQUERQUE – Leon Conaway, 56, of Carlsbad, N.M., pled guilty today in federal court in Las Cruces, N.M., to charges arising out of the sale and offering for sale of drug paraphernalia. Conaway’s plea agreement recommends a sentence of three years of probation.
Conaway, the owner and operator of Twisted Roots, a smoke shop in Carlsbad, was arrested in Jan. 2018, on a two-count indictment charging him with selling and offering for sale drug paraphernalia on May 16, 2016 and July 12, 2016, in Eddy County, N.M.
During today’s proceedings, Conaway pled guilty to the charges in the indictment. In entering his guilty plea, Conaway admitted that on May 16, 2016, he sold three glass pipes that are designed for smoking methamphetamine to an undercover law enforcement agent. Conaway also admitted that on May 16, 2016 and June 12, 2016, he had a large quantity of drug paraphernalia displayed for sale at his business, Twisted Roots.
In his plea agreement, Conaway also admitted that on July 12, 2016, federal law enforcement agents seized the following items that Conaway displayed for sale at Twisted Roots: approximately 1,127 assorted smoking instruments, including bongs, glass pipes used for smoking marijuana and glass pipes used for smoking methamphetamine; 17 assorted marijuana grinders; seven roach clips; 22 scales; and a large quantity of jewel bags that are used in the distribution of controlled substances. Conaway admitted that he knew the merchandise he sold and offered for sale at Twisted Roots was likely to be used with illegal drugs.
A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force and is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Orlando Man Sentenced to More Than 12 Years for Scheme to Defraud RV Park and Immigration InvestorsRead the Press Release
Jacksonville, FL –U.S. District Judge Timothy J. Corrigan yesterday sentenced Karamchand “Raj” Doobay (44, Orlando) to 12 years and 7 months in federal prison for conspiracy to commit mail and wire fraud related to a scheme to defraud investors in an RV Park, and immigrant investors in a senior citizen facility, both located in Hamilton County. In addition, the Court ordered him to pay restitution to the 85 victim–investors in the amount of $8,663,264.58. Doobay was also ordered to forfeit real property that was used in the commission of the offenses.
Doobay pleaded guilty on January 31, 2017.
According to court documents, Doobay operated business entities in Hamilton County, Florida, through which he acquired a parcel of land located at 7516 SE 113th Boulevard, in Jasper, Florida. From in or about March 2009, through in or about December 2015, he solicited investors to purchase subdivided lots on the land, guaranteeing returns between 9 to 41 percent for investments in RV lots and other lots for sale by his entity (Florida Gateway Resort). Doobay utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor–purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same lots to other investors.
Doobay was unable and failed to deliver the RV lots as promised. Despite being unable to deliver titles to the lots, he continued to represent to investors, through 2015, that “clean title is going to be provided” and that the land at Florida Gateway Resort was zoned and planned for an RV resort. Doobay routinely solicited new investor funds to pay previous investors returns while failing to disclose to the new investors that their funds would be used to pay pre-existing investors’ guaranteed returns.
Further, from about May 2011, through May 2016, Doobay conspired to commit wire fraud by promising immigrant investors, who were seeking permanent residence in the United States through the EB-5 Immigrant Investor Program, that he would use their investments for the development, renovation, and/or new construction of Senior Premier Living, a proposed retirement community in Jasper, Florida. Instead, Doobay used a portion of the immigrant investor funds to pay Florida Gateway Resort a small fraction of the promised returns and for his own personal use and enjoyment.
“Having no remorse or sympathy for those he stole from, Doobay continued to defraud victims even after his 2015 arrest,” said FDLE Tallahassee Special Agent in Charge Mark Perez. “I appreciate the efforts of investigators and the U.S. Attorney’s Office in stopping Doobay’s continued hunt for new victims.”
"This case demonstrates the lengths that some criminals will go to target and take advantage of innocent victims," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division, "but the FBI will work equally hard to hold those criminals accountable and protect their victims both here and abroad."
This case was investigated by the Florida Department of Law Enforcement, Hamilton County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Omaha Man Sentenced in Fentanyl Trafficking CaseRead the Press Release
Walter J. O’Donohue, III, sentenced for role in drug-related overdoses
Council Bluffs, IA – On February 27, 2018, Walter J. O’Donohue, III, age 35, of Omaha, Neb., was sentenced to 15 years in prison, fined $50,000, and ordered to serve five years of supervised release following his prison term by United States District Court Senior Judge James Gritzner for Conspiracy to Distribute a Fentanyl Analogue that caused death or serious bodily injury, announced United States Attorney Marc Krickbaum.
O’Donohue was part of a drug trafficking organization responsible for receiving and distributing fentanyl analogues obtained from a source in China to individuals in Western Iowa and Eastern Nebraska. The investigation began on June 28, 2015, when law enforcement officers were called to a Carter Lake, Iowa, residence regarding an unresponsive male. Law enforcement found the body of a 20-year old deceased male at the home. Law enforcement also discovered a second male had been transported to a local hospital, and placed on life support, from the same location prior to law enforcement’s arrival.
Subsequent investigation revealed co-defendant Charles Beuterbaugh provided acetyl fentanyl to both victims, which was determined to be the cause of death and the reason for the hospitalization. Beuterbaugh had obtained the acetyl fentanyl through an organization that began distributing fentanyl, or an analogue of fentanyl, in November of 2014 and continued to distribute into April of 2016. Further investigation into the overdose death revealed O’Donohue was responsible for the importation of the acetyl fentanyl ultimately distributed by co-defendant Beuterbaugh.
All members involved in the distribution of the acetyl fentanyl have entered guilty pleas. On October 26, 2017, Senior Judge Gritzner sentenced O’Donohue’s co-defendants, Dustin C. Sullivan, age 27, of Council Bluffs, to 162 months and Cody Lanus, age 31 of Omaha, Neb., to a term of imprisonment of 144 months. Michael David Redmond, Jr., who joined the conspiracy in December of 2015, was previously sentenced by Senior Judge Gritzner to 120 months in prison. Amalia N. Pandis is pending sentencing at a future date.
This investigation was conducted by the Carter Lake Police Department, Pottawattamie County Sheriff’s Office, Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, Omaha Police Department, Iowa Division of Criminal Investigation, Iowa Division of Narcotic Enforcement, United States Postal Inspection Service and United States Drug Enforcement Administration-Nebraska. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.