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26 February 2018
Man Charged in Federal Indictment for Distribution of Oxycodone Resulting in the Death of Former University of South Carolina StudentRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that the Drug Enforcement Administration arrested Anthony James Edward Hunt, age 22, of Columbia. Hunt was charged in a federal indictment with unlawfully distributing oxycodone, which resulted in the death of a former University of South Carolina student on January 28, 2016. Hunt faces a maximum penalty of life imprisonment. The indictment further charges Hunt with unlawfully distributing alprazolam (commonly known as Xanax) and possessing a firearm in furtherance of a drug trafficking crime.
Multiple law enforcement agencies participated in this case, including the DEA Tactical Diversion Squad, City of Columbia Police Department, Richland County Sheriff’s Office, Richland County Coroner’s Office, and University of South Carolina Police Department.
Ms. Drake stated that this case represents the Department of Justice’s commitment to combatting the unlawful distribution of opioids. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
The United States Attorney stated that all charges in this case are merely accusations and that the defendant is presumed innocent until proven guilty.
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Man Charged in Connection with ShootingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Rashad Nashid, 38, of Burlington, VT, made his initial appearance today in the United States District Court in Burlington, following his arrest for being a felon in possession of a firearm. U.S. Magistrate Judge John M. Conroy detained Nashid pending trial.
According to court documents, in the early morning hours of February 26, 2018, outside of Nectars and Esox on Main Street in Burlington, the defendant, a convicted felon, was approached by an unknown male he knew from an altercation approximately one year prior. The defendant pulled out a gun and shot at the male in order to make the male “back down.” The bullet instead struck an innocent bystander who happened to be standing on the sidewalk near the defendant. The bystander was taken to the UVM Medical Center where she remains. The defendant was arrested a short time later and found in possession of the firearm. The defendant has multiple previous felony convictions in New Jersey.
The United States Attorney, Christina E. Nolan, emphasized that the charge against Nashid is merely an accusation and that the defendant is presumed innocent unless and until his is proven guilty.
If convicted, the defendant faces up to ten years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The case is being investigated by the Burlington Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. Nashid is represented by the Federal Public Defender’s Office. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Long Island Man Pleads Guilty to Conspiracy Charge Related to Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN FERRAIOLI, 41, of Sayville, N.Y., waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.
According to court documents and statements made in court, this scheme involved the promotion and sale of securities of Waters Club Worldwide, Inc. and Waters Club Holdings, Inc. (collectively, “Waters Club”), which provided yacht charter services to customers. From approximately August 2016 to February 2017, FERRAIOLI and Thomas Heaphy, Jr., solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”). According to FERRAIOLI and his co-conspirators, Waters Club intended to form a membership-based “time share” club with a fleet of yachts that members jointly owned and could use for yachting vacations.
In pleading guilty, FERRAIOLI admitted that he and his co-conspirators made certain misrepresentations to prospective investors in Waters Club, including that investors’ money would be used to develop the business and fund the operations of Waters Club, and that FERRAIOLI and his co-conspirators were being compensated with stock for recruiting investors. In truth, FERRAIOLI and Heaphy received approximately half of all the money he induced investors in Waters Club to invest. Due in part to the payments to FERRAIOLI and Heaphy, Waters Club lacked the capital to develop its membership-based club, Waters Club did not pursue an IPO, and the shares purchased by investors were unsalable.
FERRAIOLI and Heaphy recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. One of the victims of the Waters Club scheme was a Connecticut resident who paid $475,000 to Waters Club. FERRAIOLI’s total gain from this scheme was $297,546, and Heaphy’s total gain was $307,658.
FERRAIOLI pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
On August 9, 2017, FERRAIOLI pleaded guilty in New Haven federal court to one count of conspiracy to commit mail and wire fraud and one count of tax evasion stemming from his role in an unrelated stock “pump and dump” scheme. In that scheme, between approximately 2011 and July 2016, FERRAIOLI, Heaphy and others induced investors to purchase securities in shell companies with virtually no legitimate business activities. After the share price of the securities became artificially inflated, certain of FERRAIOLI’s co-conspirators sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
FERRAIOLI and Heaphy began to sell Waters Club securities after they learned that they were under federal investigation for the stock pump and dump scheme in the summer of 2016.
At least six Waters Club victim-investors have also been identified as victims of the earlier stock pump and dump scheme.
Heaphy, 43, of East Moriches, N.Y., previously pleaded guilty to charges stemming from both the stock pump and dump scheme and the Water’s Club investment fraud scheme.
FERRAIOLI and Heaphy are released on bond pending sentencing. Sentencing dates have not been scheduled.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Law Enforcement Announces New Initiative to Combat Violent Crime in LexingtonRead the Press Release
Initiative partners federal, state, and local law enforcement agencies, to enhance coordination of efforts and available resources
LEXINGTON, Ky. – Today, Robert M. Duncan, Jr., the United States Attorney for the Eastern District of Kentucky, and Lou Anna Red Corn, the Fayette Commonwealth’s Attorney, along with the Lexington Police Department (LPD), the Fayette County Sheriff’s Office (FCSO), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and other local, state and federal law enforcement partners announced a new working group to enhance the joint effort to combat violent crime and drug trafficking in Lexington.
The working group, which met formally for the first time on January 18, 2018, meets twice a month. The new working group joins two existing violent crime reduction efforts, the Cease Fire Project and the Fayette County Violent Crime Task Force, under one working group, to enhance coordination of efforts and available resources.
The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a violent crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime. PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.
The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area, including those who commit acts of violence while armed with a firearm and those who commit armed drug trafficking. As part of the collaborative partnership, members of the LPD, FCSO, ATF, FBI, DEA, and the other law enforcement partners meet regularly to share intelligence and to review cases about the most violent offenders in Lexington, including those cases in which the offender’s conduct involves possession or use of a firearm. The cases are evaluated to insure that the most significant penalties will be applied to the offenders, whether in state or federal court. The ultimate goal of the collaboration is to reduce violent crime and make Lexington neighborhoods safer for everyone.
“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By combining our resources and working together to investigate and prosecute the most violent individuals in Lexington, we are sending a clear message that we will protect our communities against those who do them harm. If you are using firearms to commit acts of violence or are illegally selling drugs you are on notice: your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”
“The Fayette Commonwealth’s Attorney Office has worked closely with the United States Attorney’s Office on the Cease Fire Project for many years,” said Fayette Commonwealth’s Attorney Lou Anna Red Corn. “Cease Fire focuses primarily on armed career criminals. Our local Violent Crimes Task Force (VCTF) began meeting regularly in October 2016, with a goal of sharing information and reducing criminal activity committed by gang members. The joining of Cease Fire and the VCTF under the enhanced PSN program, along with the education, prevention, and reentry efforts, gives us a real opportunity to impact violent crime in Lexington, and I am glad for this collaborative initiative.”
In addition to enforcement, the PSN program also incorporate prevention and education efforts. “We want to encourage partnerships within our communities, not just within the law enforcement community,” said U.S. Attorney Duncan. As part of those efforts, PSN participants will meet with various community organizations, civic groups, and schools to better understand the community’s needs, to provide education about the dangers of violent crime, and to look for positive solutions to reduce crime and increase safety.
Additionally, the PSN program is supportive of reentry meetings in which those returning from prison sentences are provided information about transitioning to free society, and the potential consequences for continuing to commit crimes.
Today’s announcement observes U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors: reinvigorate the Project Safe Neighborhoods Program, in an effort to reduce rising violent crime in America and combat access to illegal drugs, particularly opiates and opioids.
Las Cruces Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – John Bevel, 42, of Las Cruces, N.M., pled guilty today in federal court to child pornography charges that require a sentence of a mandatory minimum of 15 years of imprisonment and under a plea agreement that limits the United States to seeking a maximum sentence of 45 years of imprisonment. Bevel will be on supervised release for a term to be determined by the court and will be required to register as a sex offender after completing his prison sentence.
Homeland Security Investigations (HSI) and the Las Cruces Police Department (LCPD) arrested Bevel in Oct. 2017, on a criminal complaint alleging possession of child pornography offenses in Oct. 2017, in Dona Ana County, N.M. According to the complaint, HSI and LCPD initiated an investigation into Bevel in early Oct. 2017, when the National Center for Missing and Exploited Children received a tip that Bevel’s account allegedly contained files containing child pornography. The complaint also alleged that Bevel’s smartphone contained hundreds of images of child pornography.
During today’s proceedings, Bevel pled guilty to a four-count felony information charging him with: (1) advertising visual depictions of minors engaging in sexually explicit conduct; (2) distributing child pornography; (3) receiving child pornography; and (4) possessing child pornography. In entering the guilty plea, Bevel admitted that on Oct. 17 and 18, 2017, he advertised and received visual depictions of minors engaging in sexually explicit conduct by communicating with another person on a messenger application on his smartphone about trading child pornography images and videos. Bevel also admitted possessing child pornography on Sept. 24, 2017, by maintaining an online storage account to store child pornography images and videos that he could access with his smartphone and laptop computer. Bevel also admitted distributing child pornography on Sept. 25, 2017, by sending numerous child pornography videos to another individual by using a messenger application on his smartphone.
Bevel remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI and the LCPD. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Jacksonville Human Trafficking Customer Sentenced to 15 Years in Federal Prison for Using Underage “Models” to Produce Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Thomas Leslie Carr (50, Jacksonville) to 15 years in federal prison for using underage “models” to engage in sexually explicit conduct for the purpose of producing pornographic images and videos. A federal jury found him guilty on June 1, 2017.
According to court documents, in 2012, law enforcement officers began a human trafficking investigation involving the prostitution of minor and adult females throughout Florida by an individual named Michael Gallon. The investigation revealed that Gallon had recruited his victims to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. During the investigation, agents identified Carr was one of Gallon’s regular customers.
On October 28, 2013, Gallon was arrested and charged with sex trafficking of minors and distribution of child pornography. Two weeks later, a federal search warrant was executed at Carr’s residence. During an interview, Carr admitted that he had hired about 15 girls from Gallon over a three-year period. He stated that Gallon called him when he had girls available in Jacksonville and that the two would meet so that Carr could pay Gallon to select girls to take back to his residence. At home, Carr paid the females for photo sessions that usually consisted of photographing the female stripping off her clothing and then posing nude. He stated he attempted to have sex with the women and, if they were reluctant, Carr offered them more money.
During the search of Carr’s residence, agents recovered computer media that contained images and videos of at least two minors, ages 15 and 17, engaged in sexually explicit conduct. Carr admitted to doing “photo shoots” with each of these minors. The videos depicted Carr engaging in sexual intercourse with one of the girls.
In 2014, Gallon pleaded guilty and was sentenced to 33 years and 9 months in federal prison.
This case was investigated by the Lakeland Police Department, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Tampa and Jacksonville. It was prosecuted by Assistant United States Attorneys D. Rodney Brown, Beatriz Gonzalez, and Stacie Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Huntington man pleads guilty to federal gun chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal gun crime, announced United States Attorney Mike Stuart. John Weathers, 32, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigative efforts of the Drug Enforcement Administration and the West Virginia State Police Violent Crime and Drug Task Force.
U.S. Attorney Stuart said, “The good citizens of Huntington need to know that my office is committed to cleaning up the streets by aggressively prosecuting drug criminals and holding them accountable with serious prison time.”
On December 5, 2017, officers with the DEA and the West Virginia State Police Violent Crime and Drug Task Force conducted a controlled buy of methamphetamine from Weathers. After determining Weathers was staying at the Econo Lodge in Huntington, officers obtained a search warrant and located a STAR Firestar 9mm pistol in a bag on the floor of the room. Weathers was prohibited from possessing any firearm under federal law because of a 2012 federal drug conviction in the Southern District of West Virginia.
Weathers faces up to 10 years in federal prison when he is sentenced on May 7, 2018.
Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Gainesville Physician and Ex-Wife Indicted in Health Care Fraud ConspiracyRead the Press Release
GAINESVILLE, FLORIDA – Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49, both from Gainesville, Florida, have surrendered on a federal indictment charging them with health care fraud and conspiracy to commit health care fraud. The indictment also charges Harris with multiple counts of money laundering. The charges were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that while owning and operating Reliant Family Practice in Gainesville, Harris and Schabert defrauded health care benefit programs of $4.4 million through the submission of fraudulent claims. According to the indictment, between January 2013 and July 2016, Harris and Schabert caused claims to be submitted to Medicare and Blue Cross Blue Shield for chemical peels, dermabrasions, and acne surgery using false diagnoses of rosacea, acne, and actinic keratosis. The indictment further alleges that Harris laundered approximately $3.1 million dollars in proceeds of the health care fraud scheme.
Schabert and Harris made their initial appearance on the charges at the U.S. District Courthouse in Gainesville. The trial is scheduled for April 24, 2018.
If convicted of charges in the filed indictment, Schabert and Harris face a maximum term of 20 years in prison for health care fraud conspiracy and 10 years in prison for each of the health care fraud counts. Harris faces a maximum term of 10 years in prison for each of the money laundering counts.
This indictment is the result of a joint investigation conducted by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigation, and the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 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.
Fort Wayne Man Sentenced to 120 Months ImprisonmentRead the Press Release
FORT WAYNE – Marco A. Garcia, 31, of Fort Wayne, Indiana, was sentenced before Chief Judge Theresa L. Springmann on his plea of guilty to the charge of conspiracy to distribute cocaine, announced U.S. Attorney Thomas L. Kirsch II.
Garcia was sentenced to 120 months imprisonment and 5 years of supervised release.
According to documents in this case, from January 2015-July 2016, Garcia was part of a conspiracy to distribute cocaine.
This case was investigated by the Federal Bureau of Investigation’s (FBI) Safe Streets and Gang Task Force, whose members include the FBI, the Indiana State Police, the Allen County Sherriff’s Department, and the Fort Wayne Police Department, with assistance from the Drug Enforcement Administration, the Internal Revenue Service and the Allen County Drug Task Force. This case was prosecuted by Assistant U.S. Attorneys Anthony W. Geller and Stacey Speith.
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Former Las Vegas City Councilman Pleads Guilty to Wire FraudRead the Press Release
A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.
Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31.
“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”
“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”
“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”
According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council. According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme.
Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.
To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.
The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case.
Former Las Vegas City Councilman Pleads Guilty to Wire FraudRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.
Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31, 2018.
“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”
“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”
“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”
According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council. According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme.
Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.
To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.
The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case.
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Former HSI Confidential Informant Sentenced for Obstruction of JusticeRead the Press Release
Former Homeland Security Investigations Confidential Informant Miguel Rodriguez-Sierra was sentenced today by United States District Judge Darrin P. Gayles for obstructing justice by attempting to sell cooperation to a federal inmate to allow that inmate to obtain an unwarranted sentencing reduction, in violation of Title 18, United States Code, Sections 1503. Rodriguez-Sierra was sentenced to a term of 12 months in prison, to be followed by one year of supervised release. Rodriguez-Sierra’s sentence also included an order of forfeiture and the imposition of a $100 special assessment.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Jay H. Donly, Special Agent in Charge, U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG), and Michael T. Moreland, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), made the announcement.
Rodriguez-Sierra was originally charged by Criminal Complaint and subsequently pled guilty to an Information charging him with obstruction of justice. According to the facts in the Complaint and admitted at the change of plea hearing, Rodriguez-Sierra was offering to falsely credit the inmate with having provided information and assisted with cooperation in exchange for secret personal payments from the inmate. In reality, the inmate played no role, and explicitly had informed Rodriguez-Sierra that he had no information to provide and would need for Rodriguez-Sierra to provide him (the inmate) with whatever information he would need to tell agents that might interview him.
The inmate was an individual who was prosecuted by the United States Attorney’s Office for the Southern District of Florida, and was serving a lengthy term of imprisonment. Unbeknownst to Rodriguez-Sierra, the inmate reported this illegal offer to law enforcement and cooperated in this investigation, introducing an undercover agent to Rodriguez-Sierra to handle the negotiations and logistics of the scheme. On the first occasion, Rodriguez-Sierra received an initial $5000 payment towards the amount he requested before the investigating agencies informed him that they were not accepting the cooperation he was falsely crediting to the inmate.
Undeterred, Rodriguez-Sierra re-initiated contact with the inmate and the undercover agent a number of months later, offering a different scenario whereby the inmate could secretly buy credit from Rodriguez-Sierra for having supposedly helped disrupt a drug trafficking operation that he actually had nothing to do with. Once again, a $5000 down payment was made to Rodriguez-Sierra before this phase of the investigation was terminated.
Had either of Rodriguez-Sierra’s schemes worked as he intended, he would have obstructed justice by facilitating the inmate’s purchase of information to support a sentence reduction based on his supposed substantial assistance to the government. In particular, this Office maintains a policy of refusing to accept cooperation or information that has been purchased or funded by an inmate seeking a sentence reduction. Moreover, as an informant for HSI, Rodriguez-Sierra was aware of this policy, and his scheme was designed specifically to avoid this restriction by having the inmate lie about the circumstances surrounding the cooperation and information he was offering
Mr. Greenberg commended the investigative efforts of the DHS-OIG, ICE-OPR and the Federal Bureau of Investigation. This case was prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Rilwan Adeduntan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Financial Advisor Sentenced to Two Years in Prison for Defrauding Client in Private Investment SchemeRead the Press Release
URBANA, Ill. – A Champaign, Ill., man who worked as a financial advisor at a Kankakee, Ill., bank has been ordered to serve two years in prison for falsely representing a private investment scheme to a customer that resulted in the client losing money. On February 23, 2018, Paul Schuerger, 45, of the 2700 block of Hunters Pond Run, was ordered to serve 24 months in prison and to pay $100,000 in restitution. Schuerger was allowed to remain on bond pending notice from the federal Bureau of Prisons of the date and location to report to begin serving his sentence.
On Oct. 24, 2017, Schuerger entered pleas of guilty to wire fraud and money laundering. Schuerger admitted that in early 2012, when Schuerger was working at a Kankakee bank as a financial advisor, he falsely represented to a bank customer that he had a private investment opportunity that would provide a 10 percent rate of return. The customer gave Schuerger $100,000 to invest as Schuerger proposed. Instead of investing the money, Schuerger deposited the money into a personal bank account and used it for his personal benefit, including to pay off personal debts.
The FDIC Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
Federal Prosecutors Charge Former YWCA Child Care Director for Stealing from Non-profit EmployerRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a former YWCA child care director for stealing nearly $200,000 from the non-profit over several years, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
The U.S. Attorney’s Office filed a one-count information in U.S. District Court charging RIKKI ROSS, 37, of Hoover, with federal program fraud for stealing from an agency that received more than $10,000 in federal benefits annually between 2012 and 2017 through grants or other assistance. The Young Women’s Christian Association of Central Alabama is a non-profit organization headquartered in Birmingham. The YWCA focuses on providing quality child development programs for children of homeless and working poor families, affordable housing, domestic violence services and social justice programming.
Ross worked as director of the YWCA Child Development Center from August 2010 until she resigned in 2017, according to a plea agreement with the government filed in association with today’s charge. Ross agrees to forfeit $198,597 to the government as proceeds of illegal activity, and to pay that same amount in restitution to the YWCA, according to her plea agreement.
“Stealing from any non-profit is unconscionable, but to steal program fees that were intended to provide a positive space for kids is truly indefensible,” Town said. “The Secret Service did an excellent job, as always, bringing Ross to justice.”
“This case highlights the excellent work the Secret Service Financial Crimes Task Force is conducting,” Williams said. “This task force is a strong force-multiplier of Birmingham metro law enforcement that fights financial crimes affecting our community.”
As part of Ross’ job as the YWCA’s childcare director, she was responsible for processing credit and debit card payments from parents for childcare services, according to her plea agreement. The YWCA CDC uses Square to process debit and credit card payments. Square is a point-of-sale provider that works in conjunction with the user’s smartphone or tablet device. The Square reader is a small removable magnetic stripe reader that plugs into the headset jack or Lightning port of a smartphone or tablet device.
The YWCA CDC utilized a Square account named “YWCA Child Development Center.” The YWCA authorized Ross to use that account to process payments for childcare services provided at the YWCA. In April 2012, Ross created a Square account of her own and named it “YWCA CDC,” according to her plea agreement. She linked the YWCA CDC account to her personal Regions Bank account.
Ross used the fraudulent Square account to charge parents and guardians for childcare services at the YWCA center, according to her plea agreement. Between April 2012 and August 2017, Ross stole more than $190,000 intended as payment for childcare services at the YWCA.
The maximum penalty for federal program fraud is 10 years in prison and a $250,000 fine.
The Secret Service investigated the case in conjunction with the Birmingham Police Department. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the case.
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Federal Jury Convicts Dallas Man of Bankruptcy FraudRead the Press Release
DALLAS - On Wednesday, Gary Beach, 66, of Dallas, Texas, was convicted of four bankruptcy related felony counts following a seven-day trial before U.S. District Judge David Godbey. The announcement was made by Tanya K. Pierce, Acting United States Attorney for the Northern District of Texas.
According to evidence presented at trial, Beach obtained a $857,500 home and tried to hide $15,000 in monthly payments before he filed for bankruptcy protection from an $812,000 debt created by a lawsuit that Beach brought and lost.
Specifically, following an $812,000 loss in a civil trial in Harris County, Texas, Beach used a trust fund created by his father to hide payments that he was receiving for continuing to work in the oil and gas industry. Beach signed an agreement with Black Horse Resources (owned by his brother-in law in Utah) to perform consulting work in the development of an oil field. This participation agreement obligated Black Horse to pay a $15,000 monthly management fee for the services. However, the agreement purported to have Beach performing the services on behalf of his father’s Beach 2010 Trust. As the sole trustees and beneficiaries of the trust, Beach and his son had complete control over the money and it was channeled to pay Beach’s living expenses of nearly $10,000 a month. Three months later, Beach formed Beach Petroleum, LLC, with himself as sole manager. That same day, Beach had the trust transfer its interest in the participation agreement to Beach Petroleum, so that all future $15,000 monthly consulting fee payments could be made to Beach Petroleum. As sole manager of Beach Petroleum, Beach had direct control over the $15,000 payments.
Before Beach filed for bankruptcy, Black Horse paid $120,000 in consulting fees to either Beach directly or to Beach indirectly through payments to Beach Petroleum. The payments continued and reached $210,000 before Beach’s last deposition. Beach did not disclose any of this money until he was confronted with documentary proof of their existence under cross-examination during a bankruptcy deposition. Even then, the payments continued and approached half a million dollars.
Three days before Beach filed for bankruptcy protection, he also used the trust to purchase a residence in Highland Park, Texas for $857,500. Additional monies were then spent on improvements to the house until it was worth almost $1 million dollars.
The United States Trustee’s Office referred Beach’s false statements to the United States Attorney’s Office. After an investigation and trial, Beach was convicted of three separate counts of the felony offense of Making False Statements Under Penalty of Perjury for certain bankruptcy documents that he filed omitting the $15,000 payments. Beach was also convicted of Making a False Oath for giving intentionally false testimony about the payments from Black Horse Resources during one of his bankruptcy depositions.
For each count of conviction, Beach faces a maximum penalty of 5 years in federal prison and a $250,000 fine. Beach will remain on bond pending sentencing, which is set for June 4, 2018.
This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorneys, David Jarvis and Walt Junker.
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Federal Judge Sentences Drug Dealer to More Than 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. Jonathan Cortez, 24, of Charlotte, was sentenced today to 135 months in prison and five years of supervised release on drug charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Greg Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court records, on February 13, 2017, an undercover officer contacted Cortez to arrange the purchase of 15 kilograms of cocaine. The undercover officer made arrangements to meet with Cortez and another individual at a residence in Mint Hill, N.C., to purchase seven kilograms of cocaine at first, and another eight kilograms at a later time. On the same day, court records show that law enforcement observed Cortez heading toward the meeting location. When law enforcement attempted to stop Cortez’s vehicle, Cortez sped away, eventually crashing the vehicle. Cortez then fled in a second vehicle, but he was taken into custody by law enforcement a short while later.
After Cortez was apprehended, law enforcement executed a search warrant at his residence and seized over seven kilograms of cocaine and two handguns. Cortez has prior felony convictions and he is prohibited from possessing a firearm.
In May 2017, Cortez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked HSI and CMPD for investigating the case.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
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.
Erie Man Sentenced to 5 Years in Prison in Tax Refund Fraud CaseRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail and ordered to pay $62,653.00 in restitution on his conviction of conspiracy to defraud the government with respect to claims and aggravated identify theft, United States Attorney Scott W. Brady announced today. The 60 month sentence is consecutive to Johnson’s 120 month sentence he received on October 8, 2013 for a federal firearm conviction.
United States District Judge David S. Cercone imposed the sentence on James Lamont Johnson, 52.
According to information presented to the court, Johnson engaged in a conspiracy to defraud the United States by submitting false claims for income tax refunds using individuals’ identification information which was unlawfully obtained. Johnson stole the identities of 56 individuals who were clients of the Community of Caring, a non-profit social service agency in Erie, where he had access to the clients’ personal identification information. Johnson utilized TurboTax and filed approximately 71 tax returns, seeking refunds from the IRS of more than $100,000.00. Johnson and his co-conspirator inputted the stolen identity information and used wage information from W-2 forms taken from actual employees of local businesses to perpetrate the fraudulent tax refund scheme. The scheme to defraud successfully obtained more than $60,000.00 in tax refunds. The refunds came in the form of prepaid debit cards and U.S. Treasury checks, which were mailed to addresses where Johnson could access the mail and retrieve the refunds.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Johnson.
Employee of United States Department of Agriculture Office in Houston County Arrested After Being Charged with Crop Insurance FraudRead the Press Release
Montgomery, Ala. – Today, Anna Marie Knowles, 36, of Headland, Alabama, was arrested on charges of wire fraud, theft of government property, and using a false document in a matter under the jurisdiction of the federal government, announced United States Attorney Louis V. Franklin, Sr., from the Middle District of Alabama. Knowles was employed in the United States Department of Agriculture’s (USDA) Farm Service Agency office located in Dothan, Alabama.
The charges stem from allegations that Knowles was carrying out a crop insurance fraud scheme. According to the indictment, in 2016, Knowles obtained crop insurance through a federal program, the Noninsured Crop Disaster Assistance Program (NAP). NAP is a USDA program that provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, or prevented planning occur due to a natural disaster. Knowles insured a crop of summer squash that she was planning to grow on land in Houston County, Alabama. Thereafter, Knowles filed a claim through the federal crop insurance program. In that claim, she falsely reported that a drought had caused her to lose the majority of her squash crop. She also submitted forged receipts to establish that she had spent money to purchase squash seed and fertilizer. After filing the claim, Knowles fraudulently obtained $116,500.00 through NAP. The indictment also states that, in her job at the USDA office, Knowles was responsible for administering federal crop insurance programs in Houston County.
If convicted of the most serious charge, Knowles faces a maximum sentence of 20 years’ in federal prison. She also faces substantial monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Department of Agriculture’s Office of Inspector General. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
El Salvadoran National Sentenced to Prison for Illegally Reentering the U.S. after DeportationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN CARLOS ACOSTA, also known as “Juan Carlos Acosta Santos,” 32, a citizen of El Salvador last residing in Manchester, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on September 27, 2006, ACOSTA was convicted in Manchester Superior Court of assault in the first degree and sentenced to one year of imprisonment, time served, and a one-day conditional discharge. On December 11, 2006, he was removed to El Salvador.
In February 2015, ACOSTA was arrested in East Hartford on charges of breach of peace in the second degree and interfering. On April 17, 2015, he was removed to El Salvador without a resolution on the state charges.
In December 2015, ACOSTA was found in the U.S. near Rio Grande Valley, Texas. On December 23, 2015, he was removed to El Salvador.
On February 12, 2017, the Connecticut State Police arrested ACOSTA for assault in the second degree with a weapon, and related misdemeanor offenses.
ACOSTA has been detained since arrest. On November 30, 2017, he pleaded guilty to one count of illegal reentry of a removed alien.
The state charges against ACOSTA are pending in Rockville Superior Court.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
El Paso, Texas Man Pleads Guilty to Federal Heroin and Methamphetamine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Jesus Gerardo Prieto, Jr., 38, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to heroin and methamphetamine trafficking charges.
Prieto was arrested in Oct. 2017, on a criminal complaint charging him with heroin and methamphetamine trafficking offenses on Oct. 17, 2017, in Dona Ana County, N.M. U.S. Border Patrol agents arrested Prieto at the checkpoint in Las Cruces after seizing approximately 432 grams of methamphetamine and 117 grams of heroin that were concealed inside Prieto’s vehicle.
Prieto subsequently was charged in a five-count indictment on Jan. 17, 2018, with distributing methamphetamine on Aug. 29, 2017, in Dona Ana County; distributing methamphetamine and heroin on Oct. 6, 2017, in Luna County, N.M.; and possession of methamphetamine and heroin with intent to distribute on Oct. 19, 2017, in Dona Ana County.
During today’s proceedings, Prieto pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Prieto faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. Prieto remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the U.S. Border Patrol and the Border Enforcement Security Taskforce of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Dutch Citizen Convicted of Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that on Friday, February 23, 2018, a federal court in Benton found Pieter Roor, 66, of the Netherlands, guilty of conspiracy to commit wire fraud and two counts of wire fraud.
Evidence presented at trial proved beyond a reasonable doubt that Roor was guilty of founding and operating on-line investment programs. At trial, Roor admitted receiving five million dollars from investors. Roor faces a maximum of twenty years in prison. Sentencing is scheduled for May 31, 2018, before U.S. District Judge J. Phil Gilbert. A preliminary order forfeiting Roor’s assets was entered on February 23, 2018.
The investigation into these crimes was conducted by the United States Postal Inspection Service with assistance from the Netherland’s FIOD investigative office.
Delaware County Man and Schoharie County Woman Arrested on Child Sexual Exploitation ChargesRead the Press Release
ALBANY, NEW YORK – Joshua Carey, age 37, of Stamford, New York, and Ariel Machia, age 27, of Middleburgh, New York, were arrested on February 22 and charged with sexual exploitation of a 1-year-old, whom they used to produce child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Carey and Machia appeared on February 23 before United States Magistrate Judge Christian F. Hummel, and were detained pending further proceedings.
The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
If convicted, Carey faces at least 25 years and up to 50 years in prison, post-imprisonment supervised release of at least 5 years and up to life, and a maximum $250,000 fine. Machia faces at least 15 years and up to 30 years in prison, post-imprisonment release of at least 5 years and up to life, and a maximum $250,000 fine. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, with the assistance of the Schoharie County Sheriff’s Office, the Delaware County Sheriff’s Office and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Davenport Man Sentenced to 90 months in Prison for Methamphetamine TraffickingRead the Press Release
DAVENPORT, Iowa-- On February 23, 2018, United States Chief District Court Judge John A. Jarvey sentenced Chelsea Ross Meier, III, to 90 months in prison as the result of his plea of guilty to possession of methamphetamine with the intent to distribute. Meier, age 35, of Davenport, Iowa, was also ordered to serve four years of supervised release and pay $100 to the Crime Victim’s Fund.
On April 10, 2017, Meier was found in the parking lot of the Davenport-Rhythm City Casino in possession of 11.4 grams of ice methamphetamine. Meier later admitted that from November 2016 to April 2017, he purchased approximately one ounce of methamphetamine a week and distributed this methamphetamine to others.
This investigation was conducted by the Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, and Scott County Sheriff’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Cocaine and Meth Trafficker Extradited from Mexico Sentenced to 15 Years in PrisonRead the Press Release
ERIE, Pa. - A former resident of Mexico has been sentenced in federal court to 180 months in jail on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Ignacio Montes Leon, 37.
According to information presented to the court, from June 2013 through February 2015, Leon engaged in a conspiracy with 18 co-defendants to distribute and possess with intent to distribute between 50 and 150 kilograms of cocaine, and more than 100 grams of 99% pure methamphetamine. According to information provided to the court, Montes Leon was the local leader of a drug trafficking organization involved in importing cocaine and methamphetamine from Mexico into Texas, which was then transported to Erie, Pennsylvania and elsewhere in hidden compartments in vehicles. Montes Leon was responsible for coordinating the drug shipments with higher-level conspirators in Texas, was directly selling pure methamphetamine to individuals in Erie on multiple occasions, and was responsible for distributing multi-kilogram quantities of cocaine at a time to his co-conspirators. In December 2013, law enforcement officers seized four kilograms of cocaine in Erie, Pennsylvania connected to Montes Leon. According to information provided to the Court, on November 1, 2014, after Montes Leon traveled to Texas to coordinate another drug shipment, two of his drug couriers were transporting the cocaine when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. Montes Leon arranged for those couriers to travel to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than five kilograms of cocaine. Montes Leon then fled into Mexico. Law enforcement officers located Montes Leon in Mexico, and he was arrested and extradited back into the United States to face prosecution in Erie.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Immigration and Customs Enforcement/Homeland Security Investigations; the Drug Enforcement Administration; the Pennsylvania State Police; U.S. Border Patrol; the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section; the U.S. Postal Inspection Service; the U.S. Marshals Service; the Bureau of Alcohol Tobacco Firearms and Explosives; and the Arkansas State Police for the investigation leading to the successful prosecution of Leon.
Citizen of Ecuador Sentenced to Prison for Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RODOLFO BOLIVAR TEPAN, 38, a citizen of Ecuador last residing in Danbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 19 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in February 2016, TEPAN was sentenced in Danbury Superior Court to 10 years of incarceration, execution suspended, and five years of probation, for risk of injury to a minor. In October 2016, he was deported from the U.S. to Ecuador.
TEPAN illegally reentered the U.S. and, on May 12, 2017, was arrested by Danbury Police for failure to register as a sex offender. He was convicted of the offense and, on July 28, was sentenced in state court to 18 months of incarceration.
TEPAN has been detained since his arrest. On November 29, 2017, he pleaded guilty to one count of reentry of a removed alien.
Judge Shea ordered TEPAN’s federal sentence to be served concurrently with his state sentence.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Charlotte Man Is Sentenced to 12.5 Years in Prison for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Charles Gary Humphrey, 42, of Charlotte, was sentenced to 151 months in prison for transporting child pornography. Chief U.S. District Judge Frank D. Whitney also ordered Humphrey to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According filed court documents and today’s sentencing hearing, on October 9, 2015, law enforcement became aware that an individual, later identified as Humphrey, was using a peer-to-peer network to view and trade child pornography online. On January 25, 2016, Humphrey transported 55 files that contained a mix of child pornography and child erotica to an undercover FBI agent. Law enforcement executed a search warrant at Humphrey’s residence, seizing his computer. A forensic examination of the computer revealed that it contained more than 5,000 image images and videos of children engaging in sexually explicit conduct. Court records show that some of the images and videos contained identified victims of 25 different series of child pornography.
The FBI’s Crimes Against Children Squad investigated the case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charlotte Man Is Sentenced to 10 Years in Prison for Second Child Pornography ConvictionRead the Press Release
CHARLOTTE, N.C. – Clarence Robert Brown, Jr., 61, of Charlotte, was sentenced today to 10 years in prison for possessing videos depicting child pornography, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max. O. Cogburn, Jr. also ordered Brown to serve 20 years of supervised release.
Brown pleaded guilty on September 25, 2017, to possessing child pornography on his computer. At the time, Brown was on supervised release for a 2005 federal conviction of possession and transportation of child pornography, for which he had served five years in prison. According to the terms of his supervised release for the prior conviction, Brown was prohibited from owning a computer, an internet hub, or any device that could access the internet, without obtaining approval from the U.S. Probation Office. On August 15, 2016, a probation officer discovered the computer and thumb drives at Brown’s home while conducting a routine visit.
According to court records, Brown admitted to purchasing the items so he could access the internet, even though he knew he could not “have the internet.” A forensic analysis of Brown’s computer revealed that it contained child pornography.
“This is Brown’s second federal conviction for possessing sexually explicit material depicting minors,” said U.S. Attorney Murray. “The online exploitation of children is a serious crime and the 10-year prison term imposed by the Court reflects that. The lengthy sentence also ensures that Brown can no longer harm and victimize innocent children.”
In making today’s announcement, U.S. Attorney Murray thanks the FBI and the U.S. Probation Office in the Western District of North Carolina for investigating the case.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Champaign Felon to Serve 35 Years in Federal Prison for Possessing Guns Related to Trafficking Crack CocaineRead the Press Release
URBANA, Ill. – Samuel J. Yarber, 45, of the 2000 block of Moreland Blvd., Champaign, Ill., has been ordered to serve 35 years in federal prison. On Feb. 23, 2018, Yarber was sentenced to 10 years for trafficking crack cocaine to be followed by the mandatory minimum 25 years for possession of firearms in furtherance of drug trafficking. Yarber was also ordered to remain on supervised release for eight years following his release from prison. Yarber has remained in the custody of the U.S. Marshals Service since his arrest on Dec. 14, 2016.
On Sept. 20, 2017, Yarber pled guilty to possession of crack cocaine with intent to distribute and to being a felon in possession of a firearm. Following a two-day trial in October 2017, the jury convicted Yarber of possession of firearms in furtherance of drug trafficking.
According to court documents, government evidence demonstrates that soon after Yarber was released from federal prison after serving a sentence for prior federal drug charges, Yarber spent several months distributing more than a kilogram of crack cocaine. On Dec. 14, 2016, Yarber was arrested and found in possession of crack cocaine, over an ounce of heroin, and other illegal drugs. In furtherance of this conduct, Yarber acquired and possessed three semi-automatic firearms, including a stolen pistol and a Tec-9 with an extended magazine. In addition, Yarber received firearms as payment for crack cocaine.
The charges were investigated by the Champaign Street Crimes Task Force, including the Champaign Police Department, Urbana Police Department. University of Illinois Police Department, and the Champaign County Sheriff’s Office. The case was prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
California Man Sentenced to 20 Years in Prison for Sex TraffickingRead the Press Release
TUCSON, Ariz. – Last week, Derek Lamont Terry, 29, of Colton, Calif., was sentenced by U.S. District Judge Cindy K. Jorgenson to 240 months’ imprisonment. Terry previously pleaded guilty to sex trafficking of children and to two counts of transportation of minors with intent to engage in prostitution.
The investigation revealed that Terry was managing, coordinating, and receiving the proceeds from a sex trafficking operation. Between January and April 2016, Terry trafficked a minor female between Arizona and California. Advertisements for escort services for the victim were posted online in California and Arizona. The victim was rescued in April 2016 as a result of an undercover operation.
Shortly after, Terry recruited a second victim, another minor, bringing her from California through Arizona to Texas and back to Arizona. The investigation revealed advertisements for escort services for the victim posted in California, Arizona, and Texas. The victim was rescued on June 8, 2016, when she was discovered with Terry during a routine traffic stop by the Arizona Department of Public Safety near Benson, Ariz.
“I see you as a predator of these young teenaged girls,” commented Judge Jorgenson, as she pronounced the sentence.
Upon release from prison, Terry will be on lifetime supervised release. He will have to register as a sex offender.
The investigation in this case was a joint effort by the Federal Bureau of Investigation, the Arizona Department of Public Safety, and the Tempe Police Department, with the cooperation of Arizona State University. The prosecution was handled by Arturo Aguilar and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson, and Margaret Perlmeter, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: 16-CR-1350-TUC-CJK-1; 16-CR-1375-PHX-CJK-1
RELEASE NUMBER: 2018-014_Terry
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man Admits Cross-Country Conspiracy to Distribute over 141 Kilograms of Heroin and CocaineRead the Press Release
TRENTON, N.J. – A National City, California, man today pleaded guilty to his role in a conspiracy to transport 141 kilograms of narcotics from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Hector Lucas-Ramos, 42, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with conspiracy to possess with intent to distribute more than one kilogram of heroin and five kilograms of cocaine.
According to the documents filed in this case and statements made in court:
On Aug. 27, 2017, Lucas-Ramos was arrested in Essex County while he and Abraham Castro, 33, of San Diego, California, were driving a tractor trailer. After the tractor trailer was seen committing several traffic violations, law enforcement officers conducted a motor vehicle stop. During a subsequent search of the tractor trailer, law enforcement officers recovered five large duffle bags containing a total of 56 kilograms of heroin and 85 kilograms of cocaine.
Lucas-Ramos admitted today that he and Castro drove the tractor trailer from California to deliver the narcotics to other conspirators in New Jersey.
The conspiracy charge to which Lucas-Ramos pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. His sentencing is scheduled for June 27, 2018. Castro pleaded guilty to his role in the conspiracy on Nov. 14, 2017, and awaits sentencing.The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation.
This case is being conducted under the auspices of the OCDETF. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Paula Notari Esq. New York
Brown Sworn in as United States AttorneyRead the Press Release
SHERMAN, Texas – Joseph D. Brown has taken the oath of office to become the 35th United States Attorney for the Eastern District of Texas. Brown was nominated by President Donald Trump on Nov. 2, 2017 and confirmed by the U.S. Senate on Feb. 15, 2018. He took the oath of office today from U.S. District Judge Amos Mazzant.
“It is a tremendous honor and privilege to join the United States Attorney’s Office,” said U.S. Attorney Brown. “I appreciate the President’s confidence and I look forward to making a difference in East Texas. Prosecution and law enforcement are in my blood, and helping to keep our communities safe is important work that I really love.”
Brown, 47, of Sherman, Texas, is the top-ranking federal law enforcement official in the Eastern District of Texas, which is comprised of 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 93 employees, including 46 prosecutors. Brown has been the District Attorney for Grayson County, Texas, for the last 17 years. He was previously an attorney with the Dallas law firm of Cowles & Thompson, P.C., and had a private practice in Sherman.
Brown received his undergraduate degree from the University of Texas at Austin, his law degree from the Southern Methodist University School of Law, and is a member of the State Bar of Texas. Brown and his wife, Megan, have been married for over 20 years and are the proud parents of two daughters in high school.
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Bridgeport Man Sentenced to 14 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARRYL MORRIS, also known as “King Sincere,” 33, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 168 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, in November 2014, MORRIS met a 15-year-old girl who was working in prostitution in New York. Shortly thereafter, MORRIS brought the minor victim to his home in Bridgeport and arranged to have advertisements of her prostitution services posted on Backpage.com. The minor victim then began to see prostitution customers at MORRIS’s residence and gave the money she received to MORRIS. MORRIS also drove the minor victim to other locations in Connecticut, New York, New Jersey, Massachusetts and Washington, D.C., where she saw prostitution customers.
The minor victim worked as a prostitute for MORRIS from November 2014 to April 2015, and from November 2015 to May 2016, seeing approximately 10 customers per day.
MORRIS engaged in sexual activity with the minor victim, and began beating her a few weeks after she arrived in Bridgeport.
On May 2, 2016, investigators found the minor victim at a hotel in East Hartford after she contacted her mother who then called police. MORRIS had recently beaten the minor victim, who had visible scars and signs of physical abuse. She also had a tattoo on the back of her neck with the name “King Sin” underneath a large bar code.
MORRIS has been detained since his arrest on August 16, 2016. On May 12, 2017, he pleaded guilty to one count of sex trafficking of a minor.
Judge Meyer ordered MORRIS to pay the minor victim restitution of $100,000, which is a conservative estimate of how much money the minor victim earned in prostitution when she was with MORRIS.
This matter was investigated by the Federal Bureau of Investigation, Bridgeport Police Department, East Hartford Police Department, Stratford Police Department and New York Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Stephen B. Reynolds.
Brattleboro Memorial Hospital Pays $1,655,000 to the United States and State of Vermont to Resolve Allegations of False Claims Act ViolationsRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that Brattleboro Memorial Hospital, Inc. (BMH) has paid $1,655,000 to the United States and the State of Vermont to resolve civil claims that BMH violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. § 630, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which BMH submitted the alleged false claims.
BMH is a not-for-profit community hospital located in southeastern Vermont whose services include out-patient laboratory work. On February 5, 2016, relator Amy Beth Main filed a complaint against BMH under the qui tam provisions of the federal False Claims Act. The United States Attorney’s Office for the District of Vermont intervened in that action on February 22, 2018 after having investigated and resolved the matter. The government contends that from approximately January 2012 through September 2014 BMH knowingly submitted or caused to be submitted a number of outpatient laboratory claims lacking documentation necessary to support reimbursement by Medicare and Medicaid.
“Health care providers doing business in Vermont need to have systems in place to ensure that the claims they submit for taxpayer reimbursement are valid under the governing rules and regulations,” said United States Attorney Christina E. Nolan. “We will hold accountable those who knowingly or recklessly bill the government for health care services without proper documentation to support their claims.”
The settlement announced today resolves the foregoing allegations without the need for further litigation. Pursuant to the settlement agreement, the settlement and payment are neither an admission of liability by BMH, nor a concession by the United States or State of Vermont that their claims are not well founded.
This matter was investigated by the United States Attorney’s Office for the District of Vermont, with assistance from the Office of the Inspector General of the Department of Health and Human Services, and by the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Owen C.J. Foster handled the matter on behalf of the United States. Vermont Assistant Attorney General Steven J. Monde of the Medicaid Fraud and Residential Abuse Unit represented the State of Vermont. Norman Watts represented relator Amy Beth Main. Kevin Henry and Anne Cramer of the law firm Primmer Piper Eggelston & Cramer, PC represented BMH.
Beaufort Brothers Sentenced in Federal Carjacking CaseRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that brothers Lorenzo Vince Green, age 29, and Javontay Jamal Green, age 25, of Beaufort, South Carolina, were sentenced in federal court in Charleston, South Carolina, for carjacking. Lorenzo Vince Green was also convicted of brandishing a firearm during the commission of a crime of violence. United States District Judge Richard M. Gergel, of Charleston, sentenced Lorenzo Vince Green to 130 months’ imprisonment, to be followed by 5 years of supervised release. His prior record includes prior felony convictions for burglary and armed robbery. Javontay Jamal Green was sentenced to 97 months’ imprisonment to be followed by 3 years of supervised release.
Evidence presented at the change of plea hearing established that on February 27, 2016, the Green brothers approached a handicapped and wheelchair bound man as he was attempting to enter his vehicle after leaving a restaurant in Beaufort. Lorenzo Vince Green then pointed a firearm at the victim before the brothers took the victim’s car keys and fled with his vehicle. Officers located the vehicle a short time later and arrested the brothers as they were attempting to flee through a wooded area.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Beaufort County Sheriff's Office and the Fourteenth Circuit Solicitor’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Bank Robber Sentenced to over 15 Years in PrisonRead the Press Release
HONOLULU – WALLACE J. SILVA, JR., 64, was sentenced on February 15, 2018, to 188 months imprisonment by United States District Judge Leslie E. Kobayashi for committing four bank robberies in Honolulu in December 2016. Silva pled guilty to those charges on April 19, 2017, before Judge Kobayashi.
Kenji M. Price, United States Attorney for the District of Hawaii, said that according to the information produced before the court, Silva, during December 2016, went on a crime spree where he committed ten bank robberies in Honolulu. Although the indictment charged only four of those ten bank robberies, and Silva pled guilty to only those four, as part of the plea agreement he admitted to committing all ten bank robberies and agreed to make restitution for all ten robberies. Silva robbed First Hawaiian Bank, Bank of Hawaii, and American Savings Bank of a total of about $32,000. The court ordered Silva to pay restitution in the amounts of $1,990 to First Hawaiian Bank, $8,480 to Bank of Hawaii, and $20,281 to American Savings Bank.
According to information produced to the court, Silva had two previous bank robbery convictions in two entirely separate cases. In 1997, Silva received a prison sentence of 112 months for one bank robbery. In 2005, five days after Silva completed that prison sentence and while he was on supervised release for it, he began committing more bank robberies. He later pleaded guilty to committing four bank robberies, and, on September 6, 2007, he was sentenced to a term of imprisonment of 151 more months in prison. The bank robberies for which Silva received his most recent sentence began within four months after his release in August 2016. Silva admitted during the sentencing hearing that he viewed committing a bank robbery as "going to work."
The Federal Bureau of Investigation, Honolulu Police Department, and United States Marshals Service conducted the investigation that resulted in these convictions. Assistant U.S. Attorney Marshall Silverberg handled the prosecution.
Bancroft Man Sentenced for Bank Robbery and Firearms ChargesRead the Press Release
United States Attorney Joseph P. Kelly announced that Jeffrey S. Bonneau, age 38, of Bancroft, Nebraska, was sentenced today by the Honorable Laurie Smith Camp having previously pled guilty to bank robbery. Bonneau was sentenced to 30 months’ imprisonment, 3 years’ supervised release and 150 hours of community service after previously pleading guilty to robbing the First Bank of Bancroft.
On April 20, 2017, at approximately 5:35 p.m., Bonneau rode a stolen ATV to the First Bank of Bancroft and parked it on the sidewalk. He was wearing a dark motorcycle helmet, camouflage clothing and gloves. He entered the bank and demanded money from the teller, He was given $6,745.00 and then fled the bank on the ATV. He was tracked to a grove area near 2345 R Road. At one point he told officers he had a gun and fired a shot in the air. After he fired the shot, Bonneau fled again through the grove and was ultimately arrested after he crashed the ATV. He was taken to Pender Hospital and it was found he had methamphetamine in his system. All of the money was recovered. There was no evidence he used or had the gun during the bank robbery.
Bonneau also pled guilty to possession of a firearm by a user of a controlled substance. He received the same sentence as for the robbery and the sentences were ordered to run concurrently.
The case was investigated by the Federal Bureau of Investigation, Bancroft Police Department, Cuming County Sheriff’s Department and Nebraska State Patrol.
Albuquerque Felon Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jonah Jeter, 24, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Jeter in Feb. 2017, on a two-count indictment charging him with being a felon in possession of firearms and ammunition on Nov. 17, 2015, in Bernalillo County, N.M. Jeter was prohibited from possessing firearms or ammunition because he previously had been convicted of second-degree murder.
During today’s proceedings, Jeter pled guilty to being a felon in possession of a firearm and ammunition. In entering the guilty plea, Jeter, a previously convicted felon, admitted that he was unlawfully in possession of a firearm, which he threw into the yard of an Albuquerque residence on Nov. 17, 2015.
At sentencing, Jeter faces a maximum penalty of ten years in federal prison. Jeter remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorneys David M. Walsh and Kimberly A. Brawley.
Aberdeen Man Sentenced to Five Years in Prison for Distribution of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Brian Kenneth McCort, age 41, of Aberdeen, Maryland today to five years in prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Garbis ordered that, upon his release from prison, McCort must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service – Mid Atlantic; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on three occasions between June and July 2015, using a peer-to-peer (“P2P”) file-sharing program connected to the internet, an investigator with the Maryland State Police (MSP) downloaded numerous files of child pornography from the McCort’s computer.
On September 2, 2015, a federal search warrant was executed at McCort’s residence and investigators seized McCort’s laptop that contained at least 26 images and 213 videos depicting minors engaging in sexually explicit conduct. Additional digital storage devices were recovered including a flash drive containing at least 152 images and 17 videos depicting minors engaging in sexually explicit conduct. Some of the victims were as young as 2 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, DCIS, and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Budlow and Daniel Gardner who prosecuted the case.
23 February 2018
Williamsville Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Chase, 50, of Williamsville, NY, pleaded guilty to attempted receipt of child pornography, before U.S. District Judge Richard J. Arcara. The charge carries a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between March 10, 2017, and April 2, 2017, the defendant engaged in sexually explicit online conversations with an undercover law enforcement officer posing as a 15-year old girl.
Shortly after the conversation began, Chase asked the undercover officer “Well how old are you?” The undercover officer replied, “Well I’m almost 16.” After discovering the undercover officer was a minor, the defendant requested sexually explicit images and pictures. Chase then requested to meet the person he believed was a minor female to engage in sexual activity. On April 2, 2017, the defendant arrived at a retail store parking lot believing he was going to meet and have sexual intercourse with the minor. He was arrested. Chase brought with him condoms, sexual lubricant and a sexual toy.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 6, 2018 at 12:30 p.m. before Judge Arcara.
West Tennessee Man is Sentenced to 25 Years for Distributing Heroin Resulting in Fatal OverdoseRead the Press Release
Memphis, TN – A West Tennessee man has been sentenced to 300 months in federal prison for distributing heroin resulting in a fatal overdose. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on February 16, 2018 Marvin "Pookie" Foster, 51, was sentenced to 25 years for distributing heroin, which resulted in the death of Cody Tetleton. Tetleton had a substance abuse history, but, like other similar victims, had completed two rehabilitation programs, being released from treatment approximately two weeks prior to his death.
United States Attorney D. Michael Dunavant said: "Our state and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. The U.S. Attorney’s Office has developed a district-specific strategy to prioritize cases involving heroin distribution causing overdose deaths, and this case demonstrates the significant penalty that we will use to hold offenders accountable."
According to phone records, on July 1, 2014, Tetleton contacted Marvin Foster for the purpose of purchasing heroin. Tetleton drove to Foster’s residence in Halls, Tennessee to make the purchase. Foster sold the victim heroin and some hydrocodone pills. The victim used the heroin while seated in his vehicle in Foster’s driveway. Witnesses gave statements that Foster called them regarding the victim having overdose symptoms while still at his house. Some of those witnesses advised Foster to call 911 and to get the victim medical treatment.
Instead, Foster drove Tetleton’s truck to a remote area and left the victim in his truck with no medical assistance. On July 2, 2014, a farmer found the victim in the back seat of his own truck. A medical examiner revealed the cause of death as heroin toxicity. Furthermore, the victim’s blood was analyzed by a forensic toxicology lab and the blood showed a lethal amount of heroin was present in the blood.
Kristie Ward Thompson was indicted on October 2, 2017, in Lauderdale County, Tennessee, for facilitation of second-degree murder arising from this same incident.
Eddie Tetleton, Cody’s father, prepared a statement from the family, which the AUSA read into the record on their behalf. The following is an excerpt from that statement: "If you watch the national news, read the local papers and certainly look at social media, you will see families across the country, whose stories (their testimonies) are hauntingly similar to ours. The question that haunts families across the country is, HOW COULD THIS HAPPEN. The sentencing today will not answer a question that we have awaken us every night. But I feel most families realize we will not know this answer in this life. Our son paid the ultimate price for the demons that crept into his life. Our family too was sentenced on the tragic day of his death to life, by losing a very special young man. We do feel that Marvin Foster should also be sentenced for the part he played in the death of our son. And just maybe if it is just one at a time, the Justice System can remove those that prey on our SONS and DAUGHTERS for MONEY!!! And maybe no other family will wake during the night searching for answers that are not there….because this man contributed to their BROKEN WORLD!"
On February 20, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Foster to serve 300 months imprisonment followed by 3 years supervised release.
This case was investigated by the 25th Judicial Drug Task Force and Drug Enforcement Administration.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
West Palm Beach Return Preparer Convicted of Filing False Tax Returns with the IRSRead the Press Release
Manuel Antonio Severino, 44, of West Palm Beach, was found guilty by a jury of thirteen counts of aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2), two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to the evidence presented at trial, Severino operated a purported tax preparation business from his home in West Palm Beach. He unjustly enriched himself and others by submitting false individual tax returns to the IRS on behalf of other individuals claiming false and fraudulent credits and deductions. Severino falsely reported that the taxpayers were entitled to receive a tax credit under the American Opportunity Credit, when the defendant knew that the taxpayers did not have qualified education expenses and were not entitled to receive this credit. Without his clients’ knowledge or consent, Severino diverted portions of his clients’ tax refunds to bank accounts that Severino controlled. Over the three years that Severino engaged in this fraudulent tax return business, he sought over $1.6 million in refunds from the IRS on behalf of himself and his clients, and diverted tens of thousands of dollars of IRS tax refunds into his own bank accounts.
Sentencing is scheduled for May 14, 2018, before Senior U.S. District Judge Paul C. Huck. Severino faces a maximum possible statutory sentence of three years in prison for each count of aiding in the preparation of false tax returns, 20 years in prison for each count of wire fraud, and a mandatory sentence of two years in prison for each count of aggravated identity theft.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Lisa Miller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Files False Claims Act Complaint Against Compounding Pharmacy, Private Equity Firm, and Two Pharmacy Executives Alleging Payment of KickbacksRead the Press Release
The United States has filed a complaint in intervention against Diabetic Care Rx LLC d/b/a Patient Care America (PCA), a compounding pharmacy located in Pompano Beach, Florida, alleging that the pharmacy paid illegal kickbacks to induce prescriptions for compounded drugs reimbursed by TRICARE, the Department of Justice announced today. The government has also brought claims against Patrick Smith and Matthew Smith, two pharmacy executives, and Riordan, Lewis & Haden Inc. (RLH), a private equity firm based in Los Angeles, California, which manages both the pharmacy and the private equity fund that owns the pharmacy, for their involvement in the alleged kickback scheme.
TRICARE is a federally-funded health care program for military personnel and their families. The government alleges that the Defendants paid kickbacks to marketing companies to target TRICARE beneficiaries for prescriptions for compounded pain creams, scar creams, and vitamins, without regard to the patients’ medical needs. According to the complaint, the compound formulas were manipulated by the Defendants and the marketers to ensure the highest possible reimbursement from TRICARE. The Defendants and marketers allegedly paid telemedicine doctors to prescribe the creams and vitamins without seeing the patients, and sometimes paid the patients themselves to accept the prescriptions. The scheme generated tens of millions of dollars in reimbursements from TRICARE in a matter of months, according to the complaint, which alleges that the Defendants and marketers split the profits from the scheme.
“The Department of Justice is determined to hold accountable health care providers that improperly use taxpayer funded health care programs to enrich themselves,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “Kickback schemes corrupt the health care system and damage the public trust.”
“Providers and marketers that engage in kickback schemes drive up the cost of health care because they focus on their own bottom line instead of what is in the best interest of patients,” said Executive Assistant Randy Hummel of the United States Attorney’s Office for the Southern District of Florida. “We will hold pharmacies, and those companies that manage them, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the military health care program that provides critical medical care and services to Department of Defense beneficiaries,” said Special Agent in Charge John F. Khin, of the Southeast Field Office. “In partnership with DOJ and other law enforcement agencies, DCIS continues to aggressively investigate fraud and corruption to preserve and recover precious taxpayer dollars to best serve the needs of our warfighters, their family members, and military retirees.”
The lawsuit, United States ex rel. Medrano and Lopez v. Diabetic Care Rx, LLC dba Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.), was originally filed in the U.S. District Court for the Southern District of Florida by Marisela Medrano and Ada Lopez, two former employees of PCA. The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue for false claims against of the United States and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in this case.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, the U.S. Food and Drug Administration’s Office of Criminal Investigations, and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
United States Files False Claims Act Complaint Against Compounding Pharmacy, Private Equity Firm, and Two Pharmacy Executives Alleging Payment of KickbacksRead the Press Release
The United States has filed a complaint in intervention against Diabetic Care Rx LLC d/b/a Patient Care America (PCA), a compounding pharmacy located in Pompano Beach, Florida, alleging that the pharmacy paid illegal kickbacks to induce prescriptions for compounded drugs reimbursed by TRICARE, the Department of Justice announced today. The government has also brought claims against Patrick Smith and Matthew Smith, two pharmacy executives, and Riordan, Lewis & Haden Inc. (RLH), a private equity firm based in Los Angeles, California, which manages both the pharmacy and the private equity fund that owns the pharmacy, for their involvement in the alleged kickback scheme.
TRICARE is a federally-funded health care program for military personnel and their families. The government alleges that the Defendants paid kickbacks to marketing companies to target TRICARE beneficiaries for prescriptions for compounded pain creams, scar creams, and vitamins, without regard to the patients’ medical needs. According to the complaint, the compound formulas were manipulated by the Defendants and the marketers to ensure the highest possible reimbursement from TRICARE. The Defendants and marketers allegedly paid telemedicine doctors to prescribe the creams and vitamins without seeing the patients, and sometimes paid the patients themselves to accept the prescriptions. The scheme generated tens of millions of dollars in reimbursements from TRICARE in a matter of months, according to the complaint, which alleges that the Defendants and marketers split the profits from the scheme.
“The Department of Justice is determined to hold accountable health care providers that improperly use taxpayer funded health care programs to enrich themselves,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “Kickback schemes corrupt the health care system and damage the public trust.”
“Providers and marketers that engage in kickback schemes drive up the cost of health care because they focus on their own bottom line instead of what is in the best interest of patients,” said Executive Assistant Randy Hummel of the United States Attorney’s Office for the Southern District of Florida. “We will hold pharmacies, and those companies that manage them, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the military health care program that provides critical medical care and services to Department of Defense beneficiaries,” said Special Agent in Charge John F. Khin, of the Southeast Field Office. “In partnership with DOJ and other law enforcement agencies, DCIS continues to aggressively investigate fraud and corruption to preserve and recover precious taxpayer dollars to best serve the needs of our warfighters, their family members, and military retirees.”
The lawsuit, United States ex rel. Medrano and Lopez v. Diabetic Care Rx, LLC dba Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.), was originally filed in the U.S. District Court for the Southern District of Florida by Marisela Medrano and Ada Lopez, two former employees of PCA. The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue for false claims against of the United States and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in this case.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, the U.S. Food and Drug Administration’s Office of Criminal Investigations, and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Attorney Assumes OfficeRead the Press Release
Brandon J. Fremin has taken the oath of office and begun serving as the United States Attorney for the Middle District of Louisiana. Mr. Fremin was nominated to serve as United States Attorney by President Trump last Fall and confirmed by the United States Senate last week.
Mr. Fremin is a career prosecutor who has served the community for years. Prior to taking office, Mr. Fremin served as Director of the Criminal Division for the Office of the Louisiana Attorney General. Mr. Fremin previously served for more than 11 years as an Assistant District Attorney in the Office of the District Attorney for the 19th Judicial District of Louisiana. Mr. Fremin also previously served as an Assistant United States Attorney in Baton Rouge, where he prosecuted drug trafficking crimes, crimes of violence, and immigration matters. Mr. Fremin is a veteran of the United States Marine Corps, having enlisted in the Marines in 1994 and serving until 2002, when he was honorably discharged as a platoon sergeant. Mr. Fremin received his B.A., cum laude, from Southeastern Louisiana University, and his J.D. from the Paul M. Hebert Law Center at Louisiana State University.
United States Attorney Brandon J. Fremin stated, “The Middle District has an office of exceptionally talented people and I look forward to working with them and our federal, state, and local partners, and the community, in order to make Louisiana a better place to live and raise our families.”
Undocumented Guatemalan Sentenced for Paying Smugglers to Bring Unaccompanied Minor from Guatemala to the United StatesRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Miguel Pacheco-Lopez (35), an undocumented alien from Guatemala, to more than seven months in federal prison for sending money to Guatemala to help pay smugglers to bring an unaccompanied minor to the United States. He pleaded guilty on November 21, 2017.
According to court documents, on June 29, 2017, a U.S. Border Patrol agent encountered an unaccompanied 16-year-old Guatemalan boy in the Rio Grande Valley in Texas. During an interview, the boy said that he had entered the country illegally and that he intended to live in Jacksonville with a brother-in-law named Miguel Pacheco-Lopez.
As part of an initiative to investigate those who smuggle unaccompanied children into the United States, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations located Pacheco-Lopez in Jacksonville on July 6, 2017. Pacheco-Lopez admitted that he was illegally present in the United States and was then administratively arrested for violating U.S. immigration laws.
During later interviews, Pacheco-Lopez stated that he had wired 20,000 Quetzals (Guatemala currency) to help pay smugglers to bring the boy to the United States. He said that his father-in-law (the boy’s father) had borrowed an additional 25,000 Quetzals to pay the smugglers. The total smuggling fee of 45,000 Quetzals is equivalent to approximately $6,100.
“This criminal jeopardized his own family members by paying human smugglers,” said HSI Tampa Special Agent in Charge James C. Spero. “He endangered a child’s life with a dangerous and unlawful journey into the United States, and now he will be held accountable.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two San Gabriel Valley Men Arrested in Scheme to Defraud U.S. by Avoiding Payment of Federal Excise Taxes on CigarettesRead the Press Release
LOS ANGELES – Two men have been arrested on charges of scheming to avoid the payment of federal excise taxes on duty-free cigarettes that should have been sent abroad, but instead were diverted to local retail outlets.
Yong “David” Lu, 54, of Arcadia, and Wenzhu Guo, also 54, of Monterey Park, were arrested Thursday morning by federal authorities.
Lu and Guo, both Chinese nationals, were named in a one-count indictment returned by a federal grand jury on Wednesday. The indictment charges both men with conspiring to defraud the United States, with Lu allegedly responsible for the diversion of duty-free cigarettes and Guo allegedly acting as his primary distributor of the untaxed cigarettes.
At their arraignments Thursday afternoon, Lu and Guo entered not guilty pleas, were ordered freed on bond, and were ordered to stand trial on April 10.
The arrests in this case are part of a wider investigation into cigarette diversion schemes designed to avoid the payment of excise taxes. In addition to the arrests, federal authorities on Thursday executed 10 search warrants on homes, storage lockers and vehicles in San Gabriel, Arcadia, Rosemead and Monterey Park. As a result of the searches, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Alcohol & Tobacco Tax & Trade Bureau (TTB) seized more than 2 million contraband cigarettes and more than $45,000 in cash.
The case against Lu and Guo focuses on the diversion of untaxed cigarettes from tobacco export warehouses and foreign trade zones (FTZ), and the other two investigations that led to some of Thursday’s searches concern cigarettes being shipped through the mails from China.
Lu operated Great Pacific Coast Corporation, which provided supplies to cargo vessels docked in the Port of Los Angeles, including consumable goods, such as export-only cigarettes, for the personal use of the ship’s crew. Over the past two years, according to the indictment, Lu “made numerous purchases of export-only cigarettes” from two tobacco export warehouses that stored untaxed tobacco products pending their shipment outside the United States. When foreign cigarettes are imported into the United States and warehoused in a tobacco export warehouse or FTZ, the government does not impose excise taxes if they are to be exported or consumed outside the U.S.
Lu purchased the cigarettes from the warehouses under the pretense that they would be exported on ships docked in the port. However, the indictment alleges, the cigarettes were not delivered to cargo vessels, but were instead diverted into the local retail market.
After obtaining the cigarettes from the warehouses, Lu or his associates delivered some or all of the cigarettes to Guo, who in turn distributed the cigarettes, the indictment alleges.
Lu and Guo are not the first to be prosecuted for illegally diverting duty-free cigarettes into the Los Angeles retail market. Un Hag Baeg, a resident of Korea who at the time of the offense resided in Marina Del Rey, pleaded guilty in October to conspiring to defraud the Unites States out of more than $7 million in federal excise taxes by diverting tens of millions of export-only cigarettes to the local retail market. Baeg is scheduled to be sentenced on April 16.
The United States imposes a federal excise tax on all cigarettes meant for consumption within the United States of $50.33 per 1000 cigarettes sticks. TTB is responsible for administering and enforcing federal excise tax laws pertaining to tobacco products, and U.S. Customs and Border Protection Agency is responsible for the assessment and collection of duties, taxes and fees on merchandise imported into the United States.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted of the conspiracy count alleged in the indictment, Lu and Guo each would face a statutory maximum sentence of five years in federal prison.
The case against Lu and Guo is being investigated by HSI and IRS-CI, with assistance from ATF and TTB.
The case is being prosecuted by Assistant United States Attorneys James C. Hughes and Valerie Makarewicz of the Tax Division.
Two New Mexico Men Facing Federal Charges Arising from Social Media School Shooting ThreatsRead the Press Release
ALBUQUERQUE – The FBI has filed federal charges against two New Mexico men for using social media platforms to post school shootings threats, announced U.S. Attorney John C. Anderson and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. The criminal charges arise from tips received by the FBI and its law enforcement partners since last week’s school shooting in Parkland, Fla.
“The Department of Justice will investigate and prosecute school shooting threats on social media platforms, which have recently spread like wildfire in the District of New Mexico in the wake of the Parkland shootings and other tragedies, causing fear and concern in our communities,” said U.S. Attorney Anderson. “When the lives of our children potentially are at stake, we will take action. These serious criminal charges should motivate everyone – adults and minors alike – to consider the consequences of posting threatening messages on social media platforms, and to report this unlawful behavior where it occurs.”
“The FBI has zero tolerance for anyone who threatens to do harm to others,” said FBI Special Agent in Charge Wade. “We hope these charges send a strong message that the FBI, working in conjunction with our state and local partners, will investigate these tips thoroughly so we can keep our communities safe.”
The FBI arrested Sebastian Jarvison, 25, of Brimhall, N.M., yesterday afternoon on a criminal complaint charging him with transmitting in interstate commerce communications containing threats to injure others in McKinley County, N.M., on Feb. 14, 2018. The complaint alleges that on Feb. 16, 2018, the FBI received a tip regarding school shooting and bomb threats allegedly posted by Jarvison on Facebook. Jarvison’s Facebook posts allegedly included threats to “go shoot a school,” “put a bomb on a plane,” and “put a bomb on a plane and shoot up a school.”
This morning, Jarvison made his initial appearance in federal court in Albuquerque, N.M. Jarvison remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for Feb. 26, 2018.
A separate criminal complaint, filed on Feb. 22, 2018, charges John Russell Williams, 19, of Farmington, N.M., with a similar offense. The complaint alleges that Williams committed the offense in San Juan County, N.M., on Feb. 15, 2018, by replying to a school shooting threat on Facebook with a slang term that means “let’s do it.” According to the complaint, on Feb. 15, 2018, law enforcement authorities received a tip about a Facebook post allegedly made by a juvenile containing the following statement: “only 2 months into 2018 and already we got 29 school shootings. F**k it my turn.” Williams allegedly replied to the post with the term “Haha esketit” – which means “let’s do it” or “let’s get it” – and a laughing emoji.
Williams was arrested on a related state charge on Feb. 16, 2018, and is currently in state custody on that charge and other pending state charges. Williams will be transferred to federal custody to face the federal charge in the criminal complaint.
If convicted, Jarvison and Williams each face a statutory maximum penalty of five years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the Gallup, Farmington and Albuquerque offices of the FBI with assistance from the San Juan County Sheriff’s Office, Farmington Police Department, and Bloomfield Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the cases.
Jarvison Complaint Williams ComplaintTwo New Jersey Men Charged with Robbing Killingworth Bank, Attempting to Rob Branford BankRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging LAVON YOUNG, 38, and DAVID C. EARL, 25, both of Union City, New Jersey, with bank robbery offenses.
According to the indictment, on January 27, 2018, YOUNG and EARL first attempted to rob a Key Bank branch in Branford, and then robbed a TD Bank branch on Route 81 in Killingworth of approximately $9,754.
YOUNG and EARL were arrested in East Haven on January 27 and were subsequently charged with multiple state offenses. They have been detained since their arrests.
The indictment charges YOUNG and EARL with one count of attempted bank robbery and one count of bank robbery. Each charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department and East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Douglas Morabito.
Twenty Charged in Southern District of Florida as Part of Largest Elder Fraud Sweep in Department of Justice HistoryRead the Press Release
Attorney General Jeff Sessions and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida announced the largest ever coordinated sweep of elder fraud cases in the Department of Justice’s history involving more than 250 charged defendants around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. In the Southern District of Florida a total of 20 defendants were charged with offenses relating to their participation in various fraud schemes involving over $103 million.
Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, join in the announcement.
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
“We cannot allow our elderly and vulnerable citizens to continue to be the target of fraud schemes. For that reason, the U.S Attorney’s Office and its law enforcement partners – criminal and civil – have joined forces to combat Florida-based fraud schemes victimizing the elderly in our community and throughout our nation,” stated U.S. Attorney Benjamin G. Greenberg. “We will bring to justice those who target the elderly and defraud them out of their life savings.”
“The U.S. Postal Inspection Service will continue to work tirelessly with our partners both in the U.S. and abroad, to ensure that the Postal Service is not used to perpetuate predatory schemes that target the elderly,” said Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “Today’s operation is a great example of how law enforcement from all over the world is working together to that end.”
“We will not allow criminals to target some of the most vulnerable members of our community and take away what they have worked a life time for,” said Mark Selby, Special Agent in Charge of HSI in Miami. “HSI is committed to working with local, state, federal and international law enforcement partners to bring these individuals to justice.”
“The U.S. Secret Service remains committed to investigating cyber based criminal schemes,” said Special Agent in Charge Brian Swain, U.S. Secret Service Miami Field Office.
“Unfortunately, elderly citizens are sometimes vulnerable to financial exploitation by unscrupulous fraudsters bent on making ill-gotten gains,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “In this case, the alleged swindlers used a variety of scams to collect and then launder over $94 million. The FBI and our partners are continuously adapting our investigative techniques to bring to justice offenders who take advantage of the elderly.”
The following cases from the Southern District of Florida were charged between February 2017 and February 22, 2018:
LOTTERY FRAUD
1. United States v. Claude Shaw, Case No 17-60056-CR-Dimitrouleas
On February 21, 2017, Claude Shaw, 50, of Miramar, was charged with two counts of mail fraud and 10 counts of wire fraud in connection with a fraudulent lottery scheme tied to Jamaica. Shaw pled guilty to one count of mail fraud and on June 2, 2017, was sentenced to 36 months imprisonment, to be followed by three years supervised release. Shaw was also ordered to pay $128,440 in restitution.
According to court documents, between September 2013 and August 2015, Shaw participated in a scheme where victims throughout the United States received telephone calls that falsely informed such victims they had won over $1 million in a lottery, which required such victims to pay money in advance in order to secure their prize. The victims were instructed on how, and to whom, to send their money, which included an instruction to send their money to Shaw. Victims sent over $100,000 to Shaw, who then forwarded a portion of the money to Jamaica. Victims never received any lottery winnings.
Mr. Greenberg commended the investigative efforts of the USPIS. The case was prosecuted by Trial Attorney Arturo DeCastro with the Consumer Protection Branch of the Department of Justice Civil Division.
2. United States v. Marvin Damian Coote, Case No. 17-14041-CR-Marra
On May 30, 2017, Marvin Damian Coote, 36, of Fort Pierce, was indicted on conspiracy to commit mail and wire fraud and wire fraud among other charges. Coote pled guilty and was sentenced on December 1, 2017, to 41 months imprisonment, to be followed by three years supervised release. Coote was ordered to pay $225,995.68 in restitution.
According to court documents, between March 2011 and May 1, 2017, Coote participated in a mail and wire fraud conspiracy in St. Lucie County in which, like the Shaw matter described above, co-conspirators telephoned victims to notify them that they had won a lottery that required such victims to send payment in advance in order to secure their prize. Victims paid fees of several hundred to several thousand dollars in order to collect their purported lottery winnings. The conspirators kept the victims’ money without paying any lottery and sweepstakes winnings. Victims targeted in this scheme were elderly individuals, typically over the age of 70. The financial transactions that were part of the scheme included the use of United States Postal Service, MoneyGram, Western Union and Green Dot cards.
Mr. Greenberg commended the investigative efforts of USPIS, ICE-HSI and the St. Lucie County Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Marton Gyires and Stephen Carlton.
3. United States v. Christian Villalobos Hernandez, Case No. 18-20052-CR-Martinez
Christian Eduardo Villalobos Hernandez, 35, of San Jose, Costa Rica, was indicted on January 25, 2018, for conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering, international money laundering and money laundering. According to the Indictment, starting in or around February 2015 through in or around August 2017, several Costa Rican and Venezuelan citizens, including Hernandez, Andres Pacheco Fonseca (“Fonseca”) and other known co-conspirators, devised and implemented a scheme to unlawfully enrich themselves by contacting victims by telephone, letter or fax and falsely informing them that they had won millions of dollars in a lottery or sweepstake.
As alleged, the conspirators persuaded victims through false and fraudulent representations that in order to collect their winnings they had to send by mail and wire transfer large amounts of cash and money orders to addresses in Miami, Costa Rica, and elsewhere, and to have those same funds deposited in corporate and personal bank accounts the conspirators controlled here in the United States. Within days, the victims’ funds were sent by wire transfer from the corporate and personal accounts located in the United States to corporate and personal bank accounts in Costa Rica that were controlled by Hernandez, Fonseca, their co-conspirators, and their family and friends. In total, approximately $9 million was sent by wire transfer from their accounts in the United States to corporate and personal bank accounts they controlled in Costa Rica.
Mr. Greenberg commends the investigative efforts of USPIS. This case is being prosecuted by Assistant United States Attorney Maurice Johnson.
GRANDPARENT SCAM
4. United States v. Tiffany Strobl, Case No. 17-60128-CR-Dimitrouleas
Tiffany Strobl, 38, of Ohio, was charged for bank fraud, wire fraud, use of an unauthorized access device and identity theft in connection with a scheme to defraud an elderly victim. According to court documents, Strobl used a stolen identity to open a bank account at TD Bank and then deposited $5,000 into that account. Those funds came from an 81 year-old woman living in Iowa who Strobl contacted in February 2017. Strobl informed the victim that her grandson was in jail and requested the victim to wire $5,000 to a TD Bank account so that her grandson could post bond. The victim complied and later learned that her grandson had never been arrested and had not called her for money.
Strobl pled guilty in October 2017, and was sentenced to 24 months imprisonment, to be followed by one year supervised release and ordered to pay $9,548.25 in restitution.
Mr. Greenberg commended the investigative efforts of the USSS. This case was prosecuted by Assistant United States Attorney Anita White.
ADVERTISING SCAM
5. United States v. Tiffany Strobl, Case No. 17-60066-CR-Dimitrouleas
In March 2017, Tiffany Strobl, 38, of Ohio, was charged with possession of false identification documents and bank fraud. In mid-February 2017, a victim saw an advertisement for a mobile home on Craigslist that was purportedly being sold by an individual out of Salt Lake City, Utah. The victim communicated with the seller via email and text message and was to pay $6,800 for the mobile home through a website called Ebay Motors. The victim initiated a wire transfer for the purchase of the mobile home through a link on Ebay Motors that was linked to a BB&T Bank account number. Strobl had opened the BB&T account using false and fraudulent identification documents. Strobl attempted to withdraw the funds deposited into the account by the victim who, when contacted by the bank, instructed the bank to stop the transaction because he had subsequently seen on Craigslist the same mobile home for sale in Kansas. A search of Strobl’s book bag incident to arrest, revealed six driver licenses, each bearing the same photograph of Strobl, but with different names, dates of birth, and license numbers.
After a guilty plea, Strobl was sentenced in June 2017, to five months imprisonment, to be followed by three years supervised release.
Mr. Greenberg commended the investigative efforts of USSS. The case was prosecuted by Assistant United States Attorney Anita White.
MONEY LAUNDERING OF SCAM PROCEEDS
6. United States v. Roda Taher, et al, Case No. 17-60223-CR-Ungaro
United States v. Luis Pujols, Case No. 17-20702-CR-MartinezOne indictment charged Roda Taher, 38, of Beirut, Lebanon, Geanis Gonzalez, 31, of Peyton Colorado, Alfredo Tovar, 36, of Miami Gardens, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines and Jamie Vices Castillo, 41, of Pembroke Pines, with conspiracy to commit money laundering, conspiracy to commit bank fraud, money laundering, and conducting transactions in criminally derived property. Hanan Jaafar, 26, of Beirut Lebanon, is also charged with conspiracy to commit money laundering and conspiracy to commit bank fraud.
According to the Indictment, from 2008 to the present, Taher managed and supervised a criminal organization engaged in money laundering and transactions in criminally derived property that received approximately $94 million in fraudulent proceeds. The organization utilized bank accounts opened in the names of shell corporations to receive the proceed of various fraudulent schemes, including romance frauds, email hacking schemes, inheritance and lottery scams that victimized individuals, including elderly individuals, as well as corporations. Taher would recruit individuals to act as “money mules,” establishing the shell corporations in the money mules’ names. The defendants would then have the money mules open bank accounts throughout South Florida in the names of their shell corporations, instructing the mules to falsely represent to the banks that the shell corporations were legitimate businesses engaged in the import, export, or sale of various goods. Once the bank accounts received money wired from a fraud victim, the defendant would instruct the money mules to wire money to other accounts overseas.
A second indictment charged Luis Angel de Jesus Alfonseca Pujols, 24, of Sunrise, Gary Alberto Camillo, 26, of Pembroke Pines, Jean-Phillipe Etienne, 25, of Pembroke Pines, Randy Eliessel Santos, 29, of Hollywood, and Cosme Daniel Enrique Vasquez, 36, of Miramar, with conspiracy to commit bank fraud and wire fraud, international money laundering, money laundering and bank fraud. Karina Marie Ocasio, 24, of Weston, is also charged with conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, money laundering, and bank fraud.
Alberto Camillo, Jean-Phillipe Etienne and Randy Eliessel Santos have pled guilty.
Mr. Greenberg commends the investigative efforts of the FBI, USSS and ICE-HSI. This case is being prosecuted by Assistant United States Attorneys Jared Strauss, Michael Walleisa and Dwayne Williams.
A criminal complaint, information or indictment is a charging instrument containing allegations. All defendants are presumed innocent, unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tifton Drug Dealer Held Accountable for Heroin Overdose DeathRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on February 22, 2018, United States District Court Judge Leslie J. Abrams sentenced Bobby Earl Grantham, Jr., age 49, of Tifton, GA, to 150 months imprisonment for the offense of conspiracy to possess with intent to distribute controlled substances. Mr. Grantham had pled guilty to the offense on March 1, 2107. The drug distribution conspiracy to which Mr. Grantham pled guilty lasted from October 2014 to August, 2015, and involved a total of twenty-one participants, all of whom have been convicted.
On two occasions in the summer of 2015, a confidential source purchased heroin at the residence of Jimmy Barrentine. On one occasion, Mr. Grantham sold the heroin. On the other, Mr. Barrentine sold the heroin. On July 16, 2015, Tift County 911 received a dispatch to the residence of Jimmy Barrentine in Tifton, Georgia. Upon arrival, agents found Sonya Tolar dead inside Bobby Grantham’s bedroom at Jimmy Barrentine’s house. Toxicology results from Ms. Tolar’s autopsy noted the presence of 6-monoacety1-morphine, a metabolite of heroin. The medical examiner lists the cause of death as heroin toxicity. Agents located Ms. Tolar’s cell phone while processing the scene after her death. This revealed that a few hours before the 911 call, Mr. Grantham texted a photo of the heroin to Ms. Tolar to entice her to visit him. Shortly after receiving this text message, Ms. Tolar traveled to meet Mr. Grantham at Mr. Barrentine’s residence, where she died.
Mr. Grantham’s sentence was also enhanced based on his engaging in obstruction. At his sentencing, the Court heard evidence that after Mr. Grantham discovered that Ms. Tolar had overdosed, he waited over 30 minutes before calling for emergency assistance. He and others spent the interim time period removing evidence from the residence so that it would not be discovered by the authorities.
“Opioid distribution has been declared a national epidemic,” said United States Attorney Peeler. “Federal law carries stiff penalties for those who distribute drugs where death or serious bodily injury occurs. I hope that this sentence makes it clear that we do not tolerate the harm that this behavior causes in this district and that we are committed to doing all within our power to address and combat this epidemic. Mr. Grantham’s obstructive actions cannot be condoned. Ms. Tolar’s life might have been saved if he had valued her life more than his freedom. This lengthy sentence is richly deserved.”
This case was investigated by the Drug Enforcement Administration Macon Division, GBI Sylvester, Ben Hill County Sheriff’s Office, Tift County Sheriff’s Office, and Mid South Narcotics Task Force. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.