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14 February 2018
Former President and CEO of Pennsylvania Health Services Company Indicted for Conspiring to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
The former President and CEO of a Pennsylvania health services management company was indicted by a federal grand jury in Pittsburgh yesterday for conspiring to defraud the United States and filing fraudulent income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to the indictment, Joseph W. Nocito was CEO and President of Automated Health Systems Inc. (AHS), a Pittsburgh-based company that administered public health programs for state and local governments. The indictment alleges that Nocito conspired with others to defraud the Internal Revenue Service (IRS) by fraudulently claiming millions of dollars of personal expenses as corporate business expenses – including the construction of his 39,000 square-foot home in Sewickley, which Nocito referred to as “Villa Noci,” payments on a Jaguar, Maserati, and Rolls Royce, a personal butler and cook, and country club memberships. Nocito is also charged with understating his income on his personal tax returns by not reporting the income he diverted for personal expenses.
The indictment further alleges that Nocito concealed millions in taxable profits of AHS by shuffling millions in payments between AHS and other companies Nocito owned, such as Northland Properties, Golden Triangle Leasing, Management Financial Services, in order to fraudulently deduct the payments as business expenses and reduce the tax liability of AHS. Nocito is accused of falsely characterizing these payments as management, administrative and consulting expenses, and in turn fraudulently deducting the payments on corporate tax returns filed with the IRS.
Nocito faces a statutory maximum sentence of five years in prison on the conspiracy charge and three years in prison on each count of filing a fraudulent tax return. He also faces a period of supervised release, restitution and monetary penalties. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady praised special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U. S. Attorneys Gregory C. Melucci, Mary M. Houghton and Nelson P. Cohen and Trial Attorney Jeffrey B. Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former New Rochelle Schools Director Sentenced for Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOHN C. GALLAGHER JR., the former head of Buildings and Grounds at the City of New Rochelle School District, was sentenced to 37 months in prison for his role in a scheme to solicit bribes from an outside contractor to channel school district business to the contractor’s company for bribery. GALLAGHER pled guilty on October 10, 2017, before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “John C. Gallagher Jr. was in a position of trust while working for the City of New Rochelle School District. But instead of ensuring that the City’s schools and grounds were safe and sound to educate children, he used his position to demand – and receive – more than $125,000 in kickbacks from a contractor for the school district. Thanks to our law enforcement partners, Gallagher’s scheme is over, and he has been sentenced for his crimes.”
According to the allegations contained in the Indictment, as well as statements made in related court filings and proceedings:
The City School District of New Rochelle, which receives federal benefits significantly in excess of $10,000 each year, has a Buildings and Grounds Department. It is responsible for, among other things, maintenance and repair of facilities used by the School District to educate children. To do certain maintenance and repair work, the School District uses outside contractors.
Among the outside contractors used by the School District are companies with specialties – in, for example, masonry, electrical work, plumbing, and carpentry – sometimes referred to as “bid vendors” or “time and materials” contractors. These contractors bid annually, using set rates, and if awarded contracts, are paid by the School District to handle any projects within the contractors’ specialties that do not exceed a certain threshold cost. (As of 2009, that amount, per New York State law, was $35,000.) A more costly project that exceeds the threshold is offered for bid and awarded to the lowest responsible bidder, unless the project is deemed a health and safety emergency (i.e., a major plumbing leak during the school year), in which case, the time and materials vendor may be asked to do the job, regardless of the cost.
GALLAGHER, the defendant, was the School District’s Director of Environmental Services, overseeing the School District’s buildings and grounds. To fill this position, the School District contracted with a company that provided, among other things, management services (“Company-1”). GALLAGHER, as an employee of Company-1, was thereby made the School District’s Director of Environmental Services, and worked full-time in the School District, as its agent, with authority to act on its behalf. GALLAGHER, as Director of Environmental Services, had influence over which contractors were awarded work by the School District, and over whether, when, and how contractors were assigned work and paid for work.
Mauro Zonzini owned and wholly controlled a construction company in Westchester County (the “Company”). The Company contracted with the School District to do masonry work, and was hired each year by the School District as its time and materials contractor for masonry work.
From 2009 through 2013, GALLAGHER engaged in a corrupt, criminal scheme in which he solicited, demanded, and accepted bribes in the form of cash payments intending to be influenced and rewarded in connection with the School District’s business and transactions with the Company. The bribe payments that GALLAGHER solicited, demanded, and accepted were paid by Zonzini. Routinely, after the School District paid the Company for work performed, GALLAGHER met in person with Zonzini in a parking lot, where Zonzini provided GALLAGHER with a kickback in the amount of 10 percent of the payment the Company had received from the School District. In this way, GALLAGHER received dozens of cash bribe payments from Zonzini, over the course of at least approximately four years, which together amounted to approximately $125,000. GALLAGHER solicited, demanded, and accepted the bribe payments intending to be influenced in and rewarded for the School District’s decisions to award the Company contracts for masonry work, to assign masonry projects to the Company, and to make timely payment to the Company.
To avoid detection of his corrupt scheme, GALLAGHER concealed the cash bribe payments he received from Zonzini. GALLAGHER did so, as he admitted during a secretly recorded conversation, by keeping the payments “in my car or in my trunk.” In some instances he used the cash to make payments directly toward living expenses, without depositing it in his bank account. For example, during the corrupt scheme, GALLAGHER used the bribe money to make credit card payments, car payments, and, as he admitted during the secretly recorded conversation, “I paid for some college.”
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In addition to the prison term, GALLAGHER, 53, of Harrisburg, Pennsylvania, was sentenced to two years of supervised release, ordered to forfeit $125,000, and pay restitution in the same amount.
Zonzini, 52, of South Carolina, pled guilty on May 9, 2017, to one count of bribing a public official, which carries a maximum sentence of 10 years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. Zonzini will be sentenced on February 16, 2018. His case is assigned to U.S. District Judge Nelson S. Román.
Mr. Berman praised the outstanding investigative efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Attorney’s Office’s Special Agents. He also thanked the U.S. Department of Education’s Office of Inspector General for its assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
Former Chief Financial Officer of Rocky Boy Health Clinic Sentenced to PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that on February 14, 2018, U.S. District Judge Brian Morris, sentenced Kathy Ann Sutherland, 61, of Box Elder, Montana, to 12 months and 1 day of imprisonment and two years of supervised release for the crime of Wire Fraud. Sutherland must also pay $111,902.50 in restitution and a $100 special assessment.
Sutherland began working as the Cash and Grants Manager for the Rocky Boy Health Clinic of the Chippewa Cree Tribe in Box Elder, Montana. Ultimately, Sutherland became the interim Chief Financial Officer for the Health Clinic. In Sutherland’s roles at the Health Clinic, one of her duties included administering the employee loan programs. For example, Sutherland issued loan checks to Rocky Boy Health Board employees, including issuing loan checks to herself. Before a loan check could be disbursed, the applicant was required to fill out a loan application and submit it to the loan committee for approval. New loans were not to be issued if an individual owed over $800 to the loan program. Sutherland used her position to circumvent this process and take out over $111,902.50 in loans—far in excess of the $800 limit. Even assuming Sutherland continued to pay back the loans through payroll deductions, (which she ceased doing) Sutherland would have to work until she was at least 81 years old, assuming no interest accrued.
In a sentencing memo filed in federal court, Ryan G. Weldon stated, “Sutherland’s actions are particularly problematic when she knew about other prosecutions, and she was serving as the interim chief financial officer during some of her embezzlement. Her actions were calculated and without regard for the law.”
The Sutherland case was investigated by Health and Human Services, Office of Inspector General (HHS-OIG). This case is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.
Fifth Member of Drug Conspiracy Sentenced to 20 YearsRead the Press Release
NEWPORT NEWS, Va. – A Newport man was sentenced today to 20 years in prison for his role in a cocaine trafficking conspiracy and obstruction of justice.
According to court documents, Marcus Davis, 37, was an associate of Marvin O’Neal Carter, the former leader of a large-scale cocaine trafficking conspiracy who was sentenced to 27 years in prison on Nov. 2, 2017. Davis sold heroin from Carter’s 39th Street garage and helped Carter conceal the delivery of 54 kilograms of cocaine on October 20, 2016. He also obstructed the federal drug investigation by writing a letter to an uncharged member of the conspiracy after Davis met with federal agents in May, 2017.
Marvin O’Neal Carter, 50, along with Michael Stephen Kuna, 42, of Canada, and brothers Hilario Rodriguez, 50, and Daniel Rodriguez, 49, both of California, were charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises.
All five members of the drug trafficking conspiracy have been convicted and sentenced:
Defendant
Sentencing Date
Total Sentence
Marcus Davis
Feb. 14, 2018
240 months
Marvin Carter
Nov. 7, 2017
324 months
Michael Kuna
Oct. 19, 2017
144 months
Daniel Rodriguez
July 20, 2017
120 months
Hilario Rodriguez
July 12, 2017
162 months
According to court documents, agents observed the arrival of a tractor-trailer at a garage leased by Carter. With the assistance of Michael Kuna, who stopped traffic and directed the driver, the trailer was off-loaded next to the garage. Agents observed Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The men then worked together to unload cocaine from a hidden compartment located underneath the trailer. A short time later, Kuna left and returned with two large duffel bags which were taken underneath the trailer. Kuna left the location after loading the now-empty duffel bags into a vehicle. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which smelled of bulk currency. As Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks, totaling nearly $1 million, were recovered. The search of the garage also led to the recovery of a firearm, a quantity of heroin and more cocaine, in addition to approximately $49,000 in cash from a safe.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Michael C. Grinstead, Acting Chief of Newport News Police, Terry L. Sult, Chief of Hampton Police Division, and Anton A. Bell, Commonwealth’s Attorney for the City of Hampton, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-76.
Federal Jury Convicts Charlotte Man of Using an Altered Document to Obtain a United States Passport, Passport Application Fraud and Making False Statements to Federal AgentsRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted John Daley Strothers, 59, of Charlotte, on four counts of using a false document in a federal matter, making a false statement to obtain a passport, possession of a fraudulent identification document (birth certificate) and making a false statement to federal agents, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Richard J. Ingram, Special Agent in Charge, Diplomatic Security Service, Washington Field Office, U.S. Department of State.
According to filed court documents and evidence presented at trial, Strothers engaged in fraudulent conduct to obtain a United States passport in the name of his alias Giovanni Daliente Strassini. Trial evidence established, on September 28, 2015, Strothers submitted an application for a United States passport at a postal facility in Charlotte. In support of the passport application, Strothers attached an Ohio birth certificate that was altered. The birth certificate Strothers submitted identified him in the name of his alias “Giovanni Daliente Strassini,” and it contained several other fraudulent alterations. Because of these alterations, Strothers’ application was referred to the fraud section of the United States passport processing center in Charleston, South Carolina. A witness from that section testified that they screen passport applications and the documents attached to them to ensure that only applicants who establish their true identities and prove their citizenship statuses are issued a United States passport.
During trial, a witness from the Ohio Department of Health, Bureau of Vital Statistics, testified that nobody under the name “Giovanni Daliente Strassisni” had even been born in the State of Ohio. Trial evidence also established that the true birth certificate for the Strothers was issued in the name “John Daley Strothers.” Trial evidence further established that Strothers had previously submitted his true birth certificate, identifying himself as “John Daley Strothers,” in connection with a prior application for a United States passport submitted on October 7, 1996.
Finally, the Government’s evidence will show that Strothers participated in a voluntary interview with Special Agents of the U.S. Department of State’s Diplomatic Security Service on or about March 1, 2016. During that interview, Strothers falsely stated that “Giovanni Daliente Strassini” was his birth name and that he did not submit an application for a United States passport on October 7, 1996.
The federal jury delivered the guilty verdict following a one and a half day trial. Strothers is currently released on bond. The penalty for using a false writing in a federal matter and giving false statements to federal agents is a maximum term of five years in prison and a $250,000 fine. The penalty for passport application fraud is a maximum term of ten years in prison and a $250,000 fine. The penalty for possessing a fraudulent identification document is a maximum of 15 years in prison and a $250,000 fine.
A sentencing date for the defendant has not been set.
The U.S. Department of State’s Diplomatic Security Service led this investigation. Assistant United States Attorneys Kenneth Smith and Casey Arrowood of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Inmate Sentenced to 3 Additional Months in Prison for Possessing MarijuanaRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to three months in prison, consecutive to the current prison term he is serving, and three years’ supervised release, United States Attorney Scott W. Brady announced today.
Edward R. Harris, 42, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on January 9, 2017, Harris possessed a quantity of marijuana.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Harris.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville County Resident Indicted for Assaulting a Federal Employee. Kenneth David Sipple, age 58, of Travelers Rest, South Carolina, was charged in a one count indictment with assaulting a federal employee, a violation of Title 18, United States Code, Section 111. The maximum penalty Sipple could receive is a fine of $250,000.00 and/or imprisonment of 20 years. The case was investigated by agents of the Department of Homeland Security, Federal Protective Service, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Two Aliens Charged with Illegal Re-Entry into the United States. Jorge Luis Silva-Aguiar, age 44, and Jose Pineda-Flores, age 47, were each charged in separate indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could face is a fine of $250,000.00 and/or imprisonment up to 10 years depending on their record. The cases were investigated by agents of the Department of Homeland Security (DHS) and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
Individual Charged with False Claim to be a US Citizen. Fermin Jimenez-Virelas, age 38, was charged in a two count indictment with false claim to be a United States citizen, a violation of Title 18, United States Code, Section 911, and false use of a social security number, a violation of Title 42, United States Code, Section 408(a)(7)(B). The maximum penalty he could face is a fine of $250,000.00 and/or imprisonment of 5 years. The case was investigated by agents of ICE-Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fairfield Man Sentenced to 39 Days for Stealing Postal Money OrdersRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Brandon Knox, 38, of Fairfield, Maine was sentenced yesterday in U.S. District Court by U.S. Magistrate Judge John C. Nivison to 39 days in prison and one year of supervised release for stealing Postal Money Orders. He was also ordered to pay $485 in restitution. He pleaded guilty to the charge on October 26, 2017.
Court records reveal Knox stole a pouch of money orders while working as a subcontractor at the Post Office in Unity, Maine. He cashed three of the money orders totaling $485 at the Post Office in Waterville, Maine.
The investigation was conducted by the U.S. Postal Inspection Service.
Ebensburg Woman Sentenced for Removing Funds from Bank Customers’ AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., has been sentenced in federal court to two months in prison, three years’ supervised release, with the first six months to be served as home confinement with electronic monitoring, on her conviction of misapplication of funds by a bank employee, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Tonya Wade, 44, of Ebensburg, Pa.
According to information presented to the court, from Sept. 17, 2012, to Aug. 29, 2013, Wade, while employed as a teller at C & G Savings Bank in Gallitzin, Pa, removed $23,175 from customers’ accounts and thereafter converted those funds to her personal use.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Wade.
Durant Man Sentenced to 40 Months for Bank RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Graham Allen Helms, age 30, of Durant, Oklahoma, was sentenced to 40 months imprisonment, and 3 years supervised release for two counts of Bank Robbery, in violation of Title 18, United States Code, Section 2113(a). Helms was ordered to pay $6,000.00 in restitution. The charges arose from an investigation by the Ardmore Police Department, the Coal County Sherriff’s Office, and the Federal Bureau of Investigation.
The Information alleged that on or about July 24, 2017, in the Eastern District of Oklahoma, the defendant, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of IBC Bank, located in Ardmore, Oklahoma, a bank whose deposits were then insured by the Federal Deposit Insurance Corporation.
The Information further alleged that on or about August 1, 2017, in the Eastern District of Oklahoma, the defendant, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of Shamrock Bank, located in Coalgate, Oklahoma, a bank whose deposits were then insured by the Federal Deposit Insurance Corporation.
United States Attorney Brian J. Kuester said, “Over the course of one week the defendant committed two bank robberies, each time by using a note to threaten violence. Although he had no prior criminal history, these offenses were serious in nature and the defendant is being held accountable for his criminal conduct. It is our hope that his time in the custody of the Bureau of Prisons and the three year period that he is supervised by the United States Probation Office following his imprisonment will serve to protect the public and also deter Mr. Helms from committing additional criminal acts.” Kuester added, “I would like to commend the Ardmore Police Department, the Coal County Sheriff’s Office and the FBI for their investigation and swift apprehension of the defendant following the robberies.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Chris Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Detroit drug dealer sentenced to 10 years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced today to 10 years in federal prison for a drug charge, announced United States Attorney Mike Stuart. Willie McCall, 34, previously pled guilty to distribution of methamphetamine. U.S. Attorney Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team.
“Let this sentence send a message to any Detroit criminals who want to set up shop in our state – your poison peddling is not welcome, and we’ll make sure you have plenty of time to think about it behind bars,” said U.S. Attorney Stuart. “You can be sure that my office is laser focused on keeping our streets safe by targeting drug dealers with aggressive prosecution.”
McCall admitted that on February 7, 2017, he sold methamphetamine to a confidential informant working with law enforcement. The drug deal took place outside a local business near Nitro. Later that same date, when McCall was arrested, law enforcement found $100 of recorded buy money in his possession that was used in the controlled purchase. At the time McCall committed this offense, he was on parole in Michigan for weapons charges.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Department of Justice Files Motion to Hold Missouri Pesticide Manufacturer in Contempt for Failing to Comply with 2011 SettlementRead the Press Release
The United States and the State of Missouri have filed a motion asking a federal court to hold in contempt HPI Products Inc., its owner William Garvey, and St. Joseph Properties, LLC, for failing to comply with a 2011 environmental settlement by illegally storing thousands of pounds of hazardous chemicals in unsafe and dilapidated facilities in western Missouri. The Department of Justice, on behalf of the Environmental Protection Agency, and the Missouri Attorney General, on behalf of the Missouri Department of Natural Resources, filed the motion today in U.S. District Court for the Western District of Missouri.
The contempt motion also requests that the court appoint a receiver to oversee the operation of the defendants’ business in compliance with the 2011 consent decree and applicable law.
The defendants own and operate a pesticide formulating business with six facilities in St. Joseph, Missouri. The 2011 consent decree was intended to resolve numerous violations of federal and state environmental laws and requires the defendants to characterize and properly manage large quantities of hazardous wastes generated or stored at its St. Joseph facilities.
Despite a May 2017 court order requiring the defendants to comply with the 2011 consent decree, HPI and Garvey continue to store thousands of pounds of uncharacterized, often unidentified, chemicals, some with labels indicating that they have been stored for a dozen years or more. In addition, many of HPI’s facilities lack functional fire suppression equipment, two facilities previously suffered partial collapse, one burning down, and many of them are in extreme disrepair and in danger of collapse. Chemical wastes at these facilities are exposed to the elements and are readily accessible to members of the public, posing a significant danger to public health and safety and the environment.
“Today, we are asking the court to hold the defendants in contempt for their utter failure to comply with federal and state hazardous waste laws at their property,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This is a serious public health and safety matter. We also are asking the court to appoint a receiver to manage the defendants’ hazardous wastes in a manner that protects the citizens of St. Joseph, ensures the safety of employees at HPI, and prevents harm to the environment.”
“EPA works with companies to assist them in complying with federal environmental laws when we have a willing party,” said James Gulliford, EPA Region 7 Administrator. “We have passed that stage with HPI and value the diligent work of the Department of Justice in helping EPA carry out our Congressional mandate to enforce federal laws that protect human health and the environment."
Davenport Man Sentenced to Prison for Firearms OffenseRead the Press Release
DAVENPORT, Iowa-- On February 13, 2018, Devon Durran Davis, age 25, of Davenport was sentenced by United States District Court Chief Judge John A. Jarvey to 46 months in prison following his guilty plea to felon in possession of a firearm, announced United States Attorney Marc Krickbaum. Davis was ordered to serve three years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund. The firearm was forfeited.
On February 1, 2017, Davenport Police conducted a traffic stop on a vehicle in which Davis was a passenger. A loaded 9mm handgun and marijuana were located in the car and attributed to Davis. At the time of the traffic stop, Davis was on state probation after receiving a deferred judgment for unlawful possession with the intent to deliver heroin.
This investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms and Explosives and Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Clarksburg woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daneille Archambault, of Clarksburg, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Archambault, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” She admitted to distributing methamphetamine in Harrison County and elsewhere April 2017.
Archambault faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.Cherry Tree Man Sentenced to 51 Months for Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Leeroy Soap Jr, age 40, of Cherry Tree, Oklahoma, was sentenced to 51 months imprisonment, and 3 years supervised release for Assault With A Dangerous Weapon In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153. The charge arose from an investigation by the Cherokee Nation Marshal Service, the Adair County Sherriff’s Office, and the Federal Bureau of Investigation.
The Indictment alleged that on or about July 13, 2017, in the Eastern District of Oklahoma, within Indian country, on an Indian allotment the Indian title to which had not been extinguished, and within the special maritime and territorial jurisdiction of the United States, the defendant, an Indian, did knowingly assault J.E. with a dangerous weapon with intent to do bodily harm.
United States Attorney Brian J. Kuester said, “The United States Attorney’s Office is committed to working with state, local, tribal and federal agencies to combat violent crime. The investigation and prosecution of Mr. Soap involved four different agencies working cooperatively to achieve justice for the victim and to hold the defendant accountable for his actions.”The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Charleston meth dealer pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold methamphetamine while on federal supervised release pled guilty today, announced United States Attorney Mike Stuart. Ravi White, 27, entered his guilty plea to distribution of methamphetamine. U.S. Attorney Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team.
“Thanks to the brave work of officers who put their lives on the line every day to protect our safety, another drug dealer is off the streets,” said U.S. Attorney Stuart. “We will keep going after drug thugs until they get the message - we’re determined to put them out of business and behind bars for a long time.”
White admitted that on October 26, 2017, he sold nearly 90 grams of methamphetamine to a confidential informant working with law enforcement. The drug deal took place on McClung Street in Charleston. White further admitted that he also sold over 50 grams of methamphetamine to a confidential informant on two separate occasions in October 2017. Officers executed a search warrant on White’s residence on November 2, 2017, and seized $320 in recorded buy money from the controlled purchases of narcotics, as well as an additional $5,040 in cash and a handgun from his vehicle.
White faces at least five and up to 45 years in federal prison when he is sentenced on May 23, 2018.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Charleston man headed to prison for illegally possessing sawed-off shotgunRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years in federal prison for a gun crime, announced United States Attorney Mike Stuart. Joe Orville Fooce, III, 44, previously pled guilty to possession of a shotgun with a barrel length less than 18 inches and an overall length less than 26 inches not registered to him in the National Firearms Registration and Transfer Record. U.S. Attorney Stuart commended the investigative efforts of the South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“I support the Second Amendment 100%, but criminals who possess guns are a threat to innocent people, law enforcement, and, ultimately, the Second Amendment,” said U.S. Attorney Stuart. “As United States Attorney, I will make sure that my office continues working with law enforcement to prosecute anyone that cannot respect the Second Amendment and the gun laws that protect it.”
In July 2016, South Charleston police officers found Fooce unresponsive at an intersection. After Fooce was transported by medics, officers discovered the sawed-off shotgun in his backpack. Fooce admitted that he knew the firearm had been modified from its original length.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Bronx Man Sentenced to 51 Months in Prison for Transporting Multiple Kilograms of Heroin as Part of A Cross-Country Drug Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man was sentenced to 51 months in prison for transporting fifteen kilograms of heroin hidden in a secret compartment on Christmas Eve in 2014, United States Attorney Craig Carpenito announced.
Dany Francisco-Valerio, 44, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an Information charging him with conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in federal court.
According to documents filed in this case and statements made in court:
In or around December 2014, Francisco-Valerio engaged in a conspiracy with members of a drug trafficking organization to transport and distribute kilogram quantities of heroin. On December 24, 2014, Francisco-Valerio was arrested in Warren County while transporting fifteen kilograms of heroin contained in a hidden compartment in his vehicle. Vionel Rondon Cortorreal, Francisco-Valerio’s conspirator, has also pleaded guilty before Judge Sheridan and is awaiting sentencing.
In addition to the prison term, Judge Sheridan sentenced Francisco-Valerio to 3 years of supervised release.
U.S. Attorney Carpenito credited the Drug Enforcement Administration New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, and officers of the New Jersey State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Thomas S. Kearney and Jamari Buxton of the U.S. Attorney’s Office OC/Gangs Unit in Newark.
Defense counsel: John D. Lynch, Esq., Jersey City, New Jersey
Bridgeport Man Pleads Guilty to Heroin Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that TYEVHON KING, also known as “Twin,” 30, of Bridgeport, pleaded guilty yesterday in Hartford federal court to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin.
According to court documents and statements made in court, KING was a member of a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico, and then distributed the drug in the Bridgeport area. The investigation, which included multiple controlled purchases of heroin from KING, revealed that KING regularly received a total of more than three kilograms of heroin, which he distributed to his own customers.
During the investigation, investigators seized vehicles owned by KING that contained “traps,” typically used to conceal narcotics and other contraband.
On March 16, 2017, a grand jury in Hartford returned an indictment charging KING and six other individuals with heroin trafficking and related offenses.
KING has been detained since his arrest on March 24, 2017. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 10, at which time he faces a mandatory minimum term of imprisonment of 10 years maximum term of imprisonment of life.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Billings Man Nets 15 Years in Prison on Meth ChargesRead the Press Release
BILLINGS—Rocky Rollin Bettin, a 39-year old resident of Billings, Montana, was sentenced today to 180 months in prison and 5 years of supervised release after pleading guilty to conspiracy to possess with the intent to distribute and to distribute methamphetamine. United States District Judge Susan P. Watters presided over the sentencing.
Beginning in December 2016, drug task force agents were investigating a group of individuals responsible for the distribution of methamphetamine in the Billings area, including Bettin. Over the next several months, they received information from multiple individuals who identified Bettin as their source of supply. On June 2, 2017, a Missoula County Sheriff’s deputy patrolling near Frenchtown performed a traffic stop on a vehicle that Bettin was driving. Eventually, law enforcement officers searched the vehicle. Inside of a backpack found in the vehicle, officers discovered approximately 1.5 kilograms, or 3.3 pounds, of pure methamphetamine.
The case was investigated by the FBI Transnational Organized Crime Western Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Bettendorf Man Sentenced to Five Years in Prison for Bomb ThreatRead the Press Release
DAVENPORT, Iowa-- On February 13, 2018, America Yegile Haileselassie, age 39, of Bettendorf, was sentenced by United States District Court Chief Judge John A. Jarvey to 60 months in prison following his guilty plea to interstate communication of a bomb threat, according to United States Attorney Marc Krickbaum. Haileselassie was ordered to serve one year of supervised release following his prison term and pay $100 to the Crime Victims’ Fund.
According to the plea agreement, on November 4, 2015, Scott County Sheriff’s Office deputies were called to Scott Community College (SCC) in Davenport and observed a stack of printed papers from the Student Success Center, each with a printed message: “There is a bomb at Scott Community College. It will explode at noon today.” The bomb threat was discovered when a SCC employee who was working in the Student Success Center noticed a large stack of papers being printed and cancelled the print job. A specific email address identified to America Haileselassie was observed on the printer as the printing was cancelled. SCC personnel initiated bomb threat protocol and searched the premises for a bomb. No bomb or explosive was found at SCC. Law enforcement officers later learned Haileselassie had been verbally advised the week prior to the threat he was going to be suspended from school for stealing a book. Haileselassie admitted he sent the bomb threat by accessing the Internet, causing a message to be sent to a printer at SCC.
At sentencing, the Court applied sentencing enhancements for causing a substantial disruption to SCC, and obstruction of justice. The obstruction enhancement was based on Haileselassie sending false anonymous tips to law enforcement naming someone else as making the bomb threats.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Scott County Sheriff’s Office; and Bettendorf Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Ardmore Woman Sentenced to 36 Months Probation, $21,000 Restitution for Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Denise Taylor, age 55, of Ardmore, Oklahoma, was sentenced to three years of probation and ordered to pay restitution in the amount of $21,798.00 for Embezzlement and Theft from an Indian Tribal Organization, in violation of Title 18, United States Code, Section 1163. The charge arose from an investigation by the Bureau of Indian Affairs.
The Indictment alleged that from on or about March 19, 2017, to on or about March 29, 2017, in the Eastern District of Oklahoma, the defendant, did steal, embezzle and knowingly and willfully convert to her own use goods, assets, and other property, with a value in excess of $1,000.00, which had been entrusted to her custody and care as an employee of the Chickasaw Nation’s Ardmore Smoke Shop # 1, an Indian tribal organization.
United States Attorney Brian J. Kuester said, “The defendant has been prosecuted and is being held accountable for her criminal conduct due to the thorough investigation submitted to this office by the Bureau of Indian Affairs and the work of the members of the United States Attorney’s Office. She will be supervised and monitored during her probationary period by the United States Probation Office that diligently serves the Eastern District of Oklahoma. That office will hold the defendant accountable and ensure that she complies with the conditions ordered by the Court.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States.
Alton, Illinois Man Pleads Guilty to Credit Card FraudRead the Press Release
St. Louis, MO – Thomas Vogt, 60, of Alton, Illinois pleaded guilty to defrauding his former employer of more than $140,000 through a double reimbursement scheme whereby he sought reimbursement for expenses his employer had already directly paid. Vogt pleaded guilty to one count of interstate transportation of stolen property and agreed to a forfeiture allegation as to the proceeds of the scheme. Vogt admitted taking the proceeds of the scheme from his employer in Missouri to his bank in Illinois.
Vogt faces up to 10 years’ imprisonment, a fine of up to $250,000 or both. Restitution to the victims is also mandatory. Vogt appeared in St. Louis today before Judge Audrey G. Fleissig who accepted his plea and scheduled sentencing for May 22, 2018.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
13 February 2018
York Gang Member Who Stabbed A Witness While Awaiting Sentencing Gets Life in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Yvette Kane sentenced Maurice Atkinson, a/k/a “Mo,” age 30, a member of a gang that has operated for a decade or more in the City of York, to life imprisonment on February 12, 2018, for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, Atkinson, who was identified as a member of the “Southside” street gang and the “Bloods,” was the fourth gang member from the “Southside” case that Judge Kane sentenced to life imprisonment.
At the sentencing hearing, the United States presented evidence of Atkinson’s involvement in the violent gang activity that was the subject of the two-month long trial and how Atkinson did not stop acting for the gang, even as he awaited sentencing.
Judge Kane also heard testimony from a cooperating Blood gang member, who was housed in Dauphin County Prison with Atkinson and other Blood/Southside gang members. The cooperating gang member testified that in September 2017, Atkinson and some of his fellow gang members suspected that he was an informant working with the police and suspected that he was disclosing how the gang was smuggling drugs and phones into the prison. On September 9, 2017, Atkinson and other gang members assaulted and repeatedly stabbed him in the back while he was in the prison shower. Video footage from the prison corroborated the attack.
The government noted that at the time of this prison assault, Atkinson was already facing a life sentence for being involved in the gang conspiracy. The government highlighted that evidence at trial included a video of a Southside gang melee with a rivals from “Parkway.” In the video footage, Atkinson can be seen repeatedly kicking, beating, and stomping a rival gang member.
Judge Kane noted that the violence associated with the gang was extraordinary. It included numerous killings, including the deaths of rival gang members, fellow gang members, innocent bystanders, and children. Prior attempts by state officials had “failed” to reform him. Even with the prospect of a life sentence pending before him in this federal case, Atkinson continued with his violent gang activities. With this backdrop, Judge Kane said that there is “very little to suggest that [Atkinson] would turn his back on this life.” Judge Kane indicated that Atkinson’s “life sentence was well-earned.”
In November 2015, a jury convicted Atkinson of racketeering conspiracy, drug trafficking conspiracy, and drug trafficking after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury also convicted the other 11 men who went to trial with Atkinson.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges. The individual defendants and the charges on which they were sentenced:
- Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life imprisonment;
- Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life imprisonment;
- Douglas Kelly, a/k/a “Killer,” age 39; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 12, 2017, to life imprisonment;
- Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on November 15, 2017, to 25 years’ imprisonment;
- Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 7, 2017, to 200 months’ imprisonment;
- Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 21, 2017, to 165 months’ imprisonment;
- Richard Nolden, age 28; racketeering conspiracy was sentenced on December 21, 2017, to 25 years’ imprisonment;
- Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced on June 5, 2017, to 33 months’ imprisonment;
- Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced on November 10, 2016 to 34 months’ imprisonment;
- Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced on May 15, 2017, to 60 months’ imprisonment.
The individual defendants and the charges on which they are awaiting sentencing:
- Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver;
- Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver.
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
- James Abney, a/k/a “Doocs,” age 31.
- Malik Sturdivant, a/k/a “Base,” age 25.
- Jahkeem Abney, a/k/a “Foo,” age 27.
- Ronald Payton, a/k/a “Ron Ron,” age 25.
- Cordaress Rogers, a/k/a “Tank,” age 31.
- Marquis Williams, a/k/a “Quis,” age 29.
- Jerrod Brown, a/k/a “Boogie,” age 28.
- Quintez Hall, a/k/a “Q,” age 25.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Williamson County Man Sentenced on Charges Relating to Unlawful Dealing of FirearmsRead the Press Release
On February 13, 2018, Austin K. Sims was sentenced in United States District Court in Benton, Illinois on three charges relating to the unlawful possession and sale of firearms, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sims, who was charged in a three-count indictment on July 12, 2017, was sentenced to 60 months of imprisonment and two years of supervised release. Sims previously pled guilty to all three counts.
Count One charged Sims with engaging in the business of dealing firearms without a license, Count Two charged that Sims knowingly possessed a firearm while being an unlawful user of a controlled substances and Count Three charged Sims with making materially false, fictitious, and fraudulent statements to law enforcement agents during the investigation into his criminal conduct.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Marion, Illinois Police Department. The case was prosecuted by Assistant United States Attorneys Liam Coonan and Amanda Robertson.
Wasilla Man Convicted of Attempting to Sexually Molest 8-Year-OldRead the Press Release
Anchorage, Alaska - U.S. Attorney Bryan Schroder announced today that a federal jury in Anchorage convicted Justin Raymond Nekeferoff, 33, of attempted enticement of a minor and possession of child pornography. The jury found the defendant not guilty of distribution of child pornography.
Nekeferoff was found guilty after a six-day trial before U.S. District Judge Timothy M. Burgess of the District of Alaska. Sentencing is scheduled for May 9, 2018, at 11:00 a.m. in Anchorage, Alaska. The maximum penalty for attempted enticement of a minor is not less than 10 years’ imprisonment and up to life. The maximum punishment for possession of child pornography is up to 10 years’ imprisonment. Both convictions carry maximum fines of up to $250,000, terms of supervised release of five years to life, and a $100 special assessment.
According to evidence presented at trial, in 2015 a witness told law enforcement that Nekeferoff expressed desire to have sex with children and spoke frequently about prior acts of molestation that he had committed against others, including a five- and 15-year-old girl. The witness provided law enforcement with multiple text messages from Nekeferoff in which he stated that he liked to look at “lil girls in the stores,” and expressed his desire to perform sex acts with a “young girl” between the ages of “4-8.” Nekeferoff was arrested when he arrived at a Wasilla motel in order to meet a mother and her eight-year-old daughter for the purpose of having sex with the child. In truth, the “mother” was an FBI agent and the child was fictional. Nekeferoff brought icing and other items to the motel room to use as sex objects with the child. Located in the defendant’s wallet at the time of his arrest was an SD card that contained multiple images of child pornography.
In a statement to police at the time of his arrest, the defendant said that he went to the motel to have sex with the fictional mother and her daughter, he thought about having sex with kids “all the time,” and molested other children previously. The defendant said that he searched for and downloaded child pornography in an effort to control his attraction to children.
This case was investigated by the Federal Bureau of Investigation, and the Anchorage Police Department, Crimes Against Children Unit (CACU).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Unsealed Indictment Charges Floridian in Complex Fraud SchemeRead the Press Release
PITTSBURGH - Today, the Court unsealed the indictment of a Florida man charging him conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced.
The one-count indictment, returned on December 12, 2017, named Garri Shihman, 46, of Parkland, Fla., as the sole defendant.
According to the indictment presented to the court, Shihman was involved in a complex fraud that involved fraudulently processing credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs and of products violating trademark infringement laws. Shihman participated in a conspiracy designed to conceal from the credit card companies the fact that Shihman and his co-conspirators used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity. The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold a product other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Sentenced to Lengthy Prison Sentences for Their Roles in a Methamphetamine Distribution ConspiracyRead the Press Release
AMARILLO, Texas — Miguel Angel Bravo-Farias, 41, an illegal immigrant, and Hector Terrazas, 25, of Amarillo, Texas, were sentenced yesterday by U.S. District Judge Sidney A. Fitzwater to 180 months and 156 months in federal prison, respectively, for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Both defendants pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. They have both been in custody since their arrest in June 2017 on a related federal criminal complaint.
Co-defendant Rogelio Xochitl Amparan, 29, pleaded guilty to his role in the conspiracy and was sentenced to 189 months in federal prison in December 2017.
According to the plea agreement factual resume, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine from Bravo-Farias and Terrazas. When law enforcement agents met with Bravo-Farias and Terrazas they were in possession of a box containing a large amount of methamphetamine and were arrested at the scene.
During the operation, Amparan was observed leaving Terrazas’ residence. He was stopped by law enforcement and arrested for having a suspended registration.
A search of Terrazas’ residence revealed 2 containers with crystal like residue and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were multiple containers containing a total of approximately 5,498 grams of liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
During an interview, according to the plea agreement factual resume, Amparan admitted that he was involved in the methamphetamine operation. Amparan stated that he received all the money from the sale of methamphetamine and transported the money back to his brother, who lives in Juarez, Mexico.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, Potter County Sheriff’s Office, Texas Department of Public Safety and Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell prosecuted.
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Two Men Arrested for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
St. Thomas, USVI – Tommy Ramirez, 29, of the Dominican Republic and Ramon Clavel, 55, of Haiti, were arrested Monday on a criminal complaint charging them with possession with intent to distribute a controlled substance, United States Attorney Gretchen C.F. Shappert announced. Ramirez and Clavel made their initial appearance before U.S. Magistrate Judge Ruth Miller and were detained pending further proceedings.
According to the complaint, on Monday, Ramirez and Clavel presented themselves at the post office to claim a package that contained one kilogram of cocaine, a controlled substance.
If convicted of possession with the intent to distribute a controlled substance, Ramirez and Clavel face a minimum sentence of five years and a fine of $250,000.00.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilty. Every defendant is presumed innocent until and unless proven guilty.
The case was investigated by the Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), Department of Homeland Security Investigations, U.S. Customs and Border Protection, and the Federal Bureau of Investigations. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Two Baltimore City Police Officers Convicted in Federal Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – On February 12, 2018 a federal jury has convicted Detective Daniel Thomas Hersl, age 47, of Joppa, Maryland and Detective Marcus Roosevelt Taylor, age 30, of Glen Burnie, Maryland for racketeering conspiracy and racketeering offenses, including robbery and overtime fraud.
The conviction was announced by Acting United States Attorney Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Sheriff Jeffrey R. Gahler Harford County Sheriff’s Department.
Hersl and Taylor were convicted of racketeering conspiracy, racketeering, and Hobbs Act Robbery. The two defendants were acquitted of possession of a firearm in furtherance of a crime of violence.
According to evidence presented at the three-week trial, Hersl and Taylor stole money, property and narcotics from victims, some of whom had not committed crimes; swore out false affidavits; submitted false official incident reports; and engaged in large-scale over time and attendance fraud.
In some cases, there was no evidence of criminal conduct by the victims; the officers stole money that had been earned lawfully. In other instances, narcotics and firearms were recovered from arrestees. In several instances, the defendants did not file any police reports. The amounts stolen ranged from $200 to $200,000.
Count One, racketeering conspiracy, charged 14 acts of robbery and extortion violations committed by Hersl and Taylor in 2015 and 2016 when they were officers in the police department’s Gun Trace Task Force, a specialized unit created to investigate firearms crimes.
Count Two, a substantive racketeering charge, alleged those crimes as well as 16 acts of robbery and extortion committed by Hersl and Taylor beginning in 2015, before they joined the task force.
Count Three and Five, charged Taylor and Hersl, respectively with Hobbs Act Robbery and Extortion.
Count Four and Six, charged Taylor and Hersl, respectively with Possession of a Firearm in Furtherance of a Crime of Violence
It was proven at trial that Hersl and Taylor stole money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, the defendants prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents.
The following six co-defendants had all previously pleaded guilty to federal racketeering charges;
Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland
Detective Momodu Bondeva Kenton Gondo, a/k/a GMoney and Mike, age 36,
of Owings Mills, Maryland;
Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland;
Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland;
Detective Jemell Lamar Rayam, age 37, of Owings Mills;
Detective Maurice Kilpatrick Ward, age 37, of Middle River.
Hersl and Taylor each face 20 years in prison for racketeering conspiracy, 20 years in prison for racketeering, and 20 years in prison for Hobbs Act Robbery.
Sentencing dates for Hersl and Taylor have not yet been scheduled.
Acting United States Attorney Stephen M. Schenning commended the FBI, DEA, Baltimore County Police Department, and Harford County Sheriff’s Department for their work in the investigation. Acting U.S. Attorney Schenning also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Three Indicted for Conspiracy to Distribute Oxycodone Resulting in DeathRead the Press Release
Today, United States Attorney Trent Shores announced that a federal grand jury returned an indictment against three defendants, charging them with Conspiracy to Distribute Oxycodone Resulting in Death and Distribution of Oxycodone Resulting in Death. The defendants charged are Jennifer Elizabeth Boyce, 36, of Pryor, Michael Allen Miers, 30, of Pryor, and Christina Ann Dempsey, 39, of Chouteau.
The indictment alleges that the opioid conspiracy began in March 2014 and continued until February 2015. According to the indictment, Dempsey supplied Boyce with timed-release 80mg oxycodone pills (“Oxy80s”), then Boyce and Miers acted as partners in selling Oxy80s to customers. The indictment further alleges that on October 24, 2014, Miers provided Boyce’s name and cell phone number to a customer so that the customer could buy pills. The customer negotiated with Boyce by text messaging about the sale of four Oxy80s for a “friend,” and then purchased the Oxy80s from Boyce at her residence. The indictment alleges that the distribution of Oxy80s on October 24, 2014, resulted in the death of Jennifer Blake McNulty from acute oxycodone intoxication on October 25, 2014.
“The opioid epidemic has reached our community with devastating impact. The United States Attorney’s Office will use every tool at its disposal to combat the illegal distribution and use of opioids. The loss of life due to an opioid overdose is tragic and unacceptable,” U.S. Attorney Shores said.
As recently noted by United States Deputy Attorney General Rod Rosenstein, there were about 8,000 overdose deaths in America in 1990, but an estimated 64,000 drug overdose deaths in 2016. To put that total into perspective, the United States lost more Americans in 2016 to drug overdoses than in battle during the entire Vietnam War. Drug overdose is now the leading cause of death for Americans under the age of 50.
Assistant United States Attorney Timothy Faerber - who also serves as Deputy Criminal Chief – represents the United States as lead prosecutor in this matter. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pryor Police Department, and the Mayes County District Attorney’s Office.”
The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Texas Man Arraigned on Wire Fraud ChargeRead the Press Release
ALBANY, NEW YORK – Xavier Walton, age 26, of San Antonio, Texas, was arraigned today on an indictment charging him with fraudulently soliciting and receiving payments from timeshare owners, including a resident of Saratoga Springs, New York.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, Walton participated in a scheme to defraud timeshare owners by soliciting “tax” and “fee” payments under false pretenses. The scheme involved offering to pay a timeshare owner in exchange for renting their timeshare property, and then instructing the owner to send payment to Walton’s company, AB Transfer, Inc., for fees and taxes that the victim was told needed to be paid in order for the rental to occur. Timeshare owners who sent payments to AB Transfer, Inc. received nothing in return.
As a result of the scheme, Walton received a total of more than $285,000 from at least 23 individuals, including a resident of Saratoga Springs, New York. Other victims reside in Florida, Pennsylvania, and Ontario, Canada. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Walton was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released with conditions pending a trial.
If convicted of wire fraud, Walton faces up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Steubenville, Ohio man admits to firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Steubenville, Ohio man has admitted to unlawful possession on a firearm, United States Attorney Bill Powell announced.
Thomas Bennett, age 41, pled guilty to one count of “Unlawful Possession of a Firearm.” Bennett, having previously been convicted of drug possession in Commons Pleas Court in Jefferson County, Ohio in 2017, admitted to possessing a 9mm pistol in Ohio County on August 12, 2017.
Bennett faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
South San Francisco Man Convicted of Selling MethamphetamineRead the Press Release
SAN FRANCISCO – On February 12, 2018, a federal jury convicted Jose Alejandro Vasquez Robledo of conspiracy to distribute methamphetamine and distribution of methamphetamine, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill Snyder. The guilty verdict followed a three-day jury trial before the Honorable Vince Chhabria, U.S. District Judge.
Evidence at trial showed that on November 16 and 17, 2015, Robledo, 32, of South San Francisco, and a co-defendant sold two ounces of methamphetamine in South San Francisco. At trial, the jury saw video and audio recordings from the drug transaction as captured by the ATF, as well as audio recordings of the phone conversations that led up to the deal. A federal grand jury indicted Robledo and his co-defendant on July 18, 2017, charging each with one count of conspiracy to distribute methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B)(viii), and one count of distribution of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii).
The investigation that led to the prosecution of the defendants was part of a larger ATF operation targeting criminal activity in the area of South San Francisco where the drug deal occurred.
Judge Chhabria ordered Robledo remanded to federal custody pending his sentencing hearing, which is scheduled for May 15, 2018. The counts of conviction carry a statutory mandatory minimum sentence of five years’ imprisonment, a statutory maximum sentence of 40 years’ imprisonment, and a maximum fine of $5,000,000 for each count. 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.
Assistant U.S. Attorneys Julie Garcia and Randall Leonard are prosecuting the case, with the assistance of Alycee Lane and Tong Zhang. The prosecution is the result of an investigation by the ATF.
Shavertown Bookkeeper Sentenced to 38 Months’ Imprisonment for Embezzling Nearly $450,000 and for Obstructing the IRSRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard J. Morgan, age 54, of Shavertown, Pennsylvania, was sentenced by United States District Court Judge James M. Munley to 38 months’ imprisonment and five years of supervised release, for committing bank fraud and interfering with the administration of the internal revenue laws. Morgan was also ordered to pay $494,618.85 in restitution to his victims and the IRS.
According to United States Attorney David J. Freed, Morgan owned and operated Wilkes-Barre Bookkeeping LLC, a Shavertown, Pennsylvania-based business that provided payroll services to its clients. Local businesses contracted Morgan to pay employee payroll and salary expenses, to file IRS Form 941 Employer Quarterly Federal Tax Returns, and to remit employment tax liabilities to federal, state and local taxation authorities. For three of his clients, Morgan failed to file the IRS Forms 941 and remit the employment taxes to the appropriate authorities, instead embezzling the funds for his own personal use. Between March 2010 and October 2016, Morgan embezzled $376,224.85 from those clients, all while lying to them about his activities.
Morgan also served as a Treasurer for a non-profit corporation and was tasked with selling its assets and winding up its operations when it closed in February 2010. Instead, after paying the non-profit corporation’s outstanding liabilities, Morgan embezzled the remaining residual sales proceeds of $68,172.
When the IRS commenced an investigation of Morgan’s activities, he took steps to impede the revenue agents and conceal his embezzlements. Morgan claimed to be working with fictitious IRS employees to resolve the matter, and provided the IRS with altered bank statements and accounting records. Morgan owes the IRS approximately $50,222 for unpaid taxes on his embezzled funds.
In pronouncing the sentence, Judge Munley highlighted Morgan’s attempts to conceal his activities from the IRS, and that Morgan continued embezzling funds from one of his clients even after becoming aware of the federal criminal investigation into his activities. Judge Munley also focused on Morgan’s use of the embezzled money to fund life luxuries, and the damages he inflicted on local small businesses and non-profit organizations.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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San Diego Rancher Sentenced for Possession and Distribution of Child PornographyRead the Press Release
Assistant U. S. Attorney Renee Green (619) 546-6775
NEWS RELEASE SUMMARY – February 13, 2018
SAN DIEGO – Christian Clews, the operator of a Carmel Valley horse ranch, was sentenced in federal court today to 210 months in prison for possessing and distributing photographs and videos that depicted children engaged in sexually explicit activity with adults and dogs.
Clews, who pleaded guilty in July but remained free on bond, was immediately taken into custody at the conclusion of the hearing. U.S. District Judge Dana M. Sabraw also sentenced Clews to 25 years of supervised release upon completion of his prison term.
During today’s hearing, Special Assistant U.S. Attorney Renee Green told the court that during a search of the defendant’s computer, federal agents recovered over 800 images and 600 videos of children engaged in sexually explicit conduct. As detailed in the plea agreement, the images and videos included prepubescent boys and girls engaged in a variety of sexual acts. SAUSA Green said Clews’ conduct was not limited to only possession and distribution of child pornography but included repeated sexual victimization of minors for over two decades. SAUSA Green noted that the victims were intimidated for years and finally found the strength to come forward and talk to law enforcement about Clews.
Judge Sabraw described the case as “extraordinary” because Clews’ pattern of activity involved the abuse and exploitation of minors over the course of 25 years. The Court noted that individuals writing letters of support for Clews were likely “not informed” as to Clews’ true conduct in this case. The Court described Clews as having “another side that’s very dark, very predatory, plain and simple.” Judge Sabraw described Clews’ behavior as a “longstanding campaign of predatory conduct,” wherein Clews used his position at the ranch to abuse vulnerable victims. In pronouncing his judgment, Judge Sabraw stated, “There has to be a consequence to that conduct; there has to be a day of accounting.”
“The production of child pornography creates a permanent record of a child’s sexual abuse, and these victims often suffer a lifetime of re-victimization in knowing the images of their worst nightmare are forever memorialized on the Internet,” said U.S. Attorney Adam L. Braverman. “We are heartened by today’s strong sentence because it ensures that a man who contributed to the victimization of children is out of commission for many years.”
“Today’s sentencing of Christian Clews sends a very strong message to child predators who seek to exploit young victims. HSI is committed to working with the San Diego Internet Crimes Against Children Task Force and federal prosecutors to protect children from sexual predators. Investigating these crimes requires a local, national and international commitment and a multi-agency approach of dedicated law enforcement personnel,” said James Plitt, Deputy Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI will continue to assist our law enforcement partners, in particular bringing our transnational investigative authorities to these investigations and prosecutions.”
This case was investigated by the San Diego Internet Crimes Against Children Task Force and Homeland Security Investigations. The Internet Crimes Against Children Task Force Program is a national network representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies, all working to combat the sexual exploitation of children through the internet.
DEFENDANT Criminal Case No. 17CR0145-DMS
Christian Clews Age: 52 San Diego, CA
SUMMARY OF CHARGE
Title 18, United States Code, Section 2252(a)(2), Distribution of Images of Minors Engaged in Sexually Explicit Conduct
Title 18, United States Code, Section 2252(a)(4), Possession of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 20 years in prison (with a mandatory 5 years’ prison for the Distribution count); $250,000 fine; Mandatory Special Assessments of $100 and $5,000 per count; Restitution; Forfeiture
INVESTIGATING AGENCIES
San Diego Internet Crimes Against Children Task Force
Homeland Security Investigations
Rochester Man Pleads Guilty to Fentanyl and Carfentanil Trafficking ChargesRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that John Furber, 45, formerly of Rochester, New Hampshire, pleaded guilty to fentanyl and carfentanil trafficking charges.
Court documents and statements made in court showed that during a vehicle stop in Rochester on March 29, 2017, Furber was found in possession of nearly 10 grams of fentanyl. On April 26, 2017, officers encountered Furber at a hotel in Rochester where he was found with over nine grams of fentanyl and over 28 grams of carfentanil, as well as over $2,000 in cash. On May 24, 2017, Furber was arrested by the United States Marshals-led New Hampshire Joint Fugitive Task Force at an apartment in North Conway, New Hampshire. An additional quantity of fentanyl was recovered from the defendant at that time.
Furber pleaded guilty to two counts of possession of a controlled substance with intent to distribute. Under the terms of the plea agreement, Furber will forfeit $2,105 in drug proceeds to the United States. Furber’s sentencing is scheduled for May 29, 2018.
“The aggressive investigation and prosecution of individuals engaged in heroin, fentanyl and carfentanil trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state and federal level,” said Acting U.S. Attorney Farley. “The recent presence of carfentanil in New Hampshire, a drug that is hundreds of times more powerful than fentanyl, will result in an even greater number of overdose deaths and presents unprecedented public safety concerns for law enforcement and first responders. The United States Attorney’s Office will continue to work tirelessly with our law enforcement partners to prosecute those who are responsible for distributing these dangerous drugs in our state.”
This investigation was conducted by the Drug Enforcement Administration, the United States Marshals-led New Hampshire Joint Fugitive Task Force, and the Rochester and Conway Police Departments. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Registry of Motor Vehicles Clerk Sentenced for Role in Identity Theft SchemeRead the Press Release
BOSTON – A Massachusetts Registry of Motor Vehicles clerk was sentenced yesterday in federal court in Boston for her role in a scheme to produce false identification documents.
David Brimage, 46, of Boston, was sentenced by U.S. District Court Judge Leo T. Sorokin to eight months in prison and two years of supervised release. In October 2017, Brimage and co-conspirators Evelyn Medina, 56; Annette Gracia, 37, both of Boston; Kimberly Jordan, 33, of Randolph; and Bivian Yohanny Brea, 41, of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. All of the defendants have now been sentenced.
“The conduct in this case was egregious. We will always hold accountable those who violate the public trust,” said United States Attorney Andrew E. Lelling. “While these defendants tried to profit by thwarting legal safeguards they were entrusted with enforcing, the crime was more than that – the defendants engaged in a scheme that made U.S. identity documents – and accompanying benefits – available to illegal immigrants who were not entitled to them.”
“Today’s sentencing highlights the HSI Document and Benefit Fraud Task Force’s continued vigilance against corruption schemes that damage the trust the public places in our government intuitions” said Michael Shea, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations Boston office. “This case is another excellent example of federal, state and local cooperation to combat this criminal enterprise.”
“Today’s sentencing sends a strong message: Diplomatic Security is committed to making sure that those who commit identity theft face consequences for their criminal actions,” said William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State's Diplomatic Security Service. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and other law enforcement agencies continues to be essential in the pursuit of justice.”
In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed. In January 2018, Medina and Gracia were sentenced to 15 months in prison and one year and one day in prison, respectively. In February 2018, Jordan was also sentenced to eight months in prison and Brea was sentenced to six months of home confinement and three years of supervised release.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
U.S. Attorney Lelling, HSI Acting SAC Shea, DSS SAC Gannon, and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the cases.
Registered Sex Offenders Indicted on Child Pornography ChargesRead the Press Release
PROVIDENCE, RI – A federal grand jury today returned indictments charging two registered sex offenders living in Providence with child pornography charges.
The grand jury returned separate indictments charging Robert L. MacGregor, 55, with possession child pornography, and Michael Llorca, 47, with two counts of distribution and one count of possession of child pornography.
The indictments are announced by United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to court documents, it is alleged that in October 2017, the National Center for Missing and Exploited Children provided information to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that an individual, later identified by the task force as Michael Llorca, allegedly sent sexually explicit text messages and illicit images to a minor female via an online application. Subsequently, a member of the ICAC Task Force observed a computer or other device allegedly using the same IP address sharing files of suspected child pornography on a peer-to-peer file-sharing network.
On January 18, 2018, members of the ICAC Task Force executed a federal court-authorized search of Llorca’s Providence residence and seized seven laptop computers, six smartphones, two Apple iPods and two SD cards. A forensic review of the devices is currently underway.
According to court records, Llorca, who has been detained since his arrest on January 18, is a registered sex offender, having been convicted of rape of a child in Massachusetts in August 1997.
In a separate matter, according to court documents, during a routine home visit on January 24, 2018, a United States Probation Officer allegedly observed inappropriate materials on Robert L. MacGregor’s cell phone. A subsequent forensic examination of the phone by members of the ICAC task force allegedly revealed approximately 100 images of child pornography.
MacGregor, in federal custody since his arrest by HSI agents and members of ICAC task force on February 7, 2018, is a registered sex offender currently serving lifetime federal supervised release, having been convicted of possession and distribution of child pornography in 2011. His most recent arrest occurred less than 5 months after completing an 84 month term of incarceration.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Philadelphia Man Conspired to Distribute Fentanyl-Laced HeroinRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philadelphia, Pa., pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Kareem Jamal Jones, 28, pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Aug. 25, 2016, through Sept. 14, 2016, Jones conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin laced with fentanyl.
Judge Gibson scheduled sentencing for June 12, 2018, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Jones.
Ohio County man admits to drug distribution and firearms possession chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Dorian Devon Banks, age 27, pled guilty to one count of “Possession with the Intent to Distribute Cocaine” and one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” Banks admitted to possessing cocaine and a 9mm caliber pistol during a drug crime in May 2017 in Ohio County.
Banks faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count and up to five years incarceration and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.New York Man Charged with Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Bronx, New York, man who was arrested with 24 kilograms of narcotics stored in the trunk of a taxi made his initial appearance today in Newark federal court, U.S. Attorney Craig Carpenito announced.
Franklin Grullon, 43, is charged by complaint with one count of conspiracy to distribute five kilograms or more of cocaine. He appeared this afternoon before U.S. Magistrate Judge James B. Clark III and was released on $200,000 unsecured bond.
According to the complaint:
During a Drug Enforcement Administration (DEA) investigation of a drug trafficking ring operating in New Jersey, New York, and elsewhere, law enforcement officers learned that Grullon was supposed to collect a shipment of narcotics in the area.
On Feb. 11, 2018, law enforcement officers observed Grullon drive a New York taxi to meet with an individual at a gas station and truck stop in Pennsylvania. After the two met, Grullon drove away and checked into a hotel in White Haven, Pennsylvania.
Shortly thereafter, law enforcement officers spoke to Grullon, who said that he traveled to the area to drop off a passenger at a nearby mall. However, a search of the taxi’s trunk revealed two bags containing a total of 24 kilograms of a substance that tested positive for cocaine.
The cocaine distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, as well as the DEA Scranton Resident Office, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender
Nevada Return Preparer Pleads Guilty to Filing More Than $2.7 Million in Fraudulent Tax ReturnsRead the Press Release
A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled. Ronquillo admitted that she caused a tax loss of more than $2.7 million.
U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17. Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
dditional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Return Preparer Pleads Guilty to Filing More Than $2.7 Million in Fraudulent Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada, tax return preparer pleaded guilty today to filing fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson for the District of Nevada.
According to documents and information provided to the court, from 2009 through 2015, Ofelia Ronquillo, 62, prepared fraudulent income tax returns for clients through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas, Nevada. Ronquillo included false items on her clients’ tax returns, including bogus charitable contributions, capital losses, and unreimbursed employee expenses—such as meals and transportation expenses, as well as claimed inflated refunds to which her clients were not entitled. Ronquillo admitted that she caused a tax loss of more than $2.7 million.
U.S. District Court Judge Andrew P. Gordon scheduled sentencing for May 17. Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Netherlands Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Federico Avendano, age 53, of the Netherlands was sentenced before South Bend District Court Judge Jon E. DeGuilio for aggravated identity theft.
Avendano was sentenced to 48 months imprisonment and he was ordered to pay restitution in the amount of $605,468.81.
According to documents in this case, in April and September of 2011, Mr. Avendano used the taxpayer identification number of another person to commit wire fraud by filing fraudulent tax returns with the Internal Revenue Service. He obtained the individual taxpayer identification numbers (ITINs) while working as a tax preparer in South Bend, then used those numbers to file returns without the taxpayers’ knowledge. The returns contained false information about the taxpayers’ employment and falsely claimed they were entitled to refunds that were to be deposited into bank accounts he controlled.
This case was investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being handled by Assistant United States Attorney Jesse Barrett.
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Navajo Woman from Navajo, N.M., Pleads Guilty to Federal Assault and Child Abuse ChargesRead the Press Release
ALBUQUERQUE – Elmira Curley, 22, an enrolled member of the Navajo Nation who resides in Navajo, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault and child abuse charges. Curley entered her guilty plea under a plea agreement that recommends a sentence of 120 months of imprisonment followed by a term of supervised release to be determined by the court.
The FBI and Navajo Nation Division of Public Safety arrested Curley on July 6, 2016, on an indictment charging her with abusing a child resulting in great bodily harm. The indictment alleged that Curley committed the crime on the Navajo Indian Reservation in McKinley County on March 14, 2016.
During today’s change of plea hearing, Curley pled guilty to a two-count felony information charging her with assault resulting in serious bodily harm and child abuse. In her plea agreement, Curley admitted that on March 14, 2016, she committed the crimes of assault and child abuse in Navajo, N.M., which is on the Navajo Indian Reservation. Curley admitted committing these crimes by putting the legs and feet of a nine-month-old infant into a bathtub of scalding hot water and causing the infant to sustain severe burns. Curley acknowledged that the infant-victim was hospitalized for several weeks for medical treatment and received skin grafts to repair some of the second- and third-degree burns she sustained as the result of the assault and abuse.
Curley is in federal custody and remains detained pending her sentencing hearing, which has yet to be scheduled.
The Gallup, N.M., and Phoenix, Ariz., offices of the FBI and the Window Rock, Ariz., office of the Navajo Nation Division of Public Safety investigated this case, which is being prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
National Consumer Bankruptcy Law Firm Sanctioned for Harming Financially Distressed Consumers and Auto LendersRead the Press Release
After a four-day trial, a national consumer bankruptcy law firm and its local partner attorneys were sanctioned and enjoined by the U.S. Bankruptcy Court for the Western District of Virginia for causing “unconscionable” harm to their clients. The court found that the law firm and its attorneys, among other things, systematically engaged in the unauthorized practice of law, provided inadequate representation to consumer debtor clients, and promoted and participated in a scheme to convert auto lenders’ collateral and then misrepresented the nature of that scheme, Director Cliff White of the Executive Office for U.S. Trustees announced today.
On Feb. 12, the U.S. Bankruptcy Court for the Western District of Virginia entered orders in two actions brought by the U.S. Trustee. The court sanctioned Law Solutions Chicago, doing business as “UpRight Law” (UpRight), and its principals $250,000; imposed additional sanctions of $50,000 against UpRight’s managing partner Kevin Chern, and $5,000 each against UpRight’s affiliated partner attorneys Darren Delafield and John C. Morgan Jr.; and ordered UpRight to disgorge all fees collected from the consumer debtors in both bankruptcy cases. The court also revoked UpRight’s bankruptcy filing privileges in the Western District of Virginia for not less than five years, and those of its local partners for 12 and 18 months, respectively. The bankruptcy court also sanctioned Sperro LLC (Sperro), an Indiana towing company that did not respond to the U.S. Trustee Program’s complaints, and ordered the turnover of all funds it received in connection with bankruptcy cases in the district.
“Lawyers who inadequately represent consumer debtors harm not only their clients, but also creditors and the integrity of the bankruptcy system,” said Director White. “The damage caused increases exponentially when they operate nationally, like UpRight. This case is demonstrative of the vigorous enforcement actions that the U.S. Trustee Program can and will take to protect all stakeholders in the bankruptcy process.”
According to trial testimony and evidence presented in court, UpRight operates a website offering legal services to consumers in financial distress. Prospective clients contact UpRight via the Internet and are routed to UpRight’s sales agents. These non-attorney “client consultants” were trained to “close” prospective clients by using high-pressure sales tactics and improperly provided legal advice to encourage them to file for bankruptcy relief. In many instances, UpRight arranged payment plans for its prospective clients to pay bankruptcy-related attorney’s fees and costs over time, and refused to refund fees it collected from its clients for whom UpRight did not file a bankruptcy case. The bankruptcy court found that UpRight had “serious oversight issues” in failing to adequately supervise its salespeople to prevent their unauthorized practice of law, and that UpRight demonstrated a “focus on cash flow over professional responsibility.”
Additionally, UpRight worked in concert with Sperro to implement a program through which UpRight’s clients could have their bankruptcy legal fees paid through a “New Car Custody Program.” The bankruptcy court described the New Car Custody Program as “a scam from the start.” UpRight’s salespeople and attorneys counseled bankruptcy clients to “surrender” vehicles fully encumbered by auto lenders’ liens to Sperro without the lienholders’ consent, and enter into an agreement obligating the clients to pay Sperro the costs of towing the vehicle, transporting it across state lines – often over a long distance – and storing it. UpRight assured its debtor clients that they would not have to pay any fees to Sperro, and in some instances advised its clients to hide their vehicles from lenders looking to repossess them until Sperro could pick up the vehicles.
After Sperro took a vehicle, it asserted a statutory “warehouseman’s lien,” claiming the right to keep the vehicle until the sham towing, transportation, and storage fees were paid. Then it offered the vehicle for sale at auction, despite the auto lender’s continuing security interest. Out of the sale proceeds, Sperro paid the debtor client’s bankruptcy fees directly to UpRight. Sperro kept the rest of the sale proceeds. In some cases, UpRight prepared bankruptcy court filings omitting the debtor clients’ transactions with Sperro.
The “New Car Custody Program” harmed auto lenders by converting collateral in which they had valid security interests. And the bankruptcy court found that UpRight “preyed upon some of the most vulnerable in our society” – its debtor clients – “while they were under great stress” by providing “unconscionable” advice to participate in the Sperro scheme, exposing them to undue risk by causing them to possibly violate the terms of their contracts with their auto lenders as well as state laws.
The cases discussed above are captioned Robbins v. Delafield et al., Adv. No. 16-07024 (Bankr. W.D. Va. Feb. 12, 2018), and Robbins v. Morgan et al., Adv. No. 16-05014 (Bankr. W.D. Va. Feb. 12, 2018).
Director White commended the trial team of Assistant U.S. Trustee Margaret Garber and Trial Attorneys Joel Charboneau, Nick Foster and Joan Swyers for their handling of these matters.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 92 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Mt. Pleasant Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
PITTSBURGH - A former resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to 60 months’ imprisonment, followed by 10 years’ supervised release, on a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Charles Kaper, age 53, of Mt. Pleasant, Pennsylvania.
According to information presented to the court, the court was advised that from June 2016 to July 2016, Kaper received videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the United States.
U.S. Attorney Brady commended the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Kaper.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mingo County woman sentenced to federal prison for conspiracy to engage in sex trafficking of a minorRead the Press Release
CHARLESTON, W.Va. – A Mingo County woman was sentenced today to six years in federal prison, to be followed by 20 years of supervised release, for a sex trafficking crime involving a minor, announced United States Attorney Mike Stuart. Misty Dawn Baisden, 40, of Delbarton, previously pled guilty to conspiracy to engage in sex trafficking of a minor. Baisden was also ordered to register as a sex offender.
U.S. Attorney Stuart commended the investigative efforts of the FBI Violent Crimes Against Children Task Force, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Ashland Police Department, and the Boyd County Sheriff’s Department.
“The facts of this case are appalling and disgusting, and this case should send a strong message that there is absolutely no tolerance for sex trafficking of children. We will continue working tirelessly with our law enforcement partners to aggressively investigate and prosecute these predators,” said U.S. Attorney Stuart. “We will never shy away from our duty to hold those accountable who seek to harm our children and commit these despicable crimes.”
Baisden admitted that in March 2017, she conspired with her codefendant, David Wayne Young, using her cell phone to engage a minor in commercial sex. The communication involved photographs of a minor and the discussion of exchanging money, items, or other things of value for sexually explicit photographs or sexual activity. Baisden admitted that she understood from the entire conversation that Young would be providing her with assistance in engaging in commercial sexual activity with a minor. Young pled guilty to sex trafficking of a minor, and faces at least 15 years and up to life in federal prison when he is sentenced on May 1, 2018.
Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Milwaukee Man Pleads Guilty to Falsely Labeling Illegal Wildlife PartsRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 29, 2018, Chao Thao (age 37) of Milwaukee pleaded guilty to falsely labeling illegal wildlife parts that he imported from the United Kingdom in violation of the Lacey Act, Title 16, United States Code, Sections 3372(d)(1) and 3373(d)(3)(A)(i). Under the terms of the plea agreement, Thao acknowledged that he sought out and imported into the United States three taxidermized feet of black rhinoceros. Thao arranged with the shipper to falsely label the package containing the rhinoceros feet as “antique ornaments” in an effort to avoid detection by U.S. authorities.
Black rhinoceros is one of the most endangered species in the world. They are protected under United States and international law. Trade in rhinoceros parts is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Thao’s offense carries a maximum penalty of up to 5 years imprisonment and a $250,000 fine. The sentencing hearing is set for April 26, 2018 before United States District Judge Lynn Adelman. This case was investigated by the United States Fish & Wildlife Service. The case is being prosecuted by Assistant United States Attorney Benjamin W. Proctor.
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