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Thursday 18 January 2018
2nd Defendant Sentenced in Heroin, Crack Cocaine, Bank Fraud ConspiracyRead the Press Release
PROVIDENCE – The second of two West Warwick men charged with participating in a heroin, crack cocaine trafficking and bank fraud conspiracy was sentenced on Wednesday to 60 months in federal prison.
Robert Wilkins, 26, pleaded guilty on July 28, 2017, to one count each of conspiracy to deliver heroin, possession with the intent to deliver heroin, conspiracy to deliver 28 grams or more of cocaine base, possession with the intent to deliver cocaine base, possession with the intent to deliver cocaine, three counts of delivery of heroin, fifteen counts of delivery of cocaine base, and one count of bank fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Wilkins to serve four years supervised release upon completion of his term of incarceration and to pay $2,000 in restitution. The U.S. Sentencing Guideline imprisonment range in this matter is 57-71 months. However, statutes under which this defendant was charged require a minimum mandatory sentence of 60 months incarceration. The government recommended the Court impose a sentence of 71 months in prison.
A codefendant in this matter, Christian M. Domenech, 23, of West Warwick, was sentenced on October 20, 2017, to 36 months in prison. Domenech pleaded guilty on July 14, 2017, to an indictment charging him with conspiracy to distribute heroin, three counts of distribution of heroin, 14 counts of distribution of crack cocaine, possession with the intent to distribute heroin, possession with the intent to distribute cocaine, possession with the intent to distribute crack cocaine and bank fraud.
The sentences are announced by United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, a three-month investigation by the FBI Safe Streets Task Force into the defendants’ drug trafficking activity included numerous purchases from the defendants of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each transaction was monitored by law enforcement.
Additionally, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. The investigation determined that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew a total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court-authorized search of the defendants’ West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
Robert Wilkins and Christian Domenech have been detained in federal custody since their arrest in July 2016.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, thank the West Warwick Police Department and the DEA for their assistance investigating the drug trafficking activities of Robert Wilkins and Christian Domenech.
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104 Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, PR – A federal grand jury has indicted 104 individuals as a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation (FBI), US Postal Inspection Service (USPIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Puerto Rico Police Department (PRPD) Bayamón Strike Force, the United States Marshals Service, and the San Juan Municipal Police, announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The defendants are charged in a nine-count indictment with conspiracy to possess with intent to distribute controlled substances, use of firearms in furtherance of crimes of violence, including, murder, drive-by shooting, and other related offenses.
The indictment alleges that beginning in the year 2010, the defendants conspired to possess with intent to distribute cocaine base, also known as “crack,” heroin, cocaine, and marihuana within 1,000 feet of a real property comprising housing facilities owned by a public housing authority in the municipalities of Bayamón, Toa Baja, Cataño, Naranjito, Comerío, and Corozal. The public housing facilities are: Virgilio Dávila, Rafael Falín Torrench, Brisas de Bayamón, Jardines de Caparra, Las Gardenias, La Alambra, José Celso Barbosa, Los Jeannie, Alegría Norte, Jardines de Cataño, Sierra Linda, Los Laureles and Los Dominicos; and Villa Olga, Río Plantation and El Polvorín Wards.
According to the indictment, in the year 2010, this drug trafficking organization gained control of most of the housing projects and wards within Bayamón and the areas nearby, after federal authorities incarcerated most of the leaders from nearly all the drug gangs in the area. This new gang identified themselves as Los Menores or the “new blood.” The goal of Los Menores was to take over and maintain control of all the drug trafficking activities in Bayamón and other areas, by force, violence, and intimidation.
As part of the manner and means of the conspiracy, the defendants and co-conspirators were instructed to shoot and kill suspected rival drug trafficking members. All firearms used during the commission of these violent acts would be returned to the leader of the organization for their disposal. Co-conspirators would also pay bribes to law enforcement officers in exchange for information on informants or cooperators, and on law enforcement initiatives to disrupt the drug points.
The 104 defendants acted in different roles in order to further the goals of their organization, to wit: 22 leaders/drug point owners/drug point administrators; nine (9) enforcers; 13 suppliers; 13 runners, 42 sellers, and five (5) drug processors. Forty-one (41) of the defendants are facing one charge of using and carrying firearms during and in relation to a drug trafficking crime. All of the defendants are facing a narcotics forfeiture allegation of 55 million dollars.
The indictment includes allegations of six (6) murders, including one drive-by shooting, committed by members of this organization. These murders are as follows:
• On or about December 19, 2012, defendants [1] Sadid Medina-Rivera, a.k.a. “El Loco;” [3] Yamil Vázquez-Rivera, a.k.a. “Yamo;” [12] Giovanni Ortiz-Soto, a.k.a. “Pinocho”; [13] Richard A. Franco-Pérez, a.k.a. “El Cagón”; [23] George M. Franco Pérez, a.k.a. “La Flaca”; and [29] Ángel Cruz-Vázquez, a.k.a. “Bebo/Brigante,” shot and killed Jomar J. Marrero-Pérez.
• On or about May 22, 2013, defendants [3] Yamil Vázquez-Rivera, a.k.a. “Yamo;” [12] Giovanni Ortiz-Soto, a.k.a. “Pinocho”; and [23] George M. Franco Pérez, a.k.a. “La Flaca,” fired a weapon into a group of two or more persons (drive-by shooting) and killed Carlos J. Duplessis, a.k.a. “Sombrita,” and Luis R. Rodríguez-Pérez.
• On or about March 2, 2015, defendants [8] Luis G. Ayala-García, a.k.a. “Pájaro/Gaby El Quemao”, and [46] Abimael Narváez-Rosa, a.k.a. “Apu,” shot and killed Nelson R. Troche-Rivera, a.k.a. “Negro.”
• On or about February 10, 2016, defendants [14] Wilfredo Rojas-Suárez, a.k.a. “Piky”; [24] Nelson Rivera-Maldonado, a.k.a. “Cuajo”; and [31] Miguel A. Martínez-Candelaria, a.k.a. “Miky,” shot and killed José M. Barbosa-González, a.k.a. “Peca.”
• On or about October 22, 2016, defendants [14] Wilfredo Rojas-Suárez, a.k.a. “Piky”; Nelson González-González, a.k.a. “Gemelo/Ardilla”; and [87] Juan E. Rivera-Serrano, a.k.a. “Casco,” shot and killed Christian L. Calderón-Rojas, a.k.a. “Chris.”
“This violent drug trafficking organization posed a threat to the lives of citizens of Puerto Rico, specifically those communities in Bayamón and nearby municipalities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests are the result of our strong collaboration with state and federal law enforcement agencies, and the Department of Justice’s continuing efforts to combat violent gangs engaged in drug trafficking.”
Douglas A. Leff, Special Agent in Charge of the FBI-San Juan Field Office said: “Today’s massive operation was made possible through our dedicated partners at the United States Attorney's Office; U.S. Marshals Service; Alcohol, Tobacco, and Firearms; Drug Enforcement Administration; Homeland Security Investigations; Postal Inspection Service; and Puerto Rico National Guard. Over 200 additional FBI personnel were brought in from FBI Headquarters and several other FBI field offices. The FBI’s elite Hostage Rescue Team conducted several of today’s arrests, supported by a fleet of air and ground specialty vehicles brought down from Quantico. Special appreciation is extended to San Juan Police Commissioner Guillermo Calixto for the outstanding task force officers he selected from his department, one of whom served as the lead investigator on this case; to Guaynabo Police Commissioner Victor Franco Rodríguez for his department’s invaluable assistance; and as always, to the Puerto Rico Police Department for their outstanding detective work and unwavering commitment to making Puerto Rico safer.”
“The boldness of these individuals to use the U.S. Mail for their drug trafficking enterprise and think they could get away with it. As alleged in the indictment, the “Los Menores” gang used the U.S. Mail to further their drug enterprise and launder their proceeds through the use of U.S. Postal Service Money Orders. U.S. Postal Inspectors will never tolerate criminal use of the U.S. Mail; and today’s arrest sends a strong message that we will vigorously pursue these types of crimes against the U.S. Mail and the American public,” said Acting Inspector in Charge Joseph Cronin.
ATF Special Agent in Charge Peter J. Forcelli stated: “These indictments and arrests show how well Federal and state agencies can work together to disrupt and dismantle violent drug gangs to stem the crime plaguing Puerto Rico during these difficult times.”
The case is being prosecuted by Assistant United States Attorneys María L. Montañez-Concepción and Victor O. Acevedo-Hernández under the supervision of Alberto R. López-Rocafort and Jenifer Y. Hernández-Vega, Deputy Chiefs for Domestic Narcotics Unit and Violent Crimes Unit, respectively.
The defendants are facing a minimum of 10 years up to life imprisonment. These are:
[1] Sadid Medina-Rivera, a.k.a. “El Loco”; [2] Jorge Molina-Larrion, a.k.a. “Jorge Bush/ El Presidente”; [3] Yamil Vázquez-Rivera, a.k.a. “Yamo”; [4] Felipe Narváez-Colon, a.k.a. “Gavilan/Viejo”; [5] Samuel Arce-Ayala, a.k.a. “Brocoli/Broco/Vegetal”; [6] William J. Díaz-Rodríguez, a.k.a. “Billy/Papa/Bola”; [7] Carlos J. Nazario-López, a.k.a. “Carlos Tati”; [8] Luis G. Ayala-García, a.k.a. “Pájaro/Gaby El Quemao”; [9] Joshua Méndez-Romero, a.k.a. “Joshi/El Guabi/Gemelo/El Identico”; [10] José J. Romero-Bonilla, a.k.a. “Galvan/Colorao/Garban”; [11] Jonathan Milan-Rodríguez, a.k.a. “Polvo/Pica/Polvorin/El Virao”; [12] Giovanni Ortiz-Soto, a.k.a. “Pinocho”; [13] Richard A. Franco-Pérez, a.k.a. “El Cagon/La A”; [14] Wilfredo Rojas-Suárez, a.k.a.“Piky/Picky”; [15] Roberto Ortiz-Toro, a.k.a. “Tillo”; [16] Jaime L. Martínez-Vargas, a.k.a. “Jimmy/El Cojo/Diri/El Gordo”; [17] Joel J. Ayala-Velázquez, a.k.a. “El Puma”; [18] Omar J. Nieves-Pérez, a.k.a. “Cornlakes”; [19] José R. Jiménez-Echevarría, a.k.a. “Cuba/Rafi”; [20] Phillip García-Osorio; [21] Julio Rojas-Suárez, a.k.a. “Chulin/Chuli”; [22] Carlos M. Colón-Cruz, a.k.a. “Flaqui”; [23] George M. Franco-Pérez, a.k.a. “La Flaca”; [24] Nelson Rivera-Maldonado, a.k.a. “Cuajo”; [25] Ángel L. Pagán-Torres, a.k.a. “Gorito/El Desacatao”; [26] Ernesto Jiménez-Candelario, a.k.a. “Nestor”; [27] David F. Nieves-Dávila, a.k.a. “Davisito”; [28] Héctor E. Martínez-García, a.k.a. “Ricky Tamba/Ricky Tonga”; [29] Ángel R. Cruz-Vázquez, a.k.a. “Bebo/Brigante”; [30] Edgar E. Aristud-Maysonet; [31] Miguel A. Martínez-Candelaria, a.k.a. “Miky”; [32] Juan P. Marrero-Díaz, a.k.a. “El Goldo”; [33] Ángel L. Morales-Hernández, a.k.a. “Ángel/Chinese Checker”; [34] Erick Y. Soto-Pérez; [35] José A. Méndez-Ruiz, a.k.a. “Tío Méndez”; [36] Andrés Medina-Maldonado, a.k.a. “Andy Perla/Ricky Martin”; [37] Joel Rosario-Martínez, a.k.a. “Ceda”; [38] Eliezer Rivera-Reyes, a.k.a. “Gordo Teta”; [39] Bryan M. Camacho-Báez, a.k.a. “La Puerca/La Gorda”; [40] José D. Nieves-Ramos, a.k.a. “Joudi”; [41] Alexie López-Robles, a.k.a. “Alex Chengo”; [42] Carlos López-Orria, a.k.a. “Pelota”; [43] Raúl Viguera-Soto, a.k.a. “Viagra/El Gordo/Raulin”; [44] Félix O. Ortiz-Rodríguez, a.k.a. “Chucha”; [45] Andrés D. Reyment-Rodríguez, a.k.a. “Andy La Salida”; [46] Abimael Narváez-Rosa, a.k.a. “Apu”; [47] José L. Cintron-Aponte, a.k.a. “Bebo La Maquina”; [48] Janey Fontan-Otero, a.k.a. “Stuart The Little/Stuart”; [49] Edwin A. Pantoja-Eraso, a.k.a. “Bichote”; [50] Frankie Ortiz-Soto; [51] Wilberto Guzmán-Robles, a.k.a. “Macho/Machito”; [52] Juan G. Pérez-Rivera, a.k.a. “Juanito Culon”; [53] Andrés Báez-Ramos, a.k.a. “Cuajo”; [54] Nelson González-González, a.k.a. “Gemelo/Ardilla”; [55] William Reyes-Garrastegui, a.k.a. “Bebo El Goldo”; [56] Rafael A. Ramos-Marín, a.k.a. “El Negro”; [57] Pedro Orraca-Matos, a.k.a. “Peri”; [58] Francisco R. Maysonet-Morales, a.k.a. “Ñame/Gordo”; [59] Ángel O. Pagán-Torres, a.k.a. “Kibu”; [60] Jaime A. Hernández-Santiago, a.k.a. “Mingui/Coco”; [61] Luis E. Erazo De-Jesús, a.k.a. “Vaquero/Vaquerito”; [62] Carlos J. Nieves-Pérez, a.k.a. “Seven”; [63] Abnel H. Berríos-Natali, a.k.a. “Abnel La Barbie”; [64] Francisco Salas-Ríos, a.k.a. “Chule”; [65] Christian Guzmán-Colón, a.k.a. “Muñequita/Muñe”; [66] Pedro Crespo-Bouchamp, a.k.a. “Colorex/Colo/Pedrito/Colorao”; [67] Juan E. Freites-Torres, a.k.a. “Macho/Macho Kenai”; [68] Luis M. Pantoja-Cruz, a.k.a. “Cantinfla”; [69] Harold L. Abolafia-Borrero, a.k.a. “Ferrari”; [70] Christopher J. Nieves-Pérez, a.k.a. “Chucho”; [71] Jean C. Torres-Soto, a.k.a. “Chicken Pop”; [72] Daniel F. Vélez-Ortiz, a.k.a. “Guayu/Danielito”; [73] Félix J. Alvarado-Ortega, a.k.a. “Filete/Filete Mignon”’ [74] Juan F. Vélez-Cedeño, a.k.a. “Chato”; [75] Jorge L. Negrón-Cruz, a.k.a. “Pollo/Pollito/Tostin”; [76] José L. Jiménez-Candelario; [77] Luis A. Monzon-Ocasio, a.k.a. “El Pito”; [78] José M. Oyola, a.k.a. “Juaco”; [79] José A. Robles-Santiago, a.k.a. “Abi/Guitarreño”; [80] Emanuel Rivera-Álvarez, a.k.a. “Emma”; [81] Jovanni Torres-López, a.k.a. “Bimbo”; [82] Jaime J. Valentin-Rodríguez, a.k.a. “Jay Barente-Rivera/Jay Lombriz/El Jay”; [83] Héctor X. Ortiz-Errazo, a.k.a.“Xavi/El Gordo”; [84] Angelita Bravo-García, a.k.a. “Bebota/Mimitime/Mimi”; [85] Ángel A. Jiménez-Candelario; [86] Luis A. Ortiz-Olivera, a.k.a. “Pache”; [87] Juan E. Rivera-Serrano, a.k.a. “Casco”; [88] Fernando Montañez-García, a.k.a. “Mostri”; [89] Brandon J. Cruz-Verges; [90] Rolando Cotto-Ortega, a.k.a. “Pastelillo”; [91] Héctor Quintana-Figueroa, a.k.a. “Chupa”; [92] Juan C. Pérez-Rivera, a.k.a. “Kibu”; [93] José C. Mojica-Torres, a.k.a. “Chencho”; [94] Héctor Méndez, a.k.a. “Rudy/Ruby/Scooby”; [95] Jean C. Del Valle-Rosa, a.k.a. “Chiwawin”; [96] Jeremy A. Barreto-Berríos; [97] Juan L. Reca-Santiago, a.k.a. “Luis Santiago-Rivera”; [98] Gabriel Sedeño-Aponte, a.k.a. “Limber”; [99] José A. Ortiz-Olivera, a.k.a. “Macho”; [100] Félix J. Ortiz, a.k.a. “Kalkri/Kenobi”; [101] Nasain Ortiz-Nieves, a.k.a. “Bart/Bart Simpson”; [102] Roberto C. Rosa-Pérez, a.k.a. “Papiro”; [103] Pedro Alvino-Colón, a.k.a. “Pello/Peyo/Pedri”; and [104] Carlos J. Santos-Vélez, a.k.a.“Carlitos”.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty. The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). This multi-agency task force investigates and dismantles major drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics as well as the gang violence that accompanies drug trafficking.
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Wednesday 17 January 2018
Two charged with illegally reentering the U.S.Read the Press Release
Two people were indicted in for illegally reentering the United States, law enforcement officials said.
Miguel Marcos-Perez, 31, a citizen of Guatemala, was found in New Philadelphia after having twice previously been deported to Guatamala, most recently in 2012, according to court documents.
Alexis Manueles Mancia, 27, a citizen of Honduras, was found in Mahoning County after having previously been deported to Honduras three times, most recently in 2016, according to court documents.
The cases are being prosecuted by Assistant U.S Attorneys Kathryn G. Andrachik and Brian S. Deckert following investigations by the Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sister Convicted of Retaliating Against Witness in Brothers' TrialRead the Press Release
COLUMBUS, Ohio – Joy McShan Edwards, 37, of Steubenville, was convicted in U.S. District Court today of retaliation against a witness.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and U.S. Marshal Pete Tobin announced the verdict, which was reached today by Chief U.S. District Judge Edmund A. Sargus, Jr, after a one-day bench trial on December 11, 2017.
Edwards’s two brothers, Fred McShan and David McShan, were convicted at a federal jury trial in March 2016 of conspiracy to possess with intent to distribute heroin in the Southern District of Ohio.
During the trial, Deputy U.S. Marshals had to escort multiple family members and friends of the McShan brothers out of the courtroom for violating the Federal Court’s cell phone policy. The family and friends had been attempting to photograph and video record witnesses in the case.
After the first day of trial, a Social Media post to Snapchat was posted by a family member, which revealed a comment about a government witness and a short video of the confidential informant’s testimony.
On May 11, the United States Probation Department released its pre-sentence investigation report and recommended sentences for Fred and David McShan. On that same day, authorities discovered Edwards made a post on her Facebook page about the confidential informant. The post included photos of the witness cropped onto a body and comments that the confidential informant was a “snitch.”
Edwards continued posting multiple images of the witness cropped onto other photographs, including images of rats and skulls.
According to the victim, the retaliation via social media has severely impacted his life and the safety of himself and his family.
“We take very seriously the safety and security of government witnesses,” U.S. Attorney Glassman said. “Those who retaliate against government witnesses will be identified and prosecuted to the fullest extent of the law. Today’s verdict is an example.”
Retaliating against a witness, victim or an informant is a federal crime punishable by up to 10 years in prison.
Edwards was charged by criminal complaint and arrested in June. She was indicted by a federal grand jury in August.
U.S. Attorney Glassman commended the cooperative investigation by the DEA and the U.S. Marshals Service, as well as Deputy Criminal Chief Michael J. Hunter and Jefferson County Prosecutor and Special Assistant United States Attorney Jane M. Hanlin, who are representing the United States in this case.
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Schenectady Man Sentenced to 9 Years for Perjury in Arson Homicide InvestigationRead the Press Release
ALBANY, NEW YORK – Bryan Fish, age 23, of Schenectady, New York, was sentenced today to 108 months in prison, to be followed by 3 years of supervised release, for making false declarations before a federal grand jury investigating an arson that killed four people in Schenectady.
The announcement was made by United States Attorney Grant C, Jaquith and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In pleading guilty on May 31, 2017, Fish admitted that he lied under oath to a federal grand jury investigating the fire, which occurred on or about May 2, 2013 at 438 Hulett Street in Schenectady, New York, and caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
Fish admitted that on May 24, 2013, he provided false testimony regarding his brother, whom Fish claimed: 1) drove him, Jennica Duell, and another man from Saratoga Springs to the vicinity of 438 Hulett Street in the early morning hours of May 2, 2013, 2) popped the trunk so that the other man could remove a gas can, and 3) later drove part of the way back to Saratoga Springs.
Fish is the fourth person to be sentenced for lying to the federal grand jury investigating the 438 Hulett Street fire.
- On March 17, 2016, Edward Leon, age 45, of St. Johnsville, New York, was sentenced to 10 years in prison following a jury trial.
- On September 12, 2016, Duell, age 29, of Schenectady, and the mother of the children who died, was sentenced to 11 years and 3 months in prison following a guilty plea.
- On May 31, 2017, Richard Ramsey, age 48, of Saratoga Springs, New York, was sentenced to 87 months in prison following a guilty plea.
United States Attorney Grant C. Jaquith said: “Bryan Fish, Jennica Duell, Edward Leon, and Richard Ramsey lied to a grand jury investigating one of the worst crimes in the Capital Region in recent memory. The sentences reflect the horror of the underlying crime and the defendants’ disregard for the law and the innocent lives lost. We will not let lies stand in the way of securing justice for the victims and their families, and of bringing to justice the person or people responsible for this deadly arson. We remain committed to continuing the investigation until justice is done.”
ATF Special Agent in Charge Ashan M. Benedict said: “The fire in Schenectady at 438 Hulett Street caused death and destruction that will affect families forever. Fish and the other individuals sentenced for lying to a federal grand jury will not prevent us from determining who was responsible for this heinous crime. The victims and their families will not be forgotten. I would like to extend my gratitude to the United States Attorney’s Office for prosecuting the case. I would also like to thank the Special Agents of ATF, the Schenectady Police Department and the Schenectady Fire Department for working tirelessly on this investigation.”
This case resulted from an ongoing investigation being conducted by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case was prosecuted by United States Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
The ATF notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information is encouraged to call ATF at 1-888-ATF-FIRE (1-888-283-3473), or email [email protected], or contact ATF through its web site at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF through the “report it” app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.
Sacramento Man Indicted for Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. — Joseph Woloszyn, 32, of Sacramento, was arrested today after a federal grand jury returned a five-count indictment last Thursday charging him with obstruction of justice and perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at an evidentiary hearing in the case of United States v. M.W., 2:13-cr-067 KJM. Woloszyn testified on behalf of the defendant in that case and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
If convicted, Woloszyn faces a maximum statutory penalty of 10 years in prison and a $250,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Indicted for Falsely Claiming to Be an Attorney and Defrauding Couple of over $500,000Read the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment on last Thursday against Derek Bluford, 30, of Sacramento, charging him with wire fraud and money laundering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Bluford allegedly told a couple that he was an attorney and could represent them in a dispute they were having with their tenant. After the couple agreed, Bluford then told them that they had incurred numerous fines and court costs, as well as costs to repair their rental unit; he also told them he had negotiated a settlement agreement with the couple’s former tenant. Based on these representations, the couple paid Bluford at least $535,000. According to the allegations in the indictment, Bluford, in fact, was not an attorney and there were no fines or court costs imposed. Bluford then allegedly laundered the proceeds from his scheme.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
If convicted, Bluford faces a maximum statutory penalty of 20 years in prison on the wire fraud count, 10 years in prison on the money laundering counts, and a fine of $250,000, or twice the gross loss or gross gain. 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Removed Alien Charged with Illegally Re-entering the United StatesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on January 16, named Rene Hilerio-Ballina, 26, of Mexico, as the sole defendant.
According to the indictment, the defendant, was found in Pittsburgh, Pennsylvania on December 18, 2017, without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of two years in prison, one year supervised release, and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO) Pittsburgh sub-office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Registry of Motor Vehicles Clerk Sentenced for Role in Identity Theft SchemeRead the Press Release
BOSTON – A Massachusetts Registry of Motor Vehicles clerk was sentenced today in federal court in Boston for her role in a scheme to produce false identification documents.
Evelyn Medina, 56, of Boston, was sentenced to 15 months in prison and two years of supervised release. In October 2017, Media and co-conspirators Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; and Bivian Yohanny Brea, 41, of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the cases.
Red Lake Man Sentenced to 60 Months in Prison for Sexual Assault of A MinorRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of BRANDON SCOTT CLOUD, 36, to 60 months in prison for sexually assaulting a minor victim. CLOUD, who was charged via criminal information on July 21, 2017, pleaded guilty on September 21, 2017, and was sentenced yesterday before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, on August 11, 2016, within the exterior boundaries of the Red Lake Indian Reservation, CLOUD sexually assaulted a 13-year-old minor victim. The victim, who was visiting a family member at CLOUD’S residence, was assaulted by CLOUD while she was sleeping. Following the assault, the victim contacted her mother who notified the Red Lake Police Department.
This case is the result of an investigation conducted by the Red Lake Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Clifford B. Wardlaw prosecuted the case.
Defendant Information:
BRANDON SCOTT CLOUD, 36
Red Lake, Minn.
Convicted:
- Sexual abuse of a minor, 1 count
Sentenced:- 60 months in prison
- Three years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Real Estate Broker Pleads Guilty to Role in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen real estate broker pleaded guilty yesterday in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley.
Greisy Jimenez, 50, pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 24, 2018. In March 2017, co-conspirators Jasmin Polanco, 37, a real estate closing attorney, and Vanessa Ricci, 40, a mortgage loan officer, each pleaded guilty to one count of conspiracy to commit bank fraud and are scheduled to be sentenced on March 23, 2018 and March 26, 2018, respectively. Also in March 2017, Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced to time served and one year of supervised release to be served in home detention after pleading guilty to conspiracy to commit bank fraud.
The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
The charge of bank fraud and conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit are prosecuting the cases.
Purported Psychic Sentenced for Evading TaxesRead the Press Release
BOSTON – A south Florida woman, who purported to be a psychic, was sentenced today in federal court in Boston for impeding the Internal Revenue Service by hiding more than $3.5 million of income that she was paid by an elderly Martha’s Vineyard woman.
Sally Ann Johnson, a/k/a Angela Johnson, a/k/a Angelia Johnson, a/k/a Sally Reed, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 26 months in prison and was ordered to repay $3,567,300 to the victim and to pay restitution in the amount of $725,912 to the IRS. In October 2017, Johnson pleaded guilty to attempting to interfere with the administration of the Internal Revenue laws.
Johnson owned and operated various businesses, including Flatiron Psychic, Psychic Match, Inc., and Psychic Spiritual Salon, Inc., all of which purported to offer “psychic readings,” “spiritual cleansing & strengthening,” and “meditation & healing.” From 2007 to 2014, Johnson was paid over $3.5 million by an elderly woman living on Martha’s Vineyard to purportedly perform spiritual cleansing and healing services to rid the woman of demons through repeated exorcisms. Rather than reporting her income to the IRS and paying taxes on it, Johnson took steps to conceal it. Specifically, Johnson used an alias and directed the woman to send payments to at least three different bank accounts with which Johnson was associated, including an account in another person’s name. Johnson then withdrew large portions of the woman’s payments from the accounts in cash. In addition, Johnson accrued substantial charges on a credit card held in the name of the elderly woman, who ultimately paid the credit card bills, thereby concealing from the IRS the true extent of Johnson’s income. Neither Johnson nor any of the businesses she operated filed a tax return or paid taxes on the income she received from the woman.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The Chilmark Police Department provided assistance with the investigation. Assistant U.S. Attorneys Sandra S. Bower and Brian A. Pérez-Daple of Lelling’s Criminal Division are prosecuting the case.
Prior Felon from Carlsbad Sentenced to Federal Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Nathaniel Eddie Madrid, 40, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 57 months in prison for violating the federal firearms laws by unlawfully possessing firearms and ammunition. Madrid will be on supervised release for three years after completing his prison sentence.
Madrid, whose prior criminal history includes felony convictions for possession of a controlled substance, contributing to the delinquency of a minor, breaking and entering, armed robbery with a deadly weapon, and being a felon in possession of a firearm, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Madrid was arrested on April 18, 2016, on a criminal complaint charging him with being a felon in possession of firearms and ammunition and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) in Lincoln County, N.M. According to the complaint, law enforcement officers recovered three firearms, ammunition, marijuana and drug paraphernalia from Madrid’s vehicle. A search of the NFRTR also revealed that Madrid did not have any firearms registered in his name.
Madrid subsequently was indicted on Aug. 17, 2016, and charged with being a felon in possession of firearms and ammunition on Oct. 26, 2015, in Lincoln County. According to the indictment, Madrid was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Court documents indicate that Madrid was on probation for a conviction for being a felon in possession of firearms and ammunition when he was arrested.
On Jan. 12, 2017, Madrid pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police. Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Port Arthur Man Sentenced to 80 years in Federal Prison for Port Acres MurderRead the Press Release
BEAUMONT, Texas - A 35-year-old Port Arthur, Texas man has been sentenced to 80 years in federal prison for violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson today..
Sabino Orlando Martinez was found guilty by a jury on Apr. 27, 2017 of conspiracy to interfere with interstate commerce by robbery, conspiracy to use and carry firearms during a crime of violence, and conspiracy to possess firearms during a drug trafficking crime. Martinez was sentenced to 960 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning in 2001, Martinez and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas. Evidence showed the defendants committed the robberies for the purpose of supporting their crack cocaine habits. The robberies increased to almost daily between 2009 and 2011. During the investigation of these crimes, it was discovered that Martinez and his co-defendants were responsible for the May 14, 2010 death of Allison Neil Clark, of Port Acres, Texas. Clark was shot while driving on West Port Arthur Road. Once law enforcement officers became aware of Martinez’s co-defendant’s vehicle in the area, they were quickly able to focus on Martinez’s involvement. Video surveillance from area businesses verified the vehicle’s presence in the area at the time of the shooting. Testimony at trial revealed that Martinez fired the shot that killed Clark. Martinez was indicted by a federal grand jury on May 4, 2016.
“Allison Neil Clark did not deserve to be executed in front of her child,” said U.S. Attorney Alan R. Jackson. “But because a group of dedicated investigators refused to give up on this case, Sabino Martinez will spend the rest of his life in a federal prison. We hope this sentencing will bring some sense of closure to this family, and remind our communities that we need to stand together against those who would desecrate them with drugs and the violence it encourages.”
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was investigated by the Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Lesley Woods and Joseph R. Batte.
Pittsburgh Man Charged with Illegally Possessing Firearms while Dealing Cocaine, Crack and MarijuanaRead the Press Release
PITTSBURGH – A former resident of Penn Hills, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotic laws, United States Attorney Scott W. Brady announced today.
The two-count superseding indictment, returned on January 16, named Denver Sangster, 41.
According to the superseding indictment, Sangster possessed four firearms in furtherance of a drug trafficking crime on March 30, 2016; specifically, in furtherance of the possession with intent to distribute cocaine, crack cocaine, and marijuana. The superseding indictment also charges Sangster with possession with intent to distribute 280 grams or more of crack cocaine and quantities of cocaine and marijuana.
For the count of possession of firearms in furtherance of drug trafficking, the law provides for a minimum sentence of not less than 5 years and a maximum of life in prison, a fine of $250,000, or both. For the separate count of possession with intent to distribute controlled substances, the law provides for a maximum total sentence of not less than 10 years and up to life prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 a 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. Assistant United States Attorneys Adam N. Hallowell and Katherine A. King are prosecuting this case on behalf of the government.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pill Mill Owner and Co-Conspirators Convicted and Sentenced for Roles in Opioid Distribution ConspiraciesRead the Press Release
Tampa, Florida – U.S. District Judge Susan Bucklew has sentenced Yolanda Camara (49, Brandon) to 12 years and 7 months in federal prison for her role in operating and managing a medical clinic from which oxycodone, alprazolam, and other controlled substances were illegally prescribed. The Court also ordered her to pay a money judgment of $124,285.64, which are proceeds of the offenses.
Camara pleaded guilty on July 13, 2017.
According to court documents, Camara co-owned and managed Family Medical Express Center, Inc. in Brandon, Florida. She and her co-conspirators operated Family Medical as a purported medical clinic used to sell unlawful prescriptions to individuals who did not need them and to individuals who diverted them for sale in the community on a per-pill basis. In some cases, Camara’s co-conspirator, Dr. Anil Sahijwani, wrote prescriptions at Camara’s or another co-conspirator’s request in the names of individuals he never examined, never met, and, in some cases, who did not actually exist. During the sentencing hearing, Camara was held responsible for conspiring to illegally prescribe over 28,000 oxycodone pills and nearly 6,000 alprazolam (Xanax) pills.
Camara and her co-conspirators have all pleaded guilty to drug conspiracy and drug distribution charges. Camara also pleaded guilty to lying to federal investigators. In total, six defendants have been sentenced in this and related cases. Jonathan Wainwright, a “sponsor” who paid people to go to the clinic and obtain prescriptions for pills he could sell, was sentenced to 9 years and 2 months’ imprisonment. Dr. Anil Sahijwani was sentenced to 3 years and 9 months in federal prison. Justin Oliveira, Camara’s son and clinic employee, and Jeremiah Foor, a patient/co-conspirator, were each sentenced to 33 months’ imprisonment. And, David Arbogast, a patient/co-conspirator, was sentenced to 5 years’ probation.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Daniel George.
Owner of Kansas Tax Preparation Firm Sentenced to Prison for Eight Years for Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Overland Park, Kansas, was sentenced to 96 months in prison today for aiding and assisting in the preparation and presentation of false income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.
According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.
In addition to the term of imprisonment, U.S. District Court Judge Julie A. Robinson ordered Reece to serve one year of supervised release and to pay $648,442 in restitution to the Internal Revenue Service (IRS). Reece pleaded guilty in October 2017 to aiding and assisting in the preparation and filing of false and fraudulent tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Beall commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott C. Rask of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ohio man sentenced to 20 years for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Austin Boyd, Jr., of Toledo, Ohio was sentenced today to 240 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Boyd, age 36, pled guilty to one count of “Possession with Intent to Distribute Cocaine” in September 2017. Boyd admitted to possessing 280 grams or more of cocaine in Harrison County in September 2016.
Boyd was also ordered to forfeit proceeds, directly or indirectly, from the crime, including United States currency in the amount of $35,580.00 and a Taurus revolver, Model 85, .38 caliber.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Nigerian Citizen Sentenced for Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a native of Nigeria and resident of Guatemala, was sentenced to 35 months imprisonment for his participation in a stolen identity tax fraud scheme.
According to court documents, Luke and others used stolen identities to unlawfully obtain data from U.S. Government computers and then used that data to seek $3.5 million in government funds by filing false tax returns in the names of the identity theft victims. Many of the fraudulent tax refunds were stopped and not paid by the IRS. Luke admitted he obtained more than $734,000 in fraudulent tax refunds as a result of this scheme.
Luke was sentenced for one felony count of conspiracy to commit theft of government funds before United States District Judge Henry Autrey. Luke has been in federal custody since April when he was arrested by the United States Marshals Service as he attempted to enter the United States. In addition to the sentence of imprisonment, Luke was ordered to pay $734,000 in restitution to the IRS.
Luke’s co-conspirator, Olefunsho Adeshina, also a native of Nigeria, is serving a sentence of 40 months imprisonment which was handed down in 2016 for his role in the conspiracy.
This case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Treasury Inspector General for Tax Administration (TIGTA) Strategic Data Services Division, the Department of Treasury Inspector General for Tax and Administration (TIGTA) and the Federal Bureau of Investigation (FBI) Cyber Task Force as part of their Stolen Identity Refund Fraud (SIRF) initiative which seeks to disrupt the multi-billion-dollar enterprise whereby Americans’ identities are compromised and used to defraud the government through the income tax system.
U.S. Attorney Jeffrey B. Jensen also credited the investigators of the many financial institutions and the persistence of the investigators of the U.S. Customs and Immigration - Fraud Detection and National Security (FDNS) team with their support of the investigation leading to today’s sentencing. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Nichols Man Sentenced to Prison for Failure to Register as a Sex OffenderRead the Press Release
DAVENPORT, Iowa -- On January 16, 2018, Oscar Lee Hall, Jr., age 41, formerly of Nichols, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 33 months in prison after pleading guilty to failure to register as a sex offender, announced United States Attorney Marc Krickbaum. Hall was ordered to serve five years of supervised release to follow his prison term, a condition of which will include continued compliance with the sex offender registration laws, and pay a $100 special assessment to the Crime Victims’ Fund.
Hall was convicted in Michigan of criminal sexual conduct in 1998. Between November 18, 2016 and March 24, 2017, Hall returned to Iowa and failed to register and update his registration pursuant to the Sex Offender Registration and Notification Act.
This matter was investigated by the United States Marshals Service, Muscatine County Sheriff’s Office, and West Liberty Police Department. The case was prosecuted by the United States Attorney’s Office for Southern District of Iowa.
New Mexico Man Pleads Guilty to Directing Computer Attacks Against Websites of Dozens of Victims, as Well as Felon-In-Possession ChargesRead the Press Release
A New Mexico man pleaded guilty today in St. Paul, Minnesota, to engaging in and directing distributed denial of service (DDoS) attacks against the websites of his prior employers, business competitors and public services, as well as felon-in-possession charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
John Kelsey Gammell pleaded guilty to one count of conspiracy to commit intentional damage to a protected computer and two counts of being a felon-in-possession of a firearm before District Judge Wilhelmina M. Wright of the District of Minnesota. He will be sentenced at a later date.
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, Gammell engaged in a campaign of DDoS attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of internet traffic to be directed to the computer or website. Gammell directed DDoS attacks at a number of victims’ websites, including websites operated by companies he used to work for, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
Gammell admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing “DDoS-for-hire” companies from which he purchased services to launch the DDoS attacks. Gammell purchased subscriptions to multiple DDoS-for-hire companies, including VDoS, CStress, Inboot, Booter.xyz and IPStresser. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, the Hennepin County Sheriff’s Office and others. Gammell took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services at once to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers.
Gammell, who is prohibited from possessing firearms or ammunition based on prior felony convictions, also admitted that he possessed parts for use in the building of AR-15 assault rifles, upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube and 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition in Colorado, where he worked. He further admitted that he possessed a Heckler & Koch P2000 handgun, and a Springfield Armory model 1911-A1, .45 caliber handgun, as well as hundreds of rounds of ammunition in New Mexico, where he resided.
This case was investigated by the FBI’s Minneapolis Field Office. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
New Mexico Man Pleads Guilty to Directing Computer Attacks Against Websites of Dozens of Victims, as Well as Felon-In-Possession ChargesRead the Press Release
A New Mexico man pleaded guilty today in St. Paul, Minnesota, for directing computer attacks against the websites of his prior employers, business competitors and public services, as well as felon-in-possession charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.
U.S. Attorney Greg Brooker stated, "Cyber-attacks, such as the ones perpetrated by the defendant, are serious crimes that cause real harm to real victims. As this prosecution shows, these crimes also carry serious consequences. This Office will continue to prioritize the prosecution of cybercriminals that pose a substantial threat to private businesses, public entities, and critical infrastructure."
FBI Minneapolis Division Special Agent in Charge Richard Thornton added, "Unfortunately, crime on the internet has become an everyday reality across the United States. Cybercriminals looking to turn a buck or with an axe to grind mistakenly see the internet as fertile ground for anonymous criminal activity." "Cybercrime," Thornton explained, "has real world consequences. While many cases involve the loss of money or personal information, it’s no less impactful when victims are denied internet services that have become vital in our personal and commercial lives. We’re grateful to our corporate and law enforcement partnerships that helped achieve justice for the victims in this case."
JOHN KELSEY GAMMELL, 55, pleaded guilty to one count of conspiracy to cause intentional damage to a protected computer and two counts of being a felon-in-possession before District Judge Wilhelmina M. Wright of the District of Minnesota. He will be sentenced at a later date.
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, GAMMELL engaged in a campaign of distributed denial of
service ("DDoS") attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of internet traffic to be directed to the computer or website. GAMMELL directed DDoS attacks at a number of victims’ websites, including websites operated by companies he used to work for, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
GAMMELL admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing "DDoS-for-hire" companies from which he purchased services to launch the DDoS attacks. GAMMELL purchased subscriptions to multiple DDoS-for-hire companies, including VDoS, CStress, Inboot, Booter.xyz, and IPStresser. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, the Hennepin County Sheriff’s Office, and others. GAMMELL took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services at once to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers. GAMMELL, who is a convicted felon, also admitted that he possessed parts for use in the building of AR-15 assault rifles, upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube, and 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition in Colorado, where he worked. He further admitted that he possessed a Heckler & Koch P2000 handgun, and a Springfield Armory model 1911-A1, .45 caliber handgun, as well as hundreds of rounds of ammunition in New Mexico, where he resided.
This case was investigated by the FBI’s Minneapolis Field Office.
Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
Defendant Information:
JOHN KELSEY GAMMELL, 55
Las Cruces, N.M.
Convicted:
- Conspiracy to commit intentional damage to a protected computer, 1 count
- Felon in possession of a firearm, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Morton Man Pleads Guilty to Social Security Disability FraudRead the Press Release
Jackson, Miss. – Bobby Earl Thweatt, 53, of Morton, pled guilty today before United States District Judge Tom S. Lee, to theft of government funds by fraudulently obtaining Social Security Disability payments, announced U.S. Attorney Mike Hurst and Resident Agent in Charge Marvin Mauldin of the Office of Inspector General, Social Security Administration.
Thweatt was approved for Title II Social Security disability benefits effective in October, 1998, based on an injury. As part of the application, he agreed under penalty of perjury to notify the Social Security Administration in the event that his medical condition improved so that he was able to work. Thweatt received monthly Social Security Disability payments based on his medical condition.
In January, 2009, Thweatt began working again on a full-time basis but did so using his wife’s Social Security number instead of his own, in order to avoid having to notify the Social Security Administration that he was able to work and therefore was no longer eligible to receive disability payments from the United States government. From January, 2009, to April, 2015, Thweatt received a total of $97,083.00 in funds belonging to the United States by receiving Social Security Title II Disability Insurance benefits to which he knew he was not entitled. Thweatt converted this money to his own personal use and benefit.
Thweatt will be sentenced in Jackson by Judge Tom S. Lee on April 19, 2018, and faces a maximum penalty of 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine. Federal law mandates the full payment of restitution.
The case was investigated by the Office of Inspector General of the Social Security Administration. It is being prosecuted by Assistant United States Attorney Dave Fulcher.
More Than $1.7 Million in Forfeited Funds Presented to Law Enforcement AgenciesRead the Press Release
Jacksonville- FL - United States Attorney Maria Chapa Lopez, along with Special Agent in Charge James Spero, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), announce today the distribution of more than $1.7 million in civilly forfeited funds to three law enforcement agencies. These awards are the result of a federal civil forfeiture of more than $4.5 million in funds obtained fraudulently through the hacking of bitcoin accounts. Pursuant to the Department of Treasury Equitable Sharing Program, the funds were distributed to the Nassau County Sheriff’s ($1,044,550.05); the Florida National Guard ($627,487.74); and the Jacksonville Sheriff’s Office ($209,162.58). The presentations took place today at the Jacksonville Office of Homeland Security Investigations.
“I applaud the cooperation and diligence of our law enforcement partners in working with us to investigate and prosecute this case successfully,” said U.S. Attorney Chapa Lopez. “Divesting criminals of their ill-gotten gains and returning these resources to our enforcement agencies is yet another step in continuing our fight against crime.”
“This asset sharing is a perfect example of how a criminal’s illegal profits can be used to protect the citizens of our communities,” said Special Agent in Charge Spero. “The Nassau County Sheriff’s Office, the Florida National Guard’s Counterdrug Program and the Jacksonville Sheriff’s Office all worked with HSI to hold these criminals accountable and we are honored to be able to publically recognize them for their hard work, while sharing with them a large portion of the seized monies.”
According to court documents, in November 2013, HSI special agents learned of the theft of approximately 5,400 bitcoins from Sheep Marketplace, an illicit online marketplace that has since been shut down. Sheep Marketplace was used predominantly for the illicit sale of narcotics. Jacksonville residents Sean Mackert and Nathan Gibson determined that the Sheep Marketplace had a single online “wallet” that contained the bitcoins earned by individuals using the marketplace. They devised a scheme that tricked Sheep Marketplace’s “wallet” into transferring the bitcoins of others into “wallets” they controlled. During their investigation, HSI agents determined that Mackert and Gibson had routed the bitcoins through multiple online “wallets,” then wired them to a licensed money service business. At their direction, the money service business exchanged the bitcoins for United States currency, then wired the funds to bank accounts in Jacksonville that were controlled by Mackert and Gibson.
Mackert and Gibson both have pleaded guilty to conspiracy to commit wire fraud and are awaiting sentencing. Each faces up to 20 years in federal prison.
During the criminal investigation, HSI agents and local law enforcement, with the assistance of the United States Attorney’s Office, seized the funds and two vehicles. The United States commenced a civil forfeiture action against the funds, alleging that they were the proceeds of fraud. The district court ultimately ordered the forfeiture of the funds and two vehicles.
In the Middle District of Florida, enforcement of federal asset forfeiture laws is an integral part of our law enforcement mission. Taking the profit out of crime is important in disrupting and dismantling illegal enterprises, deterring crime, and restoring property to victims. It is also an effective way to have criminals help fund law enforcement efforts. Through the Equitable Sharing Program, our state and local law enforcement partners receive resources to supplement their law enforcement mission. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Nassau County Sheriff’s Office, the Florida National Guard, and the Jacksonville Sheriff’s Office. The civil forfeiture action was handed by Assistant United States Attorney Bonnie Glober. The criminal prosecution is being handled by Assistant United States Attorney Kevin Frein.
Missouri Man Indicted for Attempting to Disable TrainRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on January 17, 2018, a Grand Jury indictment was returned charging Taylor Michael Wilson, age 25 of St. Charles, Missouri, with two counts of attempting to disable a train and attempting to interfere with a locomotive engineer or railroad conductor on October 23, 2017. The first count charges an attempt to wreck, derail and disable on-track railroad equipment and a mass transportation vehicle, specifically, an Amtrak train, while that train was carrying passengers and employees at the time of the offense. If convicted of the count, Wilson faces up to life in prison, a $250,000 fine, and up to five years of supervised release.
The second count charges Wilson with acting with an intent to endanger the safety of any person or with a reckless disregard for the safety of human life while attempting to interfere with, disable, or incapacitate any locomotive engineer or railroad conductor, while that person was employed in dispatching, operating, controlling, or maintaining railroad on-track equipment or a mass transportation vehicle, specifically an Amtrak train, while the train was carrying passengers and employees. If convicted of this count, Wilson faces up to life in prison, a $250,000 fine, and up to five years of supervised release.
Wilson was previously arrested pursuant to a criminal complaint. His initial appearance on the indictment will take place before Magistrate Judge Cheryl Zwart at a time to be determined later.
This case was investigated by the Federal Bureau of Investigation.
Michael “Mickey” Munday Convicted of Conspiracy to Commit Mail Fraud and Mail FraudRead the Press Release
A Miami jury convicted North Miami resident Michael “Mickey” Munday of conspiracy to commit mail fraud and mail fraud after a four-day trial.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Munday, 72, was convicted of one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and five counts of mail fraud, in violation of Title 18, United States Code, Section 1341. He faces a statutory maximum sentence of 20 years imprisonment for each count. Sentencing is scheduled for March 29, 2018, at 8:30 a.m. before U.S. District Court Judge Robert N. Scola, Jr. Nine other co-defendants were indicted and pled guilty in connection with the same scheme.
The evidence presented at trial established that Munday obtained vehicles from throughout the country using various fraudulent methods. These methods included, among other things, convincing people who were behind on their car payments to turn over their vehicles to him in exchange for cash, illegally repossessing vehicles, and covertly transporting stolen cars from other states to Florida. In order to evade detection by law enforcement, Munday and his co-conspirators used several towing and repossession companies as fronts for their illegal activity.
After Munday and his co-conspirators obtained the vehicles, the automobiles were then hidden from owners, banks and lienholders at a number of locations, including at Munday’s North Miami residence. While the vehicles were hidden, another co-conspirator prepared and sent, via U.S. mail, false and fraudulent lien notices claiming thousands of dollars in nonexistent tow services to the vehicle owners and true lienholders. Sham auctions were then held at a strip mall, some of which were facilitated by Munday. Of the more than 150 cars involved in the scheme, only one car appeared at an “auction,” and there were never any customers. After the sham auction was held, the conspirators then cleaned the respective car titles by falsely and fraudulently removing the legitimate owners and lienholders from the title. The cars were then sold to a co-conspirator in the automotive wholesale business at prices below market value and resold for a profit to local dealerships. Overall, banks suffered more than $1.7 million in loss as a result of the scheme.
During the trial, videos and social media postings were introduced showing Munday bragging about his past experience as a drug smuggler, explaining the effectiveness of tow companies as fronts for smuggling, proclaiming himself the “UPS of the smuggling industry,” and advertising himself as a master of evading law enforcement.
Mr. Greenberg commended the investigative efforts of the USSS and the Fort Lauderdale Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Anne P. McNamara.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
McKeesport Man Facing Multiple Charges Relating to the Sexual Exploitation of a MinorsRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on three charges of coercion and enticement of a minor to engage in illegal sexual activity, three charges of production of material depicting the sexual exploitation of a minor, and one charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The seven-count indictment, returned on January 16, named Scott Joseph Payne, 31, as the sole defendant.
According to the indictment, from April 9, 2017 through April 10, 2017, and in two separate incidents on June 10, 2017, Payne persuaded, induced, and coerced individuals who had not attained the age of 18 years to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The indictment further charges that on June 19, 2017, Payne unlawfully possessed photographs and videos in computer graphics files which depicted minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 90 years in prison, a fine of $1,750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bloomfield, New Jersey Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan Man Arrested for Stealing More Than $1.2 Million of Rare and Expensive WineRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging NICOLAS DE-MEYER with the interstate transportation of stolen property for DE-MEYER’s theft of more than $1.2 million of fine wine. DE-MEYER was arrested last night at Los Angeles International Airport and will be presented today in federal court in Los Angeles. The case has been assigned to United States District Judge Paul G. Gardephe in the Southern District of New York.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Nicolas De-Meyer, personal assistant to a Manhattan-based employer, stole over a million dollars’ worth of some of the world’s finest wines from his boss. We thank our law enforcement partners at the FBI for their excellent investigative work on this case.”
FBI Assistant Director William F. Sweeney Jr. said: “Rare wines have a very specific market, but even given the narrow chance of making money illegally, thieves will find a way to break the law. The theft in this case, however, was no small amount, totaling more than a million dollars. The FBI Art Crime Team is tasked with investigating and recovering rare and many times invaluable items, and bringing to justice criminals who believe no one is watching. We would like to thank the East Hampton Village Police Department for its partnership in this case.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
From 2008 to November 2016, NICOLAS DE-MEYER worked as a personal assistant to a Manhattan-based individual (the “Victim”) who collects rare and expensive wine. From at least 2014 to approximately October 2016, DE-MEYER stole from the Victim hundreds of bottles of wine worth more than $1.2 million. During that time, DE-MEYER used an alias to sell the wine that he stole from the Victim to a North Carolina-based wine dealer. Among the wine DE-MEYER stole were bottles of wine from the French estate Domaine de la Romanée-Conti (“DRC”), whose wines are widely considered among the best, most expensive, and rarest wines in the world. For example, in October 2016, DE-MEYER stole from the Victim seven bottles of DRC wine that the Victim had previously purchased for $133,650.
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NICOLAS DE-MEYER, 40, of New York, New York, is charged with one count of interstate transportation of stolen property, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Berman praised the outstanding investigative work of the FBI’s Art Crime Team.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Justin V. Rodriguez is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced for Firearms and Drug Trafficking CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to eight years in prison for drug trafficking and his role in stealing 52 firearms from a federally licensed firearms dealer in February 2017.
According to court documents, Angel Lewis Bruno, 19, was part of a robbery crew that stole 52 firearms from Hunter’s Heaven Gun Store in Hayes on Feb. 12, 2017. Approximately nine days later, law enforcement apprehended all four defendants, including two who fled in a vehicle travelling at over 100 miles per hour.
Name, Age
City
Charges
Result
Angel Lewis Bruno, 19
Newport News
Pleaded guilty to: Possession of a Stolen Firearm; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
8 years in prison
Xavier Justice Lee Greenauer-Mattox, 23
Newport News
Pleaded guilty to: Possession with Intent to Distribute Cocaine; Possession of a Stolen Firearm; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Sentencing scheduled for April 18
Philip Thomas Evans, 23
Yorktown
Pleaded guilty to: Possession of a Stolen Firearm; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Sentencing scheduled for April 9
Alissha Shalee Faulks, 28
Newport News
Pleaded guilty to: Possession with Intent to Distribute Cocaine; Possession of a Stolen Firearm
3 years’ probation
Law enforcement has recovered 17 of the stolen firearms to date. The whereabouts of other 35 firearms are unknown.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Michael C. Grinstead, Acting Chief of Newport News Police, and Darrell W. Warren, Jr., Gloucester County Sheriff, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Megan M. Cowles 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-72.
Mail carrier charged with stealing more than 700 pieces of mailRead the Press Release
A mail carrier from North Olmsted was charged with one count of willful obstruction of the passage of mail, law enforcement officials said.
Alaina Chalkley, 36, took 24 pieces of first-class mail, 17 gift cards, 14 tobacco mailers, 694 pieces of undelivered mail and an envelope containing lottery tickets worth $5. This took place between March and July 2017, according to the criminal information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being handled by Assistant U.S. Attorney Danielle K. Angeli following an investigation by the U.S. Postal Service – Office of Inspector General.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Leaders of Multi-State Drug Distribution Ring Sentenced to Long Prison TermsRead the Press Release
Three key players in a drug distribution ring that operated over a large swath of Washington State were sentenced late Tuesday in U.S. District Court in Seattle to long prison terms, announced U.S. Attorney Annette L. Hayes. The leader of the drug distribution ring BALTAZAR REYES-GARCIA 45, of Camano Island, Washington, was sentenced to eighteen years in prison; HECTOR CONTRERAS-IBARRA, 33, of Pasco, WA, was sentenced to fifteen years in prison; and ANGEL SERRANO-CARRENO, 30, of Mt. Vernon, WA was sentenced to thirteen years in prison. The drug ring distributed heroin, methamphetamine and cocaine in King, Snohomish, Skagit and Whatcom Counties. At the sentencing hearing for BALTAZAR REYES-GARCIA, U.S. District Judge James L. Robart said the quantities of drugs involved is “immensely alarming” and noted that REYES-GARCIA was a “major drug supplier.”
“The kilograms of heroin, meth and cocaine that these defendants sold ultimately became hundreds and thousands of doses of poison in addicts’ hands,” said U.S. Attorney Annette L. Hayes. “Make no mistake – these drugs kill or otherwise destroy lives. I commend our federal, state and local law enforcement partners for working together to arrest and convict these defendants who earned their living off the misery of Western Washington residents.”
All three defendants were convicted in October 2017, following a ten-day jury trial. The conspirators operated stash houses on Camano Island and in Mount Vernon, as well as in Yakima and Franklin Counties. The organization had broad connections spanning from Mexico to Nevada, Arizona and California, and north to British Columbia. Fourteen other co-conspirators charged in the case pleaded guilty in the months following their arrests in November 2016. These other defendants in the case have been sentenced to prison terms ranging from two to twelve years in prison.
As court records and evidence admitted at trial demonstrate, law enforcement investigated the drug ring in late 2015, and early 2016, utilizing pole cameras, confidential sources, wiretaps and undercover officers to document the drug distribution activity, and identify the leaders of the ring. In November 2016, law enforcement served search warrants on more than two dozen locations seizing two kilos of cocaine, more than $180,000 cash, and more than 20 firearms – including a loaded AK47. Those totals were in addition to the seizures made during the investigation: eight kilos of methamphetamine, two kilos of cocaine, nearly a kilo of heroin, and more than $117,000 in cash.
The investigation was named “Operation Car Wash” as some of the conspirators would meet up to conduct their deals at a Mount Vernon car wash.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration (DEA) in conjunction with the FBI, Whatcom Gang & Drug Task Force and Skagit County Inter-Agency Drug Task Force. The investigation was supported by the Auburn Police Department, Snohomish County Sheriff’s Office, Snohomish County Regional Drug & Gang Task Force, Mt. Vernon Police Department, Washington State Patrol, Whatcom County Sheriff’s Office, Skagit County Sheriff’s Office, Everett Police Department and Seattle Police Department. Additional assistance was provided by HSI; CBP, and Royal Canadian Mounted Police.
The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Steven Masada.
If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website (link is external). If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (866-833-6546) to talk to a teen volunteer.
Law Enforcement Officers Join Students for a Day of LearningRead the Press Release
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, the Franklin County Sheriff’s Office, and Franklin County School will present a BLAST Program event on Thursday to approximately 50 students.
Event: BLAST Program
Location:
Franklin County School1250 Hwy 98
Eastpoint, Florida 32328Date: Thursday, January 18, 2018
Time: 9:00 a.m. – 1:00 p.m. EST
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students with media permissions will be identified.)
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media and public, and videography and photography is permitted.
- Domestic Violence: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to law enforcement.
This session is open to the media and public, and videography and photography is permitted.
- Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media and public, and videography and photography is permitted.
- Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
- United States Attorney’s Office, Northern District of Florida
- Franklin County Sheriff’s Office
- Franklin County School
- Bureau of Alcohol, Tobacco, Firearms & Explosives
- Homeland Security Investigations
- United States Postal Inspection Service
- Florida Highway Patrol
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
Kansas City, Kan., Man Sold Six to Ten Kilos of Meth a WeekRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was sentenced Wednesday to 15 years in federal prison after admitting he distributed six to 10 kilos of methamphetamine a week, U.S. Attorney Tom Beall said.
Luis Enrique Martinez-Rosales, 25, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count possession with intent to distribute. In his plea, he admitted the Kansas Highway Patrol found two kilograms of methamphetamine and almost $50,000 in cash when they stopped his car on I-70 in Wyandotte County, Kan. He received methamphetamine in loads smuggled into the United States in tractor-trailers and wired payment to Mexico.
Beall commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Tris Hunt for their work on the case.
Investigation Leads to Arrest of Three Men for Cocaine TraffickingRead the Press Release
BOSTON – Three Worcester men were arrested and charged yesterday evening following a joint federal and state investigation targeting narcotics trafficking in central Massachusetts.
Deibby Garcia, 36, his brother, Japhet Garcia, 33, and Erick Cruz, 28, all of Worcester, were charged with conspiring to distribute and possess with the intent to distribute in excess of 500 grams of cocaine, possession with the intent to distribute in excess of 500 grams of cocaine, and use of a telecommunications facility (cellphones) in furtherance of narcotics trafficking. The defendants will appear in federal court in Worcester for a detention hearing on Friday, Jan.19, 2018.
According to court documents, in early December 2017, Japhet Garcia and another individual, entered a Worcester Postal Facility and attempted to retrieve a package shipped from Puerto Rico that had been found to contain approximately three kilograms of cocaine.
Subsequent to those events, a court-authorized wiretap of a phone belonging to Deibby Garcia revealed discussions between Deibby Garcia and an unidentified individual concerning the delivery of two packages from Puerto Rico on Jan. 16, 2017. The intercepts further revealed that Deibby Garcia made arrangements with Erick Cruz, a U.S. Postal Service letter carrier, to have the packages picked up once they had arrived in Massachusetts.
As alleged in court documents, during the course of communications between Jan. 9, 2018, and Jan. 13, 2018, Cruz texted Deibby Garcia two addresses, both of which were on Cruz’s assigned route as a letter carrier. Deibby Garcia, in turn, forwarded the addresses to what authorities believed to be his cocaine source in Puerto Rico. On Jan. 12, 2018, two packages were sent from Puerto Rico to the addresses provided by Cruz and Deibby Garcia. On Monday, Jan. 15, 2018, one package was searched pursuant to a federal search warrant and was found to contain three kilograms of cocaine. The following day, federal agents permitted the second package to be provided to Cruz for delivery.
Agents thereafter intercepted discussions between Cruz and Deibby Garcia in which they discussed arrangements for Deibby Garcia to have the second package picked up, and discussed what had happened to the package that had been seized and searched. Soon after, the men were arrested and the second package was recovered.
The charge of conspiring to distribute in excess of 500 grams of cocaine provides for a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of use of a telecommunications device in furtherance of a violent felony provides for a sentence of no greater than four years in prison, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the United States Postal Inspection Service; Massachusetts Attorney General Maura Healey; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent; made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hazleton Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Antonio Perez, age 45, of Hazleton, Pennsylvania, pleaded guilty on January 16, 2018, before U.S. Magistrate Judge Karoline Mehalchick, to distribution of heroin.
According to United States Attorney David J. Freed, Perez admitted to selling heroin to another person on July 2, 2014, in Hazleton. Perez sold slightly less than 100 grams of heroin, which is equivalent to just under 4,000 retail bags of heroin.
Judge Mehalchick ordered a pre-sentence investigation, and noted that Senior U.S. District Court Judge Richard P. Conaboy will schedule a date for sentencing.
Perez was indicted by a grand jury in October 2014, following an investigation by special agents of the Federal Bureau of Investigation and Scranton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former P&G Employee Sentenced for Defrauding CompanyRead the Press Release
CINCINNATI – Susan M. Ruhe, 54, of Cincinnati, was sentenced in U.S. District Court to 21 months in prison and four years of supervised release for one count of bank fraud. Ruhe defrauded her former employer, Procter & Gamble, of more than $454,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Ruhe was employed by Procter & Gamble, the multinational consumer goods company headquartered in Cincinnati, from July 1989 through June 2013. Her last job title was Executive Assistant in the Global Beauty Care Business Development Group. In that capacity, her primary job duties were executive travel planning, expense reporting, calendar management and the scheduling of team meetings and events.
From November 2007 through the end of her employment, Ruhe defrauded the company by requesting that the payment department issue corporate checks to be used to pay for expenses that Procter & Gamble had incurred in the ordinary course of business. In reality, she used the corporate checks to make payments on her personal credit card accounts. Both accounts were through Citibank.
To conceal her scheme, Ruhe used the email of an executive without consent to approve her requests for corporate checks. She would then designate an unwitting third party from whom she would retrieve the checks in accordance with company policy. In total, she obtained 40 fraudulent corporate checks through this scheme.
Ruhe pleaded guilty in June 2017, and as part of the plea agreement, agreed to pay $454,116.47 in restitution to Procter & Gamble.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.
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Former Owner of Springfield, Tennessee-Based Smart Data Solutions, LLC Pleads Guilty to Multi-Million Dollar Healthcare Benefits SchemeRead the Press Release
Bart Sidney Posey, Sr., 50, a Springfield, Tenn. resident and former owner of the Springfield-based companies American Trade Association (ATA) and Smart Data Solutions (SDS), pleaded guilty yesterday before United States District Judge Aleta A. Trauger, to leading a multi-million dollar insurance fraud scheme that harmed thousands of victims across the country, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to court documents, from January 2008 through March 2010, Posey and his co-conspirators engaged in a widespread fraud designed to defraud consumers looking for health insurance. Through ATA and SDS, Posey sold and caused others to sell bogus health insurance products to unsuspecting consumers. Posey admitted that he duped consumers by denying legitimate health insurance claims, selling an insurance product that was not backed by a legitimate underwriter, and embezzling millions of dollars of insurance premiums paid to his company by victims. Posey used those premium payments to buy, among other things, a Harley Davidson motorcycle, a sports car, college football tickets, and to pay off a $500,000 personal mortgage.
Posey operated his companies much like a Ponzi scheme – paying off some insurance claims with new premiums to create the appearance of a legitimate insurance carrier and to keep the scheme going. Posey admitted that some of his victims had pre-existing conditions and were stuck with thousands of dollars of unpaid medical bills due to his fraud.
As part of his plea agreement, Posey pleaded guilty to mail fraud and to embezzling health care fraud premium payments. He faces up to twenty years in prison on the mail fraud conviction and up to ten years for the embezzlement conviction. Posey also agreed to forfeit over $6 million. He will be sentenced on April 30, 2018.
This case was investigated by the FBI; the United States Postal Inspection Service; the United States Department of Labor Employee Benefits Security Administration and Office of Inspector General; the United States Secret Service; and the IRS-Criminal Investigation. Assistant United States Attorneys Ryan R. Raybould, Henry C. Leventis and Thomas J. Jaworski are prosecuting the case.
Former Head of Barclays New York Foreign Exchange Operation Indicted for Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
Update: On March 4, 2019, Senior U.S. District Court Judge Charles Roberts Breyer of the Northern District of California granted the Rule 29 motion and granted an acquittal. Mr. Bogucki was acquitted on all charges.
SAN FRANCISCO – Robert Bogucki, the former head of Barclays Capital Inc.’s (Barclays) New York foreign exchange trading operation was charged yesterday in an indictment for his alleged role in a scheme to defraud a client of Barclays through a method commonly referred to as “front-running.” The charges relate to the manipulation of foreign exchange options in advance of an exceptionally large trade by the Palo Alto, California-based Hewlett-Packard Company (HP) in 2011.
Acting U.S. Attorney Alex G. Tse of the Northern District of California, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) made the announcement.
Bogucki, 45, of East Setauket, New York, was charged in an indictment filed in the Northern District of California on Jan. 16, with one count of conspiracy to commit wire fraud and six counts of wire fraud. Bogucki will make his initial appearance on Wednesday, Jan. 17, at 2:00pm in Brooklyn, New York, before U.S. Magistrate Judge Cheryl L. Pollak of the Eastern District of New York.
“The indictment filed in this case alleges Bogucki and others corruptly manipulated the foreign exchange market for the benefit of his bank and his own pocket,” said Acting U.S. Attorney Tse. “This Office will continue to investigate and prosecute those who attempt to enrich themselves by corrupting our markets.”
“Robert Bogucki and others allegedly not only betrayed his client’s confidences, but also risked undermining public trust in the foreign exchange options market,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners remain committed to protecting American interests by investigating and prosecuting sophisticated schemes such as the one alleged in this indictment.”
“The indictment returned today charges a fraudulent manipulation scheme where the defendant betrayed Barclays’ client by lying and misusing the client information, and then masked the activities,” said Inspector General Lerner. “We are pleased to work with our law enforcement partners in investigating these matters and protecting the integrity of the banking system against such alleged abuses.”
According to the indictment, in September and October 2011, Bogucki misused information provided to him by HP, which had hired Barclays to execute a foreign exchange transaction related to the planned acquisition of a UK-based company. Barclays was selected to execute the foreign exchange transaction – which required the sale of 6 billion British pounds worth of options – in September 2011. The defendant and other Barclays employees assured HP and its employees that they understood the need to keep the planned transaction, which was exceptionally large, and therefore “market-moving,” confidential. Instead, Bogucki and other Barclays employees allegedly used the confidential information they received to manipulate the price of “volatility,” a metric that affects the value of foreign exchange options. During conversations with Bogucki, one Barclays trader stated that he and other traders would “bash the sh*t out of” and “spank the market” to depress the price of volatility. Other Barclays traders also discussed “hammer[ing] the market lower” in order to decrease the value of the HP’s options.
The indictment alleges that, as part of the scheme, Bogucki made misrepresentations to HP and its employees about Barclays’ activities and the state of the options market that concealed the self-serving nature of Barclays’ actions. Specifically, the indictment alleges that Bogucki directed options trading in a way that was designed to depress the price of volatility, to the benefit of Barclays and at HP’s expense.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. This is the second indictment brought against the head of a foreign exchange desk of a global financial institution related to the Criminal Division’s ongoing investigation of fraud and manipulation in the foreign exchange markets.
Assistant U.S. Attorney Robert Leach, Assistant Chief Brian Young of the Criminal Division’s Fraud Section, and Department of Justice Trial Attorney Justin Weitz are prosecuting the case. The investigation is being conducted by the FDIC’s Office of Inspector General.
Former El Dorado Hills Resident Pleads Guilty to Theft of VA BenefitsRead the Press Release
SACRAMENTO, Calif. — Julia A. Wilbert, 53, of San Juan Capistrano, pleaded guilty today to theft of government benefits, United States Attorney McGregor W. Scott announced.
According to court documents, from June 2007 through March 2015, Wilbert stole approximately $112,275 in federal government benefit payments intended for her aunt, who died in June 2007. Wilbert’s aunt was an eligible recipient of Dependency and Indemnity Compensation benefits paid by the United States Department of Veterans Affairs. Wilbert had exclusive access to her deceased aunt’s bank account, was the individual who reported her aunt’s death, and proceeded to perform periodic transfers of thousands of dollars of VA benefit money from that account to her own bank account. When confronted, Wilbert admitted that she had been acting out of “personal greed.” Wilbert has agreed to pay back the full amount to the government as a part of her plea agreement.
This case is the product of an investigation by the Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Wilbert is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 18, 2018. Wilbert faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Boston Police Sergeant Detective Sentenced for Making False Statements and Unlawfully Entering Secure Airport AreaRead the Press Release
BOSTON – A former Boston Police Sergeant Detective was sentenced today in federal court in Boston for repeatedly making false statements so that he could fly armed on personal trips and enable a friend to fly with him without being screened by security personnel at Boston’s Logan International Airport.
Bruce E. Smith, 53, of Randolph, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year of probation and ordered to pay a fine of $7,500. In September 2017, Smith agreed to plead guilty to three counts of making false statements to the Transportation Security Administration (TSA) and the Department of Homeland Security and one count of unlawfully entering a secure airport area with intent to evade security requirements. Smith also agreed to resign from the Boston Police Department.
Beginning in 1989, Smith was employed by the Boston Police Department and most recently served as a Sergeant Detective assigned to District E-13, Jamaica Plain, as a district detective supervisor. Between May 2011 and April 2017, Smith flew armed on approximately 28 separate trips departing from Logan Airport even though he was not on official business, which is a violation of federal law. On each of those trips, he falsely claimed that he had obtained supervisor approval for his travel. On at least two of the trips, Smith also escorted or attempted to escort a friend through Logan Airport without security screening. Smith falsely claimed that his friend was a “dignitary” under Smith’s official police escort. When questioned by TSA security personnel as to what type of dignitary his friend was, Smith falsely replied, “I am not at liberty to divulge that information.” In fact, Smith’s friend, who has a criminal record, is not a dignitary, but a mobile clinic operator.
United States Attorney Andrew E. Lelling; Boston Police Commissioner William Evans; and Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement today. The investigation was conducted jointly by BPD’s Anti-Corruption Division and DHS-OIG. Assistant U.S. Attorney Zachary R. Hafer of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Former Baruch College Basketball Coach and Athletics Official Pleads Guilty to Embezzling over $700,000Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of MACHLI JOSEPH in connection with his embezzlement of over $700,000 in funds intended for Baruch College for the rental of their athletic facilities. JOSEPH pled guilty before U.S. District Judge Paul A. Crotty to conversion and misapplication of money from a program receiving federal funds.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Machli Joseph, Baruch College’s former basketball coach, stole hundreds of thousands of dollars meant for Baruch that he instead spent largely on himself. This Office is committed to ensuring that our city’s schools are not taken advantage of by the very individuals meant to support them.”
According to the Information and Complaint filed in this case, and statements made during the plea proceeding:
MACHLI JOSEPH served as an athletic department official at Baruch College between 2002 and 2016. He served as Baruch’s women’s basketball head coach between 2004 and 2014, its men’s basketball coach in 2002, as assistant athletic director from 2003 to 2011, and as associate athletic director from 2011 until August 2016. At times when the Baruch College gym was not being used by the school’s athletic teams, it could be rented out to outside parties. In his administrative capacity, JOSEPH had control over those gym rentals and their scheduling.
On numerous occasions between 2010 and 2016, JOSEPH rented the gym to outside parties, ostensibly on behalf of Baruch College. In instructing the renting parties on how to provide payment, however, JOSEPH directed that payment be made to entities that were not, in fact, connected to Baruch College. Instead, they were entities with bank accounts over which JOSEPH had personal control, some of which merely sounded like Baruch-affiliated entities. On several occasions, JOSEPH simply directed that payment be made directly to him or individual associates of his. Many of these funds were ultimately spent on personal expenses and items for JOSEPH and his family, including renovations to his home in New Jersey. All told, the scheme improperly diverted over $700,000 of payments intended for Baruch College.
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JOSEPH, 43, of Elizabeth, New Jersey, pled guilty to one count of embezzlement and misapplication concerning a program receiving federal funds. The charge carries a maximum term of 10 years in prison. JOSEPH is scheduled to be sentenced by Judge Crotty on April 17, 2018. The maximum potential penalty is prescribed by Congress and is 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 Department of Education – Office of the Inspector General and the New York State Inspector General’s Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Catherine E. Geddes and Martin S. Bell are in charge of the prosecution.
Florida Man Sentenced to Prison for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
U.S. District Judge Marcia G. Cooke sentenced a Miami-area man to 12 months and one day in prison and three years’ supervised release for threatening to shoot members of a mosque in Miami Gardens, Florida, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
Gerald Wallace, 35, pleaded guilty in October 2017 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call. During the plea hearing, Wallace admitted that on the evening of Feb. 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida. The defendant admitted leaving a hate-filled and profanity-laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, “I’m gonna shoot all ya’ll.” He further admitted that by leaving this threatening message, he obstructed congregants who worship at the Islamic Center from freely exercising their religious beliefs.
“Our Constitution and laws guarantee all people – regardless of where they worship – the right to live free from violence and discrimination,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute those who commit violent acts of hate by threat or action.”
“Hate crimes violate our country’s most fundamental principles,” said U.S. Attorney Benjamin G. Greenberg. “Today, Wallace was sentenced for depriving the Islamic Center’s congregants of the right to freely exercise their religion. This office will continue to aggressively prosecute hate crimes in order to protect those in our community who would otherwise fall victim to discriminatory violence.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Florida Investor who Made More Than $250,000 from Insider Trading Scheme Sentenced to One Year in PrisonRead the Press Release
TRENTON, N.J. B A Florida man who admitted trading on material, nonpublic information concerning Gilead Sciences Inc.’s $11 billion acquisition of New Jersey-based Pharmasset Inc. was sentenced today to 12 months and one day in prison, U.S. Attorney Craig Carpenito announced.
Jay Fung of Delray Beach, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with conspiracy to commit securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2011, a conspirator who worked at a global wealth management firm learned that Pharmasset was going to be sold for a significant profit per share. On Nov. 18, 2011, the conspirator passed the inside information to Fung, who then purchased call options and shares of Pharmasset.
On Nov. 21, 2011, Gilead publicly announced that it had entered into an agreement to acquire Pharmasset for approximately $11 billion, or $137 per share in cash. The purchase price represented an approximately 89 percent premium over Pharmasset’s closing price of $72.67 on Nov. 18, 2011.
Following the public announcement of Gilead’s acquisition of Pharmasset, Fung sold the Pharmasset shares and options he had purchased on Nov. 18, 2011, for total illegal profits of more than $250,000.
In addition to the prison term, Judge Thompson sentenced Fung to three years of supervised release. He has already forfeited $345,245.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone and Robert Cohen, and its Philadelphia Regional Office, under the direction of Sharon Binger.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Today’s sentencing is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed more than18, 000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Five indicted for firearms violationsRead the Press Release
Five people were indicted for firearms violations, U.S. Attorney Justin E. Herdman said.
Indicted are: Marriece L. Ellis, 25, and Warren J. McCray, Jr., 23, both of Akron; Shauntare Davis, 31, of Warren; Frank Arthur Thompson, III, 45, of Conneaut, and James D. Butler, 55, of Mansfield.
Ellis and McCray were charged with being felons in possession of firearm. They were arrested by Akron police officers investigating a report of shots fired on Oct. 22, 2018. Ellis was found to have a loaded Glock 9mm pistol despite a prior conviction for having a weapon while under disability. McCray was found to have a Wesson Arms .44-caliber pistol despite prior convictions for tampering with evidence and carrying concealed weapons, according to court records.
Davis is charged with being a felon in possession of a firearm. He was arrested by Warren Police Department after officers responded to a call of armed man making threats on Oct. 21, 2017. He was found to have shotgun ammunition despite prior convictions for aggravated robbery and felonious assault, according to court records.
Thompson is charged with being a felon in possession of a firearm. He possessed a Mossberg .22-caliber rifle and 592 rounds of ammunition in August 2017 despite a prior conviction for possession of marijuana with intent to distribute, according to the indictment.
Butler is charged with being a felon in possession of a firearm. Butler, on Aug. 24, 2017, possessed a Walther 9 mm pistol and ammunition despite prior convictions for robbery and burglary, according to the indictment.
Butler was arrested after the owner of Madison Sporting Arms in Mansfield complained Butler stole the firearm from his store and showed a police officer video surveillance that recorded the theft, according to court documents.
These cases are being prosecuted by Assistant U.S. Attorneys David M. Toepfer, Mark S. Bennett and Aaron P. Howell following investigations by the Bureau of Alcohol, Tobacco and Firearms and Akron Police Department (Ellis and McCray), Warren Police Department and Ohio Adult Parole Authority (Davis), North Kingsville Police Department (Thompson) and the Mansfield Police Department (Butler).
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Felon Sentenced for Possessing a FirearmRead the Press Release
HELENA—Jeremy Michael Sullivan, 44, of Boulder, Montana, was sentenced to 30 months in prison, 3 years’ supervised release, and a $100 surcharge by United States District Court Judge Sam E. Haddon on Wednesday, January 17, 2018 for possessing a firearm as a prohibited felon. Sullivan was arrested after being investigated for selling a stolen handgun. Sullivan was previously convicted of felony theft in Utah.
The charge against Sullivan is the result of an investigation by the Boulder Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Tom Bartleson prosecuted the case.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Federal Jury Convicts Elmira Man of Drug Trafficking and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Devaughn Salazar, a/k/a “Snake,” 41, of Elmira, NY, of knowingly possessing with intent to distribute and distributing cocaine, possessing a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm. The charges carry a maximum penalty of life in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Sean Eldridge and Charles Moynihan, who handled the prosecution of the case, stated that on October 21, 2012, members of the Elmira Police Department recovered a Taurus .40 caliber pistol during a robbery investigation. Further investigation revealed that, in June of 2012, the owner of the handgun reported it stolen to the Addison Police Department. Agents from the Bureau of Alcohol Tobacco, Firearms and Explosives followed up and determined that the defendant acquired the handgun from Kevin Krowiak, the person who stole it, by trading cocaine for the gun. After acquiring the gun but prior to its recovery by the Elmira Police Department, defendant sold the gun to a third person.
The defendant, having been previously convicted on May 6, 2009, in Steuben County Court of a felony offense, was legally prohibited from possessing any firearm.
The trial verdict is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge, Ashan Benedict; as well as members of the Elmira Police Department, under the direction of Chief Joseph Kane.
Sentencing is scheduled for March 27, 2018, at 9:15 a.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
Farmington Woman Sentenced on an Illegal Gambling OperationRead the Press Release
St. Louis, MO – Carol Jean Hazer was sentenced to 12 months and one day in prison after pleading guilty to running an illegal gambling business and filing false tax returns that failed to list her income from the gambling business.
According to court documents, Hazer organized and ran an illegal high stakes sports betting operation, in part by utilizing internet websites. She engaged in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes. Hazer also filed false tax returns trying to conceal the income from the illegal gambling business. The gambling business accrued nearly $500,000 in revenue during its operation.
On January 16, 2017, Samuel Douglas Hazer, Carol Hazer’s ex-husband, was sentenced to 12 months and one day in prison following a plea of guilty to multiple counts of running an illegal gambling business and money laundering.
Hazer, 60, of Farmington, pled guilty in October to one felony count of illegal gambling business; one felony count of interstate activity in furtherance of gambling; one felony count of money laundering; and four counts of filing a false tax return. She appeared today for sentencing in front of U.S. District Court Judge Henry E. Autrey.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
El Paso, Texas Man Sentenced to 63 Months for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Christopher Joshua Cortes, 33, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 63 months in prison for his conviction on a methamphetamine trafficking charge. Cortes will be on supervised release for three years after completing his prison sentence.
Cortes was arrested on April 17, 2017, on an indictment charging him with conspiring to distribute methamphetamine from March 2016 through June 2016, and distributing methamphetamine on June 6, 2016. According to the indictment, Cortes committed the offenses in Dona Ana County, N.M. The indictment included forfeiture provisions requiring Cortes to forfeit $6,500, the money involved in the drug transaction, to the United States.
On Aug. 2, 2017, Cortes pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute, and admitted that he voluntarily agreed with others to distribute methamphetamine in Dona Ana County from about March 13, 2016 through June 6, 2016. Cortes further admitted distributing approximately 407 grams of pure methamphetamine to an undercover law enforcement agent on June 6, 2016.
This case was investigated by Homeland Security Investigations and was prosecuted by Special Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office.
Dominican National Sentenced on Heroin and Cocaine ChargesRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for his role in a heroin distribution conspiracy operating in and around Waltham.
Richard R. Fernandez, 23, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge Dennis Saylor IV to time served and one year of supervised release. In September 2018, Fernandez pleaded guilty to eight counts of distribution and possession with intent to distribute heroin and cocaine. In March 2017, Fernandez was arrested along with three others, Jose C. Torres, Angel G. Rivera Serrano, and Luis Humberto Arias Lara.
Fernandez and his co-defendants distributed heroin in and around Waltham over the course of several months. Each of the defendants sold drugs to an undercover investigator. On March 30, 2016, law enforcement executed federal search warrants at two residences and two alleged stash houses where they seized approximately $200,000 in cash and approximately 1.5 kilograms of narcotics.
In August 2017, Arias Lara was sentenced to five months in prison. In September 2017, Rivera Serrano was sentenced to 10 months in prison. Torres pleaded guilty and is awaiting sentencing.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistance was provided by members of the Suburban Middlesex County Drug Task Force, which is comprised of the Waltham, Watertown, Newton, Arlington, Belmont, Weston and Lexington Police Departments. Assistant U.S. Attorney Miranda Hooker of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
District Man Found Guilty of Charges in Shooting at Columbia Heights Metro StationRead the Press Release
WASHINGTON – Cesar Morales, 23, of Washington, D.C., was found guilty by a jury today of charges stemming from a shooting that took place last summer at the Columbia Heights Metro station in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Morales was found guilty of assault with a dangerous weapon, possession of a firearm during a crime of violence, and related firearm offenses. The verdict followed a one-week trial in the Superior Court of the District of Columbia. The Honorable Jennifer A. Di Toro scheduled sentencing for April 4, 2018.
According to the government’s evidence, on Aug. 25, 2017 at approximately 12:20 p.m., Morales chased the victim around the Columbia Heights Metro station. As they reached the top of the escalators on the west entrance, Morales fired one shot with a .22-caliber Ruger towards the victim. Luckily, the victim was able to run away and get through the station unharmed. At the time of the shooting, dozens of people were in and around the station.
Morales fled westbound on Irving Street NW, making a right on Hyatt Place and then a left onto Park Road NW. Within minutes, officers with the Metropolitan Police Department (MPD) were able to contact and attempted to stop the defendant and another individual. When officers asked to see Morales’s hands, the defendant reached in his waistband and fled from the officers. Officers observed Morales toss a firearm. Morales was able to get away.
Video surveillance captured the shooting outside the Metro station and the victim running inside the station. Body-worn camera of the officers captured the stop minutes after the shooting. MPD released video and an investigation led to Morales’s arrest on Aug. 31, 2017. He has been in custody ever since. A casing was recovered from the Metro station stairs that was determined to have been fired by the firearm recovered in defendant’s flight path.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from Metropolitan Police Department and Metro Transit Police Department. She expressed appreciation for the assistance provided by the Forensic Science Laboratory of the District of Columbia Department of Forensic Sciences. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialist Tiffany Fogle, Litigation Technology Specialist Anisha Bhatia, and Assistant U.S. Attorney Jennifer Kerkhoff. Finally, she acknowledged the efforts of Assistant U.S. Attorney Monica Trigoso, who investigated and prosecuted the case.