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Friday 12 January 2018
Three Individuals, Including Former General Manager and Controller, Charged in Embezzlement Scheme at Sonnen MotorcarsRead the Press Release
SAN FRANCISCO – Amir Bakhtiari, Arlette Casino, and Austin Caba were arrested today for their respective roles in an alleged conspiracy and fraud scheme, announced Acting United States Attorney Alex G. Tse; Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf.
According to the indictment, from at least 2010 to 2016, Bakhtiari, 50, a resident of Newport Beach, Calif. and formerly of Marin County, Calif., orchestrated an embezzlement scheme at Sonnen Motorcars (“Sonnen”). Sonnen owned and operated three car dealerships in Marin County—Sonnen Volkswagen, Audi Marin, and Porsche Marin. From 2009 to 2016, Bakhtiari managed the Volkswagen and Audi dealerships. Bakhtiari allegedly used his role to initiate a scheme wherein Sonnen made payments on fraudulent invoices to fake advertising vendors who then forwarded the majority of the proceeds from Sonnen back to Bakhtiari. The indictment alleges that Casino, 47, a resident of Santa Rosa, Calif., who served as controller of Sonnen from 2013 to 2016, and Caba, 38, a resident of Burlingame, Calif., who controlled one of the fake advertising vendors, conspired with Bakhtiari and participated in the scheme since at least 2013.
According to the indictment unsealed today, Bakhtiari caused others to create shell entities with names suggesting that the shell companies were in the business of advertising. The shell companies were controlled by friends or associates of Bakhtiari’s, including Caba. These entities were Advision Advertisers, Elite Marketing and Advertising, Pacific Blue Advertising, and ARC Sierra Promotional & Incentive Co. (ARC Sierra). The indictment alleges ARC Sierra was controlled by Caba. Bakhtiari then allegedly created or caused the creation of fake invoices from each of the fake advertising vendors to Sonnen, purporting to bill Sonnen for advertising work. Along with the controller, which from 2013 to 2016 was Casino, Bakhtiari approved the payments on these fake invoices from Sonnen’s bank accounts, in the form of checks written to the fake vendors. In sum, the indictment alleges that from 2010 to 2016, Bakhtiari directed approximately $6.3 million in fraudulent transfers in this manner. When the money reached the vendor bank accounts, the individuals who controlled these accounts wrote checks back to Bakhtiari for a majority of the funds. In total, Bakhtiari received approximately $3.6 million via checks in this manner. Caba also allegedly used funds embezzled from the ARC Sierra bank account to pay the balance on an American Express credit card account that he shared with Bakhtiari. The indictment alleges Bakhtiari and Caba spent approximately $1.7 million on this American Express credit card account.
According to the indictment, Bakhtiari and Casino also initiated other fraudulent payments to themselves, including bonuses that Bakhtiari falsely claimed were funded by the corporate offices of Volkswagen or Audi. Bakhtiari and Casino approved the payment of these fraudulent bonuses, knowing they were not authorized by the majority owner of Sonnen Motorcars.
Bakhtiari, Casino, and Caba were all charged with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and wire fraud, in violation of 18 U.S.C. § 1343. Bakhtiari and Caba were also charged with conspiracy to engage in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1956(h), and engaging in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1957.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for each count of conspiracy to commit wire fraud and wire fraud is twenty years’ imprisonment and a $250,000 fine. The maximum penalty for each count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity is ten years’ imprisonment and a $250,000 fine. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
All three defendants were arrested today in California by the FBI – Bakhtiari was arrested in Newport Beach, Caba was arrested in Burlingame, and Casino was arrested in Santa Rosa.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and the IRS-CI.
Texas Man Sentenced for Distributing Methamphetamine and Interstate Transportation of Drug MoneyRead the Press Release
On January 12, 2018, Acting United States Attorney Robert C. Stuart announced that Roberto Ochoa Cantu, age 44 of Alamo, Texas, was sentenced to 10 years and six months (126 months) in prison for distribution of, and possession with intent to distribute, methamphetamine and five years (60 months) for interstate transportation in aid of racketeering. Those sentences are to run concurrently (at the same time). Cantu was ordered to serve five years on supervised release following the prison term. However, he is a citizen of Mexico and will likely be deported after serving his prison sentence.
Cantu was arrested on April 24, 2017 after approximately a one-year investigation regarding shipments of methamphetamine sent from south Texas to Lincoln for distribution. The proceeds of drug sales were sent back to Texas via cash deposits made into accounts opened at local banks. Cantu was involved in six sales of methamphetamine to a confidential informant in Lincoln between November of 2016 and February of 2017, including a sale of 62 grams of actual/pure methamphetamine, which occurred on December 4, 2016. Cantu was held responsible for the distribution of at least 150 grams of actual/pure methamphetamine. Cantu instructed the confidential informant to pay for the methamphetamine by depositing cash into bank accounts in Lincoln from which the proceeds could be withdrawn by persons in south Texas.
This case was investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Lincoln/Lancaster County Narcotics Task Force, and the Nebraska State Patrol.
Tennessee Man Pleads Guilty to Unlawful Possession of Explosive Material at AirportRead the Press Release
ASHEVILLE, N.C. – Michael Christopher Estes, 46, formerly of Tazewell, Tennessee, appeared before U.S. Magistrate Judge Dennis Howell today and pleaded guilty to one count of unlawful possession of explosive material, in connection with the October 2017 incident at the Asheville Regional Airport, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Tammy Hooper of the Asheville Police Department.
According to today’s plea hearing and documents filed with the court, shortly after 12:30 a.m. on October 6, 2017, Estes walked onto the grounds of the Asheville Regional Airport carrying a package containing an explosive device he had constructed. The explosive device was inside two plastic bags, each tied in a knot, which Estes placed outside the entrance of the airport’s baggage claim area.
According to court documents, Estes constructed the device using material that is known to explode violently when coming in contact with a flame or other ignition source. Court records show that the explosive device also contained nails and a shotgun cartridge. Shrapnel, nails or ball bearings often are added to such devices to increase the devastation inflicted by the explosion. According to plea documents, the words “FOR GOD & COUNTRY” were written on the strike strip of a matchbox attached to the device. Another message, “FOR ALL THE V/N VETS OUT THERE!!!,” was written on the tape attaching a portion of a clock to the device. The alarm on the clock was positioned to go off at 6:00, but it was not actually set.
At approximately 6:30 a.m. on October 6, 2017, the Asheville Regional Airport Authority Department of Public Safety was alerted to the presence of a “suspicious bag” outside the terminal building. Law enforcement responded to the scene and evacuated passengers and employees from the baggage claim area. According to court documents, bomb technicians rendered the device safe and it tested positive for explosive material. Law enforcement released a photograph of Estes, and arrested the defendant the following day in an area not far from the airport.
Estes admitted in court today that he purchased the material and constructed the explosive device he placed at the airport. Court documents show that Estes told law enforcement that we were getting ready to “fight a war on U.S. soil,” and that terrorists were coming to the United States. Estes told law enforcement that he believed that federal agencies were unprepared to fight the terrorists. Estes also told law enforcement that his intention was not to hurt the public but to devise a training scenario. He also said that he placed the device at the airport so it would be picked up by law enforcement, so that law enforcement would “now know how” to make a similar device. Estes also admitted to staging a backpack in the woods across from the airport. Law enforcement located the backpack, which contained some of the material Estes used to construct the device.
Estes is currently in federal custody. The maximum penalty for unlawful possession of explosive material at an airport is five years in prison and a $250,000 fine. A sentencing date for the defendant has not been set yet.
The investigation was led by the FBI and the Asheville Police Department. In making today’s announcement U.S. Attorney Murray thanks the North Carolina State Bureau of Investigation and the Asheville Regional Airport Authority Department of Public Safety for their invaluable assistance and coordination in this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Syracuse Man Pleads Guilty to Gun and Drug OffensesRead the Press Release
SYRACUSE, NEW YORK – Calvin Weaver, age 27, of Syracuse, pled guilty today to being a felon in possession of a firearm, possessing a firearm with a defaced serial number, and simple possession of cocaine.
The announcement was made by United States Attorney Grant C. Jaquith, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division, and Frank Fowler, Chief of the Syracuse Police Department.
Weaver pled guilty to all three charges following a decision by Chief U.S. District Judge Glenn T. Suddaby denying Weaver’s motion to suppress evidence found on the day of his initial arrest. In particular, Judge Suddaby found that both the stop of Mr. Weaver and the subsequent frisk of his person, which revealed that Mr. Weaver was carrying both a gun and plastic bags of cocaine, were lawful and available for use as evidence against him had the case proceeded to trial.
At sentencing on May 18, 2018, Weaver faces up to 10 years in prison on the charge of being a felon in possession of a firearm and up to 5 years in prison on the charge of possessing a firearm with an obliterated serial number. Mr. Weaver also faces a fine of up to $250,000 and a term of post-imprisonment supervised release of up to 3 years on those two charges. On the possession cocaine charge, the defendant faces a maximum term of imprisonment of 1 year, a term of post-imprisonment supervised release of up to 1 year, and a $100,000 fine.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
St. Louis Man Sentenced on Federal Conspiracy ChargesRead the Press Release
St. Louis, MO – Thomas Anderson was sentenced to 180 months in prison in connection with conspiracy charges involving the transportation of large quantities of marijuana and money laundering.
According to court documents, from 2008 until 2014, Anderson, aided by other members of the conspiracy, acquired more than 1,000 kilograms of usually high grade marijuana from sources of supply in California and distributed it in different places, including St. Louis and Boston. Anderson purchased multi-hundred pound amounts of marijuana from a variety of sources. When purchased from sources of supply, Anderson caused the marijuana to be transported from California to St. Louis and elsewhere, including Boston, via various means. In some instances, marijuana was concealed inside items, such as water heaters, large pieces of antique furniture, fixtures, and PODS moving company containers. In other instances, Anderson arranged for marijuana to be shipped concealed in various trucks. Anderson also utilized private aircraft to transport marijuana from California to St. Louis and elsewhere. Regardless of the means of conveyance, the marijuana was recovered in St. Louis and in Boston by other members of the conspiracy and delivered to distributors or distributed for Anderson.
The conspiracy generated millions in proceeds. Proceeds were then delivered back to California for the purchase of more marijuana, usually in two main ways: hidden inside luggage and the luggage was transported to California via commercial airlines; or via private aircraft.
Anderson, 31, St. Louis, MO, was convicted in August 2017 of one count of conspiracy to distribute and possess with intent to distribute in excess of 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering. The eight-day trial was held before United States District Court Judge Audrey G. Fleissig.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorneys Stephen Casey, John Davis and Sirena Wissler are handling the case for the U.S. Attorney's Office.
St. Louis Man Sentenced on Child Pornography ChargesRead the Press Release
St. Louis, MO – Robert Barteau was sentenced today to 10 years in prison and followed by lifetime supervised release for child pornography charges before United States District Judge Catherine D. Perry.
According to court documents, between January 1, 2014 and June 17, 2014, Barteau possessed a laptop that contained more than 677 images of child pornography where each video is considered to be equivalent of 75 images. He received the images and videos depicting child sexual abuse from the Internet. All these images and videos were of prepubescent minor children engaged in sexually explicit conduct, and some portrayed sadistic or masochistic conduct, or other depictions of violence. All of the children in these videos and images appeared to be under the age of twelve years old, with one child toddler aged.
Barteau, 54, of St. Louis, MO, pled guilty on October 12, 2017 to one felony count of possession of child pornography and has a prior sex conviction in Madison County, Illinois.
This case was investigated by the Federal Bureau of Investigation, St. Louis County Police Department and St. Louis Metropolitan Police Department. Assistant United States Attorney Colleen Lang and Investigator Donya Jackson are handling the case for the U.S. Attorney's Office.
St. Joseph Man Sentenced for Second Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for his second federal bank robbery conviction.
Terry L. Hager, 50, of St. Joseph, was sentenced by U.S. District Judge Fernando J. Gaitan, Jr., to 11 years and one month in federal prison without parole. Today’s sentence includes a 33-month term of incarceration upon the revocation of Hager’s supervised release in an earlier bank robbery sentence in a separate case.
Hager, who pleaded guilty on Jan. 3, 2017, admitted that he stole $13,957 from UMB Bank, 1211 N. Belt Hwy., St. Joseph, on March 5, 2016.
According to court documents, Hager was wearing a baseball cap, a bandana over his face, sunglasses and clear plastic gloves when he entered the bank. Hager approached a teller and motioned for her to be quiet by placing his finger to his lips then demanded that she give him all the money. After the teller emptied the contents of her drawer, Hager demanded the money from her second drawer, but she was unable to comply because she did not have a key for the drawer. Hager told the teller to get on the floor and called a second teller, who did have the key, over to the teller counter. (As this occurred, a third teller was able to push a panic button to alert law enforcement of the robbery). As the second teller was interacting with Hager, she attempted to press an emergency button, but he placed his hand over the button preventing her from doing so.
After he received cash from both tellers, Hager exited the bank. He later led law enforcement officers on a high-speed pursuit, traveling approximately 80 miles per hour through a densely populated residential neighborhood with groups of children playing near the street. Officers were forced to terminate the pursuit due to the significant danger to the public.
The next day, Hager was located at a local Wal-Mart store and placed under arrest without incident as he left the store.
This case represents Hager’s second federal bank robbery conviction. Hager, who was incarcerated for more than 22 years on his first bank robbery conviction, was released from federal prison and placed on supervised release on Dec. 2, 2013. He was still on supervised release for his first federal bank robbery offense when he committed the second.
On March 26, 2015, while on supervised release for his first federal bank robbery, Hager was arrested in Buchanan County, Mo., for second-degree domestic assault after a report that he threatened and physically assaulted a woman with whom he shared a domestic relationship. He was convicted of the offense on July 6, 2015, and sentenced to eight months’ incarceration. On Feb. 11, 2016, Hager appeared in federal court for a supervised release revocation hearing. After making a statement on his own behalf, Hager’s supervised release was continued with further instruction that his supervised release would be reviewed in 90 days. Hager committed the bank robbery approximately 23 days later.
This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
Springfield Couple and Three Vermont Residents Arrested for Heroin and Crack Cocaine ConspiracyRead the Press Release
BOSTON – A Springfield couple and three Vermont residents were arrested today and charged with federal drug offenses including conspiracy to distribute heroin and crack cocaine.
Nia Moore-Bush, a/k/a “Nia Dinzey,” 27; and Dinelson Dinzey, 34, both of Springfield, Mass.; Joshua Foster, 40; Tracy Parsons, 45; and Jamieson Gallas, 36, all of Barre, Vt., were each charged in an indictment unsealed today on one count of conspiracy to distribute and possess with intent to distribute heroin and crack cocaine.
According to court documents, beginning in at least October 2017, the five defendants conspired to distribute heroin and more than 28 grams of crack cocaine.
Moore-Bush, Foster, and Parsons face mandatory minimum sentences of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Due to prior felony drug convictions, Dinzey and Gallas face mandatory minimum sentences of 10 years and up to life in prison, a minimum of eight years of supervised release, and a fine of up to $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office made the announcement today. The case was investigated by the ATF’s Springfield Area Firearms Enforcement Task Force with assistance of the Internal Revenue Service’s Criminal Investigations in Boston, ATF’s Burlington Field Office, the Massachusetts State Police and the Vermont State Police. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Office is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sheffield Man Sentenced to 11 Years in Prison for Possessing Child PornographyRead the Press Release
HUNTSVILLE – A federal judge this week sentenced a Sheffield man to more than 11 years in prison for possessing child pornography, including images of infants and toddlers being raped, announced U.S. Attorney Jay E. Town.
U.S. District Judge R. David Proctor sentenced CHRISTOPHER JOSEPH BOERCKEL, 27, of Sheffield, to 11 years and three months in prison, followed by 20 years of supervised release. Boerckel pleaded guilty in September to possessing more than 13,000 images of child pornography on his computer and computer hard drives. He must report to prison Feb. 7.
“This defendant possessed thousands of horrific images of adults forcing sex acts on children and babies, innocents completely unable to defend themselves,” Town said. “Anyone possessing these images ensures that those children continue to be victimized. Judge Proctor’s sentence rightfully reflects the severity of this case and our efforts reflect our pledge to fully prosecute these atrocious behaviors.”
Law enforcement seized computers and hard drives during searches of Boerckel’s home in March 2015, according to his plea agreement. An Alabama Department of Revenue review of Boerckel’s computer hard drives showed that hundreds of the images were stored on a drop box saved to “the cloud,” so investigators could not determine if the images had been accessed in Lauderdale County or Colbert County.
Further FBI analysis of Boerckel’s electronic equipment identified the 13,183 images of child pornography, according to the plea agreement.
The FBI, Alabama Department of Revenue and the Florence Police Department investigated the case, which Assistant U.S. Attorney Jonathan Keim prosecuted.
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Rollin' 60 Crips Gang Leaders Sentenced for Racketeering ChargesRead the Press Release
The two leaders of the Detroit branch of the Rollin 60s Crips street gang were sentenced this morning for their roles in gang-related murders, shootings, and drug distribution. Jerome Hamilton and Darriyon Mills’s sentences follow their guilty pleas to RICO conspiracy and firearm charges and are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, announced U.S. Attorney Matthew Schneider.
Joining in the announcement was Paul Vanderplow, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief James Craig of the Detroit Police Department.
The Court sentenced leader, Jerome Hamilton, 26, of Detroit, to 30 years in prison. Hamilton previously pleaded guilty to racketeering conspiracy and use of a firearm during and in relation to a crime of violence causing death. Hamilton took responsibility for, amongst other racketeering activity, issuing a “green light” to murder rival gang members of the Playboy Gangster Crips in 2011, which resulted in a non-fatal shooting of a rival gang member; a firebombing of rival Blood gang member’s house; and the August 8, 2011 homicide of Kionte Atkins during a drive-by shooting. Hamilton also admitted to being involved in the distribution of marijuana and illegal prescription pills as part of his membership with the Rollin 60s Crips.
Hamilton’s second-in-command, Darriyon Mills, 22, of Detroit, was sentenced to 24 years in prison. Mills previously pleaded guilty to racketeering conspiracy and use and carry of a firearm during and in relation to a crime of violence. Mills committed armed robberies, carjackings, and attempted multiple murders. He also trafficked drugs for the gang and in this way funded the Rollin 60s and their crimes.
According to the indictment, the Rollin’ 60s Crips is a national street gang founded in Los Angeles, California, in the mid-1970s. In approximately 2006, Jerome Hamilton started a Detroit set of the Rollin 60s, which now boasts approximately 150 members and who operated primarily on the west side of Detroit in the vicinity of Seven Mile and Tracey. The Rollin 60s Detroit chapter is a violent organization responsible for numerous assaults, robberies, carjackings and the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area over the last nine years. The gang uses violence as a means of retribution for acts done by rival gang members, to intimidate witnesses, and as a means for individuals to maintain or advance their position within the gang.
United States Attorney Matthew Schneider stated, “This office is making it a top priority to pursue violent criminals and remove them from our streets. All Michigan residents deserve safety and we will relentlessly prosecute gang members who commit violence.”
“Today’s sentence sends a clear message that we will not tolerate the senseless violence committed by criminal gangs,” said ATF Acting Special Agent in Charge Paul Vanderplow. “ATF stands committed to working with our law enforcement partners to end the gang violence that plaques our neighborhoods. Every citizen has the right to feel safe in their neighborhoods.”
In addition to Hamilton and Mills, twelve other Rollin 60 Crips members pleaded guilty or were convicted after trial of various racketeering or firearm charges.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. The case was investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI Violent Crime Task Force, and Detroit Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Eaton Brown, Shane Cralle, and Michael Heesters.
Rogers Man Sentenced to over 7 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Peng Chanthalangsy, age 37, of Rogers, Arkansas, was sentenced today to 92 months in federal prison followed by fifteen years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
In March of 2017, the Rogers Police Department, while investigating a drug trafficking organization, executed a search warrant on the Rogers residence of Chanthalangsy. In addition to confiscating illegal narcotics, law enforcement seized numerous computers and electronic devices. While searching the electronic devices for evidence of drug trafficking, law enforcement located numerous images of child pornography. A federal search warrant was obtained specifically to allow for a search of child pornography, which revealed approximately two thousand (2000) images of minors engaged in sexual explicit conduct. At sentencing, the Government presented the Court with evidence that some of the images depicted minors as young as toddlers.
“HSI works everyday with our state and local law enforcement partners to ensure the perpetrators of these despicable crimes are brought to justice”, said Acting Special Agent in Charge of HSI New Orleans Thomas M. Annello. “We will continue to aggressively investigate allegations of child exploitation and seek justice for the most vulnerable of our citizens, our children.” Annello is the Special Agent in Charge of the New Orleans field office with responsibility for Arkansas, Alabama, Louisiana, Mississippi, and Tennessee.
Chanthalangsy was indicted by a federal grand jury in April 2017 and entered a guilty plea in August 2017.
This case was investigated by the Department of Homeland Security Investigations and the Rogers Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Rogers Man Sentenced to over 5 Years in Federal Prison for Aiding and Abetting in the Distribution of MethamphetamineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Manuel Ortiz Jr., age 37, of Rogers, was sentenced today to 63 months in federal prison followed by three years of supervised release and was ordered to pay a $35,000.00 fine on one count of Aiding and Abetting in the Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in March of 2016, the Drug Enforcement Administration (DEA) utilizing a confidential source (CS) placed a recorded phone call to Ortiz. During the call, the CS asked Ortiz about purchasing one ounce of methamphetamine. Ortiz directed the CS to go to a grocery market in the Western District of Arkansas and purchase the ounce of methamphetamine. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 27.5 grams of actual methamphetamine.
Ortiz was indicted by a federal grand jury in April 2017 and entered a guilty plea in August 2017.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Rochester Man Sentenced for His Role in Conspiracy to Sell OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Lockwood, 44, of Rochester, NY, who was convicted of conspiring to distribute a controlled substance, was sentenced to 24 months in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney John J. Field, who handled the case, stated that Lockwood was prescribed large quantities of oxycodone by his heath care provider for a severe injury that he had sustained. Beginning in February 2015 and continuing until his arrest in February 2017, Lockwood conspired to sell his oxycodone pills to Daniel Volonino, Jr. and Michael Ingham, who, in turn, sold pills to others in the Rochester area.
Michael Ingham has been convicted and is awaiting sentencing. Charges are pending against Daniel Volonino, Jr. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and investigators with the Medicaid Fraud Control Unit of the New York State Attorney General, under the direction of Eric Schneiderman.
Roanoke Valley Opioid/Heroin Task Force to Present A Community Conversation about Opioid Pain Killer and Heroin Addiction: A National, State and Local CrisisRead the Press Release
Roanoke, VIRGINIA – On August 10, 2017, the President declared the opioid crisis to be a national emergency. Just yesterday, Attorney General Sessions stated, “With one American dying of a drug overdose every nine minutes, we are facing the deadliest drug crisis in American history.”
According to United States Attorney Rick Mountcastle, “Our community must work together to solve this crisis using a three-pronged approach: provide access to treatment and recovery for family, friends, and neighbors suffering from the disease of opioid and heroin addiction; prevention programs to raise awareness about the dangers of opioids; and targeted law enforcement.”
In the coming weeks, United States Attorney Mountcastle will attend four community conversations about opioid and heroin abuse hosted by the Roanoke Valley Opioid and Heroin Task Force in collaboration with the Prevention Council of Roanoke County. These events will include law enforcement updates, personal stories about the impact of opioids and heroin, and other important information, and will be an opportunity to join together to combat this crisis.
The schedule for these free events is as follows:
- January 18 at 6:00 p.m. – Northside High School Auditorium
- January 22 at 6:00 p.m. – Cave Spring High School Auditorium
- January 25 at 6:30 p.m. – William Fleming High School
- February 15 at 6:30 p.m. – Patrick Henry High School
Registered Sex Offender Returned to Federal Prison for Six More YearsRead the Press Release
Jackson, Miss. – David Aaron Smith-Garcia, also known as David Garland Atwood II, 34, of Vicksburg, was sentenced on December 21, 2017, by U.S. District Judge Henry T. Wingate, to serve an additional six years in federal prison followed by a lifetime of supervised release, for violating the terms of his supervised release, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
This was the third time that Smith-Garcia, who legally changed his name in June 2017 through proceedings in the Warren County Chancery Court, has been returned to prison for violating the terms of his supervised release.
Smith-Garcia is a registered sex offender who originally pled guilty on April 1, 2005, to one count of using the internet to knowingly persuade, induce and entice a person he believed to be under the age of eighteen years to engage in sexual activity and to one count of wire fraud. He served 63 months in federal prison for his original convictions. Smith-Garcia violated the terms of his supervised release and was sentence to serve an additional 5 months incarceration on March 23, 2010. Smith-Garcia violated the terms of his supervised release a second time in 2010 and 2011, and he was sentenced March 29, 2013, to serve an additional six years in federal prison.
In April 2017, following his release from federal prison, Smith-Garcia violated the terms of his supervision for a third time. After weeks of hearings and testimony, on December 21, 2017, United States District Judge Wingate found Smith-Garcia guilty of seven violations of his supervision, including:
- unlawfully and feloniously using electronic communications for the purpose of threatening, terrifying and harassing a victim in violation of Mississippi law;
- willfully, unlawfully and feloniously exposing another person to the human immunodeficiency virus (HIV) through engaging in unprotected sex on two occasions without notifying the victim that Smith-Garcia is HIV positive, in violation of Mississippi law; and
- leaving the Southern District of Mississippi without the permission of either the Court or the US Probation Office.
The case was prosecuted by Assistant United States Attorney Dave Fulcher.
RI Resident Sentenced in Heroin Trafficking ConspiracyRead the Press Release
PROVIDENCE – A Providence man was sentenced on Thursday to 72 months in federal prison for arranging the shipment of more than 200 packages containing hundreds of grams of cocaine from Puerto Rico to Rhode Island, some of which he arranged while incarcerated at the Rhode Island Adult Correctional Institution.
William Gonzalez, 50, of Providence, was also ordered by U.S. District Court Judge John J. McConnell, Jr, to serve 4 years supervised release upon completion of his term of incarceration. The government and the defense recommended the court impose a sentence of 72 months incarceration. The federal prison sentence imposed is to be served consecutive to a sentence of 25 years, 12 years to serve imposed in Rhode Island state court on August 31, 2016, in an unrelated case. In that case, Gonzalez pleaded nolo contendre to possession of cocaine with the intent to deliver.
The U.S. Sentencing Guideline imprisonment range in this matter is 210-262 months.
Gonzalez’s sentence is announced by United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
Gonzalez pleaded guilty on October 3, 2017, to one count each of conspiracy to possess one or more kilograms of cocaine with the intent to distribute and possession of one or more kilograms of cocaine with the intent to distribute.
At the time of his guilty plea, Gonzalez admitted to the Court that beginning in January 2016, he traveled repeatedly to Puerto Rico for the purpose of purchasing large quantities of cocaine, and arranging for the drugs to be shipped via the U.S. Postal Service to various addresses in Rhode Island. Gonzalez admitted to participating in a conspiracy in which he was responsible for at least 203 packages containing a minimum of 300 grams each being shipped from Puerto Rico to Rhode Island. Gonzalez was responsible for the shipment of nearly 61,000 grams of cocaine into Rhode Island.
On August 31, 2016, Gonzalez was arrested by Rhode Island State Police and ordered detained at the Adult Correctional Institution. While incarcerated, he continued to direct other members of the conspiracy to purchase cocaine in Puerto Rico and to mail the cocaine back to Rhode Island.
The case in federal court was prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Rhode Island State Police and the U.S. Postal Inspection Service.
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Prior Felon from Belen Pleads Guilty to Unlawfully Possessing Body Armor and Oxycodone Trafficking ChargesRead the Press Release
ALBUQUERQUE – Barry Romero, 38, of Belen, N.M, pled guilty today in Albuquerque, N.M., to unlawfully possessing body armor and Oxycodone trafficking. Romero’s plea agreement recommends a 96-month term of imprisonment followed by a term of supervised release to be determined by the court.
Romero is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution because of his previous felony convictions for armed robbery, attempt to commit robbery and cocaine trafficking. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Romero was arrested on Sept. 28, 2016, on a two-count indictment charging him with being a felon in possession of a firearm and ammunition and possession of body armor by a felon who has been convicted of a crime of violence. According to the indictment, Romero committed the crimes on Nov. 10, 2015, in Valencia County, N.M. Romero was prohibited from possessing firearms, ammunition or body armor because of his prior felony convictions.
During today’s change of plea hearing, Romero pled guilty to a felony information charging him with possession of body armor by a felon who has been convicted of a crime of violence and possession of Oxycodone with intent to distribute. In entering the guilty plea, Romero admitted that on Nov. 10, 2015, he was arrested at his residence in Belen, by Deputy U.S. Marshals who had a warrant for Romero’s arrest on a parole violation. During the execution of a search warrant on Romero’s residence incident to his arrest, law enforcement agents located body armor, two handgun cases, ammunition, Oxycodone and drug paraphernalia. Romero further admitted that he possessed the oxycodone with the intent to distribute it to other people. Romero acknowledged that he was convicted of armed robbery in 2005, prior to unlawfully obtaining the body armor. Romero remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance of the U.S. Marshals Service. Assistant U.S. Attorney Norman Cairns is prosecuting the case as part of 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.
Plainfield Man Sentenced to 30 Months in Federal Prison for Distributing Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GEORGE KINNEY, 35, of Plainfield, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for distributing fentanyl to an overdose victim in 2016.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on August 31, 2016, the Plainfield Police Department responded to a report of an untimely death of a 38-year-old female at a hotel in Plainfield. At the scene, officers seized drug and non-drug evidence, including bags that appear to have contained heroin and/or fentanyl that were located in a bathroom garbage can. The investigation revealed that KINNEY had provided the drugs to the victim and her boyfriend shortly before the victim’s death.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died due to the combined effects of ethanol and fentanyl.
KINNEY was arrested on May 9, 2017. At the time of his arrest, KINNEY possessed 40 bags of heroin on his person, and another 150 bags that were hidden in secret compartment in his pickup truck. The seized bags contained heroin and fentanyl, and most had identical labeling to the bags found in the victim’s hotel room.
Judge Bolden ordered KINNEY to forfeit his truck, a 2008 Ford F150 XL.
KINNEY has been detained since his arrest. On October 18, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and fentanyl.
KINNEY’s criminal history includes convictions for drug trafficking and a domestic violence offense.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Plainfield Police Department. The case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Pittsburgh Man Admits Guilt in Health Care Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to one count of conspiracy to distribute oxycodone and oxymorphone, one count of health care fraud, and one count of perjury, United States Attorney Scott W. Brady announced today.
Jeremiah Davidson, age 61, of Pittsburgh, Pennsylvania pleaded guilty to a one-count information and two counts of a Superseding Indictment before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Davidson obtained opioid prescription pain medication through physicians, often paid by taxpayer funded insurance programs, and sold the medication to a conspirator for later distribution to addicts. He arranged for the taxpayer funded insurance programs to pay for the pills by representing that he intended to use the medication for his own medical care when, in fact, he intended to sell the medication.
While on bond pending his guilty plea, the Pittsburgh Police arrested the defendant after observing him selling pain medication to a known pill distributor. During a hearing on the government’s motion to revoke the defendant’s bond, the defendant testified under oath that he did not receive money for selling his pain medication, that he had paid cash for the medication, that the medication had not been paid for through insurance, and that he had notified an agent with the Federal Bureau of Investigation of his arrest within 24 hours. All of that testimony was false and provided the basis for the perjury charge to which Davidson pleaded guilty.
Judge Hornak scheduled sentencing for May 9, 2018. The law provides for a total sentence of 35 years in prison, a fine of not more than $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Davidson.
Pharmacy Owner, Medical Doctor and Patient Recruiter Convicted in $4.3 Million Pain and Scar Cream Kickback Scheme Against Military Insurance ProgramRead the Press Release
The owner of an Orlando, Florida-area pharmacy, a medical doctor and a patient recruiter were convicted today for their role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military and their families, as well as retired veterans.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.
Larry Howard, 53, of Oviedo, Florida; Nicole Bramwell, M.D., 52, of Apopka, Florida; and Raymond Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.
According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Raymond Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Dr. Nicole Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks.
The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pharmacy Owner, Medical Doctor and Patient Recruiter Convicted in $4.3 Million Pain and Scar Cream Kickback Scheme Against Military Insurance ProgramRead the Press Release
Orlando, FL – The owner of an Orlando, Florida-area pharmacy, a medical doctor and a patient recruiter were convicted today for their role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military and their families, as well as retired veterans.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.
Larry Howard, 53, of Oviedo, Florida; Nicole Bramwell, M.D., 52, of Apopka, Florida; and Raymond Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.
According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Raymond Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Dr. Nicole Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks.
The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Panama City Beach Man Sentenced to 78 Months in Prison for Possession of Child PornographyRead the Press Release
PANAMA CITY, FLORIDA – Curtis Jason Jones, 39, of Panama City Beach was sentenced to 78 months in prison yesterday after pleading guilty on October 12, 2017, to possession of child pornography. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2015, law enforcement officers received information that Jones was in possession of child pornography. In June 2015, officers executed a search warrant on Jones’s residence. Forensic examinations of the electronic items seized during the search revealed hundreds of images and one video of child pornography, including 56 images and one video file containing known child victims previously identified by law enforcement. The child pornography images that Jones possessed showed children who appeared to be 10 years of age and younger, with some as young as five years of age.
“Children deserve to be protected from online exploitation, and my office and our law enforcement partners are committed to pursuing child predators who target innocent children,” said United States Attorney Canova.
“While already serving time for sexual battery, this criminal’s electronic devices were searched, and he was also discovered to be a child predator,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI special agents and our partners at the Panama City Beach Police Department and the Northern District Florida United States Attorney Office have now ensured he will be held accountable for his crimes against children, in addition to the sentence he is already serving for sexual battery.”
The case was investigated by the Panama City Beach Police Department and the United States Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
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.
Panama City Beach Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
PANAMA CITY, FLORIDA – Michael Shawn Garrett, 45, of Panama City Beach, Florida, a colonel in the Florida Air National Guard, was sentenced to 10 years in prison yesterday after being convicted on October 17, 2017, of attempted enticement of a minor for sex. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May 2017, undercover investigators conducted an operation to identify individuals seeking to engage in sexual activity with minors. Garrett responded to a Craigslist advertisement in which an undercover officer posed as a 14-year-old boy. During ninety minutes of conversation with the undercover officer, Garrett discussed the sex acts he wished to perform with the boy. Through his e-mail communications, Garrett repeatedly requested the physical address of the boy, offering to pick up the boy to engage in the sexual encounter. Garrett was arrested after arriving at the designated meeting place.
U.S. Attorney Canova said: “My office is committed to pursuing public safety, and a top priority is protecting young, innocent children from becoming victims of exploitation crimes. Child predators tragically use the Internet to try to reach their victims and take advantage of their vulnerabilities.”
“This defendant attempted to victimize and exploit a child,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI is committed to protecting children in our community, and will work tirelessly with our law enforcement partners to identify these predators. We also encourage parents to take time to educate their children about dangers lurking online.”
“This predator thought he was going to molest a young boy,” said HSI Tampa Special Agent in Charge James C. Spero. “Instead, he faced HSI special agents and our law enforcement partners, and now he will be held accountable for his crimes.”
The case was investigated by the Panama City Beach Police Department, the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
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.
Owner of Seafood Company Charged in Atlantic Blue Crab ScamRead the Press Release
NEWPORT NEWS, Va. – The owner of a Newport News seafood business was charged today by criminal information with conspiring to commit Lacey Act violations for blending foreign crab meat with Atlantic blue crab meat, then labeling the blended crab meat as “Product of USA”.
James R. Casey, 74, of Poquoson, is the owner and President of Casey’s Seafood, Inc. According to court documents, from at least July 2012 through June 2015, Casey knowingly conspired to replace Atlantic blue crab with crab meat from Indonesia, China, Thailand, Vietnam, and Central and South America. Casey and his co-conspirators falsely labeled at least 397,917 pounds of crab meat, with a retail value in the millions of dollars, as Atlantic blue crab and “Product of the United States”.
According to court documents, Casey directed employees to remove foreign crabmeat from the original shipper’s packaging containers, blend and combine foreign crab meat from one processor with crab meat from another processor, and place it into different packing containers with a label declaring that the contents were a “Product of USA,” despite knowing that the contents were imported crab meat. Casey also directed employees to place labels with “Product of the USA” on containers that covered up labels that stated “Product of Brazil” or “Product of China”.
Casey has been charged with conspiracy to defraud the United States, and faces a maximum penalty of five years in prison, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Jeffrey H. Wood, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and Tim Donovan, Assistant Director for National Oceanic Atmospheric Administration Office of Law Enforcement, made the announcement. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Gary N. Donner of the Environmental Crimes Section are prosecuting the case.
The U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the U.S. Food and Drug Administration's Office of Criminal Investigations provided significant assistance during the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
A criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
North Carolina Return Preparer Convicted for Filing Fraudulent ReturnsRead the Press Release
A jury sitting in Greensboro, North Carolina, convicted a Durham, North Carolina, tax return preparer of conspiring to defraud the United States and preparing fraudulent tax returns for herself and her clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to public documents and information presented during the trial, Keesha Frye, 43, owned and operated KEF Professional Tax Services, a Durham tax preparation business. From 2012 through 2014, Frye and other KEF employees falsified their clients’ tax returns by including fake and inflated sources of income to qualify for and maximize the earned income tax credit and increase the refunds claimed on the returns. Frye also filed personal income tax returns that claimed bogus childcare expenses and business losses.
U.S. District Court Judge William L. Osteen Jr. scheduled sentencing for April 11. Frye faces a statutory maximum sentence of five years in prison for conspiracy and three years in prison for each charge of filing fraudulent returns. Frye also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Return Preparer Convicted for Filing Fraudulent ReturnsRead the Press Release
WASHINGTON – A jury sitting in Greensboro, North Carolina, convicted a Durham, North Carolina, tax return preparer of conspiring to defraud the United States and preparing fraudulent tax returns for herself and her clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to public documents and information presented during the trial, Keesha Frye, 43, owned and operated KEF Professional Tax Services, a Durham tax preparation business. From 2012 through 2014, Frye and other KEF employees falsified their clients’ tax returns by including fake and inflated sources of income to qualify for and maximize the earned income tax credit and increase the refunds claimed on the returns. Frye also filed personal income tax returns that claimed bogus childcare expenses and business losses.
U.S. District Court Judge William L. Osteen, Jr. scheduled sentencing for April 11. Frye faces a statutory maximum sentence of five years in prison for conspiracy and three years in prison for each charge of filing fraudulent returns. Frye also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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North Carolina Man Pleads Guilty in Multi-State Dog Fighting ProsecutionRead the Press Release
A North Carolina man pleaded guilty to federal dog fighting and conspiracy charges yesterday, announced United States Attorney Matthew G.T. Martin and Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division.
Brexton Redell Lloyd, 54, of Eagle Springs, North Carolina, pleaded guilty to one felony count of conspiracy and two felony counts of possession and training a dog intended for use in an animal fighting venture, contrary to the animal fighting provisions of the federal Animal Welfare Act. Each count carries a maximum sentence of five years in prison and a $250,000 fine.
According to documents filed with the court, Lloyd participated with Justin “Jay” Love and others in a multi-state dog fighting conspiracy. These documents describe Lloyd and Love’s attempt to set up a dog fight between Lloyd and an unknown opponent in October 2015 and Lloyd’s breeding and training activities. Court documents further note that earlier this year, agents seized thirteen pit bull-type dogs from Lloyd’s residence. Ten of the dogs were secured outdoors by excessive chains, wearing thick collars, and positioned so that each dog was out of reach of any other dog. The other dogs were housed individually in pens. The water in the dogs’ bowls was frozen. Two of the four adult dogs seized exhibited scars consistent with dog fighting, and a third adult dog had four fractured teeth. In addition to the dogs, agents seized items related to training dogs for dog fighting purposes, including: a spring pole, a dog harness, and a hanging scale. Agents also seized veterinary supplies, including: intravenous fluids, intravenous administration sets stated for “Veterinary Use Only,” injectable and other antibiotics, a 100-count package of syringes, blood clotting medications such as Blood Stop Powder, and a skin stapler.
“Organized crime has no place in North Carolina or the United States – and dog fighting of this sort is nothing short of organized crime. Our law enforcement partners at the Department of Agriculture, the Federal Bureau of Investigation, the Moore County Sheriff’s Office, and the N.C. State Highway Patrol demonstrated exceptional coordination in bringing this defendant to justice,” said United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
“Yesterday’s guilty plea and our continuing efforts to investigate and prosecute these cases send a strong message that our justice system will not tolerate the torment and death of animals in the fighting ring, all for the sake of illegal gambling,” said Acting Assistant Attorney General. “Federal law is clear on this point and will continue to be enforced.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, over one hundred dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
This case was investigated by USDA-OIG and FBI, with assistance from the Moore County Sheriff’s Office and the North Carolina Highway Patrol, and is being prosecuted by Assistant U.S. Attorney JoAnna G. McFadden and Trial Attorney Erica H. Pencak of the Justice Department’s Environmental Crimes Section Environmental Crimes Section.
New Orleans Man Sentenced to 25 Years on Drug and Weapons ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that ROBERT RICKS, age 36, of New Orleans, was sentenced to twenty-five years in the Bureau of Prisons by Honorable Judge Carl J. Barbier today after being convicted in a two day trial for his role in conspiring to distribute crack cocaine and heroin, possessing heroin and crack with the intent to distribute, possessing a gun in furtherance of his drug trafficking activities, and being a felon in possession of a firearm.
According to the evidence presented at trial, RICKS conspired with several other individuals to distribute crack cocaine and heroin in the fall of 2014 and early 2015. The case began when the New Orleans Police Department (NOPD) received a Crimestoppers tip about RICKS’s drug trafficking activity in early February 2015. NOPD officers initiated surveillance and observed RICKS dealing from a house at the corner of Belleville and De Armas streets. They then secured a search warrant for the house where RICKS lived and found heroin, crack cocaine, a loaded pistol, scales, $3,600 in cash, and various other paraphernalia associated with drug trafficking. RICKS was arrested on state charges following the search. The state charges were ultimately adopted for federal prosecution after RICKS became a target in a parallel Bureau of Alcohol, Tobacco, Firearms, and Explosives’ investigation focused in Algiers.
RICKS was sentenced to a total of twenty-five years in the Bureau of Prisons, to be followed by eight years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorneys David Haller and Myles Ranier were responsible for the prosecution.
New Orleans Man Pleads Guilty to Firearm and Drug ViolationsRead the Press Release
U.S. Attorney Duane A. Evans announced that KENZIE FAULK, age 58, of New Orleans, pled guilty yesterday to an Indictment charging him with possessing a firearm while being a convicted felon and conspiracy to possess marijuana with the intent to distribute.
According to court documents, on October 16, 2016, FAULK, a convicted felon, attempted to board a Southwest Airlines flight, departing from Louis Armstrong New Orleans International Airport, while he was in possession of a fully loaded revolver. TSA personnel located the weapon in a bag that FAULK was attempting to carry aboard the plane, which was destined to Los Angeles. TSA personnel became aware that a gun was inside of the bag when the TSA x-ray scan machine alerted to its presence. TSA agents confiscated the gun prior to FAULK boarding the plane.
In the days following his arrest, members of the FBI learned that FAULK was trafficking marijuana though the U.S. postal service. FBI agents conducted a search of FAULK’s residence and located a wooden crate that had been shipped from Los Angeles to New Orleans. After executing a search warrant, FBI agents located and confiscated three cellophane wrapped packages of high-grade marijuana inside of the crate, which was addressed to FAULK.
For the charge of possessing a firearm by a convicted felon, FAULK faced a maximum sentence of 10 years imprisonment. For his participation in the drug conspiracy, FAULK faces a maximum sentence of five years imprisonment. Judge Nannette Jolivette-Brown will sentence FAULK on April 5, 2018.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the TSA in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
New Orleans Man Pleads Guilty to Drug Trafficking, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Convicted Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that TIMOTHY JACKSON, age 28, a native of New Orleans, pled guilty on January 10th to violations of the Federal Drug Control Act, Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) for possessing with the intent to distribute a quantity of heroin, and violations of the Federal Gun Control Act, Title 18, United States Code, Section 924(c)(1)(A), possession of a firearm in furtherance of a drug trafficking crime, and Title 18, United States Code, Section 922(g)(1), convicted felon in possession of a firearm.
According to the court documents, JACKSON was arrested along with another individual on January 4, 2017. At the time of his arrest, JACKSON was in possession of a quantity of heroin meant for distribution in the Eastern District of Louisiana as well as two loaded semi-automatic handguns and approximately $1,825 in U.S. currency.
For the possession with intent to distribute heroin charge, JACKSON faces a maximum term of imprisonment of twenty years, a maximum fine of $1,000,000, a term of supervised release of at least three years, and a mandatory $100 special assessment.
For the convicted felon in possession of firearm charge. He faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a term of supervised release of three years, and a mandatory $100 special assessment.
Finally, for the possession of firearms in furtherance of a drug trafficking crime, JACKSON faces a sentence of at least five years in addition to the sentence he receives for the underlying drug possession with intent to distribute charge.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant U.S. Michael Simpson is in charge of the prosecution.
New Orleans Couple Sentenced for Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that BRANDON SMITH, age 30, and CHELSIE WILLIAMS, age 24, residents of New Orleans, were sentenced yesterday after previously pleading guilty to one count of being a felon in possession of a firearm and one count of making false statements to a federally licensed firearms dealer.
U.S. District Judge Carl J. Barbier sentenced SMITH to a term of imprisonment of 42 months, 3 years of supervised release, a $10,000 fine, and a $100 mandatory special assessment. WILLIAMS was sentenced to a term of imprisonment of 36 months, 3 years of supervised release, and a $100 mandatory special assessment.
According to court documents, in April 2016, SMITH and WILLIAMS obtained two firearms. SMITH and WILLIAMS later pawned one of the firearms. In September 2016, they returned to the pawn shop and attempted to redeem the weapon. WILLIAMS, acting in concert with SMITH, falsely stated that she was the actual buyer/transferee for the firearm and that she was not a convicted felon.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren was in charge of the prosecution.
Nebraska Man Sentenced for Possessing Child PornographyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Bobby Joe Ansley, 38, of Mullen, Nebraska, was sentenced today in Lincoln, Nebraska, to 120 months in prison by United States District Judge John M. Gerrard, for possession of child pornography. After his release from prison, Ansley will also serve 12 years of supervised release and be required to register as a sex offender.
In February 2016, the Nebraska State Patrol began receiving Cyber Tips from Google regarding images of sexually explicit conduct involving minors being attached to emails from email addresses associated with Ansley. These emails were sent from email accounts associated with Ansley in January 2016. In August 2016, a third-party informed officers about electronic devices Ansley owned. The person also identified some of the email addresses referenced in the Cyber Tips as being used by Ansley. Based on the Cyber Tips and information provided by the third-party, the State Patrol obtained a Search warrant for Ansley’s residence in Mullen, Nebraska. Officers found the external hard drive and paperwork containing the password for the device. NSP found 1,950 identified images of sexually explicit conduct involving minors, as defined by federal law, on Ansley’s hard drive. These included images of child pornography involving prepubescent minors who had not attained 12 years of age. Further investigation revealed that the minors in the images were identified as living outside the state of Nebraska and that the images were produced outside the state of Nebraska and shipped or transported to Nebraska. Ansley was previously convicted of Aggravated Sexual Abuse in the Southern District of California on October 2, 2003.
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 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 www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
National Human Trafficking Prevention MonthRead the Press Release
Columbia, South Carolina ------- In recognition of January as National Slavery and Human Trafficking Prevention Month, United States Attorney Beth Drake provides the following statement:
This January, the U.S. Attorney’s Office, in conjunction with its federal, state, and local partners, renews its commitment to working to rescue and restore victims of human trafficking and to prosecuting those responsible for these human rights abuses. We cannot simply stand on our past successes as these victories have illuminated how much more work we have to do.
Last year, the U.S. Attorney’s Office prosecuted human trafficking cases from the coast to the midlands to the upstate. Each case opened one more window into this shadowy world. We have learned that many victims of human trafficking are encountering South Carolinians in their places of work and leisure, yet they remain unseen or unnoticed. Traffickers prey on men, women, and children - both foreign nationals and United States citizens, the rich and the poor, the black and the white, the young and the old, the educated and the uneducated. The exploitation of these individuals varies from the forced labor of workers in the agricultural and service industries to the forced commercial sex trade and many other forms - all yielding shameful profits to the traffickers. We each have a role to play in lifting the veil on this crime. We at the Department of Justice encourage everyone to familiarize themselves with the warning signs of human trafficking, www.polarisproject.org/human-trafficking/recognize-signs, and to report suspicious activity to law enforcement or the National Human Trafficking Hotline at 1-888-3737-888.
Congress has provided the U. S. Attorney’s Office and its partners with strong and effective tools to bring to justice those who commit these most offensive human rights violations. Through the vigorous prosecution of human traffickers working in conjunction with the FBI and DHS HSI, the U.S. Attorney’s Office will work to make South Carolina an area inhospitable to and intolerant of human trafficking.
“Human trafficking is one of the most heinous crimes investigated by Homeland Security Investigations (HSI) and our partner agencies,” said Atlanta Special Agent in Charge of Nick Annan. “HSI human trafficking investigations follow a victim-centered approach, ensuring the victims of this terrible crime are rescued and get the care they need, while at the same time investigating and seeking prosecution of the criminal perpetrators of this modern-day slavery.”
The FBI stated: “The FBI and our federal, state, and local partners have made great progress in identifying human trafficking operations, prosecuting offenders, and helping victims, but much work remains to be done. It is all our hope that as more people become aware of the magnitude of this problem, more critical information will be provided to us. Therefore, we ask anyone with information about human trafficking to contact their nearest FBI office.” (Alphonso Norris, Special Agent in Charge, FBI-Columbia Division).
In 2017, the United States Attorney’s office in conjunction with its law enforcement partners prosecuted the following noteworthy cases:
United States v. Damon Taquan Jackson, a/k/a “Daddy Frost”, et al – 2:16-cr-00054
This ten person sex trafficking conspiracy exploited its victims throughout South Carolina, North Carolina, and Georgia through the use of backpage.com. The defendants raped and beat their victims who were both adults and minors to force them to engage in commercial sex acts.
United States v. Alshura Tabil Annessa Frazier, 3:16-cr-00559
Frazier was convicted of sex trafficking of a minor and possession of a firearm during a drug trafficking crime. He was sentenced to 420 months imprisonment and supervised release for life. This case illustrates the overlap between drug trafficking organizations and commercial; sex trafficking.
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Nahant Couple Indicted on Fraud ChargesRead the Press Release
BOSTON – A Nahant couple was charged in an indictment unsealed today in connection with the “short sale” of a house in Nahant.
Gary P. DeCicco, 59, and Pamela M. Avedisian, 54, were charged in an indictment with one count of conspiracy to commit wire fraud and one count of wire fraud. DeCicco was also charged with one count of conspiracy to commit bank fraud, one count of bank fraud, four counts of wire fraud and attempted wire fraud, and six counts of engaging in unlawful monetary transactions.
DeCicco has been in federal custody since he was charged in March 2017 with attempted extortion in connection with arranging and paying for a local business owner to be assaulted. DeCicco and Avedisian made an initial appearance today in federal court in Boston and will be arraigned on Tuesday, Jan. 16, 2018.
The indictment alleges that Avedisian owned a property in Nahant that was subject to a mortgage in excess of $1 million. In October 2015, DeCicco and Avedisian allegedly conspired to defraud the mortgage holder by proposing the sale of the property for significantly less than the outstanding mortgage, in what is commonly referred to as a “short sale.” By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated and act independently, allowing sellers to cede their ownership of the property in exchange for the short-selling bank’s agreement to release them from their unpaid mortgage debt. In order to get approval for the sale, DeCicco and Avedisian concealed their long-term romantic and business relationships from the loan servicing company and falsely represented that Avedisian could no longer make payments towards the mortgage on the property. In fact, just two months before the “short sale” closed, Avedisian purportedly received $3.5 million from the sale of another asset to DeCicco.
The indictment also alleges that from November 2015 to September 2016, DeCicco and a co-conspirator falsified rent rolls and prepared fake leases, which they then provided to financial institutions in support of their applications for a $5.5 million loan secured by a commercial building in Peabody. The indictment further alleges that between September 2016 and January 2017, DeCicco committed unlawful monetary transactions with the proceeds of the bank fraud scheme, and between February and December 2016, DeCicco engaged in a scheme to defraud multiple insurance companies using fake invoices and other documents to support his claims.
The charges of wire fraud and conspiracy, as well as bank fraud and conspiracy, provides for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud and attempted wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of engaging in unlawful monetary transactions provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Moore County Man Pleads Guilty in Multi-State Dog Fighting ProsecutionRead the Press Release
Greensboro, N.C. – A Moore County man pled guilty to federal dog fighting and conspiracy charges yesterday, announced United States Attorney Matthew G.T. Martin and Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division.
Brexton Redell LLOYD, 54, of Eagle Springs, North Carolina, pled guilty to one felony count of conspiracy and two felony counts of possession and training a dog intended for use in an animal fighting venture, contrary to the animal fighting provisions of the federal Animal Welfare Act. Each count carries a maximum sentence of five years in prison and a $250,000 fine.
According to documents filed with the court, LLOYD participated with Justin “Jay” Love and others in a multi-state dog fighting conspiracy. These documents describe Lloyd and Love’s attempt to set up a dog fight between Lloyd and an unknown opponent in October 2015 and LLOYD’s breeding and training activities. Court documents further note that earlier this year, agents seized thirteen pit bull-type dogs from LLOYD’s residence. Ten of the dogs were secured outdoors by excessive chains, wearing thick collars, and positioned so that each dog was out of reach of any other dog. The other dogs were housed individually in pens. The water in the dogs’ bowls was frozen. Two of the four adult dogs seized exhibited scars consistent with dog fighting, and a third adult dog had four fractured teeth. In addition to the dogs, agents seized items related to training dogs for dog fighting purposes, including: a spring pole, a dog harness, and a hanging scale. Agents also seized veterinary supplies, including: intravenous fluids, intravenous administration sets stated for “Veterinary Use Only,” injectable and other antibiotics, a 100-count package of syringes, blood clotting medications such as Blood Stop Powder, and a skin stapler.
“Organized crime has no place in North Carolina or the United States – and dog fighting of this sort is nothing short of organized crime. Our law enforcement partners at the Department of Agriculture, the Federal Bureau of Investigation, the Moore County Sheriff’s Office, and the N.C. State Highway Patrol demonstrated exceptional coordination in bringing this defendant to justice,” said United States Attorney Martin.
“Ending animal fighting ventures is a priority of our Division. We dispatch prosecutors who focus in this area to districts across the country, to join with our partners in the U.S. Attorneys’ Offices in aggressively pursuing illegal animal fighting,” said Acting Assistant Attorney General Wood. “Today’s sentence sends a message that our justice system will not tolerate the torment and death of animals in the fighting ring, all for the sake of illegal gambling.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Department of Agriculture – Office of Inspector General Special Agent-in-Charge Bethanne M. Dinkins. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, over one hundred dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
This case was investigated by USDA-OIG and FBI, with assistance from the Moore County Sheriff’s Office and the North Carolina Highway Patrol, and is being prosecuted by Assistant U.S. Attorney JoAnna G. McFadden and Trial Attorney Erica H. Pencak of the Justice Department’s Environmental Crimes Section Environmental Crimes Section.
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Mobile Phone Industry Executive Sentenced in Manhattan Federal Court to 5 Years in Prison for Role in Multimillion-Dollar Consumer Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRASER THOMPSON was sentenced today to five years in prison for his participation in a fraudulent scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.” The fraud committed by THOMPSON and his co-conspirators resulted in the theft of over $100 million from consumers throughout the United States. THOMPSON was convicted by a jury on September 5, 2017, following a three-week trial, and was sentenced today in Manhattan federal court by the Honorable Katherine B. Forrest.
Manhattan U.S. Attorney Geoffrey S. Berman said: “This was a gross ‘main street’ fraud. Fraser Thompson and his co-defendants engaged in ‘auto-subscribing,’ forcing mobile phone users to pay for unsolicited and unwanted text messaging services. They ripped off everyday cellphone users, $10 a month, netting over $100 million in illegal profits, of which Thompson personally received over $1.5 million. Thanks to the diligence of the IRS and FBI, consumers are being safeguarded and perpetrators of large-scale criminal frauds are being arrested, prosecuted, and convicted.”
According to the Superseding Indictment filed in Manhattan federal court, the evidence presented at trial, and statements made in connection with THOMPSON’s sentencing:
THOMPSON was the Senior Vice President of Strategic Operations at Mobile Messenger, a mobile aggregation company. In the relevant time period, mobile aggregators like Mobile Messenger compiled, or “aggregated,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills. Between 2011 and 2013, THOMPSON and others engaged in a massive scheme to defraud ordinary consumers by placing unauthorized charges for premium text messaging services on their cell phone bills, through a practice known as auto-subscribing.
The auto-subscribing scheme essentially involved two main players in the cell phone industry: mobile aggregators, such as Mobile Messenger, and content providers, which sent consumers the unwanted text messages that ultimately resulted in them being billed for services they had not authorized. Mobile Messenger worked with four different content providers in the scheme, each of which were essential to the scheme’s success. THOMPSON participated in auto-subscribing through two of those content providers, CF Enterprises and DigiMobi, which were operated by one of THOMPSON’s co-conspirators, Eugeni Tsvetnenko, a/k/a “Zhenya.”
The plan to auto-subscribe with Tsvetnenko came about in early 2012, in connection with discussions between THOMPSON and three other Mobile Messenger executives, co-conspirators Darcy Wedd, Erdolo Eromo, and Michael Pajaczkowki, a/k/a “Paj,” about how to increase revenue at Mobile Messenger in the wake of the decreasing profitability of premium text messaging services. Tsvetnenko had been kicked off Mobile Messenger’s aggregation platform in the past due to suspicious subscribing practices, including past incidents of auto-subscribing. Nevertheless, in early 2012, THOMPSON, Wedd, Eromo, and Pajaczkowski agreed to allow Tsvetnenko to establish two new content providers, CF Enterprises and DigiMobi, to conduct a scheme to auto-subscribe on Mobile Messenger’s aggregation platform.
THOMPSON, Wedd, Eromo, and Pajaczkowski agreed to a revenue split with Tsvetnenko, pursuant to which Tsvetnenko would keep approximately 70% of the auto-subscribing proceeds generated by CF Enterprises and DigiMobi, and the remaining 30% of the auto-subscribing proceeds would be divided evenly among THOMPSON, Wedd, Eromo, and Pajaczkowski. THOMPSON, Wedd, Eromo, and Pajaczkowski also devised a method of receiving and distributing the auto-subscribing money through multiple layers of shell companies, in an effort to conceal the nature and purpose of the money. These auto-subscribing activities with Tsvetnenko, which began in approximately April of 2012, and continued into 2013, resulted in hundreds of thousands of mobile phone users being auto-subscribed through Mobile Messenger. THOMPSON, moreover, personally received over $1.5 million in fraud proceeds as a result of his participation in the illegal scheme.
The auto-subscription scheme, through all of the content providers that it involved, affected millions of consumers and generated over $100 million in criminal proceeds.
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To date, seven defendants, Andrew Bachman, Lin Miao, Pajackowski, Eromo, Jonathan Murad, Francis Assifuah, and Jason Lee have pled guilty in connection with their participation in the fraud. One additional defendant, Wedd, was convicted by a jury on December 15, 2017, following a two-week trial.
In addition to the prison term, THOMPSON was sentenced to three years of supervised release, and ordered to forfeit $1,552,114.56.
Mr. Berman praised the investigative work of the Internal Revenue Service - Criminal Investigations and the Federal Bureau of Investigation, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul, Richard Cooper, and Jennifer L. Beidel are in charge of the prosecution.
Meridian Man Sentenced for Illegal Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss – Kahari Scott, 24, of Meridian, Mississippi, was sentenced today by U.S. District Judge Henry T. Wingate, to serve 64 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Scott was also ordered to pay a $1,500 fine.
On September 23, 2016, Kahari Scott, was traveling west on Old Highway 80 in Meridian, Mississippi. Lauderdale County Sheriff’s Deputy Chris McFarland noticed that Scott was not wearing a seatbelt and pulled the vehicle over. Upon approaching the vehicle, Deputy McFarland noticed a handgun on the passenger seat. When asked for his driver’s license and proof of insurance, Scott stated that he did not have them on him and provided a fictitious name. When Deputy McFarland returned to his vehicle to call dispatch to check for any prior felony convictions, Scott opened the driver door and fled from the scene. Warrants were subsequently issued and Scott was arrested on November 15, 2016.
Scott has a previous conviction in the Circuit Court of Lauderdale County, Mississippi for the felony offense of possession of a stolen firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lauderdale County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Keesha D. Middleton.
Man Sentenced to 39 Years in Prison for Armed RobberiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Ashan M. Benedict, the New York Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced today that LAWRENCE BROWN was sentenced to 39 years in prison for committing two armed robberies in Orange County, New York. BROWN was convicted on March 9, 2017, after a jury trial before U.S. District Judge Nelson Stephen Román, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Lawrence Brown terrorized the employees of a pharmacy and a supermarket when he robbed them at gunpoint. Not only did Brown point his gun at five different people, making them fear for their lives, he then tied them up before fleeing with thousands of dollars in cash. Today’s lengthy prison sentence sends a strong message that violent crimes and firearms offenses like these will not be tolerated.”
ATF New York Special Agent in Charge Ashan M. Benedict stated: “Lawrence Brown is a violent felon that terrorized his community through the commission of armed robberies, showing an extreme disregard for his fellow citizens. One of ATF’s Top Most Wanted Fugitives, he zip-tied his victims’ hands, brandished firearms, and held some of his victims as hostages while committing his robberies. Thanks to the efforts of local and federal law enforcement, Brown will no longer be in a position to harm his community. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case. I would also like to thank the Special Agents of ATF, as well as the City of Newburgh Police Department, and the Town of New Windsor Police Department for their investigative efforts that helped bring Brown to justice.”
According to the Indictment filed against BROWN, other court documents publicly filed in this case, and statements made in court proceedings, including today’s sentencing:
In late 2013 and early 2014, the defendant committed two terrifying robberies. In November 2013, the defendant entered a Rite Aid pharmacy in New Windsor, New York, dressed in a Pepsi deliveryman uniform, and asked to speak to the store’s manager. He then shoved a firearm into her side and forced the store manager into the manager’s office to empty money from the store’s safes, totaling $5,911, into a shopping bag. He then bound the store manager’s hands behind her back using a zip-tie and left her in the office.
Five months later, in April 2014, the defendant hid in the manager’s office of a Shop Rite supermarket in Newburgh, New York, where he lay in wait for an employee who could open that store’s safes. Over the next few hours, three store employees who did not have the combination to the safes separately entered the office, and the defendant brandished a firearm at each of them. When it became clear that each of these first three employees could not open the safes, Brown bound their hands behind their backs using zip-ties and continued to await a manager. When a manager eventually arrived, Brown pointed the firearm at the manager and ordered him to empty money totaling $20,140 into a shopping bag. The defendant then bound the manager’s hands using an electrical cord and left all four employees tied up in the office.
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In addition to the prison term, BROWN, 46, was sentenced to restitution in the amount of $26,051.89 and three years of supervised release.
Mr. Berman praised the outstanding investigative work of the ATF, the City of Newburgh Police Department, and the Town of New Windsor Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Anden Chow and Allison Nichols are in charge of the prosecution.
Man Indicted, Returned from Indonesia by FBI to Face Fraud Charges in OregonRead the Press Release
SAN FRANCISCO – On Friday, January 12, 2018, Richard Macadangdang Sales, 68, made his initial appearance before U.S. Magistrate Judge Maria-Elena James in the Northern District of California after FBI agents from the Bend, Oregon Residence Agency escorted him back to the U.S. from Indonesia. In December 2017, a federal grand jury in Eugene, Oregon indicted Sales on four counts of wire fraud and one count of money laundering for an alleged scheme that cheated investors of more than $900,000.
The indictment alleges that between 2011 and 2013, investors were led to believe Sales was using their investments to recover hundreds of millions of dollars’ worth of U.S. Treasury Notes located in East Asia and the Pacific. The indictment states that victims believed Sales was building humanitarian housing for victims of natural disasters as part of this recovery process and that they would see returns as high as 100 percent.
Sales had been living outside the U.S. since 2012. Working with the Indonesian National Police and Indonesian Immigration, through the FBI’s Legal Attaché office in Jakarta, FBI agents traveled to Indonesia and met Sales as he was deported on January 11, 2018. FBI agents escorted him back to the United States and arrested him after touching down on U.S. soil.
Judge James ordered Sales detained pending transfer by the U.S. Marshals Service to the District of Oregon for further court proceedings.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy involving the murder of a 15-year-old boy in Lawrence.
Josue Alexis DePaz, a/k/a “Gato,” 21, a Salvadoran national formerly residing in Lawrence, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for April 6, 2018.
DePaz was identified as a member of MS-13’s Everett Loco Salvatrucha (ELS) clique, which operated in the greater Boston area. When interviewed by law enforcement officers, DePaz admitted that on July 5, 2015, he was one of two men who stabbed a 15-year-old boy to death in O’Connell Park in Lawrence. In conversations recorded by law enforcement during the investigation, MS-13 members identified DePaz as one of the men who murdered the victim. DePaz was subsequently arrested in a house in Somerville with several other MS-13 members. A search warrant at the house resulted in the recovery of a firearm, several large knives, photographs of MS-13 members flashing gang signs, and a large volume of MS-13 paraphernalia, including blue and white hats, bandanas and rosary beads. According to court documents, MS-13 members frequently wear blue and white items of clothing to signify their membership in the gang.
After a three-year investigation, DePaz was one of 61 individuals named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. DePaz is the 28th defendant to plead guilty in this case.
DePaz faces up to life in prison, five years of supervised release, and will be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
Lower Brule Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Tyler Harmon, age 27, was indicted on February 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 12, 2016, Harmon forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a lieutenant from the Bureau of Indian Affairs, while said lieutenant was engaged in the performance of his official duties.
The charge is merely an accusation and Harmon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Harmon was released on bond pending trial, which has not been set.
Liberian National Pleads Guilty to Resisting a Federal Officer During Removal ProcessRead the Press Release
BOSTON - A Liberian national pleaded guilty today in federal court in Boston to resisting a federal officer at Logan International Airport. The defendant struck and injured deportation officers as they attempted to facilitate his removal from the United States.
Mohammed Kenneh, 35, pleaded guilty to one count of resisting a federal officer. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for April 24, 2018.
On July 11, 2016, Kenneh was ordered removed from the United States to Liberia. Kenneh’s removal order was based in part on previous criminal convictions, which rendered him deportable. On Aug. 29, 2017, Kenneh was transported to Logan International Airport where he was met by two deportation officers assigned to accompany Kenneh to Liberia. Kenneh refused to cooperate and exit the transportation van, and he repeatedly struck both deportation officers, causing the officers physical injury. Kenneh was eventually removed from the transportation van, but continued to be uncooperative. A decision was then made to abort the removal proceedings and return Kenneh to Immigration and Customs Enforcement custody.
Kenneh faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Christopher Cronen, Field Office Director, Enforcement and Removal Operations Boston Field Office, U.S. Immigration and Customs Enforcement, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Laredoans Sent to Prison for Rollover Incident that Led to DeathRead the Press Release
LAREDO, Texas – Three smugglers have been sentenced to federal prison for transporting illegal aliens that resulted in one death, announced U.S. Attorney Ryan K. Patrick. One alien died and two others received injuries resulting from a vehicle rollover.
Guillermo Venegas, 19, pleaded guilty Sept. 1, 2016, while Edgardo Diaz, 20, and Antonio Aguilar, 20, entered their pleas April 6 and June 24, 2016, respectively.
Today, U.S. District Judge Diana Saldaña ordered Venegas to serve 70 months, while Diaz and Aguilar each received 87-month-terms of federal imprisonment. Venegas, Diaz and Aguilar will also serve supervised release terms of three, five and four years, respectively, following their sentences. In handing down the sentences, Judge Saldaña noted that it was unfortunate the defendants had chosen to become involved in such a serious crime which resulted in the death of one undocumented alien and injuries to others. After statements from each defendant expressing remorse for the events, the court noted that each attempted to downplay their roles by recruiting other persons and that they demonstrated poor judgment in recruiting or involving juveniles. On several occasions, Judge Saldaña reminded the defendants that “the reality is that someone died.”
At the time of their pleas, the three admitted to conspiring to transport three aliens to Laredo. Aguilar recruited Venegas to transport the aliens. Venegas then recruited a juvenile to drive and use his parent’s van as the load vehicle.
During the early evening of Jan. 31, 2016, the three defendants set out on Mines Road in three separate vehicles to locate and pick up aliens who had just crossed from Mexico by wading the Rio Grande River. Diaz and Aguilar scouted for law enforcement in their respective vehicles, while communicating with Aguilar who was in the van providing directions to the juvenile driver.
After arriving at the pick-up location and determining the area was clear of law enforcement, Venegas and the juvenile picked up three aliens and drove towards Laredo, while Diaz and Aguilar continued to monitor contact with law enforcement.
Border Patrol (BP) agents in marked units encountered the van, but Venegas and the juvenile failed to stop, attempted to cross the median at a high rate of speed and overturned. Venegas and two alien passengers were injured, while another alien died at the scene.
The defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Webb County District Attorney’s Office prosecuted the juvenile driver and two others.
BP, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, Laredo Police Department and the Webb County Medical Examiner conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Lafayette woman pleads guilty to stealing nearly $1.5 million from Broussard businessRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Lafayette woman pleaded guilty Thursday to stealing almost $1.5 million from a Broussard oilfield related company.
Susan M. Benoit, 54, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to two counts of wire fraud. The plea will become final after it is accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Benoit worked for a Broussard, La., oilfield related company from 1998 to 2016. As the accountant and later as Chief Financial Officer, Benoit had access to the company’s bank accounts and transferred $1,490,588.70 from company accounts to her personal bank account.
Benoit faces up to 20 years in prison, three years of supervised release, restitution, forfeiture and a $250,000 fine. The court set April 10, 2018 as the sentencing date.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Jackson Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – David Calvin Beard, 54, of Jackson, pled guilty on January 11, 2017, before Chief United States District Judge Daniel P. Jordan III, to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols, Bureau of Alcohol, Tobacco, Firearms and Explosives.
On December 2, 2016, while attempting to execute an arrest warrant for Beard at his home in Jackson, officers with the United States Marshal Service Gulf Coast Regional Taskforce observed shotgun ammunition in plain view inside the home. Because Beard was a convicted felon and thus prohibited from possessing firearms or ammunition, a search warrant was obtained for his home. When officers executed the search warrant on Beard’s residence, officers found a Winchester .22 caliber rifle, a Taurus .22 caliber revolver, and 1,677 rounds of assorted ammunition scattered throughout the home and garage.
Beard had been previously convicted in the United States District Court for the Western District of Missouri for the felony offense of conspiracy to possess with intent to distribute methamphetamine and in the Circuit Court of Rankin County for the felony offense of home invasion.
Beard will be sentenced in Jackson by Chief Judge Jordan on April 12, 2018, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshal Service Gulf Coast Regional Taskforce. It is being prosecuted by Assistant United States Attorney Keesha D. Middleton.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on January 11, 2018 and entering pleas of Not Guilty were:
- WILSON ALEXIS FAJARDO FAJARDO, a 28-year-old resident of Mexico, appeared on charges of illegal re-entry. If convicted of the charge contained in the indictment, FAJARDO faces 2 years in prison, $250,000 in fines an 1 year supervised release. The case was investigated by U.S. Immigration and Customs Enforcement. PACER Case Reference. 18-01
- CANDELARIO MOLINA-MOLINA, a 34-year-old resident of Mexico, appeared on charges of illegal re-entry. If convicted of the charge contained in the indictment, MOLINA-MOLINA faces 2 years in prison, $250,000 in fines and 1 year supervised release. The case was investigated by U.S. Immigration and Customs Enforcement. PACER Case Reference. 18-02
Appearing before U.S. Magistrate Johnston in Great Falls on January 11, 2018 and entering pleas of Not Guilty were:
- CLAYTON PAUL MARTELL, a 32-year-old resident of Poplar, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MARTELL faces 40 years in prison, $5,000,000 in fines, and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 18-02
Appearing before U.S. Magistrate Johnston in Great Falls on January 10, 2018 and entering pleas of Not Guilty were:
- MIKKEL DERRIK SHIELDS, a 33-year-old resident of Poplar, appeared on charges of burglary. If convicted of the charge contained in the indictment, SHIELDS faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 18-03
Appearing before U.S. Magistrate Cavan in Billings on January 9, 2018 and entering pleas of Not Guilty were:
- MANUEL PAZ SANCHEZ, JR., a 31-year-old resident of Sacramento, California, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, SANCHEZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 18-03
Appearing before U.S. Magistrate Johnston in Great Falls on January 9, 2018 and entering pleas of Not Guilty were:
- LEROY BEAUCHAMP, a 36-year-old resident of Wolf Point, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, BEAUCHAMP faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-78
- GEORGE LEON GOODRIE, a 44-year-old resident of Great Falls, appeared on charges of robbery affecting commerce, possession of a firearm in furtherance of a crime of violence, and prohibited person in possession of a firearm. If convicted of the most serious charges contained in the indictment, GOODRIE faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. PACER Case Reference. 17-81
- BOBBY LEE LAMERE, a 42-year-old resident of Great Falls, appeared on charges of prohibited person in possession of a firearm, and counterfeiting obligations or securities of the United States. If convicted of the most serious charge contained in the indictment, LAMERE faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service and the Great Falls Police Department. PACER Case Reference. 17-82
- NOVA BIG LEGGINS, a 28-year-old resident of Wolf Point, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, BIG LEGGINS faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-78
- EDWARD ANTHONY TORRES, a 22-year-old resident of Babb, appeared on charges of assault resulting in serious bodily injury. If convicted of the charge contained in the indictment, TORRES faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 18-04
Appearing before U.S. Magistrate Cavan in Billings on January 8, 2018 and entering pleas of Not Guilty were:
- CYNTHIA MIREYA LOZANO, a 25-year-old resident of Merced, California, appeared on charges of possession with intent to distribute methamphetamine, and possession with intent to distribute marijuana. If convicted of the most serious charge in the indictment, LOZANO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Montana Highway Patrol. PACER Case Reference. 17-145
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Independence Man Sentenced for EmbezzlingRead the Press Release
U.S. Attorney Duane A. Evans announced that JEFFERY GATLIN, age 52, of Independence, Louisiana, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information charging him with embezzling Social Security disability benefits.
U.S. District Judge Nannette Jolivette Brown sentenced GATLIN to three years of probation and ordered him to pay back the $102,510.40 in disability benefits that that he stole.
According to court documents, between March 2011 and October 2016, GATLIN embezzled $102,510.40 in Social Security Title II benefit payments, knowing that he was not entitled to these funds.
U.S. Attorney Evans praised the work of the United States Social Security Administration in investigating this matter. Assistant U.S. Attorney David Howard Sinkman was in charge of the prosecution.
Illegal Immigrant Pleads Guilty to Aggravated Identity TheftRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jose Gerardo Mejia-Rangel (41, Dade City) has pleaded guilty to aggravated identity theft. He previously pleaded guilty in a separate case to illegally reentering the United States. Mejia-Rangel faces a maximum penalty of 10 years in federal prison for illegal reentry and a mandatory, consecutive two-year prison sentence for aggravated identity theft. His sentencing hearing is set for January 23, 2018.
According to court documents, Mejia-Rangel, who has been previously deported from the United States at least four times, used a California man’s name, birth certificate, and Social Security number to apply for a state of Florida identification card and driver license. Upon his arrest for domestic battery in July 2017, Mejia-Rangel presented himself under the California man’s identity. He also admitted to using the identity to avoid detection from federal immigration authorities.
This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Frank Murray.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
United States Attorney Duane A. Evans announced that LAZARO VILLATORO-BODDEN (“VILLATORO-BODDEN”), age 36, pleaded guilty on January 10, 2018, to a one-count Bill of Information for illegal use of a social security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court records, VILLATORO-BODDEN knowingly and with the intent to deceive, falsely represented that a social security number was assigned to him by the Commissioner of Social Security when, in fact, as VILLATORO-BODDEN knew, the social security number had not been assigned to him. His deception and illegal use of the social security number was done for the purpose of obtaining boat registration documents from the Louisiana Department of Wildlife and Fisheries. At sentencing, which is currently set for April 11, 2018, VILLATORO-BODDEN faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Michael M. Simpson is in charge of the prosecution.
Hammond Man Sentenced for Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRISTOPHER HUTTON, age 26, of Hammond, was sentenced yesterday after previously pleading guilty to one count of being a felon in possession of a firearm.
United States District Judge Carl J. Barbier sentenced HUTTON to 96 months of imprisonment, followed by 3 years of supervised release.
According to court documents, HUTTON, who had previously been convicted of a felony in Tangipahoa Parish, possessed at total of eight firearms on June 6, 2016 and June 8, 2016.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. The prosecution of this case was handled by Assistant U.S. Attorney Jonathan L. Shih.