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2 March 2018
New York Man Pleads Guilty to Cyberstalking Cincinnati VictimRead the Press Release
CINCINNATI – Michael Chan, 34, of Bayside, New York, pleaded guilty in U.S. District Court to cyberstalking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and University of Cincinnati Police Chief Maris Herold announced the plea entered into before U.S. District Judge Susan J. Dlott.
According to the statement of facts submitted as part of the plea agreement, Chan met a female in 2009 while using online gaming. In 2012, he traveled from New York to Cincinnati to stay at her residence for approximately one week, during which time the victim made clear that the two were just friends and nothing more.
Later in 2012, Chan visited the victim uninvited and left notes throughout her house. He eventually began to text, call and Facebook message the victim all throughout the day and night. The victim then blocked Chan’s phone number and social media accounts, at which point the victim began receiving anonymous calls and texts.
These anonymous messages continued for several more years. At the same time, the victim began receiving deliveries and subscriptions that she did not order.
In 2015, Chan began sending emails to local Cincinnati news media stating a subject was driving from Canada to Cincinnati to sexually assault and murder the victim. Later that year, the victim began receiving harassing and threatening emails. This continued through 2016 and she repeatedly reported the incidents to local authorities.
“Chan’s concerning conduct escalated in March 2017, when he sent a text message to a local detective working on the matter and said that he was coming to a pay a visit to the victim and there was nothing the detective could do about it,” U.S. Attorney Glassman said. “Chan indicated he was coming to Cincinnati to attack the victim on the University of Cincinnati campus. He sent threatening emails to University officials up through August 2017.”
Chan was charged by a federal criminal complaint in August 2017 and indicted by a grand jury in September 2017.
The parties involved in this case have recommended a sentence of 27 months in prison followed by a three-year term of supervised release. Judge Dlott will consider this recommendation at a future sentencing hearing.
U.S. Attorney Glassman commended the investigation of this case by the FBI and University of Cincinnati Police, as well as Assistant United States Attorney Christy L. Muncy, who is representing the United States in this case.
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Morris County, New Jersey, Man Admits Conspiring to Commit Strong-Arm ExtortionRead the Press Release
NEWARK, N.J. – A Kenvil, New Jersey, man today admitted conspiring with a former Middlesex Borough fire inspector to use threats of violence to extort cash payments from the owner of a real estate development company, U.S. Attorney Craig Carpenito announced.
Joseph P. Martinelli, 64, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with conspiring to commit extortion using threats of force, violence, and fear.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Martinelli conspired with Billy A. Donnerstag, 49, of Hackettstown, New Jersey, then a fire inspector for Middlesex Borough and other New Jersey municipalities, to extort the owner and operator of a real estate development and construction company, referred to in the information as “Individual 1,” using threats of physical harm if Individual 1 did not pay Martinelli and Donnerstag thousands of dollars.
Martinelli and Donnerstag agreed that the pretext for demanding money would be that Individual 1 supposedly didn’t pay enough for a property he bought from Martinelli in 2007. In a series of telephone and in-person conversations with Individual 1, Martinelli and Donnerstag demanded money from Individual 1 by suggesting that Individual 1 would be physically harmed by Donnerstag if Individual 1 refused.
Martinelli and Donnerstag obtained $15,000 in cash from Individual 1 over two separate meetings. The cash had been provided by the FBI.
The count of conspiracy to commit extortion carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 12, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Donnerstag remains charged by indictment. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Brian N. DiGiacomo Esq., Madison, New Jersey
Monterey Airbus, Inc. Agrees to Ensure Full Accessibility of Airport Shuttle ServiceRead the Press Release
SAN FRANCISCO – Monterey Airbus, Inc. has entered into a settlement agreement with the United States Attorney’s Office to resolve allegations that the Monterey-based company violated Title III of the Americans with Disabilities Act (ADA) by discriminating against customers with disabilities, announced Acting United States Attorney Alex G. Tse. As part of the settlement, Monterey Airbus will take steps to ensure that it provides equivalent service to individuals with disabilities.
Monterey Airbus, a private transportation company with its principal place of business in Monterey, provides airport shuttle service between the Monterey Peninsula, San Francisco International Airport, and San Jose International Airport. Customers may request rides through the company’s on-line reservation system and a Monterey Airbus vehicle stops at pre-determined locations for customers with a reservation. After the U. S. Attorney’s Office conducted an investigation, Monterey Airbus acknowledged that prior to 2017, it did not provide services for passengers who required wheelchair transportation. Monterey Airbus also admitted that from 2005 to 2015 it purchased at least five new 13-passenger vehicles and five new 24-passenger vehicles for use in its services in the San Francisco Bay Area, none of which were readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs.
“Passengers with disabilities are entitled to equal access to the different airport shuttle services that facilitate travel to and from the Bay Area,” said Acting United States Attorney Tse. “With the agreement being announced today, Monterey Airbus has pledged its commitment to ensure individuals with disabilities receive the same service as other passengers. We acknowledge Monterey Airbus’s cooperation throughout this investigation and are glad that we were able to reach this resolution without litigation.”
As a result of the U.S. Attorney’s Office’s investigation and this settlement, Monterey Airbus will make the following changes:
- Operate sufficient readily accessible vehicles to ensure individuals with disabilities receive equivalent service.
- Permit passengers with disabilities, including individuals who use wheelchairs, to book a Monterey Airbus trip either on-line or by phone.
- Conduct ADA training for employees to include instruction on the ADA requirements for private entities operating a transportation system and Monterey Airbus’s policies and practices regarding accommodation of individuals with disabilities.
Assistant U.S. Attorney Rebecca A. Falk is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California.
Mexican National Pleads Guilty to Illegal Re-Entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Juan Jose Mejia-Contador, age 23, from Mexico pled guilty in federal court in Florence, South Carolina, to Illegal Re-Entry into the United States after deportation, a violation of 8 U.S.C. § 1326(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on November 26, 2017, ICE-ERO Officers assigned to the Pacific Enforcement Response Center discovered Mejia-Contador while he was in custody at the J. Reuben Long Detention Center in Horry County on state charges. Immigration records revealed that Mejia-Contador was a native and citizen of Mexico who had previously been deported from the United States on five occasions. Mejia-Contador has never received permission to enter or remain in the United States.
Ms. Drake stated the maximum penalty Mejia-Contador can receive is imprisonment for 2 years and a fine of $250,000.00.
The case was investigated by officers of the ICE-Enforcement and Removal Operations in Charleston, with the assistance of the Conway Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Mexican Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Duane A. Evans announced that JORGE GARCIA-HERNANDEZ, age 33, a native of Mexico, was sentenced today after pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Mary Ann Vial Lemmon sentenced GARCIA to time served (10 months), followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on September 15, 2017, GARCIA was found in the United States after having been previously deported from the United States on April 21, 2012.
U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Metropolitan Transportation Authority Employee Admits $5 Million Compounded Medication Prescription SchemeRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man today admitted his role in a scheme to use phony prescriptions for medically unnecessary compounded medications to defraud the Metropolitan Transportation Authority (MTA)’s health insurance plan and other insurers out of $5 million, U.S. Attorney Craig Carpenito announced.
Christopher Frusci, 33, an MTA bus driver, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Frusci admitted that from May 2015 through May 2017, he conspired to defraud health insurance plans, including the MTA’s privately-funded health plan, using fraudulent claims for compounded medications, such as scar creams, pain creams, and metabolic supplements marketed by a company referred to as “Company A” in the information.
In order to secure prescriptions for the compounded medications, Company A and its “sales representatives,” referred beneficiaries to telemedicine physicians who were paid by Company A or its affiliates.
Company A recruited Frusci as a sales representative and instructed him to target individuals with certain health plans, including the MTA’s health plan, that covered compounded medications. Frusci then convinced multiple MTA employees to obtain medically unnecessary medications by paying them monthly cash bribes of approximately $100 to $1,500. In order to increase his profits, Frusci also recruited other individuals to work as sales representatives under him.
As part of his plea agreement, Frusci must forfeit $724,448.73 in criminal proceeds he received for his role in the scheme and pay restitution of at least $5 million. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 4, 2018.
“In an era when many Americans worry about securing health insurance for their families, we’ve seen far too many instances where both private and publicly-funded insurance providers are being raided for millions in phony reimbursements on compounded medications,” U.S. Attorney Carpenito said. “Frusci admitted that he and others sought to defraud the MTA health plan and other insurers by recruiting the very people who enjoy that coverage, offering them cash bribes to get medications they didn’t need. His conviction should serve as a warning to those who would exploit their health coverage for financial gain.”
FBI Special Agent in Charge Timothy Gallagher said, "Christopher Frusci treated his own employer's health insurance plan of Metropolitan Transportation Authority as a vehicle to line his own pockets when he engaged in an elaborate scheme that resulted in defrauding insurers out of $5 million. The FBI, in conjunction with our law enforcement partners will continue to investigate and bring to justice criminals who defraud the system and cheat the American taxpayer."
“Our investigation is ongoing to determine the extent to which additional MTA employees may have participated in this fraudulent scheme,” said Inspector General Barry Kluger of the MTA Office of the Inspector General. “I applaud and am pleased to support the efforts of the U.S. Attorney, along with the FBI and the Department of Defense Office of Inspector General, to combat this nationwide epidemic of health care fraud that unfortunately, and at great cost, has infected the MTA as well.”
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the MTA Office of the Inspector General, under the direction of Inspector General Barry Kluger; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark.
To date, the New Jersey U.S. Attorney’s Office has prosecuted over 20 individuals involved in various compounding pharmacy schemes across New Jersey to defraud health care benefit programs, and has recovered more than $4 million through forfeiture and restitution. These schemes have caused a total loss of more than $70 million to the health care industry, which has affected state, federal and private health care benefit programs.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Patrick V. Parrotta, Staten Island, New York
Martinsburg man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg man has admitted to distributing heroin, United States Attorney Bill Powell announced.
Charles Leroy Palmer, III, age 23, pled guilty to one count of “Possession with the Intent to Distribute Heroin.” Palmer admitted to distributing more than 100 grams of heroin in June 2017 in Berkeley County.
Palmer faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The case was investigated by the Jefferson County Sheriff’s Office and the Martinsburg City Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Lafayette felon flees police, slams into post, firearm and ammo foundRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Lafayette man previously convicted of a felony pleaded guilty Thursday to possessing a .40 caliber pistol and ammunition.
Karlon Woods Jr., 22, of Lafayette, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of felon in possession of a firearm. According to the guilty plea, Lafayette Police were on patrol around the Simcoe Street area on October 20, 2016, when they encountered Woods. Officers observed Woods walking down a street with a red and black backpack, and when they approached, Woods fled. During the pursuit, Woods ran into a clothesline pole. During a medical evaluation on the scene, officers determined that Woods had an active warrant for his arrest. Officers located the red and black backpack they had previously seen on Woods in the yard where Woods was encountered. The backpack contained .40 caliber ammunition. Officers also recovered a .40 caliber Smith and Wesson pistol near the backpack. Officers later determined that the firearm recovered on the scene had previously been reported stolen on October 14, 2016, in Lafayette Parish. At the time of his arrest, Woods was a felon, having been previously convicted on January 14, 2016, in the 15th Judicial District of second-degree battery.
Woods faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe 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.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Kershaw County Man Pleads Guilty to Federal Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Michael Andrew Gary, age 27, of Camden, South Carolina, pled guilty in federal court to two counts of Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on January 17, 2017 officers of the Camden Police Department stopped Gary for a traffic offense, and arrested him for Driving Under Suspension. A search of the car that Gary was driving revealed a .32 caliber Colt pistol. Gary admitted the firearm was his. At the time of his arrest, Gary had previous felony convictions that prohibit him from possessing a firearm.
Approximately 6 months later, on June 16, 2017, officers of the Kershaw County Sheriff’s Department encountered Gary sitting in a car in a hotel parking lot. After officers smelled a strong odor of marijuana, they searched the car and found a Taurus 9 mm firearm in the trunk of the car. Again, Gary acknowledged that the firearm belonged to him.
Gary faces a maximum of 10 years , a fine of $250,000, and up to 3 years of supervised release on each count.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Camden Police Department and the Kershaw County Sheriff’s Office and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Nancy C. Wicker of the Columbia office handled the case.
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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Kalamazoo Man Sentenced to Fifteen Years in Federal Prison for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Dennis Scott Kent, 54, of Kalamazoo, Michigan, was sentenced to 180 months (15 years) in federal prison for possessing child pornography, U.S. Attorney Andrew Birge announced. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a ten-year term of supervised release that will commence once Kent is released from imprisonment. Kent will also be required to register as a sexual offender.
Kent pled guilty on October 23, 2017, to possessing child pornography. He came to the attention of law enforcement in February 2017, after his landlord discovered child pornography while evicting Kent from an apartment. Police subsequently discovered a significant collection of child pornography while searching Kent’s computer. The material depicted young children engaged in sex acts, as well as prepubescent children being bound and gagged. Further investigation revealed that Kent had a prior conviction for Criminal Sexual Conduct – Third Degree. The conduct underlying that conviction spanned years and involved a vulnerable minor victim. The defendant was released from prison in 2003, but he violated his parole in 2004 by committing another predatory offense.
At sentencing, the U.S. Attorney’s Office stressed the need to protect the public from Kent. In its sentencing memorandum, the U.S. Attorney’s Office wrote: "The possession of child pornography is a very serious offense in any case, and it is all-the-more serious in this case given the defendant’s history. The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to the victims depicted in images, validates and normalizes the sexual exploitation of children, and fuels a market, thereby leading to further production of images."
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Federal Bureau of Investigation (FBI), Kalamazoo County Sheriff’s Office, and Michigan State Police Computer Crimes Unit investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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James Fitzgerald “Boogie” Simonton Convicted of Crack Cocaine and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. - On March 2, 2018, following a three-day trial before the Honorable J. Ronnie Greer, U.S. District Judge, a jury convicted James Fitzgerald Simonton, a/k/a Boogie, 50, of Kingsport, Tennessee, of conspiracy to distribute 280 grams or more of crack cocaine, possession of firearms in furtherance of a drug trafficking offense, three counts of being felon in possession of firearms, and witness intimidation.
Sentencing is set for1:30 p.m., on June 11, 2018, in U.S. District Court in Greeneville. Simonton faces a minimum of 15 years, up to a maximum life sentence in prison. There is no parole in the federal system.
Evidence presented at trial revealed that an investigation began following the appearance of two young males at Indian Path Hospital in May 2016 with gunshot wounds. One of the victims was Simonton’s son. Detectives developed Simonton as a suspect in the shooting of these two individuals. When officers went to his residence, they found a Glock pistol with extended magazine, which the ATF traced to Simonton’s neighbor. Through the trace, detectives learned the firearm had been purchased at Academy Sports in Johnson City. Academy provided paperwork for the transaction and surveillance video from its store, which reflected Simonton had been present along with a co-defendant during the purchase of the firearm. Additional surveillance video showed that Simonton was present when his then girlfriend purchased another firearm. As the investigation progressed, two co-defendants, one of whom was another son of Simonton, were arrested in possession of crack cocaine. This led to information about Simonton’s involvement in trafficking crack cocaine from a source in Georgia into Sullivan County, Tennessee. Ultimately, the investigation successfully uncovered the firearm used in the shooting of the two young males, an AK63, 7.62 caliber rifle.
After his arrest, and while in federal custody, Simonton threatened a cooperating witness against him in an effort to influence the testimony of the witness. The jury found him guilty of intimidation of that witness.
Law enforcement agencies participating in this joint investigation were the Kingsport Police Department, Sullivan County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Jacksonville Man Arrested and Charged with Aggravated Sexual Abuse by Force on Cruise ShipRead the Press Release
Jacksonville, FL – Brian Holland (23, Jacksonville) has been arrested and charged by criminal complaint with aggravated sexual abuse by force. He faces a maximum penalty of life in federal prison and a potential lifetime of supervision. Holland made his initial appearance in federal court today and was temporarily detained pending a detention hearing on Tuesday, March 6, 2018.
According to the complaint, agents with the Federal Bureau of Investigation were notified by the security department of the Carnival Cruise Line vessel Elation that a passenger onboard the ship had been involved in an incident of sexual abuse on February 27, 2018. The victim stated that she was in the Jacuzzi with Holland on the cruise ship when he kept attempting to put his arm around her and she attempted to move further away from him. Holland then tried to put his hand on her shoulder and pull her back toward him. The victim stated that Holland touched her on her genitals over her bathing suit and then under her bathing suit, digitally penetrating her by force. The victim left the Jacuzzi and immediately reported what happened to family, who then reported it to ship security. The victim was examined by medical personnel on the ship, who found abrasions on her genitals consisted with digital penetration by force.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE REYES-GABRIELES, age 33, a native of Honduras, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien.
According to the court documents, REYES-GABRIELES was previously removed from the United States on April 17, 2008. He was later found in the Eastern District of Louisiana on December 7, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
REYES-GABRIELES faces a maximum term of imprisonment of two years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Lance M. Africk set sentencing for April 19, 2018.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Honduran Man Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras pleaded guilty to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, SANTOS-MONTALVAN used a social security number that was not assigned to him by the Social Security Administration to register for a safety training course that he was required to complete before he could begin working for a local construction company on various job sites in the local area. At sentencing, which is set for June 7, 2018 at 2:00 p.m. before U.S. District Judge Eldon E. Fallon, SANTOS-MONTALVAN faces a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, SANTOS-MONTALVAN is subject to a period of supervised release after imprisonment of up to three years.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hartsville Man Pleads Guilty to Drug Trafficking and Firearm Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Tyrez Lavor Johnson, age 31, of Hartsville, entered a guilty plea in federal court in Florence to possession with intent to distribute and distribution of cocaine base, a violation of Title 21, United States Code, Section 846, and felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g). United States District Judge R. Bryan Harwell, of Florence, accepted the plea and will impose sentence after a pre-sentence report is prepared by the U.S. Probation Office.
This case was part of an investigation conducted by state and federal agents into the sale of illegal drugs in the Hartsville, South Carolina area. In October 2017, investigators made a controlled purchase of a quantity of cocaine base from Johnson. Johnson was later found in possession of a .357 caliber revolver during his arrest on the drug distribution charge. Johnson was prohibited from possessing the firearm due to a prior conviction for a controlled substance offense.
Ms. Drake stated the defendant faces a maximum term of imprisonment of 20 years and a fine of $1,000,000.
The case was investigated by agents of the Hartsville Police Department, the Darlington County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
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Ghillie Suit Wearing Drug Dealer SentencedRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March 1, 2018, Senior United States District Court Judge W. Louis Sands sentenced Keith Gaines, age 43, of Bainbridge, GA, to 176 months imprisonment for the offense of possession with intent to distribute cocaine. Gaines plead guilty to the offense on December 18, 2107.
The evidence supporting the plea showed that on April 22, 2016, agents of the Bainbridge Department of Public Safety executed a search warrant at in Decatur County, Georgia. During the search, agents located a cookie tin which contained crack cocaine and powder cocaine weighing 38.51 grams. An arrest warrant was issued for Keith Gaines.
On May 3, 2016, agents received a call about a man wearing a ghillie suit walking in the area of the City of Bainbridge purchasing department warehouse. Concerned that the man might be planning to burglarize the warehouse, agents attempted to make contact with him. As officers began to walk toward the man, he bent down and placed something on the ground before ducking behind a nearby rail car and taking flight on foot. Agents located this person, identified as Keith Gaines, laying on the ground on his stomach in a densely wooded area. The officers took Mr. Gaines’ wallet to verify his identity and located a small quantity of cocaine inside it.
The next day, Mr. Gaines made a phone call from the Decatur County Jail to an unknown male on the jail’s recorded phone line. In this call, Mr. Gaines informed the male that he had buried something near the big tree where he been taken into custody. Agents travelled back to the area and located two sandwich bags which had been buried. The bags contained powder and crack cocaine.
Agents discovered that during the booking process, Mr. Gaines had given the number to which the call had been placed as the number of a relative. They interviewed the relative, who stated that Mr. Gaines had called him and asked him to go retrieve the drugs but that he had not attempted to do so. The substances seized from the residence at the time of the search warrant and located in the wooded area near where Gaines was arrested were submitted for chemical analysis and determined to be 64.13 grams of cocaine.
“Mr. Gaines was designated a career offender based on at least five prior cocaine convictions” said United States Attorney Peeler. “He has made a career of almost 25 years of peddling this poison on the streets of our communities. We hope that this sentence will not only end that career for Mr. Gaines but deter others who might consider following the same path.”
This case was investigated by the Bainbridge Department of Public Safety. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Iberia Parish Sheriff’s Office captain pleads guilty to aiding and abetting assault on a detaineeRead the Press Release
LAFAYETTE, La. – The Justice Department and the Western District of Louisiana U.S. Attorney Alexander C. Van Hook today announced that Mark Frederick, a former Captain of the Iberia Parish Sheriff’s Office (IPSO), pleaded guilty to aiding and abetting an assault on a pre-trial detainee at the Iberia Parish Jail (IPJ).
According to the charges and other information presented in court, Mark Frederick was a Captain at IPSO and served as the assistant warden at the IPJ. On Sept. 27, 2011, E.M., a pre-trial detainee, resisted deputies at the IPJ. E.M. was restrained and removed from the scene. Frederick and other senior IPSO staff agreed to retaliate against E.M. by taking him to the chapel, a place that was not covered by the jail’s video surveillance system, and assaulting him.
Frederick, along with the other senior IPSO staff, went to the chapel with the unlawful intent to beat E.M. in retaliation for E.M.’s previous altercation with jail deputies. Inside the chapel, officers assaulted E.M. while he was handcuffed, compliant, and not posing a threat to anyone. One officer took a baton, placed it between E.M.’s legs and in a sharp motion, raised the baton into E.M.’s testicles hard enough to knock E.M. off of his feet and to inflict pain. Frederick recognized that he had a duty to intervene and stop the unjustified use of force on inmate E.M. Nevertheless, Frederick willfully chose not to intervene to stop the beating, despite having the opportunity to do so.
“Individuals incarcerated in jails have the right to be free from unjustified assaults by corrections officers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will continue to vigorously prosecute officers who abuse their authority and violate their oath of office and federal law by assaulting inmates in their custody.”
Mark Frederick, 47, of St. Martinville, La., will be sentenced by U.S. District Court Judge Donald Walter at a later date.
This case was investigated by the Lafayette Resident Agency of the FBI, and was prosecuted by Trial Attorney Tona Boyd of the Civil Rights Division and Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana.
Former Desoto District Attorney’s Office employee pleads guilty to stealing program fundsRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a former employee of the Desoto Parish District Attorney’s Office pleaded guilty Thursday to stealing money intended to be paid to the District Attorney’s Office.
Melanie Barber, 36, of Converse, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of mail fraud. According to the guilty plea, Barber worked for the DeSoto Parish District Attorney’s Office from April 1, 2002 until she was fired on February 25, 2014 as the Issuing Worthless Checks/Arraignment Secretary. The DeSoto Parish District Attorney’s Office runs several programs including pretrial diversion, traffic diversion and a worthless checks program to allow participants to avoid court appearances if they meet conditions including keeping their record clean for a year and paying a fee via money order or cashier’s check made out to DeSoto Parish District Attorney’s Office. Barber negotiated at least 580 money orders made payable to, and/or intended for, the 42nd Judicial (Desoto Parish) District Attorney’s Office from 2004 to 2014. Barber negotiated at the DeSoto Parish Sheriff’s Office, banks and other retailers where she lied to the employees stating the District Attorney’s Office was dropping the charges against the payee of the money order and she needed to refund their money. The employees believed Barber and cashed the money orders, and Barber stole the money for her own personal use. In addition, Barber obtained blank money orders from program participants on which Barber put her name as the payee and deposited into her bank account. To cover the theft, Barber marked the cases in district attorney’s office records as nolle pros, charges rejected or as paid.
Barber faces up to 20 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of July 2, 2018.
The FBI conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
Former Congressional Staffer Found Guilty on Federal Bribery and Extortion Charges for Demanding $5,000 from Compton Marijuana ShopRead the Press Release
LOS ANGELES – A former staffer for a Member of the United States Congress was found guilty today of bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a marijuana shop in the City of Compton.
Michael Kimbrew, 44, of Carson, was convicted by a federal jury of two felony counts related to his shakedown of the shop in March through May 2015.
The evidence presented during the three-day trial in United States District Court showed that Kimbrew attempted to extort a marijuana dispensary in Compton, threatening to shut down the shop if the owners did not pay him a $5,000 bribe. In exchange for the payoff, Kimbrew also promised to help the shop obtain a lucrative permit to continue operating.
According to the defendant’s statements, Kimbrew claimed to “oversee all activities in Compton,” and threatened the shop’s owners, an employee of the shop, and later an undercover FBI agent in recorded meetings that he was going to shut down the shop unless he received the money. He claimed that, by virtue of his federal employment for the Congress member, he had “authority” and “jurisdiction” over what Compton public officials and departments did. In exchange for the $5,000, he promised to exercise that authority and jurisdiction to keep the shop in business.
Ultimately, during a lunch meeting in Compton, Kimbrew accepted $5,000 in cash hidden inside of a restaurant menu from the undercover agent. When he pocketed the cash, Kimbrew pledged his “undying support” to protect the shop.
After approximately four hours of deliberation, the jury convicted Kimbrew of bribery and attempted extortion.
United States District Judge R. Gary Klausner is scheduled to sentence Kimbrew on June 4, at which time he will face a statutory maximum penalty of 18 years in federal prison.
This case was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former Cartersville police officer pleads guilty to obstructing an FBI wiretap investigationRead the Press Release
ROME, Ga. – Former Cartersville police officer Bryson-Taylor Wayne Banks, who notified drug traffickers that the FBI was conducting a court-authorized wiretap, has pleaded guilty to a felony charge of Unlawful Notification of Electronic Surveillance.
“The defendant made a decision to side with the drug dealers and sabotage an FBI investigation,” said U.S. Attorney Byung J. “BJay” Pak. “He placed his fellow law enforcement officers in imminent danger, and sold out his oath to uphold the law.”
“It is disheartening to learn that one of our own decided to take the side of law breakers, putting fellow officers and agents in danger while violating the trust of law abiding citizens in his community,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “It is only fitting that Banks will now have time to reflect on his decision, as he more than likely will spend time in prison, alongside the drug dealers he chose to side with.”
“Mr. Banks actions do not reflect the values or culture of the Cartersville Police Department,” said Lieutenant Michael Bettikofer, Cartersville Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, Banks, then an officer with the Cartersville Police Department and member of the Bartow-Cartersville Drug Task Force, was investigating a number of drug traffickers operating in the Cartersville area, including Tomas Pineda Mendoza, using a female confidential source (“CS”) to obtain information about the network. In cultivating his relationship with the CS, Banks improperly gave her information from law enforcement databases and illegally sent her a picture of another cooperating source.
Separately, the FBI was investigating an inmate in a Georgia state prison, Francisco Palacios Baras, also known as “Shorty,” who was using contraband cell phones to coordinate methamphetamine transactions outside of the prison. Using a court-authorized wiretap on two of Shorty’s cell phones, the FBI learned that Mendoza was one of Shorty’s associates, and that Mendoza was scheduled to pick up two kilograms of methamphetamine. The FBI planned to arrest Mendoza after he picked up those drugs.
The morning of the planned arrest, in the interest of sharing information and coordinating operations with fellow law enforcement agencies, an FBI agent informed Banks of the wiretap investigation and the plan to arrest Mendoza. Banks, knowing that the drug trafficker he had been investigating was about to be arrested by a different agency, contacted his CS and instructed her to tell Mendoza to not pick up drugs that day because the FBI planned to arrest him. Banks also told the CS that the FBI knew about Mendoza because they were wiretapping Shorty’s phones.
Mendoza did not pick up the methamphetamine as planned, but was intercepted over the wiretap calling Shorty and telling him that “one of the girls” had warned Mendoza not to pick up the drugs. He said that he had identified the agents watching his apartment, as “the girl” had warned, and that law enforcement was listening to Shorty’s phones. Following this, Shorty stopped using the phones being wiretapped by the FBI.
With the arrest plan compromised, the surveillance team identified, and the wiretap exposed, the FBI agents had to take precautions for agents’ personal safety and try to rebuild the investigation. However, the renewed investigation was ultimately successful, resulting in Shorty and Mendoza being arrested and sentenced to 9 years, seven months, and 10 years, 10 months imprisonment, respectively, for conspiracy to distribute methamphetamine.
Sentencing for Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, is scheduled for May 11, 2018, before U.S. District Judge Harold Murphy.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Michael Herskowitz and Garrett Bradford are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Captain Pleads Guilty to Aiding and Abetting Assault on a DetaineeRead the Press Release
The Justice Department today announced that Mark Frederick, a former Captain of the Iberia Parish Sheriff’s Office (IPSO), pleaded guilty to aiding and abetting an assault on a pre-trial detainee at the Iberia Parish Jail (IPJ).
According to the charges and other information presented in Court, Mark Frederick was a Captain at IPSO and served as the Assistant Warden at the IPJ. On Sept. 27, 2011, E.M., a pre-trial detainee, resisted deputies at the IPJ. E.M. was restrained and removed from the scene. Frederick and other senior IPSO staff agreed to retaliate against E.M. by taking him to the chapel, a place that was not covered by the jail’s video surveillance system, and assaulting him.
Frederick, along with the other senior IPSO staff, went to the chapel with the unlawful intent to beat E.M. in retaliation for E.M.’s previous altercation with jail deputies. Inside the chapel, officers assaulted E.M. while he was handcuffed, compliant, and not posing a threat to anyone. One officer took a baton, placed it between E.M.’s legs and in a sharp motion, raised the baton into E.M.’s testicles hard enough to knock E.M. off of his feet and to inflict pain. Frederick recognized that he had a duty to intervene and stop the unjustified use of force on inmate E.M. Nevertheless, Frederick willfully chose not to intervene to stop the beating, despite having the opportunity to do so.
"Individuals incarcerated in jails have the right to be free from unjustified assaults by corrections officers," said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will continue to vigorously prosecute officers who abuse their authority and violate their oath of office and federal law by assaulting inmates in their custody.”
Mark Frederick, 47, of St. Martinville, Louisiana, will be sentenced by U.S. District Court Judge Donald Walter at a later date.
This case was investigated by the Lafayette Resident Agency of the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Tona Boyd of the Civil Rights Division and Assistant United States Attorney Mary Mudrick of the Western District of Louisiana.
Former Bookkeeper for South Sound Real Estate Franchises Sentenced to Nearly 6 Years in Prison for Embezzling more than $400,000Read the Press Release
The 48-year-old former bookkeeper for two Windermere Real Estate franchises was sentenced today in U.S. District Court in Tacoma to 71 months in prison and three years of supervised release for six counts of wire fraud related to her embezzlement scheme, announced U.S. Attorney Annette L. Hayes. CINDI ALLISON, now of Ben Wheeler, Texas, used her unfettered access to the bank accounts of Windermere Puyallup and Windermere South Sound to embezzle $478,398. When the embezzlement scheme was uncovered, ALLISON went on the offensive filing spurious complaints with various state regulators to attack and distract the victim of her theft. At sentencing U.S. District Judge Ronald B. Leighton said, “What you did was despicable . . . . And doing that to a friend is not only wrong, it’s immoral. It breaks every ligament that ties civilized people together.”
“This defendant’s greed harmed a small business owner and those who depended on her business for their livelihood,” said U.S. Attorney Annette L. Hayes. “Wages were frozen, retirement savings contributions delayed, and ultimately the business was sold below market value because of this defendant’s actions.”
During a five-day jury trial in June 2017, prosecutors presented evidence that ALLISON transferred money from Windermere accounts to her own bank accounts and those of her boyfriend, ex-husband, and service providers such as a roofer in Ben Wheeler, Texas. Between 2011 and 2015, ALLISON made 782 unauthorized transfers from the two real estate franchise accounts to sixteen different accounts that all had some connection to ALLISON. As the bookkeeper, ALLISON made various entries in the records and strategically bundled various transactions together to make the transfers appear legitimate. The fraud came to light in March 2015, when the new purchaser of the businesses started investigating some of the transfers and could not get straight answers from ALLISON. ALLISON had been working remotely from Texas as the bookkeeper, and the company shut down the computer system to protect its accounts.
The impact of ALLISON’s fraud was even greater than the amount of money she embezzled. The victim had to spend more than $50,000 in forensic accounting and attorney fees to uncover the extent of the fraud scheme, and the sales price for the business was at least $100,000 below its true market value because the fraudulent entries on the business’ books made it appear less profitable than it actually was. Today Judge Leighton ordered ALLISON to pay $630,346 in restitution.
ALLISON has been in custody since being convicted following her trial in June 2017.
The case was investigated by the U.S. Secret Service. The case WAS prosecuted by Assistant United States Attorneys Andre Peñalver and Steven Masada.
Florida Man Sentenced to 60 Years in Prison for Using an Infant and a Toddler to Produce Child PornographyRead the Press Release
A Middleburg, Florida man who used an infant and a toddler to produce child pornography was sentenced to 60 years in federal prison yesterday, to be followed by a lifetime of supervised release.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Tampa, made the announcement.
Andrew Leslie, 23, a former software engineer, pleaded guilty before U.S. District Judge Brian J. Davis on Oct. 21, 2017.
“Andrew Leslie committed unspeakable crimes against the most vulnerable of victims, children so young that they literally cannot speak for themselves” said Acting Assistant Attorney General John P. Cronan. “Our prosecutors and law enforcement partners are committed to identifying and prosecuting offenders like Andrew Leslie and securing sentences like today’s, which ensures that he will never harm another child.”
“Yesterday’s sentence demonstrates the severity of the crimes committed in this case,” said U.S. Attorney Lopez. “We intend to continue our pursuit in prosecuting such egregious crimes as this, in hopes that justice will be served for the victims.”
“This predator has committed atrocities that are beyond comprehension,” said Special Agent in Charge Spero. “We hope yesterday’s sentencing can bring some solace to the victims in their recovery process.”
According to admissions made in conjunction with the guilty plea, during the execution of a federal search warrant at Leslie’s Middleburg residence, agents located a digital camera next to Leslie’s bed. Inside of the camera was a memory card that contained a series of images depicting Leslie sexually abusing two children, one of which was an infant child and the second who was approximately two years old. The two-year-old child, whom Leslie admitted was in bed with Leslie at the time law enforcement agents entered the residence, was found in the residence and rescued. Forensic analysis of other digital devices seized from the residence revealed that Leslie had produced, received, distributed, and possessed numerous images and videos depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Clay County Sheriff’s Office.
Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney D. Rodney Brown of the Middle District of Florida prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Sentenced to 60 Years in Prison for Using an Infant and A Toddler to Produce Child PornographyRead the Press Release
Jacksonville – A Middleburg, Florida man who used an infant and a toddler to produce child pornography was sentenced to 60 years in federal prison yesterday, to be followed by a lifetime of supervised release.
U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Tampa, made the announcement.
Andrew Leslie, 23, a former software engineer, pleaded guilty before U.S. District Judge Brian J. Davis on Oct. 21, 2017.
“Yesterday’s sentence demonstrates the severity of the crimes committed in this case,” said U.S. Attorney Chapa Lopez. “We intend to continue our pursuit in prosecuting such egregious crimes as this, in hopes that justice will be served for the victims.”
“Andrew Leslie committed unspeakable crimes against the most vulnerable of victims, children so young that they literally cannot speak for themselves” said Acting Assistant Attorney General John P. Cronan. “Our prosecutors and law enforcement partners are committed to identifying and prosecuting offenders like Andrew Leslie and securing sentences like today’s, which ensures that he will never harm another child.”
“This predator has committed atrocities that are beyond comprehension,” said Special Agent in Charge Spero. “We hope yesterday’s sentencing can bring some solace to the victims in their recovery process.”
According to admissions made in conjunction with the guilty plea, during the execution of a federal search warrant at Leslie’s Middleburg residence, agents located a digital camera next to Leslie’s bed. Inside of the camera was a memory card that contained a series of images depicting Leslie sexually abusing two children, one of which was an infant child and the second who was approximately two years old. The two-year-old child, whom Leslie admitted was in bed with Leslie at the time law enforcement agents entered the residence, was found in the residence and rescued. Forensic analysis of other digital devices seized from the residence revealed that Leslie had produced, received, distributed, and possessed numerous images and videos depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Clay County Sheriff’s Office.
Assistant U.S. Attorney D. Rodney Brown of the Middle District of Florida and Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florence Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tayquan Thomas, age 23, of Florence, South Carolina, pled guilty in federal court in Florence, to Failure to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that in 2013 Thomas was convicted in Pitt County, North Carolina, of Indecent Liberties with Child, to which the conviction required him to register as a sex offender in any state where he resided, was employed, or was a student. Under the law, Thomas was required to inform authorities if he ever changed his address, and if he moved to another state, he was required to notify authorities of both the state he was leaving as well as the state to which he was moving. In September 2017, the Pitt County Sheriff’s Office discovered that Thomas had left his previous address without informing them as required, and they issued a warrant for his arrest. The matter was referred to the United States Marshals Service which soon discovered that Thomas had moved to an address in Florence, South Carolina. On October 25, 2017, Thomas was located at the Florence address by a task force officer working with the U.S. Marshals Operation Intercept Fugitive Task Force. When the officer attempted to arrest Thomas, he fled in a vehicle, then on foot, but was eventually apprehended after a tracking dog (K-9) was deployed.
Ms. Drake stated the maximum penalty Thomas can receive is imprisonment for 10 years and a fine of $250,000.
The case was investigated by the United States Marshals Service with the assistance of the Florence County Sheriff’s Office and the Pitt County Sheriff’s Office. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Film Producer Found Guilty in Multimillion-Dollar Investment SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BERGSTEIN, a film producer and entrepreneur, was convicted yesterday of defrauding investors of more than $26 million. BERGSTEIN will be sentenced on June 8, 2018, by U.S. District Judge P. Kevin Castel, who presided over the four-week trial.
Co-defendant Keith Wellner had previously pled guilty and has been cooperating with the Government.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury swiftly found, David Bergstein defrauded investors out of more than $26 million. He withheld material information, transferred funds without disclosing conflicts of interest, and misappropriated funds for his own use. He now stands convicted of serious federal crimes.”
According to the Indictment and evidence presented at trial:
From 2011 through 2012, BERGSTEIN engaged in a scheme to defraud investors in Weston Capital Asset Management (“WCAM”), a New York-based registered investment adviser, by (i) concealing material information from Weston investors about financial transactions involving their money; (ii) transferring funds from one pool of Weston’s investors to make payments to, provide a security interest for, or otherwise benefit, another pool of Weston’s investors, without the required disclosures to investors concerning conflicts of interest; and (iii) misappropriating a portion of funds transferred from investor accounts for their own and others’ benefit. BERGSTEIN orchestrated this scheme in part through two transactions involving Weston investors’ assets: first, a loan from a Weston fund called the Partners 2 (or “P2”) Fund, and, second, a swap agreement with a Weston fund called the Wimbledon TT Portfolio (the “TT Portfolio”).
The Partners 2 Loan Scheme
In 2010, Weston agreed to a transaction with an entity named Gerova Financial Corporation (“Gerova”), an international reinsurance company, in which Weston sent assets from one of its hedge funds (the Wimbledon Financing Fund, or “WFF”) to Gerova in exchange for restricted shares of Gerova stock. This exchange was intended to replace illiquid hedge fund assets with stock, which could be bought and sold more easily. In 2011, however, Gerova’s stock price plummeted. Weston subsequently sought to unwind the transaction, and Weston’s president was introduced to BERGSTEIN for this purpose. BERGSTEIN and Weston’s principals subsequently formulated the outlines of a structure in which Weston would return its Gerova stock, receive its assets back from Gerova, and place those assets into another entity called Arius Libra Inc. (“Arius Libra”) as part of an investment in a separate business. Certain payments would be made along the way to facilitate the transfers.
In order to complete this transaction, BERGSTEIN and Weston’s principals agreed to loan money from the P2 Fund, another Fund operated and managed by Weston, to Arius Libra. The purpose of this loan (the “P2 Loan”) was purportedly (i) to pay certain debts associated with Gerova, and (ii) to fund Arius Libra’s purported medical billing businesses. BERGSTEIN arranged for the P2 Loan to be secured by certain of the assets of WFF. Thus, in the event the P2 Loan was not repaid, the P2 Fund had the ability to liquidate WFF assets to make P2 investors whole, to the detriment of investors in WFF. In total, approximately $9 million in investor money was disbursed from the P2 Fund pursuant to the P2 Loan.
As BERGSTEIN well knew, however, P2 Fund investors were neither informed of the existence of the P2 Loan nor given any information about Arius Libra. And no disclosures were made to inform either P2 Fund or WFF investors of the conflict of interest arising from the P2 Fund’s security interest in WFF assets, as BERGSTEIN also knew. And although BERGSTEIN had represented to Weston that disbursements made pursuant to the P2 Loan would be used both to pay off Gerova creditors and to fund Arius Libra’s medical billing businesses, in fact, BERGSTEIN misappropriated millions of dollars of P2 Loan proceeds and used them to pay for, among other things, his own personal expenses, including credit card bills and attorney’s fees.
The TT Portfolio Swap Agreement Scheme
In late 2011, BERGSTEIN and Weston’s principals secretly arranged for Weston’s TT Portfolio to enter into a swap agreement with an entity controlled by BERSTEIN known as Swartz IP Services (“Swartz IP”), a transaction that was not disclosed to TT Portfolio investors. As part of this swap agreement, BERGSTEIN arranged for approximately $17.7 million from the TT Portfolio to be transferred to to Swartz IP. In exchange, BERGSTEIN agreed to provide certain investment returns and to meet investor redemption requests. BERGSTEIN induced this transaction by misrepresenting to Weston’s principals that a wealthy investor had capitalized Swartz IP and guaranteed the transaction.
The TT Portfolio transaction was completed without disclosure to investors, even though, for other swap agreements, Weston had amended the TT Portfolio offering memorandum to reflect the particular swap agreement at issue. Of the money that was transferred to Swartz IP, moreover, BERGSTEIN directed that approximately $3 million be transferred to the P2 Fund to pay back part of the P2 Loan. BERGSTEIN thus arranged for money from one set of Weston’s investors (the TT Portfolio investors) to be used to pay back part of a debt owed to another set of Weston’s investors (the P2 Fund investors) – another conflict of interest that was not disclosed to P2 or TT Portfolio investors.
As a further part of the scheme, moreover, BERGSTEIN made false representations about Swartz IP’s assets and ability to meet redemption requests and secretly diverted TT Portfolio investor proceeds to pay BERGSTEIN’s personal expenses, including credit card bills, impressionist artwork, and private jets.
BERGSTEIN also gave a false and misleading investor presentation, made false investment disclosures, and distributed a fake loan note concealing the origin of the P2 Loan in order to attempt to conceal his criminal conduct.
* * *
BERGSTEIN, 55, of Hidden Hills, California, was convicted of the offenses set forth in the chart attached to this release. He was remanded following the return of the jury’s verdict. The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Office’s Criminal Investigators.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Robert W. Allen, and Elisha Kobre are in charge of the prosecution.
COUNT
CHARGE
MAXIMUM PENALTIES
1
Conspiracy to Commit Investment Adviser Fraud and Securities Fraud (18 U.S.C. § 371)
Five years in prison and a $250,000 fine or twice the gross gain or loss from the offense
2
Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)
Five years in prison and a fine of $10,000
3
Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)
Five years in prison and a fine of $10,000
4
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
5
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
6
Wire Fraud (18 U.S.C. §§ 1343 and 2)
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
7
Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
Federal Indictment Charges Two Chicago Teenagers with Carjacking and Weapons OffensesRead the Press Release
CHICAGO — A federal grand jury has indicted two teenagers on carjacking and weapons offenses for allegedly taking a sport-utility vehicle at gunpoint in Chicago’s Goose Island neighborhood.
JASON DORTCH, 19, and DAVONTAE JONES, 18, brandished firearms while forcibly taking a Jeep Grand Cherokee on Nov. 13, 2017, according to an indictment returned Thursday in U.S. District Court in Chicago. Dortch is a convicted felon who was not legally allowed to possess the firearm, the indictment states.
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 Federal Bureau of Investigation; Kimberly M. Foxx, Cook County State’s Attorney; and Eddie Johnson, Superintendent of the Chicago Police Department.
The case was investigated by the Chicago 11th District Violent Crimes Task Force, which consists of agents and officers from the FBI, Chicago Police, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Additionally, the Cook County Sheriff’s Office, Oak Park Police Department and Illinois State Police assisted in the apprehension of the defendants.
“Our office will use every available federal resource to vigorously pursue and prosecute violent carjackers,” said U.S. Attorney Lausch. “We are committed to working with our state and local law enforcement partners to aggressively fight violent crime and protect Chicago’s neighborhoods from gun offenders.”
“The FBI views carjackings as a particularly violent and heinous crime,” said FBI SAC Sallet. “We are proud to work side by side with the U.S. Attorney’s Office, the Cook County State’s Attorney’s Office, Chicago Police Department, Cook County Sheriff’s Office, Oak Park Police Department, Illinois State Police, and our federal law enforcement partners, to bring these individuals to justice. Anyone who commits a crime like this should know, we are coming for you.”
The indictment charges Dortch and Jones with one count of carjacking and one count of using and brandishing a firearm during a crime of violence. Dortch is also charged with one count of illegal possession of a firearm by a felon. The using and brandishing charge carries a maximum sentence of life in prison, the carjacking charge is punishable by up to 15 years, and the felon-in-possession charge is punishable by up ten years.
Arraignments in federal court in Chicago have not yet been scheduled.
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. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Jeannice Appenteng and Special Assistant U.S. Attorney Marny Zimmer.
Ex-Employee Sentenced for Stealing Personal Information from the CloudRead the Press Release
Memphis, TN – A Collierville resident has been sentenced to federal prison for computer fraud and aggravated identity theft. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in mid-February 2017, Jeffrey R. Luke’s, 42, employment as a behavioral analyst at Transformations Autism Treatment Center (TACT) in Bartlett, Tennessee, was terminated, as was Luke’s authority to access TACT’s patient records. The records were kept in a password-protected secure Google Drive account. When Luke was dismissed, passwords were changed in order to protect the data.
U.S. Attorney D. Michael Dunavant said: "With new and ever-changing technology, criminals are using more creative and disturbing ways to commit cyber-crimes against vulnerable victims, including identity theft. This case demonstrates the commitment and ability of the U.S. Attorney’s office, working with our federal and local law enforcement partners, to detect compromises of personal and sensitive information and hold offenders accountable for such fraudulent schemes."
However, in March, TACT’s information technology specialist noticed that the email address TACT employees used to log in to Google Drive had been comprised. Investigators identified the Internet protocol (IP) address through which the hack was accomplished, and traced it to Luke’s residence. A search warrant was executed; patient records, forms and templates were found on Luke’s computer hard drive.
On March 2, 2018, Luke was sentenced by U.S. District Judge John T. Fowlkes, Jr. to 30 months imprisonment and 3 years supervised release. He was also ordered to pay $14,941.36 in restitution.
This case was investigated by the FBI and Bartlett Police Department. Assistant U.S. Attorney Deb Ireland prosecuted this case on the government’s behalf.
Essex County, New Jersey, Man Sentenced to 135 Months in Prison for Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – A South Orange, New Jersey, man was sentenced today to 135 months in prison for his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, U.S. Attorney Craig Carpenito announced.
Keontrae Lawrence, a/k/a “Taz,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Arleo imposed the sentence today in Newark federal court.
According to the indictment and other documents filed in this case:
On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint. During his plea hearing, Lawrence admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
In addition to the prison term, Judge Arleo sentenced Lawrence to five years of supervised release.
Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.
Blamahsah pleaded guilty to his role in the robbery and was sentenced Oct. 6, 2017, to 150 months in prison. The charges against Cooper are still pending, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Epsom Woman Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD, N.H. – Nicole Roskos, 30, of Epsom, pleaded guilty today in federal court to drug trafficking conspiracy and firearms charges, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, the investigation of the defendant began in 2017 when she sold fentanyl to a cooperating individual. In September of 2017, police executed a search warrant at the defendant’s residence and found four firearms, ammunition, over 511 grams of fentanyl, and approximately $24,000.
Roskos pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, controlled substances and using and carrying a firearm during and in relation to a drug trafficking crime. A sentencing hearing has been scheduled for June 11, 2018.
“Opioids are killing hundreds of residents of New Hampshire each year,” said Acting U.S. Attorney Farley. “The danger posed by drug trafficking is further increased when drug dealers use firearms to further their unlawful activities. We will continue to work with our law enforcement partners to target drug trafficking and violent crime. I commend the law enforcement officers for protecting the community from the dangers posed by the fentanyl and firearms in this case.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
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Dominican National Sentenced for Role in Lawrence-Based Heroin/Fentanyl Trafficking SchemeRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for his role in a heroin trafficking scheme operating in and around Lawrence.
Waner Manuel Lara, a/k/a Anibal Santiago-Torres, 34, was sentenced by U.S. District Court Judge Indira Talwani to 65 months in prison and six years of supervised release. In October 2017, Lara pleaded guilty to one count of conspiracy to possess with intent to distribute and distribution of 100 grams or more of heroin and fentanyl and one count of possession with intent to distribute 100 grams or more of heroin. In March and April 2016, Lara and three co-defendants were arrested and charged for their roles in the drug trafficking operation.
From about April 2015 to March 2016, law enforcement investigated the drug distribution activities of Ramon Baez and his associates in and around Lawrence. Baez obtained kilograms of heroin and cocaine from local suppliers and suppliers based in Mexico. One of Baez’s co-conspirators, Jose A. Rosario, supplied Baez with heroin, which Baez then repackaged for distribution.
Lara and another co-defendant, Edwin Soto, purchased heroin and fentanyl from Baez. On Dec. 29, 2015, law enforcement officers seized $99,200 in drug proceeds from Soto, intended for Baez. On March 19, 2016, agents seized from Lara 140 grams of heroin and fentanyl supplied to him by Baez. In total, the Court found Lara responsible for more than 300 grams of heroin and/or fentanyl.
Baez was sentenced in June 2017 to 121 months in prison; Rosario was sentenced in September 2017 to 22 months in prison; and Soto was sentenced in January 2018 to four years in prison.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit prosecuted the cases.
Disbarred Orange County Attorney Convicted of Mail Fraud, Structuring Cash Transactions, Making False Statements to the IRS, Obstructing the IRS, Tax Evasion, Obstruction of Justice, and PerjuryRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in White Plains federal court of former Orange County attorney JOSEPH G. SCALI for mail fraud, structuring cash transactions, making false statements to the IRS, obstructing the IRS, tax evasion, obstruction of justice, and perjury. The jury convicted SCALI yesterday on all 10 counts of the Indictment following a four-week trial before Judge Nelson S. Román.
U.S. Attorney Geoffrey S. Berman said: “Joseph Scali, a disbarred attorney, abused the law to commit the serious crimes of which he now stands convicted. Scali stole money from a client’s attorney escrow account, chronically abused the tax laws to obstruct the IRS and hide income, and defrauded a client into paying him legal fees after he had been suspended from practicing law in New York. We thank the IRS and U.S. Postal Inspection Service for their substantial work in helping to secure this conviction.”
According to the Indictment, other court filings, and evidence presented at trial:
From January 2011 through August 2012, SCALI, who represented the seller of land and mineral rights in Pennsylvania, schemed to defraud the prospective purchaser of that property of the $850,000 the latter had given to SCALI to hold in escrow by misappropriating those funds from his Attorney Trust Account. SCALI also engaged in tax evasion for the 2011 and 2012 years by, among other things, deliberately withholding from the IRS his Attorney Trust Account records, which would reveal the funds he had misappropriated.
In addition, between 2006 and November 2013, SCALI corruptly endeavored to obstruct the IRS by (a) providing materially false, incomplete, and misleading information to an IRS Revenue Officer about his filing history and income; (b) commingling client funds and personal funds in his Attorney Trust Account; (c) paying for personal items directly out of his Attorney Trust Account; (d) structuring $32,400 in cash deposits into his Attorney Trust Account. In addition, SCALI failed to timely file U.S. Individual Income Tax Returns, Forms 1040, for the years 2006 through 2012, as well as U.S. Corporate Income Tax Returns, Forms 1120, for his law firm, Joseph G. Scali, P.C., for the years 2007 through 2012, notwithstanding that he was required by law to file a return for each year. SCALI was separately convicted of making false statements to the IRS and structuring cash deposits.
SCALI also committed obstruction of justice and perjury when, in seeking to set aside his disbarment by the United States District Court for the Southern District of New York, he lied under oath to that court about why, in 2013, he had been suspended from practicing law in New York by the Second Department of the Appellate Division of the New York State Supreme Court. SCALI was disbarred by the Appellate Division on July 6, 2016.
In 2014 and 2015, SCALI committed mail fraud by fraudulently undertaking a legal representation of a client for a fee without disclosing his 2013 suspension from the practice of law in New York State.
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SCALI, 68, of West Hartford, Connecticut, is convicted of two counts of mail fraud, which carry a maximum sentence of 20 years in prison; one count of structuring cash transactions, which carries a maximum sentence of five years in prison; two counts of making false statements to the IRS, which carry a maximum sentence of five years in prison; one count of obstructing the IRS, which carries a maximum sentence of three years in prison; two counts of tax evasion, which carry a maximum sentence of five years in prison; one count of obstruction of justice, which carries a maximum sentence of 10 years in prison; and one count of perjury, which carries a maximum sentence of five years in prison.
SCALI is scheduled to be sentenced by Judge Román on June 1, 2018.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the IRS and the U.S. Postal Inspection Service in this investigation. Mr. Berman also thanked the Orange County District Attorney’s Office, the New York State Department of Taxation and Finance, and the New York State Police for their assistance. Mr. Berman also thanked the Counsel for the Grievance Committee for the Ninth Judicial District of New York State, the Counsel for the Committee on Grievances for the U.S. District Court for the Southern District of New York, and the Counsel for the IOLA Fund of New York for their cooperation in the investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorneys Olga Zverovich, Vladislav Vainberg, and Daniel Noble are in charge of the prosecution.
Columbia Man Sentenced for CounterfeitingRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that David Michael Gibson, age 39, of Columbia, was sentenced for Conspiracy to Manufacture and Pass Counterfeit Currency, a violation of Title 18, United States Code, § 371. United States District Judge Mary Geiger Lewis, of Columbia, sentenced Gibson to 30 months in jail. Previously, Judge Lewis sentenced Travis Cree Stafford, age 39, and Justin William Watson, age 32, both of Columbia, to 46 months and 9 months in jail, respectively. They both were involved in the counterfeiting scheme with Gibson.
Facts presented in court established that on March 15, 2016, SLED and the Kershaw County Sheriff’s Department conducted a search warrant at the residence of Stafford. Officers recovered devices and materials used to make counterfeit currency. Stafford admitted making between $100,000 and $150,000 in counterfeit currency over six to seven years.
Stafford used the counterfeit money to support his drug habit. He purchased his first batch of $1,000 for $100 from a drug dealer. He began experimenting in manufacturing bills and sold them for 10% of face value. In early 2016, he taught his friend and roommate David Gibson how to make them. He and Gibson made around $5,000 to $7,000 in counterfeit FRNs. Gibson washed real currency while Stafford made bills on an inkjet printer.
Gibson and his girlfriend would pass the notes at small stores in Kershaw County.
Stafford sold counterfeit bills to Justin William Watson. Watson agreed to buy $10,000 in counterfeit money for $1,000, but Stafford only produced $5,000, for which Watson paid him $200.
The United States Secret Service, SLED, and the Kershaw County Sheriff’s Department investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Clio Man Pleads Guilty to Theft of Government FundsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Martin Luther Dease, age 54, of Clio, South Carolina, pled guilty in federal court in Florence, to Theft of Government Funds, a violation of Title 18, United States Code, Section 641. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that from November 2016 through May 2017, Dease illegally obtained Child’s Insurance Benefits from the Social Security Administration by falsely representing himself to be the father of his niece. In fact, as part of the application process, Dease submitted a fraudulent birth certificate, purporting to be his niece’s, in which he listed himself as the father. Through this scheme, Dease illegally obtained over $41,000 from the Social Security Administration.Ms. Drake stated the maximum penalty Dease can receive is imprisonment for 10 years and a fine of $250,000.
The case was investigated by the Office of the Inspector General of the Social Security Administration. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Camp Verde Man Sentenced to 36 Months for Domestic Violence AssaultRead the Press Release
PHOENIX – Earlier this week, Richard Joseph Herrera, 35, of Camp Verde, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 36 months in federal prison, followed by three years of supervised release. Herrera had previously pleaded guilty to assault resulting in substantial bodily injury.
On March 27, 2017, Herrera assaulted the victim, his domestic partner and a member of the Yavapai-Apache Nation, resulting in substantial bodily injury.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8101-PCT-SPL
RELEASE NUMBER: 2018-020_Herrera
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Cahokia Resident Charged with Child Exploitation Offenses and Tampering with A WitnessRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on March 1, 2018, Ricardo D. Minor, 38, of Cahokia, Illinois, was indicted by a federal grand jury sitting in East St. Louis, Illinois, in a three count indictment charging him with enticement of a minor, transportation of a minor with intent to engage in criminal sexual activity, and tampering with a witness. The violations took place between June 14, 2017, and November 17, 2017, in St. Clair and Madison Counties, Illinois, and the State of Missouri.
If convicted on the enticement and transportation charges, Minor faces a term of imprisonment of not less than 10 years up to life, a $250,000 fine, and a term of supervised release of five years to life. If convicted of witness tampering, Minor faces a term of imprisonment of not more than twenty 20 years, a $250,000 fine, or both, and a term of supervised release of not more than three years.
An indictment is merely the method by which federal charges are brought. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Collinsville Police Department, the St. Louis County Police Department, and the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Bridgeport Man Charged with Distributing Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that MICKEY FRED, also known as “Frankie,” 39, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, fentanyl.
FRED appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in court document, in the afternoon of September 6, 2017, Bridgeport Police and emergency medical personal responded to a 911 call for an unresponsive woman located on the front porch of a Bridgeport residence. The victim, who was 32, was transported to the hospital where she was pronounced deceased. Officers collected evidence from the scene, including wax folds containing suspected heroin, and the victim’s cell phone.
Subsequent laboratory analysis of the wax folds revealed the presence of fentanyl, and the Office of the Chief Medical Examiner reported the victim’s cause of death to be “acute fentanyl intoxication due to the combined effects of fentanyl, alprazolam and diphenhydramine.
It is alleged that FRED supplied fentanyl to the victim shortly before the victim died.
The charged offense carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, Monroe Police Department and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Assistant United States Attorney Selected for the North Carolina Bar Association Leadership AcademyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that Assistant United States Attorney Donald Pender was one of sixteen outstanding young lawyers selected for the North Carolina Bar Association Leadership Academy’s Class of 2018.
The mission of the Leadership Academy is to help young lawyers become more effective leaders in their communities, whether their communities be the legal profession, their firms, legal departments and any other organizations with which they are associated, or their local, state, national or even international communities, or any other environments where lawyers regularly have calls or opportunities for leadership.
This year training will be conducted in five sessions starting March 2-3, 2018, through June 12, 2018. Mr. Pender is currently working in the Appellate Division within the United States Attorney’s Office for the Eastern District of North Carolina.
Anchorage Man Arrested for Making Threatening Statements Against Police OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that, early this morning, FBI Special Agents in New York City arrested Tyler Bateman, 27, of Anchorage, for making threatening statements against an Anchorage business and an Anchorage Police Officer.
Bateman has been charged with two counts of threatening interstate communications. According to the Criminal Complaint, it is alleged that, on Feb. 26, 2018, Bateman threatened via text messages to shoot and bomb an Anchorage business. Later that same day, it is further alleged that Bateman threatened, via social media, to shoot and poison an Anchorage Police Officer and “several other people.”
The FBI and APD conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Jonas M. Walker.
A Criminal Complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Amsterdam Man Charged with Gun and Drug OffensesRead the Press Release
ALBANY, NEW YORK – Nelson Rodriguez, age 38, of Amsterdam, New York, was arraigned yesterday on an indictment charging him with narcotics and firearms offenses.
The announcement was made by United States Attorney Grant C. Jaquith; Amsterdam Police Chief Greg Culick; and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
A four-count indictment charges Rodriguez with conspiring to distribute cocaine base, or “crack,” from approximately June 2017 until August 3, 2017; possession with intent to distribute cocaine base; possession of a handgun in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Rodriguez faces up to 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life. Rodriguez also faces a consecutive sentence of 5 years in prison if convicted of possessing a firearm in furtherance of a drug trafficking crime. 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.
Rodriguez was arraigned yesterday in Albany before United States Magistrate Judge Daniel J. Stewart and detained pending a trial scheduled before Senior United States District Judge Gary L. Sharpe.
This case is being investigated by the Amsterdam Police Department and the ATF, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
1 March 2018
Woman Sentenced for Tax Refund Scheme and ID TheftRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman was sentenced today to 54 months in prison for filing false tax returns and identity theft.
According to court documents, Neivda Hicks, 33, prepared and filed tax returns for others in exchange for payment from 2013 through 2016. During that period, Hicks filed returns on behalf of at least 53 individuals. In addition to the information that these individuals provided, Hicks included in the returns materially false information designed to reduce the amount of tax due and owing and fraudulently increase the amount of the resulting tax refunds. Among other information, Hicks falsely claimed that the individuals for whom she prepared and filed returns had incurred qualifying education expenses, as well as business profits and losses through falsely claimed periods of self-employment. Hicks also falsely identified members of her own family and inmates who were then incarcerated with her husband in local jails as dependents of those for whom she prepared and filed returns. Hicks failed to identify herself as a paid return preparer on the returns she filed on behalf of others, giving all such returns the appearance of having been prepared and filed by the individuals named therein. Hicks included similarly false information in her own returns for tax years 2012 through 2015. In total, Hicks filed at least 32 materially false income tax returns on behalf of herself and others. Through these returns, Hicks requested over $200,000 in federal income tax refunds. Of this amount, over $150,000 derived from the materially false information Hicks had included in the associated returns.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-83.
Williamson County Man Convicted of Methamphetamine OffenseRead the Press Release
On February 28, 2018, a federal jury in Benton, Illinois, convicted a Williamson County man of a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Rex A. Hopper, 44, of Creal Springs, was convicted of conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleged the offense occurred between January 2015 and May 31, 2017, in Williamson and Franklin Counties. Hopper was ordered detained pending a June 6, 2018, sentencing hearing. The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and up to a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Drug Task Force, the Southern Illinois Enforcement Group, the Drug Enforcement Administration, and the Franklin County Sheriff’s Office. The Williamson and Franklin County States Attorney’s Offices also assisted in the investigation.
Waterloo Felon Sentenced to More than Nine Years in Federal Prison for Unlawfully Possessing a Gun and AmmunitionRead the Press Release
A convicted felon who illegally possessed a gun and ammunition was sentenced yesterday to more than nine years in federal prison.
Todd Deangelo Goodson, age 27, from Waterloo, Iowa, received the prison term after a September 28, 2017, guilty plea to possession of firearms and ammunition by a felon. At the guilty plea, Goodson admitted he possessed a Beretta .45 caliber pistol and a Px4 Storm AK47 .223 rifle and 9mm ammunition on June 8, 2017.
During an investigation of Goodson’s involvement in the distribution of illegal drugs, law enforcement officers executed a search warrant at Goodson’s residence. Officers seized two guns, ammunition, marijuana, cocaine, a cutting agent, a drug ledger, cash, and drug packing material. Goodson was a felon and was prohibited from possessing guns or ammunition.
Goodson was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Goodson was sentenced to 111 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Goodson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2056.
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Virginia Man Sentenced to Nine Years in Prison for Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – David Johnston, 62, of Fredericksburg, Va., has been sentenced to nine years in prison for traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Johnston pled guilty to the charge in November 2017 in the U.S. District Court for the District of Columbia. He was sentenced on Feb. 28, 2018, by the Honorable John D. Bates. Upon completion of his prison term, Johnston will be placed on 15 years of supervised release. He also will be required to register as a sex offender for 25 years.
According to the government's evidence, on Jan. 22, 2017, Johnston contacted an undercover officer with the FBI’s Child Exploitation Task Force, through a social network site. Over the next several days, Johnston engaged in e-mail and text-messaging conversations with the undercover officer. During the course of these conversations, Johnston arranged with the undercover officer to meet for the purpose of engaging in sexual acts with a female who was a minor. On Jan. 31, 2017, Johnston traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. He has been in custody ever since.
During the sentencing proceedings, the government noted that, in 1990, the defendant pled guilty at an Air Force court martial proceeding to one count of committing indecent acts upon the body of a female under 16 years of age.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed their appreciation for the assistance provided by the Frederick County Sheriff’s Office and Commonwealth Attorney’s Office. Finally, they expressed appreciation for the efforts of Assistant U.S. Attorney Jason Park, who prosecuted the case.
United States Files Civil Enforcement Action to Stop Arkansas Compounding Pharmacy and CEO from Manufacturing and Distributing Adulterated DrugsRead the Press Release
The United States filed a civil complaint and a motion seeking a preliminary injunction against Cantrell Drug Company and its co-owner and Chief Executive Officer, James L. McCarley Jr., to stop the manufacturing and distribution of adulterated drugs, the Department of Justice announced today.
The complaint, filed in the U.S. District Court for the Eastern District of Arkansas at the request of the U.S. Food and Drug Administration (FDA), alleges, among other things, that defendants distribute adulterated drugs in interstate commerce. According to the complaint, defendants’ drugs are adulterated because they are prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. The complaint also alleges that defendants’ drugs are adulterated because defendants fail to comply with current good manufacturing practice regulations.
“The Department of Justice is committed to ensuring that patients receiving compounded drugs are protected by the safeguards established in federal law,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work actively with FDA to ensure that the law’s protections are fully enforced.”
Cantrell initiated voluntary recalls of drug products in 2016 and 2017. The 2016 recall, initiated due to lack of sterility assurance, involved 29 lots of unexpired sterile drug products. The 2017 recall, also due to a lack of sterility assurance, encompassed all lots of unexpired sterile drug products that Cantrell had compounded and distributed between Feb. 16, 2017, and July 19, 2017.
FDA inspected Cantrell’s facility in 2013, 2016, and 2017, and the agency issued a Warning Letter to Cantrell in 2015. As alleged in the complaint, during the 2017 inspection, FDA documented evidence of insanitary conditions and significant deviations from current good manufacturing practice regulations. For example, as alleged in the complaint, FDA observed that the pharmacy’s own documentation revealed that Cantrell repeatedly recovered several types of microorganisms in the air and on surfaces used for sterile processing, demonstrating that products manufactured in those areas were prepared, packed, or held under insanitary conditions. As alleged in the complaint, on at least 12 occasions between January and May 2017, defendants’ environmental monitoring in one of its clean-room areas detected microbes in excess of their “action limit” (i.e., a level of contamination high enough to trigger a response such as an investigation and corrective action). As noted in the complaint, the contamination consisted of bacteria, including Bacillus oleivorans, Staphylococcus epidermidis, Micrococcus luteus, and Bipolaris spicifera. The presence of any of those organisms in an injectable product administered to a patient could cause serious adverse effects to the patient.
In addition, as alleged in the complaint, FDA found deviations from current good manufacturing practice regulations in the pharmacy’s sterile drug manufacturing operations. For example, the complaint alleges that the pharmacy failed to conduct adequate investigations of microbial contamination found in aseptic processing areas (on surfaces, in the air, and on personnel), as well as spore-forming bacteria detected in areas of the pharmacy used for drug compounding and on operator gloves.
“The Food, Drug, and Cosmetic Act is designed to protect patients from potentially unsafe drugs,” said U.S. Attorney Cody Hiland for the Eastern District of Arkansas. “This action demonstrates our commitment to enforcing these laws. We remain steadfast in our dedication to keeping the citizens of our communities safe by whatever means available under federal law.”
If entered by the Court, the Proposed Order of Preliminary Injunction sought in conjunction with the filed complaint would require defendants temporarily to cease their current operations and to recall and destroy all non-expired drugs manufactured, held, and/or distributed by them. The Proposed Order also provides defendants with a pathway to resume manufacturing and distribution by establishing specific actions defendants must take to remedy their operations.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Shannon Smith of the U.S. Attorney’s Office for the Eastern District of Arkansas, with the assistance of Associate Chief Counsel, Litigation, Jennifer Kang of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Arkansas, visit its website at https://www.justice.gov/usao-edar.
Unintentional Gun Discharge Leads to Four Years in Federal Prison for Felon from DubuqueRead the Press Release
A felon who went to a Dubuque laundromat in June 2017 to drop off his laundry but accidently dropped his loaded gun, which discharged when it hit the ground, was sentenced last week to four years in federal prison.
Christopher Dion Roundtree, age 33, most recently from Dubuque, Iowa, but originally from Chicago, Illinois, received the prison term after an October 26, 2017, guilty plea to possession of a gun by a felon. In a plea agreement, Roundtree admitted he was a felon and a marijuana user in June 2017, when he possessed a loaded .32 caliber pistol at a Dubuque laundromat. The pistol had an obliterated serial number. As Roundtree got out of his SUV to drop off his laundry, the gun, which Roundtree was carrying in his pants, fell out. The “Derringer”-style gun had a round chambered, and the gun discharged when it hit the ground. After the gun discharged, Roundtree picked it up, put the gun in his SUV, and went inside the laundromat to drop off his laundry. When an employee of the laundromat asked defendant about hearing a loud noise, Roundtree lied to the employee and said that the loud noise was a “firework.” Roundtree then dropped off his clothes at the laundromat—giving his true last name—and his correct telephone number. Within hours, Dubuque police officers found and apprehended Roundtree with the gun while he was still driving the SUV. Roundtree had several baggies of marijuana, crack cocaine, and powder cocaine under his seat. He also admitted to recently smoking marijuana.
Roundtree was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Roundtree was sentenced to 48 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Roundtree is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Guns, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 2:17-cr-1041-LTS.
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Two Mexican Truck Drivers Sent to Prison for Importing MethamphetamineRead the Press Release
LAREDO, Texas – Two men have been ordered to prison in separate, but similar schemes involving drugs given to them in Mexico and destined for the United States, announced U.S. Attorney Ryan K. Patrick. Ernesto Siller-Valdez, a 40-year-old truck driver from Saltillo-Coahuila, Mexico, and Ricardo Isguerra Chavez, 43, of Michoacan, Mexico, both pleaded guilty Dec. 4, 2017, to conspiring to import methamphetamine in separate cases.
Today, Visiting U.S. District Judge Keith P. Ellison ordered them both to serve 60 months in federal prison. Not U.S. citizens, they are expected to face deportation proceedings following their sentences.
On Oct. 5, 2017, Siller-Valdez entered the United States via the World Trade Bridge port of entry in Laredo driving a 2007 Freightliner. He was referred to secondary inspection, at which time law enforcement discovered two wooden chock blocks and two fire extinguishers in the sleeper area of the cab. Further inspection revealed a total of 22.78 kilograms of methamphetamine concealed inside the blocks and fire extinguishers. Laboratory analysis revealed the drugs have a purity level of 97%.
Siller-Valdez stated he had met a male subject at a bar in Nuevo Laredo, Tamaulipas, Mexico, who asked him if he was interested in making money by smuggling narcotics into the United States. Siller-Valdez agreed and was to be paid 30,000 Mexican pesos to transport the narcotics to Laredo. He met with that individual on Oct. 4, 2017. Siller-Valdez said he did not know exactly what he was smuggling but knew it was drugs.
In the Chavez case, he claimed that in early September 2017, four men approached him in Mexico and told him he would be paid 20,000 Mexican pesos for taking something into the United States. He claimed he was told that if he did not agree, the men would harm his family, so he agreed.
On Sept. 19, 2017, some unknown men dropped off two speaker boxes which he installed in his tractor. Chavez said he did not know exactly what was in the speaker boxes but knew it was illegal. The next day, he approached the Columbia Solidarity Bridge in Laredo driving a Tropex tractor and trailer, where law enforcement discovered 12 packages of a white, powdery substance found to be methamphetamine. The total amount found was nearly 21.956 kilograms.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted both investigations. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the cases.
Two Men Indicted for Trafficking Firearms in Sacramento and Placer CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 16-count indictment today against Jesus Rodriguez, 22, and James Raymond Sykes, 23, both of Sacramento, charging them with dealing firearms without a license and conspiring to do the same, U.S. Attorney McGregor W. Scott announced. The indictment also charges Rodriguez with possessing an unregistered and unserialized short-barreled rifle, and distributing methamphetamine and cocaine.
According to court documents, Rodriguez met separately with an undercover agent and two confidential sources on 12 occasions between September 5, 2017, and December 6, 2017, and sold them a variety of firearms, including a short-barreled rifle with a 90-round drum magazine, several AR-15-type rifles and pistols, and handguns. Court records also state that Rodriguez sold the agent cocaine and methamphetamine. In all, Rodriguez sold the undercover agent 34 firearms, many of which lacked a serial number or other identifying markings. Court records state that Sykes was present at, and participated in, at least five of the firearms transactions.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit.
If convicted of dealing firearms without a license, the defendants face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for possessing an unregistered short-barreled rifle or an unserialized firearm is 10 years in prison and a $10,000 fine. The penalty for distributing methamphetamine is not less than 10 years in prison, up to life, and a $10 million fine. The maximum penalty for distributing cocaine is 20 years in prison, and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tucker County man sentenced to more than seven years for illegal firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Christopher S. Earnest, of Parsons, West Virginia, was sentenced this week to 87 months incarceration for firearms charges, United States Attorney Bill Powell announced.
Earnest, age 35, pled guilty to one count of “Unlawful Possession of a Firearm,” and one count of “Possession of an Unlawful Firearm” in December 2017. Earnest admitted to possessing two stolen firearms. Earnest, having previously been convicted of distributing methamphetamines in United States District Court in the Northern District of West Virginia, admitted to possessing a 12-gauge shotgun with a shortened barrel. The crime occurred in June 2017 in Randolph County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Treasurer of City of Zeigler Pleads Guilty to Fraud and Embezzlement ChargesRead the Press Release
Today in federal court in Benton, Illinois, Ryan A. Thorpe, 44, the former Treasurer of the City of Zeigler, Illinois, pled guilty to five counts of wire fraud and embezzlement from a local government, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. The charges against Thorpe relate to events which occurred while Thorpe worked as the Treasurer for the City of Zeigler.
In pleading guilty today, Thorpe admitted that from March 4, 2013, through Aug. 3, 2017, he embezzled $321,399.22 by writing checks payable to himself drawn on the City of Zeigler’s general account. Thorpe also admitted that he concealed his thefts from the City of Zeigler by altering the copies of the checks that were sent to the city each month by the city’s bank. Thorpe accomplished this by "whiting out" his name in the payee section of these checks, writing in the names of vendors and suppliers that the city did business with, photocopying the altered checks, placing these photocopies in the bank records kept by the city, and then shredding the copies of the checks with the "white out." Thorpe also acknowledged that he further concealed his thefts by submitting false monthly Treasurer’s Reports to the Zeigler City Council.
"Corruption by public officials simply cannot be tolerated," commented U.S. Attorney Boyce. "Officials who steal from the citizens they are elected and appointed to represent commit a gross abuse of public trust. Whenever this type of conduct is discovered, our office will prosecute
these officials and seek appropriate punishments."
As part of his plea agreement, Thorpe agreed to turn over to the City of Zeigler numerous items he purchased with the embezzled funds. These items include: a side-by-side utility task vehicle; two motorcycles; a utility trailer; a lady’s diamond ring; numerous firearms; a gun safe, and a four-propeller drone. The total value of this property is estimated at $35,872.74. Thorpe also agreed to forfeit a significant number of assets to the United States. The assets Thorpe agreed to forfeit include: a second side-by-side utility task vehicle; a portable building; a lot and trailer located across the street from Thorpe’s house in Zeigler; five additional vacant lots located in Zeigler; two retirement accounts valued at a total of approximately $9,000, and a camper. After these properties are forfeited and sold, the United States Attorney’s Office will request that the funds from these sales be released and applied to the restitution amount that Thorpe will owe to the City of Zeigler. In the plea agreement, Thorpe acknowledged that he owes restitution to the City of Zeigler in the amount of $321,399.22, less credits for the value of the items turned over to the City and forfeited to the United States.
The sentencing hearing for Thorpe has been set for June 12, 2018, at 9:30 a.m. The sentencing hearing will be conducted at the Federal Courthouse in Benton. Each of the three wire fraud counts to which Thorpe pled guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Each of the two counts of embezzlement from a local government carries a maximum sentence of 10 years of imprisonment and a $250,000 fine.
The investigation was conducted by agents from the Springfield Division, Marion, IL Resident Agency of the FBI. The Franklin County Sheriff’s Department assisted in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.