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Monday 8 January 2018
Brooklyn Man Pleads Guilty to Scaming Lowe’s Out of Millions of Dollars and Failing to File Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Kenneth Cassidy, 51, of Brooklyn, NY, pleaded guilty to conspiracy to commit wire fraud and willful failure to file an income tax return before Senior U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between June 12, 2012, and December 20, 2016, the defendant opened approximately 173 fraudulent Lowe's Accounts Receivable (LAR) accounts throughout the United States using counterfeit checks. Once an account was opened, Cassidy made fraudulent purchases of goods at Lowe’s until the funds were depleted or Lowe’s closed the account. Of the 173 accounts, four were opened at stores in the Western District of New York and purchases were made at stores throughout the Buffalo and Rochester areas. In total, the defendant and others used the fraudulent accounts to make approximately $2,652,391.17 in purchases from Lowe’s.
Additionally, for the tax years 2012 to 2015, Cassidy received gross income in excess of $10,000 from criminal activity, but willfully failed to file federal income tax returns for those years.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James Robnett, Special Agent in Charge, New York Field Office; the New York State Police, Special Investigations Unit, under the direction of Major George Nohai; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for April 18, 2018, at 9:00 a.m. before Judge Skretny.
Bristol, Virginia Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Bristol man who maintained a residence used for drug distribution and was the sight of at least two acts of violence, pleaded guilty last week in federal court in Abingdon to related federal charges, United States Attorney Rick A. Mountcastle announced.
John James Lapis, 39, waived his right to be indicted last week and pleaded guilty on Friday, January 5, 2018 to a one-count Information charging him with maintaining a place for the distribution of controlled substances. At sentencing, scheduled for April 9, 2018, at 2:30 p.m., Lapis faces a maximum statutory penalty of up to 20 years in prison and/or a fine up to $500,000.
Lapis admitted to being a drug user who maintained a residence on Safari Drive in Bristol, Virginia for the purpose of allowing others to buy and sell controlled substances. In exchange for use of the residence, Lapis received drugs for his own use.
According to information presented at the guilty plea hearing by Assistant United Attorney Randy Ramseyer, between January 2016 and June 2017, the Washington County Sheriff’s Office responded to over 50 complaints at the residence, including over 100 calls/texts concerning activity at the residence. These calls and texts included complaints of heavy traffic in and out of the residence. In response, law enforcement conducted traffic stops of vehicles leaving the Safari Drive residence. During some of these stops, narcotics were found. During one attempted traffic stop, a driver did not follow the officers’ directions and a police chase took place. After apprehending the driver, officers found a large amount of methamphetamine and a firearm in the vehicle. In June 2017, a search warrant was executed at the residence, and a small amount of methamphetamine was found.
In October 2016, a drug trafficker was shot and killed at the residence. Through numerous interviews by law enforcement, it was determined that the victim was killed, at least in part, due to a drug debt. In February 2017, another shooting took place at the residence, over a drug debt.
The investigation of the case was conducted by the Town of Abingdon Police Department, Bristol Police Department, Washington County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Armed Robber Sentenced to 27 Years in Federal PrisonRead the Press Release
Tampa, Florida – Chief U.S. District Judge Steven D. Merryday today sentenced Patrick D. Cummings (43, Pinellas County) to 27 years in federal prison for interference with commerce by robbery and brandishing a firearm during a crime of violence. He pleaded guilty to the robbery count on July 26, 2017. Following a bench trial on November 28, 2017, Chief Judge Merryday found him guilty of the firearm offense.
According to court documents, at approximately 4:09 a.m. on March 24, 2017, Cummings entered a Walgreens in St. Petersburg. He pressed a black handgun against a cashier’s back, demanded all of the money from her register, and repeatedly threatened to shoot her. He then stole approximately $374 and fled. Investigators traced fingerprints left at the scene to Cummings.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives as part of the St. Petersburg Violent Crime Reduction Initiative. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Alex G. Tse Acting United States Attorney for the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – This morning, upon Brian Stretch’s resignation, Alex G. Tse became the Acting United States Attorney for the Northern District of California in accordance with the Vacancy Reform Act. Mr. Tse formerly served as the First Assistant United States Attorney under Brian Stretch and the Chief of the Office’s Civil Division from 2012 – 2015. Previously, Mr. Tse served as an Assistant United States Attorney in the Northern District of California from 1994 – 2006. Between 2006 and 2012 Mr. Tse worked for the San Francisco City Attorney’s Office.
Albion Man Sentenced for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Ridder, 46, of Albion, NY, who was convicted of receipt of child pornography, was sentenced to 132 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in January 2017, after exchanging messages with an undercover law enforcement agent, the defendant was found in possession of over 600 images of child pornography, some depicting prepubescent minors and some depicting violent conduct.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Medina Police Department, under the direction of Chief Chad Kenward.
Albion Man Sentenced for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Ridder, 46, of Albion, NY, who was convicted of receipt of child pornography, was sentenced to 132 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in January 2017, after exchanging messages with an undercover law enforcement agent, the defendant was found in possession of over 600 images of child pornography, some depicting prepubescent minors and some depicting violent conduct.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Medina Police Department, under the direction of Chief Chad Kenward.
Friday 5 January 2018
Uniontown Man Sentenced to Prison for Conspiring to Distribute Cocaine and HeroinRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been sentenced in federal court to 70 months’ incarceration, followed by four years of supervised release, on his conviction of violating the federal narcotic laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Rodney Harris, 45, of Uniontown, Pennsylvania.
According to information presented to the court, from in and around January 2010, and continuing thereafter to in and around June 2015, Harris conspired with others to distribute and possess with intent to distribute more than five but less than 15 kilograms of cocaine, and more than one but less than three kilograms of heroin.
Assistant United States Attorneys Heidi M. Grogan and Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation who led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Harris.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney Kurt Alme Issues Statement Regarding Marijuana Prosecutions in MontanaRead the Press Release
BILLINGS – U.S. Attorney Kurt Alme of the District of Montana has issued the following statement regarding marijuana prosecutions: “Yesterday, the Attorney General rescinded the Cole Memo on marijuana prosecutions and directed that federal marijuana prosecution decisions be governed by the same principles that govern all federal prosecution decisions. The United States Attorney’s Office in Montana is guided by these principles in marijuana prosecutions -- focusing in particular on identifying and prosecuting those who create the greatest safety threats to our citizens and communities. Consistent with the Attorney General’s latest guidance, we will continue to take this approach in all of our work with our law enforcement partners throughout Montana.”
U.S. Attorney Bill Powell applauds the Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
MARTINSBURG, WV –The U.S. Attorney’s office in the Northern District of West Virginia is committed to revitalizing Project Safe Neighborhoods and reducing violent crimes, United States Attorney Bill Powell announced.
“I look forward to working with our state and local law enforcement leaders to develop an effective strategy to deal with violent crime. Assistant United States Attorney David Perri has been appointed coordinator of this project. We will do all we can to identify the most violent individuals and organizations, and then prosecute them. I have already met with many law enforcement leaders and county prosecutors. I look forward to our partnership to make our communities safer,” said Powell.
Attorney General Jeff Sessions has announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
In a statement on the program, the Attorney General said:
"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.
“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.
“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.
“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies. The Fairmont Police Department was the recipient of a $250,000 COPS Hiring Program award, which will allow funding for hiring two additional officers.
-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
Truck Driver Guilty of Alien Smuggling Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Weslaco man has admitted to human smuggling which resulted in the death of an undocumented alien trapped inside a toolbox, announced Acting U.S. Attorney Abe Martinez.
Juan Enrique Escobedo-Moreno appeared before U.S. Magistrate Judge Jason B. Libby and admitted to smuggling the victim in his tractor trailer. He died after being trapped in a toolbox measuring only 30 inches long, 26 inches wide and 16 inches deep.
According to the facts presented to the court during guilty plea today, Escobedo-Moreno drove his 2002 Kenworth tractor-trailer into the primary inspection area of the Falfurrias Border Patrol checkpoint shortly after midnight on Oct. 3, 2017. He claimed to be a hauling a load of watermelons from Edinburg to Houston and that no one else was with him. Upon inspection, authorities discovered one Mexican national hidden inside a small closet directly behind the driver’s seat. Escobedo-Moreno and that undocumented alien made no mention of anyone else in the vehicle.
Authorities later discovered the remains of an individual concealed in a tool compartment under the sleeper berth. When in the down position, the bed was secured with an exterior latch that would be inaccessible from inside the tool storage compartment under the bed and prevent anyone from freeing themselves. According to information presented in court, Escobedo-Moreno specifically instructed the victim to pull the bed down hard to make sure it would latch and stay closed.
Sentencing has been set for April 9, 2018, before Senior U.S. District Judge Janis Graham Jack. At that time, Escobedo-Moreno faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation with the assistance of the Brooks County Sheriff’s Office Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Three Sentenced for Their Roles in A $4.5 Million ConspiracyRead the Press Release
Jacksonville, FL – United States District Judge Brian Davis today sentenced Justin Pennington (30, St. John’s County), Marcelene M. Keesbury (54, Ft. Wayne, Indiana), and Charles M. French (50, Ft. Wayne, Indiana) for their roles in a multi-million dollar conspiracy. Pennington was sentenced to five years and five months in federal prison and ordered to pay $4,075,000 in restitution. Keesbury and French were both sentenced to three years and five months’ imprisonment and were also ordered to pay $4,075,000 in restitution. A federal jury found Pennington guilty in April 2017. Keesbury and French pleaded guilty in October 2016.
According to evidence presented at trial, while Pennington was employed as an Information Technology Director at The Wholesale House, an Ohio-based company with offices in Jacksonville, he and his co-conspirators created a fraudulent company, 3 Kings, LLC. 3 Kings was incorporated in Delaware in an attempt to conceal the identity of the owners who purchased products from The Wholesale House at or near cost and then resold those products to consumers and retailers. Unbeknownst to the owners of The Wholesale House, 3 Kings illegally competed with The Wholesale House’s customers and thereby caused significant financial difficulties for the company’s legitimate customers. In all, 3 Kings purchased nearly $40 million of products from The Wholesale House and never paid the entirety of its bills owed to them. Instead, Pennington and his co-conspirators spent tens of thousands of dollars themselves, with Pennington incurring credit card balances of up to $100,000 per month, while owing his employer millions of dollars.
During the trial, Pennington’s co-conspirators testified that he was the mastermind of the scheme, created detailed proposals, named the corporation, incorporated the company, and controlled the corporation’s bank accounts. Further, The Wholesale House owners testified that they had personally infused more than $7 million into the company to ensure its survival and to protect the jobs of the company’s more than 60 employees.
"The subjects in this case developed a sophisticated scheme to deceive a local business owner using a competing business," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. "Incidents of fraud, like this, are not victimless crimes. The FBI is dedicated to working closely with government and private entities to track down and stop scams in an effort to protect the business community."
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Mark Devereaux.
Texas Man Sentenced for Conspiring to Distribute Drugs and Launder MoneyRead the Press Release
On January 5, 2018, Acting United States Attorney Robert C. Stuart announced that Juan Zuniga Gloria, 40, of Alamo, Texas, was sentenced to 14 years (168 months) in prison for conspiracy to distribute methamphetamine and cocaine and 14 years (168 months) for conspiracy to money launder. Those sentences are to run concurrently, (i.e., at the same time). Zuniga Gloria 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.
Zuniga Gloria was arrested on April 24, 2017 after approximately a one-year investigation regarding shipments of methamphetamine and cocaine brought 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. Evidence obtained as a result of this investigation indicated Zuniga Gloria was responsible for the distribution of at least 150 grams (approximately 5 ¼ ounces) of actual (pure) methamphetamine, at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 2 kilograms (approximately 4 ½ pounds) of cocaine between May of 2014 and April of 2017. At the time of his arrest, Zuniga Gloria’s Lincoln apartment was searched. More than one ounce of methamphetamine, 1 ¾ pounds of cocaine, over $6,000 in cash and items commonly used in drug distribution were found. Records for three bank accounts in Gloria’s name over the time-frame of the conspiracy showed cash deposits of more than $248,000, many of which occurred in Lincoln and cash withdrawals of more than $158,000, occurring mostly 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.
Sylvania man indicted for having more than 27,000 images and 1,300 videos depicting child sexual exploitation, including toddlers being rapedRead the Press Release
A Sylvania man was indicted on child pornography charges after investigators found him with more than 27,000 images of child sexual exploitation and more than 1,300 videos, said U.S. Attorney Justin E. Herdman.
Mark Koltz, 27, was indicted on one count of receipt and distribution of child pornography.
Investigators determined that a series of downloads of child pornography originated from a home on Hawthorne drive in Sylvania. A search and forensic examination of computers seized at the home identified approximately 27,682 images of child sexual exploitation and approximately 1,306 videos, including images and videos of bestiality and toddlers being raped by adults, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Secret Service. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stamford Man Pleads Guilty to Marijuana Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REYES, also known as “Big Head,” 36, of Stamford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to possess with intent to distribute marijuana.
According to court documents and statements made in court, in the summer of 2017, REYES and John Koukouras utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. The investigation revealed that REYES was also being supplied by an individual in New York City with large quantities of marijuana. In July 2017, the marijuana supplier delivered approximately 40 pounds of marijuana to REYES in exchange for approximately $80,000.
REYES was arrested on July 26, 2017. On that date, investigators conducted court-authorized searches of REYES’ Stamford residence and the Lagrangeville residence. A search of the Stamford residence revealed approximately 18 kilograms of marijuana, paraphernalia associated with narcotics distribution, and $71,004 in cash, and a search of the Lagrangeville residence revealed 140 marijuana plants and related equipment.
Judge Arterton scheduled sentencing for March 30, 2018, at which time REYES faces a maximum term of imprisonment of five years. REYES also has agreed to forfeit his interest in both the $71,004 in cash seized from his residence, and a 2012 Toyota Camry.
REYES has been detained since his arrest.
Koukouras, of Eugene, Oregon, pleaded guilty to the same charge on November 15, 2017, and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
St. Lawrence County Man Sentenced to 95 Years for Child Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK -Stacey J. LaPorte, Jr., age 27, of Massena, New York, was sentenced yesterday to 95 years in federal prison, following his convictions for sexually exploiting four children including two babies, and receiving pornography, announced United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II, and Resident Agent in Charge Russell Linstad, Homeland Security Investigations, Massena, New York.
Following a June 2017 trial, a jury in United States District Court in Utica, New York, found LaPorte guilty of conspiring with Mackenzie Bailey, age 22, of Massena, to sexually exploit a child from the time the child was an infant until age two, and with using that child to produce sexually explicit images on two specific occasions. He was also convicted of conspiring with Hillary Trimm, age 26, also of Massena, to sexually exploit another child, who had not yet turned one, and a twelve-year-old boy and his sixteen-year-old sister whom he coerced to have sexual contact so that he could create images. Finally, he was convicted of receiving child pornography from another user via a computer-messaging program.
“There are few crimes as evil as the prolonged sexual abuse of infants. LaPorte did that, produced sexually explicit images of the abuse, sexually exploited siblings, and received child pornography. His sentence to imprisonment for 95 years should ensure that no other children are victimized by this perverse predator. We will continue to work with federal, state, and local law enforcement agencies to hold child predators accountable for their abominable actions,” said United States Attorney Grant C. Jaquith.
New York State Police Superintendent George P. Beach II said, “The State Police and our law enforcement partners have zero tolerance for those who prey on children, and this sentence reflects the severity of the crimes and our commitment to finding justice for the victims. We want to thank the agencies involved for their determination in holding this individual accountable for his reprehensible actions.”
"Investigations involving the sexual exploitation of innocent children are by far the most heinous crimes we encounter," said HSI Resident Agent in Charge Russell Linstad. "This significant sentencing ensures that Mr. Laporte will never again have access to children and should serve as a stark warning of the severe consequences that await those involved in these depraved acts."
Both Mackenzie Bailey and Hillary Trimm pled guilty to the crimes they committed with LaPorte, testified at his trial, and will each be sentenced later this month.
In addition to the term of incarceration, if LaPorte is ever released from prison, he will be placed on supervised release for life, and will have to register as a sex offender.
LaPorte’s case was investigated by the New York State Police, the Massena Police Department, and the Department of Homeland Security, Homeland Security Investigations, and prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Sahar L. Amandolare.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
South Carolina Man Pleads Guilty to Conspiracy to Distribute Marijuana and Identity TheftRead the Press Release
SAN FRANCISCO – Peyton Erwin Eidson pleaded guilty in federal court in San Francisco today to aggravated identity theft and conspiracy to distribute marijuana, announced United States Attorney Brian J. Stretch, Special Agent in Charge Matthew Perlman of the U.S. State Department’s Diplomatic Security Service (DSS) San Francisco Field Office, and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The plea was accepted by the Honorable Susan Illston, U.S. District Judge.
In pleading guilty, Eidson, 73, of Aiken, S.C., admitted that he had conspired with others to import thousands of pounds of marijuana from Thailand into the United States in the mid-80s, and then to distribute that marijuana once it arrived. Eidson further admitted that, after he and his co-conspirators were caught, he obtained a passport using another person’s identity and then fled the country. Eidson was a fugitive for 32 years. The State Department identified and located Eidson in 2011, and in 2017, he was returned to the United States to face the pending drug and passport fraud charges.
“Criminals who travel far and hide for a long time will not be shielded from prosecution,” said U.S. Attorney Stretch. “We commend the steadfast work of our federal law enforcement partners whose hard work has brought this criminal to justice.”
“The successful return and prosecution of this longtime fugitive from halfway around the world are a clear demonstration of both the investigative diligence and global reach of the Diplomatic Security Service,” said DSS Special Agent in Charge Perlman. DEA Special Agent in Charge Martin agreed: “This case demonstrates that DEA remains willing and able to support the prosecution of those who violate our nation’s drug laws, even when they manage to evade capture for three decades.”
Eidson was indicted by a federal grand jury on January 14, 1985. He was charged with conspiracy to import marijuana, in violation 21 U.S.C. § 963; conspiracy to distribute marijuana, in violation of 21 U.S.C. § 846; and two counts of distribution and possession of marijuana with intent to distribute it, in violation of 21 U.S.C. § 841. Under today’s agreement, Eidson pleaded guilty to the conspiracy to distribute marijuana charge. A federal grand jury also indicted Eidson on September 15, 2017, in a second case charging him with two counts of passport fraud, in violation of 18 U.S.C. § 1542; two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of conspiracy to commit passport fraud, in violation of 18 U.S.C. § 371. Under today’s plea agreement, Eidson pleaded guilty to one count of aggravated identity theft.
Eidson remains in custody pending sentencing. Judge Illston scheduled his sentencing hearing for April 27, 2018. The maximum statutory penalty for the drug charge is 15 years in prison, followed by 3 years of parole, and a $125,000 fine. The penalty for the passport fraud case is two years in prison consecutive to any other sentence, a $250,000 fine, and one year of supervised release. However, any sentence will be imposed by the court only after consideration of and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sex traffickers will target Atlanta during National Championship game weekendRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia, along with our law enforcement partners, are encouraging both citizens and visitors to be aware of the possibility of sex trafficking during the festivities happening in and around Atlanta this weekend and into next week. In short, if you believe it might be, tell someone.
“Sex traffickers are despicable people, and they use events like the National Championship game to ply their trade,” said U.S. Attorney Byung J. “BJay” Pak. “These types of events draw large crowds of revelers, and sex traffickers often seek to exploit these types of opportunities. We need everyone’s help in identifying those being trafficked for sex, and in bringing the traffickers to justice.”
Many times those who are being trafficked are homeless, runaway, or abandoned children, but it is not limited to these groups. Traffickers also seek out at-risk individuals, i.e. those individuals suffering from sexual/physical abuse, or dependency, while also exploiting women and children from other countries – typically from impoverished nations.
There are some signs that people should be aware of which may indicate someone is being held against their will and trafficked for sex:
- They do not hold their own identity or travel documents;
- They appear to suffer from verbal or psychological abuse designed to intimidate, degrade and frighten the individual;
- They have a trafficker or pimp who controls all their money – the victim will have very little or no pocket money;
- They are extremely nervous, especially if the victim’s “translator” is their trafficker; and
- They are not allowed to move about by themselves and have little understanding of where they are.
Victims may also lack personal items, possessions, or luggage. They may not have a cell phone or calling card. Most may also lack private space – a trafficker or an enforcer is always present. They most likely will not possess financial records or identification documents, or have any knowledge about how to get around in a community.The penalties for sex-trafficking are substantial, but can only be enforced with the help of aware citizens. If you wish to report a potential sex-trafficking incident please contact the FBI at (770) 216-3000.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Scott Tucker Sentenced to More Than 16 Years in Prison for Running $3.5 Billion Unlawful Internet Payday Lending EnterpriseRead the Press Release
Joan Loughnane, the Acting Deputy United States Attorney for the Southern District of New York, announced today that SCOTT TUCKER was sentenced to 200 months in prison for operating a nationwide internet payday lending enterprise that systematically evaded state laws for more than 15 years in order to charge illegal interest rates as high as 1,000 percent on loans. TUCKER’s co-defendant, TIMOTHY MUIR, an attorney, was also sentenced, to 84 months in prison, for his participation in the scheme. In addition to their willful violation of state usury laws across the country, TUCKER and MUIR lied to millions of customers regarding the true cost of their loans to defraud them out of hundreds, and in some cases, thousands of dollars. Further, as part of their multi-year effort to evade law enforcement, the defendants formed sham relationships with Native American tribes and laundered the billions of dollars they took from their customers through nominally tribal bank accounts to hide Tucker’s ownership and control of the business.
After a five-week jury trial, TUCKER and MUIR were found guilty on October 13, 2017, on all 14 counts against them, including racketeering, wire fraud, money laundering, and Truth-In-Lending Act (“TILA”) offenses. U.S. District Judge P. Kevin Castel presided over the trial and imposed today’s sentences.
Acting Deputy U.S. Attorney Joan Loughnane said: “For more than 15 years, Scott Tucker and Timothy Muir made billions of dollars exploiting struggling, everyday Americans through payday loans carrying interest rates as high as 1,000 percent. And to hide their criminal scheme, they tried to claim their business was owned and operated by Native American tribes. But now Tucker and Muir’s predatory business is closed and they have been sentenced to significant time in prison for their deceptive practices.”
According to the allegations contained in the Superseding Indictment, and evidence presented at trial:
The Racketeering Influenced Corrupt Organizations (“RICO”) Crimes
From at least 1997 until 2013, TUCKER engaged in the business of making small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet. TUCKER’s lending enterprise, which had up to 1,500 employees based in Overland Park, Kansas, did business as Ameriloan, f/k/a Cash Advance; OneClickCash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”). TUCKER, working with MUIR, the general counsel for TUCKER’s payday lending businesses since 2006, routinely charged interest rates of 600 percent or 700 percent, and sometimes higher than 1,000 percent. These loans were issued to more than 4.5 million working people in all 50 states, including more than 250,000 people in New York, many of whom were struggling to pay basic living expenses. Many of these loans were issued in states, including New York, with laws that expressly forbid lending at the exorbitant interest rates TUCKER charged. Evidence at trial established that TUCKER and MUIR were fully aware of the illegal nature of the loans charged and, in fact, prepared scripts to be used by call center employees to deal with complaints by customers that their loans were illegal.
Fraudulent Loan Disclosures
TILA is a federal statute intended to ensure that credit terms are disclosed to consumers in a clear and meaningful way, both to protect customers against inaccurate and unfair credit practices, and to enable them to compare credit terms readily and knowledgeably. Among other things, TILA and its implementing regulations require lenders, including payday lenders like the Tucker Payday Lenders, to disclose accurately, clearly, and conspicuously, before any credit is extended, the finance charge, the annual percentage rate, and the total of payments that reflect the legal obligation between the parties to the loan.
The Tucker Payday Lenders purported to inform prospective borrowers, in clear and simple terms, as required by TILA, of the cost of the loan (the “TILA Box”). For example, for a loan of $500, the TILA Box provided that the “finance charge – meaning the ‘dollar amount the credit will cost you’” – would be $150, and that the “total of payments” would be $650. Thus, in substance, the TILA Box stated that a $500 loan to the customer would cost $650 to repay. While the amounts set forth in the Tucker Payday Lenders’ TILA Box varied according to the terms of particular customers’ loans, they reflected, in substance, that the borrower would pay $30 in interest for every $100 borrowed.
In fact, through at least 2012, TUCKER and MUIR structured the repayment schedule of the loans such that, on the borrower’s payday, the Tucker Payday Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Tucker Payday Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. With TUCKER and MUIR’s approval, the Tucker Payday Lenders proceeded automatically to withdraw such “finance charges” payday after payday (typically every two weeks), applying none of the money toward repayment of principal, until at least the fifth payday, when they began to withdraw an additional $50 per payday to apply to the principal balance of the loan. Even then, the Tucker Payday Lenders continued to assess and automatically withdraw the entire interest payment calculated on the remaining principal balance until the entire principal amount was repaid. Accordingly, as TUCKER and MUIR well knew, the Tucker Payday Lenders’ TILA box materially understated the amount the loan would cost, including the total of payments that would be taken from the borrower’s bank account. Specifically, for a customer who borrowed $500, contrary to the TILA Box disclosure stating that the total payment by the borrower would be $650, in fact, and as TUCKER and MUIR well knew, the finance charge was $1,425, for a total payment of $1,925 by the borrower.
The Sham Tribal Ownership of the Business
In response to complaints that the Tucker Payday Lenders were extending abusive loans in violation of their usury laws, several states began to investigate the Tucker Payday Lenders. To thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes. Beginning in 2003, TUCKER entered into agreements with several Native American tribes (the “Tribes”), including the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, and the Modoc Tribe of Oklahoma. The purpose of these agreements was to cause the Tribes to claim they owned and operated parts of TUCKER’s payday lending enterprise, so that when states sought to enforce laws prohibiting TUCKER’s loans, TUCKER’s lending businesses would claim to be protected by sovereign immunity. In return, the Tribes received payments from TUCKER, typically one percent of the revenues from the portion of TUCKER’s payday lending business that the Tribes purported to own.
In order to create the illusion that the Tribes owned and controlled TUCKER’s payday lending business, TUCKER and MUIR engaged in a series of lies and deceptions. Among other things:
- MUIR and other counsel for TUCKER prepared false factual declarations from tribal representatives that were submitted to state courts, falsely claiming, among other things, that tribal corporations substantively owned, controlled, and managed the portions of TUCKER’s business targeted by state enforcement actions.
- TUCKER opened bank accounts to operate and receive the profits of the payday lending enterprise, which were nominally held by tribally owned corporations, but which were, in fact, owned and controlled by TUCKER. TUCKER received over $380 million from these accounts on lavish personal expenses, some of which was spent on a fleet of Ferraris and Porsches, the expenses of a professional auto racing team, a private jet, a luxury home in Aspen, Colorado, and his personal taxes.
- In order to deceive borrowers into believing that they were dealing with Native American tribes, employees of TUCKER making payday loans over the phone told borrowers, using scripts directed and approved by TUCKER and MUIR, that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating at TUCKER’s corporate headquarters in Kansas.
These deceptions succeeded for a time, and several state courts dismissed enforcement actions against TUCKER’s payday lending businesses based on claims that they were protected by sovereign immunity. In reality, the Tribes neither owned nor operated any part of TUCKER’s payday lending business. The Tribes made no payment to TUCKER to acquire the portions of the business they purported to own. TUCKER continued to operate his lending business from a corporate headquarters in Kansas, and TUCKER continued to reap the profits of the payday lending businesses, which generated over $3.5 billion in revenue from just 2008 to June 2013 – in substantial part by charging struggling borrowers high interest rates expressly forbidden by state laws.
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In addition to their prison terms, TUCKER, 55, of Leawood, Kansas, and MUIR, 46, of Overland Park, Kansas, were each sentenced to three years of supervised release. Judge Castel ordered the defendants to forfeit the proceeds of their crimes. TUCKER was remanded into custody.
In pronouncing sentence, Judge Castel described the crimes as “a scheme to extract money from people in desperate circumstances” that “created heartbreak and sorrow . . . not just a financial loss.”
Mrs. Loughnane praised the outstanding investigative work of the St. Louis Field Office of the IRS-CI. Mrs. Loughnane also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the Federal Trade Commission for their assistance with the case.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor, Hagan Scotten, and Sagar Ravi are in charge of the prosecution.
Salinas Gang Member Pleads Guilty to Multiple Bank RobberiesRead the Press Release
SAN FRANCISCO – Francisco Javier Marmolejo, aka “Blindy,” pleaded guilty today in federal court to robbing three San Francisco Bay Area banks announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Lucy H. Koh, United States District Judge.
According to today’s plea agreement, Marmolejo, 36, of Salinas admitted robbing Bay Area banks on three occasions between November of 2011 and January of 2012. Marmolejo admitted that on November 9, 2011, together with others, he robbed a bank in Pacific Grove, Calif. Marmolejo admitted that at least one of the robbers brandished a firearm and that he was the getaway driver while his fellow robbers went inside the bank to rob it. On that occasion, Marmolejo and his fellow robbers stole approximately $18,383.00 from the bank. Further, on December 2, 2011, Marmolejo, together with others, robbed a bank in Seaside, Calif. Marmolejo acknowledged that on that occasion, he brandished a firearm during the robbery. Finally, on January 19, 2012, Marmolejo, together with others, robbed a bank in Salinas, Calif., during which one of the robbers brandished a gun.
In addition to the three robberies in which Marmolejo admitted he participated, he also admitted that in March of 2012, he possessed three semi-automatic handguns, bear repellant, three ballistic vests, three ski masks, and other items all of which were used and intended to be used during the commission of bank robberies and to avoid detection by law enforcement.
On January 3, 2017, Marmolejo was charged by superseding information with one count of conspiracy to commit armed bank robbery, in violation of 18 U.S.C. § § 2113(a) and (d), and 371; one count of armed bank robbery, in violation of 18 U.S.C. § § 2113(a) and (2) and 2; and one count of use or possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § § 924(c)(1)(A) and 2. Pursuant to today’s plea agreement, Marmolejo pleaded guilty to all counts in the superseding information. Marmolejo was originally indicted on some of these charges on November 8, 2016. Marmolejo’s co-defendant Jorge Lopez, aka “Cowboy,” pleaded guilty to the same charges on December 18, 2017.
The defendant is currently in custody pending sentencing. Judge Koh scheduled Marmolejo’s sentencing hearing for May 9, 2018. Co-defendant Lopez is scheduled to be sentenced on April 11, 2018. The maximum statutory penalty for conspiracy to commit bank robbery is five years’ imprisonment and a fine of $250,000. The maximum penalty for armed bank robbery is 25 years’ imprisonment and a fine of $250,000. The maximum statutory penalty for using or possessing a firearm in furtherance of a crime of violence is seven years’ imprisonment and a fine of $250,000. Further, additional terms of supervised release, penalties, and restitution may be ordered upon conviction. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney Claudia A. Quiroz with the assistance of paralegal Jessica Meegan and legal assistant Lance Libatique. The prosecution is the result of an investigation by the FBI.
Rochester Man Charged with Bank Robberies in Brighton and Webster and with an Attempted Bank Robbery in RochesterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derrick Stubbs, age 52, of Rochester, New York, was arrested and charged by Criminal Complaint with bank robbery and attempted bank robbery, all in violation of Title 18, United States Code, Section 2113(a). These charges each carry a maximum penalty of up to 20 years imprisonment and up to a $250,000 fine.
Assistant U.S. Attorney Sean Eldridge, who is handling the case, stated that the Criminal Complaint alleges that on December 5, 2017, Stubbs attempted to rob the Chase Bank located at 560 Monroe Avenue, Rochester, New York, and on that same date, robbed the Summit Federal Credit Union at 1660 Monroe Avenue, Brighton, New York. The Criminal Complaint further alleges that on December 7, 2017, Stubbs robbed the Chase Bank located at 920 Holt Road, Webster, New York.
The Criminal Complaint alleges that during these robberies, Stubbs handed a note to a bank employee demanding money. The notes also contained statements to the teller such as “make it fast and don’t try nothing,” “don’t try anything funny,” or “no die pack and no games.” Stubbs stole approximately $800, on December 5, 2017, from Summit Federal Credit Union robbery in Brighton, and approximately $2,425, two days later, from the Chase Bank in Webster.
The defendant made an initial appearance on January 4, 2018, before United States Magistrate Judge Jonathan W. Feldman and has been held in custody pending a further status conference scheduled for February 5, 2018, before United States Magistrate Judge Marian W. Payson.
The Criminal Complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Brighton Police Department, under the direction of Mark Henderson; and the Webster Police Department, under the direction of Chief Joseph Rieger.
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.
Pinellas County Inmate Sentenced to 65 Years’ Imprisonment for Plot to Murder WitnessesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Priscilla Ellis (51, Killeen, Texas) to 65 years in federal prison for murder-for-hire, witness retaliation, and securities counterfeiting. A federal jury found her guilty of these offenses on March 9, 2017. The judge ordered the 65-year sentence to run consecutive to a 40-year sentence previously imposed following a prior federal conviction.
According to court documents, following a three-week trial in October 2016, Ellis and her two co-defendants were convicted of conspiracies to commit international money laundering and mail and wire fraud and were remanded to federal custody. After arriving at the Pinellas County Jail, Ellis immediately began soliciting other inmates to assist her in finding a hitman to murder one of the witnesses who had testified during her trial, as well as the mother of a second trial witness. Meanwhile, she directed coconspirators in Nigeria and Texas to create electronic images of counterfeit cashier’s checks with face values totaling hundreds of thousands of dollars that were to be cashed and used to pay for the murders.
Over the course of the next week, Ellis “hired” an undercover FBI agent posing as a hitman and provided explicit instructions on how she wanted her targets killed. On October 28, 2016, a family member acting at Ellis’s direction provided a down payment on the murder contracts to the undercover agent posing as the hitman in Texas, with the remainder to be paid only after the intended victims were killed.
This case was investigated by the Federal Bureau of Investigation and the City of Austin (Texas) Police Department. It was prosecuted by Assistant United States Attorneys Eric K. Gerard and Patrick D. Scruggs, both of whom tried the prior case as well.
Pierce County Woman Sentenced to Five Years in Prison for Bombing Car Belonging to Person She Considered a Police ‘Snitch’Read the Press Release
A Tacoma, Washington woman was sentenced today in U.S. District Court in Tacoma to 60 months in prison for unlawful possession of a destructive device, announced U.S. Attorney Annette L. Hayes. KENNI JO BENNETT, 41, of Tacoma, and an accomplice, placed the explosive device under a Kia Forte sedan parked outside a Tacoma home occupied by a family, including several children. The device exploded, blasting a hole in the trunk area of the car and scattering debris around the area, including the lawns of homes across the street. No one was injured. At the sentencing hearing, U.S. District Judge Ronald B. Leighton described the crime as a “very, very dangerous offense,” and told BENNETT that her conduct showed she was a “renegade” who sought “rough justice [on] her terms.”
“This defendant tried to keep the truth about her drug dealing and other crimes from coming out,” said U.S. Attorney Annette L. Hayes. “Not only did she not succeed, she will now serve five years in a federal prison for her actions. I commend the Bureau of Alcohol, Tobacco and Firearms and the Tacoma Police Department for their work on this case, and am grateful that the small children sleeping in a room near the explosion were not injured in this attack.”
According to the plea agreement, between August and October 2016, BENNETT became convinced that the victim was providing information to law enforcement concerning BENNETT’s drug trafficking activities. BENNETT recruited an accomplice to help her blow up the victim’s car. BENNETT purchased an explosive device about the size of a soda can from someone she knew on the Puyallup Indian Reservation. In the early morning hours of October 13, 2016, BENNETT cruised the victim’s neighborhood and saw his car parked in the driveway of his home. She texted her accomplice, picked him up, and brought him back to the target vehicle. BENNETT used a lit cigarette to ignite the fuse of the device and instructed her accomplice where to place it. BENNETT used her smart phone to record the explosion. The two then left the area.
BENNETT was arrested by Tacoma Police and charged in state court in November 2016. A forensic review of BENNETT’s phone revealed multiple text messages in which she bragged about the bombing and joked with her friends about it. While in custody, BENNETT asked other people to intimidate witnesses or attempt to erase electronic evidence. In May 2017, BENNETT was charged federally and has remained in federal custody.
BENNETT pleaded guilty in October 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tacoma Police Department. The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
Northwest Arkansas Man Pleads Guilty to Money Laundering and Filing A False Tax ReturnRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, Tracey D. Montaño, Special Agent in Charge for IRS Criminal Investigation, and Diane Upchurch, Special Agent in Charge for the Federal Bureau of Investigation announced today that Darrell Rosen, age 59, formerly of Fayetteville, Arkansas, has pleaded guilty to one count of Money Laundering and one count of Filing a False Income Tax Return. The Honorable Timothy L. Brooks accepted the plea in the United States District Court in Fayetteville.
According to court records, from October 2010 through August 2014, Rosen solicited individuals in Arkansas, Texas, and elsewhere to invest in a business centered on training dogs. Rosen represented that he had contracts with governmental entities as well as some private companies that would allow him to train and then sell dogs to the government for profit. Rosen intentionally made false promises that he would invest the money in the dog training business when, in fact, he used much of the money on his personal expenses. In addition, Rosen caused his 2013 Federal Income Tax Return to be filed with false information by both failing to report income he received from investors and also claiming Schedule A deductions for which he was not entitled.
“IRS Criminal Investigation’s primary mission is investigating and prosecuting individuals that attempt to defraud the tax system, but we also play a role in investigating various financial fraud schemes,” said Tracey D. Montaño, Special Agent in Charge. “Today’s plea demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. With tax season approaching, I hope this case will also serve as a reminder that all income is taxable, regardless of the source.”
The defendant’s sentence will be determined by the court. In this case, Rosen faces a maximum sentence of ten years in prison for the money laundering charge and a maximum sentence of three years in prison for filing a false tax return.
The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Brice R. White prosecuted the case for the United States.
New Jersey Real Estate Broker Pleads Guilty to Role in Foreign Bribery Scheme Involving $800 Million International Real Estate DealRead the Press Release
A New Jersey-based real estate broker pleaded guilty today to foreign bribery charges in connection with his role in a scheme to bribe a foreign official in the Middle East to secure a real estate deal for a South Korean construction company, Keangnam Enterprises Co. Ltd. (Keangnam).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Joo Hyun Bahn, aka Dennis Bahn, 39, of Tenafly, New Jersey, pleaded guilty in federal court in Manhattan to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Edgardo Ramos of the Southern District of New York accepted the guilty plea. Sentencing is scheduled for June 29 at 11 am.
Bahn was charged alongside his father, Ban Ki Sang (Ban), and Malcolm Harris in December 2016. Ban was a senior executive at Keangnam. Harris, an arts and fashion consultant and blogger, held himself out as an agent of a foreign official.
“Bribery and corruption undermine fair competition and the rule of law,” said Acting Assistant Attorney General Cronan. “The fact that Joo Hyun Bahn’s intended scheme was thwarted by the greed and deception of one of his codefendants does not change the fact that he sought to steer an $800 million real estate deal by paying hundreds of thousands of dollars in bribes. The Department is committed to prosecuting those like Bahn who seek to corruptly tilt the playing field to their advantage.”
“As he has now admitted, Joo Hyun Bahn schemed to bribe a foreign official to close an $800 million real estate deal for a skyscraper in Vietnam -- a deal that would have earned him a multimillion-dollar commission and much needed capital for his client, Keangnam Enterprises,” said Manhattan U.S. Attorney Berman. “As Bahn’s conviction demonstrates, federal law enforcement stands ready to root out commercial bribery wherever it is found.”
According to admissions made in connection with Bahn’s plea, from between February 2014 and May 2015, Bahn joined a scheme to pay bribes to a foreign official in a country in the Middle East in order to facilitate the sale by Keangnam of a commercial building known as Landmark 72 in Hanoi, Vietnam, to the Middle Eastern country’s sovereign wealth fund. In particular, Bahn, Ban and others agreed to pay $500,000 upfront to the foreign official, who he believed made decisions about the acquisition of assets for the Middle Eastern country’s sovereign wealth fund, in order to corruptly influence him to cause the sovereign wealth fund to purchase Landmark 72. In furtherance of the scheme, Bahn and Ban transferred $500,000 to Harris for him to pass on to the foreign official. In related proceedings, codefendant Harris admitted that he double-crossed his codefendants, and simply stole the $500,000 bribe.
Harris pleaded guilty to his role in the scheme on June 21, 2017, and was sentenced to 42 months in prison. Ban is still awaiting trial. All defendants are presumed innocent unless convicted beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in New York City investigated the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel S. Noble of the Southern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
New Jersey Real Estate Broker Pleads Guilty to Role in Foreign Bribery Scheme Involving $800 Million International Real Estate DealRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that JOO HYUN BAHN, a/k/a “Dennis Bahn” (“BAHN”) pled guilty today to one count of conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”) and one count of violating the FCPA. BAHN pled guilty before U.S. District Judge Edgardo Ramos, and is scheduled to sentence BAHN on June 29, 2018.
Manhattan U.S. Attorney Geoffrey Berman said: “As he has now admitted, Joo Hyun Bahn schemed to bribe a foreign official to close an $800 million real estate deal for a skyscraper in Vietnam -- a deal that would have earned him a multimillion-dollar commission and much needed capital for his client, Keangnam Enterprises. As Bahn’s conviction demonstrates, federal law enforcement stands ready to root out commercial bribery wherever it is found.”
Acting Assistant Attorney General Cronan said: “Bribery and corruption undermine fair competition and the rule of law. The fact that Joo Hyun Bahn’s intended scheme was thwarted by the greed and deception of one of his codefendants does not change the fact that he sought to steer an $800 million real estate deal by paying hundreds of thousands of dollars in bribes. The Department is committed to prosecuting those like Bahn who seek to corruptly tilt the playing field to their advantage.”
According to the allegations contained in the Indictment to which BAHN pled guilty, and statements made during the plea and other court proceedings:
Between February 2014 and May 2015, BAHN engaged in a scheme to pay bribes to a foreign official in a country in the Middle East in order to facilitate the sale of Landmark 72 in Hanoi, Vietnam, to the Middle Eastern country’s sovereign wealth fund. In particular, BAHN, his father Ban Ki Sang, and others agreed to pay $500,000 upfront to the foreign official, whom BAHN believed made decisions about the acquisition of assets for the Middle Eastern country’s sovereign wealth fund, in order to corruptly influence him to cause the sovereign wealth fund to purchase Landmark 72. In furtherance of the scheme, BAHN and Ban transferred $500,000 to an intermediary in New York, Malcolm Harris, which BAHN believed Harris would pass on to the foreign official. In related proceedings, Harris admitted that he double-crossed his codefendants, and simply stole the $500,000 bribe.
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BAHN, 39, of Tenafly, New Jersey, pled guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only as any sentencing of the defendant will be determined by the judge.
On June 21, 2017, Harris pled guilty to one count of wire fraud and one count of conducting monetary transactions in illicit funds. On October 5, 2017, Judge Ramos sentenced Harris to 42 months in prison.
The case against Ban, 70, of Seoul, South Korea, is still pending. Ban is presumed innocent unless convicted beyond a reasonable doubt in a court of law.
Mr. Berman and Mr. Cronan praised the outstanding investigative work of the International Corruption Squad of the Federal Bureau of Investigation’s New York Field Office. Mr. Berman also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
New Jersey Man Admits Encouraging and Inducing Illegal EntryRead the Press Release
ALBANY, NEW YORK – Patricio Murillo Sandoval, age 40, of Newark, New Jersey, pled guilty yesterday to encouraging and inducing an alien to illegally enter the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Steve Bronson, Area Port Director, United States Customs and Border Protection (CBP).
As part of his guilty plea, Murillo Sandoval, a U.S. citizen, admitted that he attempted to enter the United States with Wendy Fletcher Alvarez, a citizen of Ecuador and Spain, on September 17, 2017 at the Niagara Falls Port of Entry, New York. She was denied admission, and CBP officers explained to both Sandaval and Alvarez that she could not enter the United States without obtaining permission. Murillo-Sandoval also admitted that on September 19, 2017, he dropped off Alvarez at a remote location so that she could walk across the border and avoid immigration inspection. He planned to pick her up and take her to New Jersey, but when he attempted to enter the United States at the Mooers Port of Entry, he was referred for further inspection leading to the discovery that he planned to pick her up.
United States District Judge Mae A. D’Agostino is scheduled to sentence Murillo Sandoval on May 3, 2018. He faces up to 5 years in prison and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute to defendant is charged with violating, the U.S. Sentencing guidelines and other factors.
The smuggled alien, Fletcher Alvarez, age 40, of Ecuador, was sentenced on October 5, 2017 to 25 days in jail.
This case was investigated by the CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Morgantown CPA sentenced for tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gregory N. Cason, 45, of Morgantown, West Virginia, was sentenced today to 15 months incarceration for tax fraud, United States Attorney Bill Powell announced.
A federal jury found Cason guilty of two counts of "Aid and Assist in the Preparation and Filing of False Tax Form" in May 2017. He was acquitted of one count of "Conspiracy to Defraud the Internal Revenue Service and to Aid and Assist in the Preparation and Filing of False Tax Forms."
Cason, a Certified Public Accountant, prepared tax returns for AKA Enterprises, Inc., a business entity operating several business in Morgantown, including a bar and restaurant facility. Cason knowingly underreported income, failed to report expenses paid in cash, and failed to report periodic cash payments to employees.
Cason was also ordered to pay a $10,000 fine.
Assistant U.S. Attorneys Robert H. McWilliams and Sarah E. Wagner prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigation investigated the case.
Senior U.S. District Judge Irene M. Keeley presided.
Mission Man Sentenced for Criminal ContemptRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man charged with Criminal Contempt pled guilty to and was sentenced on January 3, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Clint Roubideaux, age 33, was sentenced to 1 year of probation and ordered to serve 100 hours of community service. He was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $10.
The conviction stemmed from an incident that occurred in February 2017, wherein Roubideaux, who had been subpoenaed to testify as a witness, failed to appear at the U.S. Courthouse in Pierre, South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Manhattan U.S. Attorney Announces the Appointment of Deputy U.S. AttorneyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, today announced the selection of Robert Khuzami as Deputy U.S. Attorney.
Mr. Khuzami will return to the Office from the law firm of Kirkland & Ellis, where he is a partner in the Government & Internal Investigations Practice Group. Mr. Khuzami was an Assistant U.S. Attorney in the Office for 12 years, from 1990 to 2002, and for three of those years, he served as Chief of the Office’s Securities and Commodities Fraud Task Force. Mr. Khuzami was a 1996 recipient of the Attorney General’s Award for Exceptional Service for his work in the prosecution of Omar Abdel Rahman and nine co-defendants for an international terrorist conspiracy targeting New York City landmarks. From 2009 to 2013, Mr. Khuzami was the Director of Enforcement for the U.S. Securities and Exchange Commission. Mr. Khuzami graduated magna cum laude from the University of Rochester in 1979, where he was a member of Phi Beta Kappa, and from Boston University School of Law in 1983.
In making the appointment, Manhattan U.S Attorney Geoffrey S. Berman said: “I am extremely pleased that Rob Khuzami will be returning to public service as Deputy U.S. Attorney. Rob was an outstanding AUSA during his prior tenure in the Office, and he has since distinguished himself in further public service and in the private sector. I am confident that with his intelligence, experience, and judgment, Rob will be an outstanding Deputy U.S. Attorney. I welcome Rob’s return, and I thank Joan Loughnane for her exceptional work as the Deputy U.S. Attorney for the last 10 months. She will resume her role as Chief Counsel upon Rob’s arrival.”
Manager of Camden, New Jersey, Drug Trafficking Organization Sentenced to Five Years in Prison for Drug and Firearm ChargesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 60 months in prison for conspiring to sell crack cocaine and possess a firearm in furtherance of a drug conspiracy operating in Camden, U.S. Attorney Craig Carpenito announced.
Preston J. Thomas, a/k/a “Boo,” 31, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Thomas admitted that he sold, and directed others to sell, crack cocaine on and around the 1100 block of Lansdowne Avenue in Camden. Thomas also admitted that he provided crack cocaine to other members of the conspiracy, collected proceeds from the sales, and conspired with members of the conspiracy to possess a firearm in furtherance of its drug trafficking activities.
Thomas, Jason Boyd, Joseph Boyd, Tony Wilson, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson were originally charged by complaint on Sept. 9, 2016 following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered several firearms that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by members of the conspiracy.
In addition to the prison term, Judge Simandle sentenced Thomas to four years of supervised release.
Jason Boyd, Joseph Boyd, Wilson, Stallworth, Nafeez Griffin, and Julian Dickerson pleaded guilty to related drug and firearm offenses and have been sentenced to prison. Whitaker is charged in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. The charges against Whitaker are still pending.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie F. Moy Esq., Assistant Federal Public Defender
Man Sentenced to 90 Days in Prison for Assaulting Sleeping Girl on AirplaneRead the Press Release
NEWARK, N.J. – An Indian national who admitted that he assaulted a girl on a flight from Seattle, Washington, to Newark Liberty International Airport, was sentenced today to 90 days in prison, U.S. Attorney Craig Carpenito announced.
Vijaykumar Krishnappa, 29, pleaded guilty Nov. 8, 2017, before U.S. Magistrate Judge James B. Clark in Newark federal court to a superseding information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, while on a United Airlines flight from Seattle to Newark on July 23, 2017, Krishnappa intentionally assaulted a girl who was unknown to him and seated next to him on the flight. Krishnappa admitted that while the victim was asleep, he intentionally touched her near her groin over her leggings without her consent.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Criminal Division in Newark.
Man Sentenced for Smuggling Liquid Methamphetamine to KansasRead the Press Release
KANSAS CITY, KAN. B A Mexican man was sentenced Thursday to 46 months in federal prison for his role in smuggling more than 1,000 pounds of liquid methamphetamine into Kansas City, Kan., U.S. Attorney Tom Beall said.
Yoan Alejandro Castillo-Zamora, 31, a citizen of Mexico, pleaded guilty to one count of conspiracy to distribute methamphetamine. He was arrested Jan. 13, 2017. Federal agents watched him and others at a business in Kansas City, Kan., unload liquid methamphetamine from a fuel tank on a semi-truck into five-gallon buckets. They loaded the buckets into a white Dodge Caravan.
Beall commended the Drug Enforcement Administration, the Kansas City DEA Special Response Team, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Greg Hough for their work the case.
Man Indicted on Drug and Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 6-count indictment charging Demario Chatmon, 39, of Buffalo, NY, with various drug and firearms offenses. The charges carry a mandatory minimum penalty of 5 years imprisonment and a maximum of life imprisonment as well as a $1 million fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on May 15, 2017, a New York State search warrant was executed at the defendant’s residence at 19 South Work Street, Apartment 2, in the Village of Falconer. A loaded 9 mm handgun was found in a bedroom closet along with a box of ammunition. Further, approximately 70 grams of cocaine, 176 grams of crack cocaine, and 25 grams of marijuana were found inside the residence along with drug paraphernalia. Twelve thousand dollars in United States currency, bound together by rubber-bands in $1000 bundles, was recovered from within a jacket pocket. The defendant, who has a prior felony conviction and is thus prohibited from possessing a firearm, was arrested nearby by Jamestown Police Department driving a rented Chevy Impala
The defendant was arraigned before Magistrate Judge Jeremiah J. McCarthy and is being held.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Resident Agent-in-Charge Steve Dickey and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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.
Local Nurse Sentenced to 60 Months in Prison for Tax Return FraudRead the Press Release
TALLAHASSEE, FLORIDA – Tangela Lawson-Brown, 41, of Midway, Florida, was sentenced yesterday to 60 months in federal prison after her conviction at trial in October 2017 for crimes arising from the filing of fraudulent federal income tax returns. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The court imposed concurrent sentences of 36 months in prison on each of two counts of wire fraud, one count of theft of government funds, and one count of possessing fifteen or more access devices. Those sentences must be served consecutively to the 24-month sentence imposed upon Lawson-Brown for using the identities of other persons in her fraudulent scheme. Lawson-Brown was also ordered to pay $141,790 in restitution to the IRS.
Between October 2011 and December 2012, Lawson-Brown worked as a nurse at a Tallahassee nursing home. In January 2013, the Tallahassee Police Department seized a notebook containing the personally identifiable information (“PII”) of more than 150 people from Lawson-Brown’s vehicle.
More than two hundred fraudulent income tax returns were filed for the 2011 and 2012 tax years as part of the scheme. These returns sought a total of $1,018,121 in refunds and actually caused $141,790 to be disbursed. Of the fraudulent returns filed, 105 were under names listed in the notebook, with 38 of the victims having been residents at the nursing home where the defendant worked. Another 42 victims were residents at nursing homes in central Florida, where friends and relatives of Lawson-Brown worked. Fraudulent returns were filed as quickly as six days after a patient checked in to the defendant’s nursing home.
U.S. Attorney Canova said: “This case illustrates the lengths to which criminals will prey upon the vulnerability of elderly and disabled persons. Relatives and other caregivers should be alert to unauthorized tax returns, bank accounts, credit cards, and financial transactions, and should immediately report identity theft crimes to law enforcement agencies. My office will continue to aggressively prosecute identity theft crimes to deter those who may be tempted to participate in such activities, especially where it involves persons in positions of trust.”
“Tax season is almost here, and today’s sentencing of Tangela Lawson-Brown for filing false tax returns is a powerful reminder of what can happen when you decide to steal from honest taxpayers,” said Shawn Batsch, Assistant Special Agent in Charge of the Tampa Field Office. “Through their partnership with the U.S. Attorney’s Office and other law enforcement agencies, IRS Criminal Investigation’s Special Agents will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
“It is devastating when people in positions of trust victimize the people in their care. I am proud of the collaboration demonstrated during this investigation as we worked diligently to protect and care for our most vulnerable citizens,” said Chief Michael DeLeo of the Tallahassee Police Department.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation, the United States Secret Service, and the Tallahassee Police Department. Assistant United States Attorney Michael T. Simpson prosecuted the case.
The U.S. 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 U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Leader and Two Members of Notorious Newark Heroin Distribution Ring Plead Guilty to Drug Conspiracy ChargesRead the Press Release
NEWARK, N.J. – Three Essex County, New Jersey, men today admitted their roles in a massive drug distribution ring responsible for dealing millions of dollars’ worth of heroin out of a residential building near a high school in Newark, U.S. Attorney Craig Carpenito announced.
Quawee Jones, a/k/a “Hatman,” 34, of Newark, Shaahid Cureton, a/k/a “Dills,” 33, of Newark, and Rashard Johnson, a/k/a “Drama,” 39 of East Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to separate superseding informations charging them each with conspiracy to distribute heroin.
According to documents filed in the case and statements made in court:
The defendants operated a heroin distribution marketplace out of the first floor hallway of a residential building at 25 Johnson Ave in Newark. The building is just a few doors away from the Malcolm X. Shabazz High School and the Terrell James Park playground. The conspiracy was led by Quawee Jones and Almalik Anderson, who, along with other heroin dealers that worked with them – including Cureton and Johnson – took advantage of the building’s location on a dead-end street, making it difficult for law enforcement to infiltrate the distribution network despite a constant stream of buyers entering the building at all hours of the day.
“Lookouts” were paid by the defendants to alert them to any police activity coming onto the block from the only access point on Clinton Avenue. Police could not infiltrate the building without lookouts detecting their presence and signaling the sellers. Members of the drug trafficking organization also set up an escape route whereby residents were paid to keep their doors unlocked. The dealers in the hallways would run through the building and exit via fire escapes at the rear of the building or simply hide within the apartments before police could apprehend them.
The drug conspiracy operated nearly 24 hours a day and was well-known among heroin users, who came from several different counties across New Jersey. The defendants allegedly worked in carefully planned “shifts” in order to handle the constant flow of heroin buyers. The heroin was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred.
The defendants sold on average one to two kilograms of heroin per week between January 2013 and November 2015. Based upon the quantities sold, information from court-authorized wiretaps, and other evidence, the profit from the heroin distribution at 25 Johnson Avenue was estimated to be between $4 million and $7 million a year.The drug conspiracy charge to which Jones pleaded guilty carries a statutory minimum prison term of 10 years in prison and a maximum potential penalty of life in prison. The drug conspiracy charges that Cureton and Johnson pleaded guilty to carry a maximum potential sentence of 20 years in prison.
With today’s pleas, all 16 defendants indicted for their roles in the heroin distribution conspiracy, including Anderson, have been convicted.
U.S. Attorney Carpenito credited special agents of the FBI and task force officers assigned to the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, the Essex County Sheriff’s Office under the direction of Armando B. Fontoura; the N.J. State Parole Board, under the direction of Chairman James T. Plousi; and the Orange Police Department, under Director Todd Warren, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and David E. Malagold, and Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Jones: Stacy Ann Biancamano Esq., Cranford
Cureton: Ruth M. Liebesman Esq., Paramus
Johnson: Henry Klingeman Esq., and Kristen Santillo Esq., Newark
Lawrence Man Sentenced to 57 Months in Prison for Heroin TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Allan Raymond Pimentel, 21, of Lawrence, Massachusetts was sentenced to 57 months in federal prison for his participation in a heroin trafficking conspiracy.
Court filings and statements made in court established that Pimentel participated in a drug trafficking organization (DTO) between June 2016 and October 2016 during which time he delivered drugs to his own customers while being supplied by the DTO. Pimentel also delivered drugs to customers of the DTO.
Pimental, who previously pleaded guilty to conspiracy to distribute and to possess with the intent to distribute heroin, will serve three years of supervised release after serving his prison sentence.
The investigation and prosecution of Pimentel a Drug Enforcement Administration (DEA) effort to address heroin distribution in New Hampshire. In addition to DeJesus’s prosecution, Alberto Guerrero Marte, 38, was sentenced to 15 years in prison. Michell DeJesus, 34, Luis Rodriguez Lugo, 34, Maria Miguelina Lara, 33, Santo Rodolfo Garcia Mendez, 33, Wilkin Andres Beltre Arias, 39, Edward Garcia, 31, and Luis Colon, 30, all entered guilty pleas and are awaiting sentencing. Allison DeJesus, age 19, pleaded guilty and was sentenced to five years of probation. Jonaly DeJesus, 22, was sentenced to time served and five years of supervised release. In a related case, Mark Gagnon, 54, of Candia, was sentenced to 48 months in prison.
“The law enforcement community is united in its effort to stop the distribution of heroin, fentanyl, and other dangerous drugs into our state,” said Acting U.S. Attorney Farley. “This defendant and his associates were responsible for the distribution of significant amounts of heroin. Those like this defendant who choose to profit from the sale of deadly drugs will be prosecuted aggressively.”
“Opioid abuse is at epidemic levels in the Granite State and those suffering from heroin and fentanyl addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursue Drug Trafficking Organizations or individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Donald A. Feith.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Key Player in Oxycodone Distribution Ring Sentenced to Seven Years in PrisonRead the Press Release
A key player in a prescription forgery ring that distributed hundreds of thousands of pills of oxycodone was sentenced today in U.S. District Court in Tacoma to 84 months in prison and 3 years of supervised release, announced U.S. Attorney Annette L. Hayes. STOSH SATKOWSKI, 24, of Tacoma, pleaded guilty in October 2017 to conspiracy to distribute oxycodone, being a felon in possession of a firearm and failure to appear in court. SATKOWSKI was a key player in the ring led by forger Anthony Ballenger, 29. SATKOWSKI recruited others to the ring who used the forged prescriptions and false identities to obtain drugs from unsuspecting pharmacies. At the sentencing hearing U.S. District Judge Ronald B. Leighton commented in sentencing the defendant: “The Rule of Law is the ligament that binds us together.”
“This defendant was a critical member of a ring that forged prescriptions and sold highly addictive drugs to fatten their wallets – oblivious to the desperation they left in their wake,” said U.S. Attorney Annette L. Hayes. “The opioid crisis is hitting communities in Western Washington hard. I commend the partnership between the federal and local law enforcement that developed the evidence necessary to hold this defendant to account.”
According to records filed in the case, Ballenger was the leader of a sophisticated ring that stole the identity information of medical professionals to forge prescriptions for powerful painkillers. SATKOWSKI was Ballenger’s key associate. The conspirators used stolen DEA registration numbers to create phony prescriptions while using various online tools to make it appear that the prescriptions had been issued by actual medical providers. In order to lull pharmacies into filling the prescriptions, Ballenger illegally accessed various online databases, including government databases, and altered the contact information for the medical professionals to divert inquiries from pharmacies to himself. Ballenger also posed as the medical professionals whose identities he stole when accessing online prescription-delivery systems, which he then used to send electronic prescriptions to pharmacies throughout Western Washington. SATKOWSKI took the forged prescriptions and fake identity documents and recruited others known as ‘runners’ who posed at patients picking up the medications at dozens of pharmacies. SATKOWSKI transported the runners and collected the pills after the transactions. Ballenger and SATKOWSKI distributed the pills to users throughout the Puget Sound region. SATKOWSKI sometimes charged his customers well above street level prices, preying on their addictions.
SATKOWSKI also pleaded guilty to illegally possessing a firearm. In October 2016, SATKOWSKI illegally possessed a Beretta handgun. He was prohibited from possessing a firearm due to his prior felony convictions for burglary, unlawful possession of a firearm, and harassment. SATKOWSKI also pleaded guilty to failing to appear for trial in May 2017, when he cut off his GPS locator and absconded from supervision.
In June 2017, Ballenger was sentenced to 76 months in prison.
The case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad which includes task force officers from Tacoma and Seattle Police Departments and the Washington State Patrol. The U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the investigation, as did local police agencies from throughout King and Pierce Counties.
The case is being prosecuted by Assistant United States Attorney Siddharth Velamoor.
Katy Couple Ordered to Pay Restitution in Nanny CaseRead the Press Release
HOUSTON – The Katy couple charged in relation to the enslavement of their nanny have been sentenced and ordered to pay more than $100,000 in restitution to the victim, announced Acting U.S. Attorney Abe Martinez. Sandra Nsobundu, 49, pleaded guilty to unlawful conduct with respect to documents in furtherance of forced labor, while her husband - Chudy Nsobundu, 57, pleaded to visa fraud.
At a hearing that concluded late tonight, U.S. District Judge Nancy Atlas ordered the couple to pay $121,035.04 in restitution to the victim. They will also serve sentences of 14 months – seven in prison and another seven on home confinement. In addition to the restitution, Sandra Nsobundu was further ordered to pay an additional $5,000 fine per the Justice for Victims of Trafficking Act of 2015. Both will also be required to serve a term of three years of supervised release following completion of the prison term.
From on or about Sept. 29, 2013, and Oct. 10, 2015, the couple maintained a Nigerian woman to serve as a housemaid and nanny at their residence in Katy.
The immigration laws and regulations of the U.S. require citizens of certain foreign countries who seek admission to the U.S. to obtain a visa prior to entry. The application must contain true and accurate information and is submitted under oath. The defendants knowingly caused a false visa application for the victim to be submitted to the Department of State with numerous pieces of false information. These included the woman’s incorrect date of birth identifying her as 20 years older than she was, a false statement that she was married when she was not, a false statement indicating the purpose of travel was to attend a niece’s graduation and a written letter falsely stating that Chudy Nsobundu was her brother. Chudy Nsobundu knowingly made multiple material misrepresentations under oath on the visa application to increase the chances that the victim’s visa application would be accepted and to hide the fact that she would be working for the Nsobundu family as a housemaid and nanny under conditions not in compliance with U.S. labor laws. He submitted the application under oath, knowing the application contained these material misrepresentations.
Sandra Nsobundu aided and abetted in the submission of the fraudulently filed visa application her husband had submitted. In September 2013, Sandra Nsobundu took the woman to the U.S. Embassy in Lagos, Nigeria, to obtain her visa. Sandra Nsobundu gave her a letter to provide to the consular officials which indicated she did not speak English well and that she would be traveling to the U.S. for her niece’s graduation. Sandra Nsobundu gave the woman a picture of Chudy Nsobundu and the family and told her to tell the officials that he was her brother. The victim is not a relative of Chudy Nsobundu and is not married. The spouse listed on her visa application is the Nsobundus’ driver in Nigeria.
After obtaining the woman’s visa, the Nsobundus paid to transport the victim from Nigeria to the U.S. Once here, Sandra Nsobundu took the victim’s passport and copies of her bank statement. The defendants then concealed, removed and possessed the woman’s passport and visa with the intent to violate the forced labor statute. As part of the plea today, they intended to prevent and restrict, without lawful authority, the victim’s liberty and ability to move and travel in order to maintain her labor and services.
The couple knowingly unlawfully obtained the labor and services of this woman from on or about Sept. 29, 2013, to Oct. 10, 2015. Throughout the period she worked for defendants, the victim was not permitted to have her passport or visa. The Nsobundus knowingly enacted a scheme intended to cause the woman to believe that failure to perform the labor and services would result in serious harm to her. They also threatened abuse of law and the legal process. The scheme included not paying the victim and restricting her movement to the defendants’ residence or two short walks per day around the block with the children. They also frequently yelled at, scolded and berated the victim for moving too slowly or failing to care for the children in the manner they wanted. In addition, the Nsobundus threatened to send the woman back to Nigeria if she did not comply with their labor demands.
The Nsobundus had previously agreed to pay the victim 20,000 Nigerian nairas-$100 U.S. per month. The Nsobundus never paid the victim for any of her work here in the United States.
The victim was rescued Oct. 10, 2015, after more than two years with Nsobundus in the U.S. following a tip to the National Human Trafficking Resource Center.
The couple was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Members of the Human Trafficking Rescue Alliance conducted the investigation, which included Immigration and Customs Enforcement’s Homeland Security Investigations, the Department of Labor’s Wage and Hour Division, Fort Bend County Sheriff’s Office, Department of State-Diplomatic Security Service. Assistant U.S. Attorney (AUSA) Julie N. Searle and former AUSA Ruben R. Perez prosecuted the case.
Jacksonville Man Pleads Guilty to Wire and Tax Fraud After Stealing More Than $150,000 from His EmployerRead the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces that Albert Jason Miller (46, Jacksonville) today pleaded guilty to wire fraud and filing a false tax-related document. He faces a maximum penalty of 20 years in federal prison on the fraud count and up to 3 years’ imprisonment on the false filing count. A sentencing date has not yet been set.
According to the plea agreement, Miller was an employee of CEVA Logistics, a Netherlands–based contract logistics and freight/transportation management company that has offices in Jacksonville. From 2008 through March 2013, he worked in the company’s procurement department. In May 2010, Miller created a fictitious business named “CEVA” and told vendors to make checks payable to CEVA because CEVA Logistics was undergoing a legal name change. He then began diverting those checks and depositing them into a bank account he had opened in the name of CEVA, where he was the sole authorized signor. Miller diverted a total of $162,281.96 and failed to disclose the stolen proceeds as income on his 2010, 2011, 2012, and 2013 tax returns. Miller used the stolen proceeds to pay for personal expenses.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Florida Department of Law Enforcement as part of the IRS-Criminal Investigation’s Northeast Florida Financial Task Force. It is being prosecuted by Assistant United States Attorney Beatriz Gonzalez.
Isleta Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – David Lucero, 40, an enrolled member and resident of Isleta Pueblo, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an assault charge. Under the terms of his plea agreement, Lucero will be sentenced to a maximum of 24 months in federal prison.
Lucero was arrested in Nov. 2016, on an indictment charging him with assault resulting in serious bodily injury and assault resulting in substantial bodily injury. According to the indictment, Lucero committed the crimes between May 9 and 10, 2016, on the Isleta Pueblo in Bernalillo County, N.M.
During today’s proceedings, Lucero pled guilty to Count 1 of the indictment charging him with assault resulting in serious bodily injury. According to the plea agreement, during the night of May 9, 2016 and into the early morning of May 10, 2016, Lucero was intoxicated and argued with the victim, Lucero’s intimate partner. Lucero became upset and struck the victim in the face. As the result of the assault, the victim suffered a cut on her eyelid and a torn tear duct, and required surgery to repair these injuries.
This case was investigated by the Isleta Pueblo Tribal Police Department. Assistant U.S. Attorneys Nicholas J. Marshall and Jennifer Rozzoni are prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
International Narcotics Distributor Sentenced to 20 Years’ Imprisonment for Trafficking Narcotics and Laundering Millions of DollarsRead the Press Release
Earlier today at the federal courthouse in Brooklyn New York, Salvador Jimenez Uribe, also known as “Salvador Uribe Jimenez,” an international narcotics distributor and money launderer, was sentenced by United States District Judge Raymond J. Dearie to 20 years’ imprisonment for narcotics and money laundering charges, including international cocaine importation conspiracy, international narcotics distribution conspiracy, narcotics distribution conspiracy, and money laundering conspiracy.
The sentence was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“The defendant trafficked kilograms of cocaine and heroin from South America and Mexico for distribution in the United States, flooding our streets with dangerous drugs, and laundered millions of dollars in narcotics proceeds,” stated United States Attorney Donoghue. “This sentence demonstrates that those who seek to profit from importing and distributing narcotics in our country will be held accountable.”
According to court filings and facts presented during court proceedings, the defendant smuggled cocaine, marijuana and heroin across the U.S.-Mexican border, concealing the narcotics in tractor-trailer trucks operated by associates of Mexican drug cartels and delivering the narcotics to co-conspirators in the New York-area. The defendant also laundered millions of dollars in narcotics proceeds using a Queens-based jewelry store, which sent the money to Mexico. The defendant also facilitated the transport of large quantities of cocaine from Ecuador to the United States, concealing the cocaine in the flaps of cardboard boxes containing bananas, shipped by an Ecuadorian company.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Hiral D. Mehta and Craig R. Heeren are in charge of the prosecution.
The Defendant:
SALVADOR JIMENEZ URIBE
Age: 52
Residence: Guadalajara, MexicoEDNY Docket No. 12-CR-603 (RJD)
Guatemalan National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RONY NOE DIAZ-MAZARIEGOS, age 27, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with Illegal use of a Social Security Number.
U.S. District Judge Mary Ann Vial Lemmon sentenced DIAZ-MAZARIEGOS to credit for time served. DIAZ-MAZARIEGOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings
According to court documents, on September 6, 2017, agents of the U.S. Department of Homeland Security arrested DIAZ-MAZARIEGOS at a safety training facility in St. Rose. DIAZ-MAZARIEGOS admitted to having used a fraudulent Social Security card and his alias to attend the training course which he was required to take before he could start working as an insulation contractor. DIAZ-MAZARIEGOS was found in possession of a Tennessee identification card as well as a Social Security card which was not assigned to him by the Commissioner of Social Security.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Former New Yorker Living in Mexico Sentenced to Prison for $10 Million Scheme to Defraud Liberty Travel, ScotiabankRead the Press Release
PITTSBURGH – A former resident of Wappingers Falls, New York, who had been living in Ciudad de Tuxpan, Veracruz, Mexico, has been sentenced to 51 months imprisonment and three years supervised release on his conviction of fraud conspiracy and access device fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Nicolas Frank Sucich, aka Francisco Javier Alavarez-Johnson, age 48, of Ciudad de Tuxpan, Veracruz, Mexico.
According to the information presented to the court, between November, 2007 and February, 2011, Sucich conspired to defraud Liberty Travel and Scotiabank of nearly $10 million through the purchase of airline tickets and travel with an unauthorized Scotiabank Mastercard. Upon completion of his sentence, Sucich will be sentenced in Duchess County, New York,on related fraud charges.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The United States Attorney commended the U.S. Immigration Customs Enforcement, Homeland Security Investigations, for the investigation that led to the successful prosecution of Nicolas Frank Sucich.
Former Jersey City Chief of Police Admits Fraud Involving Off-Duty Work AssignmentsRead the Press Release
TRENTON, N.J. – The former Jersey City Chief of Police today admitted defrauding the Jersey City Housing Authority (JCHA) by obtaining compensation for off-duty work that he did not perform, U.S. Attorney Craig Carpenito announced.
Philip D. Zacche, 61, of Manalapan, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of embezzling, stealing, obtaining by fraud, misapplying, and without authority knowingly converting money belonging to the JCHA.
According to documents filed in this case and statements made in court:
Zacche was a member of the Jersey City Police Department who was available to perform off-duty work. The JCHA was responsible for the administration of certain housing units in Jersey City. Between 2010 and 2014, the JCHA hired and paid Jersey City police officers to provide security at some of their housing sites.
Zacche admitted defrauding the JCHA by filling out and submitting time sheets representing that he completed certain security shifts even though he was not present at the JCHA site. As such, Zacche was paid a total of $31,713 for work that he did not perform.
Zacche faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Zacche is required to forfeit $24,700. His sentencing is scheduled for April 9, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna, Deputy Chief of the Health Care and Government Fraud Unit.
Defense counsel: Anthony J. Iacullo Esq., Nutley, New Jersey
Former CFO of Arthrocare Corporation Sentenced to Prison for Role in $750 Million Securities Fraud SchemeRead the Press Release
The former chief financial officer (CFO) of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, was sentenced today to 50 months in prison for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field office made the announcement.
Michael Gluk, 59, of Austin, was sentenced by U.S. District Court Judge Sam Sparks of the Western District of Texas, who also ordered Gluk to pay a $50,000 fine and to forfeit $677,804.
On June 14, 2017, Gluk pleaded guilty to a superseding information charging him with one count of conspiracy to commit wire and securities fraud. As part of his guilty plea, Gluk admitted that he conspired with others to falsely inflate ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors. He further admitted that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission (SEC) that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of his plea, Gluk further admitted that he provided false testimony in proceedings before the SEC and in federal district court.
The fraud scheme at ArthroCare began in 2005 and continued until 2009. Gluk admitted that he and his co-conspirators determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Gluk and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate revenue by tens of millions of dollars, Gluk admitted. Gluk admitted that he and his co-conspirators caused ArthroCare to acquire its largest distributor, DiscoCare, specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare.
Gluk’s earlier conviction was overturned by the U.S. Court of Appeals for the Fifth Circuit. Gluk subsequently pleaded guilty and cooperated against co-conspirator, Michael Baker, the former CEO of ArthroCare, who was convicted at trial on Aug. 18, 2017 of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements. On Nov. 3, 2017, Baker was sentenced to 240 months in prison.
Co-conspirators David Applegate and John Raffle, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme. On Aug. 29, 2014, Raffle was sentenced to 80 months in prison and Applegate was sentenced to 60 months in prison.
This case was investigated by the FBI’s San Antonio, Austin Resident Agency Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section.
Former Baltimore City Sergeant Pleads Guilty to Racketeering, Robberies, Overtime Fraud and Planting EvidenceRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland, pleaded guilty today to one count of racketeering conspiracy, one count of racketeering, two counts of robbery, one count of destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Jenkins joined the Baltimore Police Department (BPD) on February 20, 2003 and was promoted to Sergeant on November 20, 2013. On June 13, 2016, Jenkins became the Officer in Charge of the Gun Trace Task Force (GTTF,) a specialized unit within the Operational Investigation Division of the BPD. According to the plea agreement, Jenkins schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Jenkins prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Jenkins and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, Jenkins admitted that he participated in seven separate robberies between May 2011 and August 2016. Jenkins also stole dirt bikes from individuals who were riding them illegally on city streets and then sold them through an associate.
In addition to the robberies, Jenkins also admitted to stealing 4-5 boxes, containing approximately 12 pounds, of high-grade marijuana that had been intercepted by law enforcement from the U.S. mail, as well as prescription medicines that he had stolen from someone looting a pharmacy during the April 2015 riots. Jenkins admitted he gave D.S. drugs he stole from detainees and arrestees, including cocaine, marijuana and heroin. D.S. was able to sell the drugs and shared the proceeds with Jenkins. In total, D.S. paid Jenkins $200,000 to $250,000 of drug proceeds.
In an effort to conceal his true identity, Jenkins told detainees and arrestees that he was a federal task force officer, which he was not, and told his co-defendants to identify him as the U.S. Attorney.
Jenkins admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct. Jenkins learned that Gondo and Rayam were under investigation from other BPD officers and from an Assistant State’s Attorney in the Baltimore City State’s Attorney’s Office. Jenkins also learned from a BPD officer and an Assistant State’s Attorney that there was a federal wiretap on Gondo’s phone, and that Rayam was under investigation. Jenkins then shared this information with his co-defendants. When Jenkins, Gondo, Hendrix, Hersl, Rayam, Taylor and Ward were detained in the Howard County Detention Center, Jenkins directed the defendants to “keep their mouths shut” and “stick to the story,” or words to that effect, in an effort to obstruct justice.
Jenkins has also pleaded guilty to planting evidence and authoring a false police report which resulted in the conviction and imprisonment of two Baltimore City men in 2010.
According to the plea agreement, Jenkins admitted that he routinely submitted false and fraudulent individual overtime reports, thereby defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Jenkins falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Jenkins also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
The plea agreement provides for a minimum sentence of 20 years imprisonment and a maximum sentence of 30 years imprisonment.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.
Florida Residents Plead Guilty to Credit Card Fraud ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Alejandro Caal, 45, of Tampa, Florida; Zulairam Ramos, 30, of Orlando, Florida; Adrian Teruel, 26, of Orlando, Florida; and Olga Valido, 51, of Kissimmee, Florida, pleaded guilty on Wednesday in U.S. District Court to access device fraud and conspiracy to commit access device fraud.
Court records show that between October 2016 and March 2017, the defendants used stolen credit and debit card numbers to purchase merchandise and gift cards at Maine stores. Each of the defendants used stolen card numbers belonging to Maine residents to make fraudulent purchases in late 2016 and early 2017. Caal, Teruel and Valido were arrested on March 11, 2017, and initially charged in state court. All four defendants were charged federally in April 2017.
The defendants each face up to ten years in prison on the access device fraud charge and five years in prison on the conspiracy charge. They also face a $250,000 fine on each charge. The defendants have pleaded not guilty to aggravated identity theft charges, and a bench trial on those charges is scheduled for January 23, 2018. They will be sentenced after the completion of presentence investigation reports by the U.S. Probation Office.
The Falmouth Police Department was the lead investigative agency in this case. The case was also investigated by the Augusta, Scarborough, South Portland, and Winthrop police departments; the Cumberland County Sheriff’s Office and the U.S. Secret Service.
Florida Man Sentenced to Almost Three Years for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Juan Carlos Febles, 52, of Miami Gardens, Florida, was sentenced on Wednesday in U.S. District Court by Chief Judge Nancy Torresen to 34 months in prison and three years of supervised release for conspiracy to commit access device fraud and aggravated identity theft. He pleaded guilty on August 24, 2017.
Court records show that between about November 2015 and June 2016, the defendant and others used stolen credit and debit card numbers to purchase merchandise. In June 2016, as part of the conspiracy, the defendant and others traveled to Maine. On June 15, 2016, after a co-conspirator, Yaisder Herrera Gargallo, purchased merchandise at a Portland Walgreens using a stolen card number, store personnel notified the police and provided a license plate number. On June 16, 2016, the defendant purchased over $700 worth of merchandise at an Augusta Home Depot using a stolen card number belonging to a victim from Vassalboro.
On June 18, 2016, a Cumberland County Sheriff’s Office deputy stopped the vehicle in which the defendant and two other men were traveling. The stop led to their arrest and the discovery of merchandise, numerous fraudulent credit cards and a laptop computer. The laptop computer was later found to contain credit card numbers and related data.
Yaisder Herrera Gargallo was sentenced to 40 months in prison and three years of supervised release on November 14, 2017. The defendant’s other two co-defendants—Jose Castillo Febles and Meylisi Rueda—have pleaded guilty and await sentencing.
The case was investigated by the Cumberland County Sheriff’s Office, the Portland Police Department and the U.S. Secret Service.
Florida Man Pleads Guilty to Distributing Furanyl Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Antonorio Nelson (29, Lakeland) has pleaded guilty to conspiracy to distribute furanyl fentanyl resulting in death. He faces a minimum mandatory penalty of 20 years, up to life, in federal prison.
Furanyl fentanyl is a Schedule I controlled substance that is used in the same manner as fentanyl. Because of its potency, a small amount of furanyl fentanyl is potentially lethal.
According to the plea agreement, between February 2 and 6, 2017, Nelson conspired to distribute furanyl fentanyl that resulted in the death of “T.C.,” who died from furanyl fentanyl intoxication. The investigation of “T.C.’s” death identified Nelson as the supplier. “T.C.” had purchased baggies of furanyl fentanyl with green dragon stamps on them from Nelson on February 3, 2017. The next morning, “T.C.” was found unresponsive and later pronounced dead.
On February 6, 2017, detectives from the Polk County Sheriff’s Office executed a search warrant at Nelson’s residence. Inside the home, detectives found 73 baggies of furanyl fentanyl and a loaded .38 caliber revolver. Several of the furanyl fentanyl baggies recovered during the search had a green dragon stamp consistent with the bags “T.C.” had purchased from Nelson before dying.
This case was investigated by the Drug Enforcement Administration and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Final Defendants in Gang-Affiliated Drug Trafficking Conspiracy Sentenced to Decades in Prison; Sentencings Bring an End to the Successful Conviction of all 25 Charged DefendantsRead the Press Release
Assistant U. S. Attorneys Andrew Haden (619) 546-6961 and Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – January 5, 2018
SAN DIEGO – Deandre Cook today became the last of 25 gang members and associates to be sentenced as part of a prolific gun and drug trafficking operation that sold large quantities of methamphetamine and heroin in southeast San Diego neighborhoods. Cook was sentenced by U.S. District Judge John Houston to 84 months in prison.
Today’s sentencing brings the case to a close with the successful convictions of all 25 defendants. Last month, Judge Houston sentenced the lead defendant in the conspiracy, Fili Usini, to 14 years in prison.
The two original 2016 indictments were the product of a year-long investigation. Over 1,500 grams of methamphetamine, 248 grams of heroin and six firearms were also seized as part of the investigation. The two indictments charged four different conspiracies with overlapping players, including individuals with ties to criminal street gangs such as Skyline, the Samoan Bloods, Kalaban, the Stateside Islanders, the Paradise Hills Locos, Logan Heights, Old Town National City, National City Southside Mob, Trust No Soul and Lincoln Park. Most of the defendants were selling methamphetamine on the streets of southeast San Diego. Other defendants were involved in the importation of methamphetamine and heroin from Mexico.
All 25 defendants charged in the case pleaded guilty and were convicted of drug trafficking. Three defendants were also charged with and pleaded guilty to being felons in possession of firearms. Judge Houston imposed prison terms on all 25 defendants, ranging from a low of 14 months to the high of 168 months for Usini. All but six defendants received prison terms in excess of five years.
The case was the product of a coalition of local, state, and federal agents, led by Homeland Security Investigations (HSI) Gang Investigations Group and the San Diego Police Department.
“Methamphetamine is wrecking lives and communities, and this successful prosecution brings an immediate halt to the dangerous environment created by these 25 gang members and associates,” said U.S. Attorney Adam L. Braverman. “This case is a huge success story in our efforts to restore peace and safety to San Diego neighborhoods. We are going to continue our attack on those gang members who are committing violence on the streets of San Diego.”
"HSI Special Agents will continue to work with other law enforcement partners and prosecutors to eliminate the dangers that gang members bring up on our communities and put a stop to their criminal enterprises," said David Shaw, Special Agent in Charge of HSI in San Diego. “We will continue to work diligently to investigate, and ultimately dismantle these transnational street gangs and bring them to justice.”
“This operation and collaborative effort is yet another example of how well San Diego County law enforcement agencies partner together to fight crime to keep our neighborhoods safe", said San Diego Police Chief Shelley Zimmerman. "We will not tolerate criminal activity and we will continue to work together with all of our communities to make San Diego the safest City in the nation.”
United States v. Ortiz, et al, 16-CR-874-JAH
Defendants
FRANCISCO JAVIER ORTIZ-LUNA (1) –75 months prison
JAVIER HERNANDEZ (2) – 37 months prison
YARELI MAGNOLIA NORIEGA (3) – 78 months prison
JASMINE EUNIQUE RIPP (4) – 46 months prison
JULIO ALBERTO ONTIVEROS (5) – 46 months prison
Summary of Charges
Title 21, U.S.C., Secs. 952, 960, 963 Conspiracy to Import Controlled Substances - Life
Title 21, U.S.C., Secs. 841(a)(1) and 846 B Conspiracy to Distribute Methamphetamine - Life
Title 21, U.S.C., Secs. 952 and 960 Importation of Methamphetamine – 20 years
Title 21, U.S.C., Sec. 841(a)(1)- Possession of Methamphetamine with Intent to Distribute – 40 years
Title 21, U.S.C., Secs. 952 and 960 B Importation of Heroin – 40 years
Title 21, U.S.C., Sec. 841(a)(1)- Possession of Heroin with Intent to Distribute – 20 years
United States v. Usini, et al., 16-CR-875-JAH
Defendants
FILI USINI (1) – 168 months prison
VIRGILIO SORIANO VILLEGAS (2) – 87 months prison
CARL DELANDO BRANDON (3) – 75 months prison
DEANDRE COOK (4) – 84 months prison
FRANC LESTER BULARAN (5) – 110 months prison
ANTHONY VELARDE (6) – 120 months prison
KRISTOFFER UMALI MACALMA (7) – 110 months prison
BICENTENNIAL POUTOA (8) – 110 months prison
VICTOR CERVANTES (9) – 120 months prison
JORGE ARMANDO SALAS (10) – 90 months prison
MAURICE SCOTT (11) – 70 months prison
JAMES GILLESPIE (12) – 63 months prison
KEITH IAULUALO (13) – 54 months prison
LONNIE DARNELL ANDERSON (14) – 60 months prison
TERRENCE ANDERSON (15) – 70 months prison
PATRICK JEFFREY DIBBLE (16) – 85 months prison
KEMONDRE HAMILTON (17) – 40 months prison
RICHARD BELCHER (18) – 60 months prison
LAVONN WILLIAM HALL (19) – 75 months prison
ANITA VILLALBA (20) – 14 months prison
Summary of Charges
Title 21, U.S.C., Secs. 841(a)(1) and 846 B Conspiracy to Distribute Methamphetamine – Life
Title 21, U.S.C., Sec. 841(a)(1)- Possession of Methamphetamine with Intent to Distribute – Life
Title 18, U.S.C., Sec 922(g)(1) – Felon in Possession of a Firearm – 10 years
Title 21, U.S.C., 853, Title 18, U.S.C., 924(d), and Title 28, U.S.C., 2461(c) – Criminal Forfeiture
AGENCIES
Homeland Security Investigations
San Diego Police Department
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Sheriff’s Department
San Diego County Probation Department
El Cajon Police Department
San Diego County District Attorney’s Office
U.S. Bureau of Prisons