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13 February 2018
Michaels Stores Agrees to Pay $1.5 Million to Settle CPSC Delayed Reporting ClaimRead the Press Release
Michaels Stores Inc. and Michaels Stores Procurement Co. Inc. (Michaels) agreed to enter into a consent decree and pay $1.5 million, the Justice Department announced today. The decree resolves allegations that Michaels failed timely to report to the Consumer Product Safety Commission (CPSC) information regarding a large glass vase that injured consumers between 2007 and 2009.
“This settlement underscores the importance of reporting product safety issues immediately,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to prioritize consumer safety by enforcing product safety obligations.”
Between 2006 and 2010, Michaels sold approximately 200,000 of the vases in the United States and Canada. In February 2010, Michaels reported safety issues related to the vases to the CPSC. The Department of Justice’s April 2017 Amended Complaint alleged that Michaels violated the Consumer Product Safety Act (CPSA) by not reporting the vases’ safety issues earlier, as Michaels possessed information that the vases had injured one consumer in 2007 and at least four customers in the first half of 2009.
The consent decree requires Michaels to maintain a compliance program to ensure that it complies with the CPSA and to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC.
“I’m pleased that the Department of Justice and Michaels were able to reach this agreement,” said CPSC Acting Chairman Ann Marie Buerkle. “We greatly appreciate DOJ’s efforts on behalf of consumers.”
In agreeing to settle the case, Michaels has not admitted that it violated the law.
The United States is represented by Trial Attorneys Kerala Cowart, Claude Scott, and Lisa Hsiao of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Lisa Hasday of the U.S. Attorney’s Office for the Northern District of Texas, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel. For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Manhattan U.S. Attorney Announces Bank Fraud Charges Against NYPD DetectiveRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that MICHAEL BONANNO was arrested and charged in Manhattan federal court with bank fraud, conspiracy to commit bank fraud, and aggravated identity theft, in connection with a scheme to use stolen bank account numbers to make payments on BONANNO’s credit card and home mortgage accounts. BONANNO was arrested at his home this morning and will be presented today before Magistrate Judge Debra Freeman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Michael Bonanno, who was at the time a detective in the NYPD’s Crime Stoppers unit, and his co-conspirator used victims’ bank account numbers in a scheme to steal hundreds of thousands of dollars from New Yorkers. In so doing, Bonanno betrayed the public that he swore to protect. I commend the FBI and the Internal Affairs Bureau of the NYPD for their outstanding work in this investigation.”
FBI Assistant Director William F. Sweeney Jr. said: “Plain and simple, Michael Bonanno allegedly used other people’s money to pay off his debts while simultaneously serving as a police officer, charged with investigating criminal wrongdoing. We don’t allow the general public to get away with these types of crimes, and we won’t allow members of the law enforcement community to get away with them either.”
NYPD Commissioner James P. O’Neill said: “I want to commend the dedicated investigators in the NYPD Internal Affairs Bureau and the FBI as well as the prosecutors in the Southern District whose tireless efforts on this corruption case exposed the criminal activity alleged in this arrest.”
According to the allegations in the Complaints unsealed today in Manhattan federal court: [[1]]
BONANNO is a NYPD detective and was a member of the NYPD Crime Stoppers unit, which receives and investigates anonymous tips about criminal activity from members of the community.
From November 2016 to March 2017, BONANNO and a co-conspirator stole and attempted to steal money from the bank accounts of multiple New York residents by making unauthorized wire transfers from victims’ bank accounts to accounts controlled by BONANNO, and by cashing fraudulent checks written from victims’ accounts into an account controlled by BONANNO.
In total, BONANNO and his co-conspirator attempted approximately $1,457,642 in fraudulent wire transfers from victims’ accounts to BONANNO’s accounts, and deposited approximately $68,900 worth of forged checks into BONANNO’s accounts.
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BONANNO, 44, of Staten Island, New York, has been charged with one count of bank fraud and one count of conspiracy to commit bank fraud, each of which carries a sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI and NYPD Internal Affairs Bureau in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Nicolas Roos and Danielle R. Sassoon are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced for Throwing Molotov Cocktails at Apartment BuildingRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 15 years in prison for arson after throwing Molotov cocktails and setting fire to an apartment building in Alexandria in June 2016.
According to court records and evidence presented at trial, Josepha Kasai, 24, smashed a Molotov cocktail at the door of a third floor apartment unit, setting fire to the doorway and trapping nine individuals on the third floor. Kasai then went outside and threw another Molotov cocktail at the third floor apartment unit, breaking through the bedroom window. The entire building was evacuated due to the fire. A victim inside the third floor apartment jumped from his balcony and Kasai chased the victim with what appeared to be a knife. After Kasai’s arrest, he informed law enforcement he intended to kill the victim who jumped from the balcony and claimed the victim had previously stolen his iPhone.
Kasai was found guilty by U.S. District Judge Anthony J. Trenga after a bench trial on Oct. 25, 2017.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Robert C. Dubé, Chief of Alexandria Fire Department, and Michael L. Brown, Chief of Alexandria Police Department, made the announcement after sentencing by Judge Trenga. Assistant U.S. Attorneys Maureen C. Cain and Nicholas U. Murphy II 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. 1:16-cr-268.
Man Sentenced for Stealing Identity of Deceased ChildRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to four years in prison for stealing the identity of a deceased child, stealing approximately $33,000 from his employer, and unlawfully purchasing a firearm.
According to court documents, in 2013, Shawn D. Gover, 47, changed his name to Aaron Garth Roberts, who was a born in 1974 in Denton, Texas, but died as a young child. In an attempt to hide a previous felony conviction, Gover also stole the social security number and date of birth of Roberts.
In March 2016, using the personal identifying information of Roberts, Gover was hired as the Director of Finance for the Independence Golf Club in Powhatan. In that position, he had control over financial records, including the operating account checkbook and corporate credit card. From the fall of 2016 to the summer of 2017, Gover stole approximately $33,557 from Independence Golf Club.
Additionally, on Nov. 13, 2016, using the name, social security number and date of birth of Roberts, Gover purchased a Sig Sauer .45 semiautomatic pistol. Having been previously convicted of felony Grand Theft and sentenced to 16 months in prison, Gover was prohibited from lawfully possessing a firearm.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney David T. Maguire 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. 3:17-cr-133.
Man Sentenced to Eight Years in Prison for Conspiracy to Distribute Ecstasy and MethamphetamineRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 97 months in prison for his role in a conspiracy to distribute 7,000 pills of MDMA, a synthetic drug commonly known as Ecstasy, and methamphetamine, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jordan Raeshaun Cambridge, 26, pleaded guilty on Sept. 6, 2017, to one count of conspiracy to distribute MDMA and methamphetamine. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced him to four years of supervised release.
According to the plea agreement, Cambridge admitted that he joined a conspiracy with others to distribute MDMA and methamphetamine for financial gain. He sold approximately 7,000 MDMA pills for $21,000. At the time of his arrest during a drug transaction, Cambridge had approximately 5,600 transformer-shaped MDMA pills and 1.5 grams of marijuana in his possession. During the execution of a search warrant of Cambridge’s residence in North Las Vegas, law enforcement found 4,997 MDMA pills, 267 grams of MDMA residue, 221.9 grams of methamphetamine, 201.4 grams of marijuana, a Rossi .38 caliber revolver, and a Raikal semi-automatic .380 handgun.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Brandon Jaroch.
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Louisville Business Owner Sentenced to 33 Months for Food Stamp FraudRead the Press Release
Former owner of the Meat Store also ordered to pay $545,000 restitution
LOUISVILLE, Ky. – The former owner of a Louisville specialty food store was sentenced today in United States District Court, by Senior Judge Thomas B. Russell, to 33 months in prison, three years of supervised release, and ordered to pay $545,000 restitution for committing Food Stamp fraud, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Today’s nearly three year prison sentence and $545,000 returned to victims, underscores our commitment to investigating and prosecuting criminals who steal from federal programs,” stated United States Attorney Russell Coleman. “This is a crime against tax payers – we will seek to restore every stolen dime that was meant to help those in need.”
Elias Estephane was convicted of defrauding a United States Department of Agriculture Program on November 9, 2017, following a four-day jury trial.
Estephane was the owner of the Meat Store located at 1066 South 28th Street and the Meat Store 2 located at 4835 Poplar Level Road. Both were specialty food stores focusing on meats and both were accepted as Supplemental Nutrition Assistance Program (SNAP), or Food Stamp retailers. SNAP is a program administered by the United States Department of Agriculture (USDA) to provide food-purchasing assistance to low-income individuals through the issue of (EBT) cards to recipients. Evidence at trial showed that on multiple occasions Estephane traded cash for SNAP benefits, in violation of program rules that only permit benefits to be exchanged for eligible food items. Estephane generally paid customers fifty cents on the dollar for their benefits.
In 2015, the USDA and the Federal Bureau of Investigation (FBI) began investigating the Meat Store’s redemption of SNAP benefits. They targeted the Meat Store because it had a significantly higher level of redemption of SNAP benefits compared to similar stores in the area. Specifically, the Meat Store’s month-to-month SNAP redemptions in 2015 were around 20 times the average redemptions from similar stores in the same geographic area.
During the course of the investigation, USDA and FBI sent two individuals into the Meat Store to attempt to sell SNAP benefits for cash. Between September 1, 2015, and July 12, 2016, the two individuals exchanged SNAP benefits for cash with defendant Estephane at the Meat Store on nine different occasions, eight of which were captured on video. Sometimes the individuals would present multiple SNAP EBT cards in different names during the undercover transactions and request cash from all of them.
During the trial, the United States submitted surveillance video of the Meat Store from four different days then compared transaction data with the video, flagging instances in which people spent $100 or more but left the store holding only one bag. Further the United States had five customer witnesses and one former employee testify.
The case was prosecuted by Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl, with the assistance of paralegal Mary Kennedy, and was investigated by U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation (FBI).
Las Vegas Doctor Arrested and Charged with 29-Counts of Unlawful Distribution of Fentanyl and Health Care FraudRead the Press Release
LAS VEGAS, Nev. – A pain management doctor practicing in Las Vegas was arrested today and charged with 29-counts of unlawful distribution of fentanyl and for committing health care fraud, announced Attorney General Jeff Sessions, U.S. Attorney Dayle Elieson of the District of Nevada, Assistant Special Agent in Charge Dan Neill for the DEA’s Las Vegas field office, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Christian J. Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Steven A. Holper, 66, is charged in an indictment with seven-counts of distribution of Fentanyl, a controlled substance, and 22-counts of providing a false statement relating to a health benefit program.
Fentanyl is a powerful synthetic opioid painkiller that is 100 times more potent than morphine and 40 to 60 times more potent than 100% pure heroin. Fentanyl is available in various forms, including Subsys. Subsys is only available through the Transmucosal Immediate-Release Fentanyl (TIRF) Risk Evaluation and Mitigation Strategy (REMS) Access program. The only FDA-approved indication for TIRF medicines are for use to manage breakthrough pain in adults with cancer. Dr. Holper routinely prescribed Subsys for his patients without cancer.
According to allegations contained in the indictment, which was unsealed today, from about July 19, 2015 through March 12, 2016, Holper allegedly prescribed Subsys to a patient without a legitimate medical purpose and outside the usual course of professional practice. The indictment further alleges that, from about November 21, 2013 through March 24, 2017, Holper knowingly made false statements to Medicare and private health insurance companies. Dr. Holper prescribed Subsys for patients without cancer and falsely represented 22 patients were cancer patients with breakthrough cancer pain, who were opioid tolerant and eligible for Subsys.
"Our great country has never before seen the levels of addiction and overdose deaths that we are suffering today. Sadly, some trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and exploit this crisis for cash—with devastating consequences. Our goals at the Department of Justice for 2018 are to reduce the number of opioid prescriptions, the number of overdose deaths, and violent crime—which is often drug-related. That's why I created the Opioid Fraud and Abuse Detection Unit and sent 12 top prosecutors to opioid hotspots around the country: to help us find the medical fraudsters who are flooding our streets with drugs. These prosecutors are already issuing indictments from Pittsburgh to Las Vegas. I want to thank the DEA, FBI, the Department of Health and Human Services, and the Henderson, Nevada Police Department, and Assistant U.S. Attorney Kilby Macfadden for their hard work on this case. I am convinced that these efforts make drugs less available on the streets, send a message to criminals, and ultimately make our communities much safer," said Attorney General Sessions.
“This indictment is another example of the U.S. Attorney’s Office commitment to hold doctors accountable when they violate federal laws designed to protect the health and safety of patients. The U.S. Attorney’s Office will continue to work with law enforcement partners to safeguard the public from prescription drug and opioid abuse and to ensure medical doctors are prioritizing patients’ health above their personal financial gain,” said U.S. Attorney Elieson.
“The individual arrested today wholly neglected the public’s trust - he violated the Hippocratic Oath that all healthcare professionals vow to uphold when the respect of the profession is bestowed upon them,” said Assistant Special Agent in Charge Neill. “Deliberately prescribing addictive and dangerous opioids outside the course of legitimate medical practice is drug dealing, and DEA is committed to holding drug dealers accountable.”
“The accessibility of fentanyl and other deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who are consciously contributing to the appalling opioid crisis that is inflicting mayhem in neighborhoods all over the state of Nevada.”
“Dr. Holper is charged with needlessly prescribing one of the deadliest forms of opioids and defrauding U.S. taxpayers,” said Special Agent in Charge Schrank. “With our law enforcement partners we will continue our fight to bring these suspected criminals to justice and protect our communities.”
The statutory maximum penalty for distribution of a controlled substance is 20 years in prison and the maximum penalty for health care fraud is 10 years in prison.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.
If you have a tip or information about illegal sales or distribution of prescription opioids, including fentanyl, oxycodone, hydrocodone, etc., by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873). For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Jackson Man Sentenced to Federal Prison for Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Monyet Davell Johnson, 43, of Jackson, was sentenced today by Senior United States District Judge William H. Barbour, Jr. to serve 120 months in federal prison, followed by 5 years supervised release and a fine of $1500.00 for his role in a conspiracy to distribute cocaine, announced U.S. Attorney Mike Hurst.
On June 27, 2017, agents served a federal arrest warrant on Johnson at his home in Jackson. Following a search of his home, Johnson was found to be in possession of approximately 7 kilograms of cocaine and 3 firearms.
On September 7, 2017, a federal grand jury indicted Johnson for conspiracy to possess with intent to distribute more than 5 kilograms of cocaine hydrochloride and possession with intent to distribute 5 kilograms of more of cocaine hydrochloride. On November 30, 2017, Johnson pled guilty to the conspiracy.
This case is the result of an extensive investigation, dubbed AOperation Pipeline,@ which began as an operation targeting illegal narcotics distribution in central Mississippi involving cocaine and marijuana. The distribution network encompasses the States of California, Texas and Mississippi.
The case was a joint investigation by the United States Immigration, Customs Enforcement, Homeland Security Investigations and Mississippi Bureau of Narcotics, with assistance from US Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mississippi Highway Patrol, Jackson Police Department, and the Hinds County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Illinois Man Sentenced to Three Years’ Prison After Distributing Heroin that Caused Overdose in DubuqueRead the Press Release
A man who distributed heroin to a customer who overdosed was sentenced today to three years in federal prison.
Derrick Devale White, age 25, from Markham, Illinois, received the prison term after an August 9, 2017 guilty plea to possessing with intent to distribute heroin within 1,000 feet of a playground and two schools.
Evidence at sentencing showed that White distributed approximately 1 gram of heroin to a man on July 17, 2017. The man used the heroin and then lost consciousness. The man’s father called 911 and reported that his son was suffering from a heroin overdose, and that he was not breathing well. Emergency responders arrived at the scene and found the man unconscious, with labored breathing. When police officers attempted to move the man, he became responsive and sat up. White admitted in a plea agreement that, the day after the overdose, an undercover officer sent him a text message and ordered another gram of heroin. Shortly thereafter, White arrived at the proposed meeting location, which was within 1,000 feet of a playground, an elementary school, and a middle school. He was arrested in possession of approximately .6 gram of heroin.
White was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. White was sentenced to 36 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
White is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-10310LRR.
Follow us on Twitter @USAO_NDIA.
Georgia Prisoner Pleads Guilty to Phone ScamRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jay Byron Wright, age 42, of the Calhoun State Prison in Morgan, Georgia, pled guilty to Conspiracy to Commit Wire Fraud, a violation of Title 18, United States Code, § 1349. Judge Mary Geiger Lewis accepted the plea and will sentence Wright at a later date.
Evidence presented at the hearing established that Jay Byron Wright and other prisoners called citizens of Oregon using a cell phone smuggled into their prison, told the Oregonians they were in contempt of court for not showing up for jury duty, and that they owed the court money. The Oregonians could pay this money by obtaining Money Pak Green Dot cards for the specified value and providing the numbers on the cards to the callers. The numbers gave the callers access to the value on the card, which could then be transferred onto other Green Dot cards. At least three people in Oregon fell for this scam, and they transferred values slightly less than $1,000 to cards used by various co-conspirators in South Carolina.
The maximum penalty faced by Wright is imprisonment for twenty years, with a potential fine up to $250,000.
The Deschutes County (Oregon) Sheriff’s Office and SLED (South Carolina) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Four Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Four Maryland men have been indicted in connection with a conspiracy to commit murder in aid of racketeering and murder in aid of racketeering:
Daniel Flores-Ventura, a/k/a “Necio,” age 24, of Aspen Hill, Maryland;
Vilas Sail Argueta-Bermudez, a/k/a “Happy,” a/k/a “Little Happy,” a/k/a “Enchilada,” age 31, of Aspen Hill , Maryland;
Willians Ernesto Lovos-Ayala, a/k/a “Tigre,” age 25, of Woodbridge, Virginia; and
Michael Campos-Lemus, a/k/a “Humilde,” age 24, of Aspen Hill, Maryland.
All of the defendants are in custody.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigrations and Customs Enforcement – Homeland Security Investigations, Baltimore Field Office; Special Agent in Charge Gordon Johnson of FBI, Baltimore Field Office; Chief Barry M. Barnard of Prince William County, Virginia Police; and Chief Edward Hargis of the Frederick Police Department.
According to the indictment, the defendants allegedly engaged in murder conspiracy and committed a murder on July 16, 2015 in Montgomery County, Maryland. The victim had been reported missing on July 18, 2015 and his body was found on September 29, 2015 in Woodbridge, Virginia.
MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. The defendants were allegedly members of the Uniones and Molinos Clique of MS-13. The two count indictment alleges that from at least 2015 through September 2017, the defendants were members and associates of MS-13 who planned and committed murders, drug trafficking and extortions.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning thanked HSI, the FBI, the Prince William Police Department and the Frederick Police Department. Mr. Schenning also commended Assistant United States Attorneys Kenneth Clark and Clinton Fuchs and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section who are prosecuting this case.
Forty-Four Arrested on Federal and State Charges in Coordinated Law Enforcement TakedownRead the Press Release
CHARLOTTE, N.C. – Multiple teams of federal, state and local law enforcement agents and officers arrested 44 individuals over the course of the past two days, in a coordinated takedown that began early Monday morning, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Of those arrested, 12 face federal gun and drug charges and 32 are charged with state offenses. Federal arrest warrants have been issued for three more individuals, bringing the total number of those who will be prosecuted federally to 15.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; North Carolina Secretary of Public Safety Eric A. Hooks; and Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.
“This morning’s arrests are the result of a joint eight month investigation into repeat offenders who disregard public safety, violate our nation’s gun and drug laws, and pose a threat to the community,” said U.S. Attorney Murray. “U.S. Attorney General Jeff Sessions directed U.S. Attorneys’ Offices across the country to reinvigorate Project Safe Neighborhoods (PSN), a program that has been historically successful in reducing violent crime. Today’s coordinated action is one component of my office’s comprehensive PSN strategy, which focuses on bringing together all levels of law enforcement to address violent crime, and partnering with our local communities to create an environment where all citizens can safely live, work and prosper.”
“This operation is a great example of the ATF/CMPD Violent Crime Task Force working with our investigative partners to remove violent individuals and career criminals from our communities,” said ATF Special Agent in Charge Dixie.
“These operations play an important role in keeping our community safe. Crime fighting and prevention is more than a strategy, it’s a priority. As we work to engage young people in positive ways, we also will continue to focus on violent, repeat offenders who bring illegal drugs and guns into our neighborhoods,” said Charlotte-Mecklenburg Police Chief Putney. “We will continue to work together with our state and federal partners, along with our formal and informal community leaders, to identify and remove dangerous criminals from our community.”
“This collaboration between federal, state, and local law enforcement sends a clear message that our state has zero tolerance for those committing violent crimes,” said Public Safety Secretary Hooks. “If you choose to engage in this kind of criminal activity, you will be arrested and brought to justice.”
The 12 arrested today on federal charges are:
- Abdul Nafir Barilford, 35, residence unknown.
- Mark Jefferson Belton, 29, of Charlotte.
- Amos Lamar Burch, 34, of Charlotte.
- Rodney Funderburk, 38, residence unknown.
- Elontrae Ali Glenn, 23, of Rock Hill, S.C.
- Rodriquez Harris, 43, of Charlotte.
- Rakeem McCullough, 28, of Charlotte.
- David DeAngelo McNeil, 37, of Charlotte (in federal custody).
- Rodriquez Neal, 23, of Charlotte. Rashad Taylor, 26, of Charlotte.
- Jimmy Ward, 42, of Cherryville, N.C. (previously in state custody)
- Montique Williams, 30, of Charlotte.
Daryl Brown, 49, Carlos Massey, 34, and Ishmerai Hem Ef Muhammad El, 37, of Charlotte, are still wanted by law enforcement. (Table below lists charge(s) for each defendant)
The ATF/CMPD Violent Crime Task Force worked jointly with CMPD’s Vice & Narcotics unit, the U.S. Marshals Service, the North Carolina Department of Public Safety, and federal and state prosecutors to identify violent and repeat offenders in the Charlotte-Mecklenburg area engaging in illegal firearm activity, drug sales, and other criminal acts.
Over the course of the investigation, law enforcement recovered more than 27 firearms and illegal substances, including heroin, cocaine, crack cocaine, methamphetamine, marijuana, and MDMA (ecstasy) pills. Law enforcement seized more firearms and controlled substances while executing arrest and search warrants over the past two days.
The charges contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commends the ATF and CMPD for their investigative efforts, and thanks the U.S. Marshals Service, the North Carolina Department of Public Safety’s Adult Correction and Juvenile Justice, Special Operations and Intelligence Unit, and the Mecklenburg County District Attorney’s Office for their invaluable assistance throughout this investigation.
Assistant U.S. Attorney Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, is in charge of the federal prosecutions.
Name
Charge(s)
Abdul Nafir Barilford 3:18-cr-36
Felon in possession of a firearm
Mark Jefferson Belton 3:18-cr-48
Distribution and possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime
Daryl Brown 3:18-cr-44
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Amos Lamar Burch 3:18-cr-40
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Rodney Funderburk 3:18-cr-47
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Elontrae Ali Glenn 3:18-cr-42
Distribution and possession with intent to distribute heroin and felon in possession of a firearm
Rodriguez Harris 3:18-cr-38
Felon in possession of a firearm
Carlos Massey 3:18-cr-37
Felon in possession of a firearm
Rakeem McCullough 3:18-cr-50
Distribution and possession with intent to distribute cocaine and crack cocaine, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime
David DeAngelo McNeil 3:18-cr-45
Distribution and possession with intent to distribute crack cocaine
Ishmerai Hem Ef Muhhammad El 3:18-cr-41
Distribution and possession with intent to distribute cocaine and crack cocaine and felon in possession of a firearm
Name
Charge(s)
Rodriquez Neal 3:18-cr-43
Distribution and possession with intent to distribute cocaine and crack cocaine and felon in possession of a firearm
Rashad Taylor 3:18-cr-49
Distribution and possession with intent to distribute cocaine
Jimmy Ward 3:18-cr-46
Distribution and possession with intent to distribute 50 grams or more of methamphetamine
Montique Williams 3:18-cr-39
Felon in possession of a firearm
Former Wisconsin Produce Vendor Executive Pleads Guilty to Tax EvasionRead the Press Release
The former corporate officer of a produce vendor in Johnson Creek, Wisconsin, pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
According to the indictment and information provided to the court, Thomas G. Paine, 64, was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company. Paine was responsible for the finance and tax aspects of the business, but failed to file corporate tax returns for tax years 2010 through 2012 and concealed the business’ income from the Internal Revenue Service (IRS) by structuring cash bank deposits in amounts less than $10,000 to evade bank reporting requirements. Paine admitted to causing a tax loss between $250,000 and $550,000.
U.S. District Court Judge James D. Peterson scheduled sentencing for May 8. Paine faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney 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.
Former Owner of Investment Firms Sentenced for $10 Million FraudRead the Press Release
RICHMOND, Va. – A Blackstone man was sentenced today to 12 years in prison for his role in an investment fraud scheme that caused more than $10 million in losses to over 50 investors.
According to court documents, Sherman Carl Vaughn, 46, and co-conspirator Merrill Robertson, Jr., 38, of Chesterfield, started Cavalier Union Investments, LLC in 2009. From 2009-2016, Vaughn and Robertson solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and the National Football League, while Vaughn focused on developing investment opportunities.
According to the statement of facts, Vaughn and Robertson led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.
As a result of this conspiracy, Vaughn and Robertson fraudulently obtained more than $10 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
On Aug. 24, 2017, a federal jury convicted Robertson of fifteen offenses, including conspiracy to commit mail and wire fraud, conspiracy to commit bank fraud, five counts of mail fraud, two counts of wire fraud, four counts of bank fraud, and two counts of money laundering. Robertson was sentenced on Dec. 6, 2017, to 40 years in prison.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the sentencing by U.S. District Judge John A. Gibney, Jr. The case was prosecuted by Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony.
The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-33.
Former Mail Carrier Admits Accepting Bribes for Delivering Parcels Containing DrugsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) mail carrier today admitted that he accepted cash bribes in return for intercepting and delivering parcels containing illegal narcotics, U.S. Attorney Craig Carpenito announced.
Leonard Gresham, 50, of Rahway, New Jersey, pleaded guilty before U.S. District Judge Esther D. Salas in Newark federal court to an information charging him with one count of accepting bribes. He was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
Gresham was a mail carrier at the USPS Springfield Station in Newark. From October 2014 through September 2017, Gresham accepted cash bribes from two individuals who were receiving parcels containing illegal narcotics through the mail.
While on duty, Gresham intercepted these parcels and personally delivered them to various locations in Newark other than to the recipient address noted on the parcels. Gresham received payments of between $50 and $200 from the individuals for each delivery.
Gresham received a total of $14,900 in cash payments in exchange for delivering parcels containing illegal narcotics.
The bribery charge is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 30, 2018.
U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Eileen Neff, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Former It Employee of Transcontinental Railroad Sentenced to Prison for Damaging Ex-Employer’s Computer NetworkRead the Press Release
WASHINGTON – A former IT employee for the Canadian Pacific Railway was sentenced today to one year and one day in prison for causing intentional damage to critical portions of Canadian Pacific’s computer network.
Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
CHRISTOPHER VICTOR GRUPE, 46, was sentenced by U.S. District Judge Patrick J. Schiltz of the District of Minnesota. GRUPE was convicted of one count of intentional damage to a protected computer on Oct. 6, 2017, following a five-day jury trial in Minneapolis, Minnesota.
“The defendant in this case, a former IT professional, has been convicted of a felony, is going to prison, has lost his IT job and will likely never work in the IT industry again, and had to resign from the Army after losing his security clearance,” said Special Agent in Charge Thornton. “These are real consequences. The FBI, along with our law enforcement partners, will continue to aggressively pursue cases such as this to ensure that those with technical skills and trusted access to computer systems like Christopher Grupe who then betray that trust and commit computer crimes will be caught and punished.”
“Christopher Grupe chose to seek revenge on his employer by abusing company assets and insider knowledge that was entrusted to him to make the railroad safer, not more dangerous,” said Assistant U.S. Attorney Tim Rank. “Today’s sentence is an appropriate consequence for the defendant’s deliberate and malicious actions.”
As proven through evidence presented at the trial, from September 2013 until December 2015, GRUPE was employed as an IT professional by Canadian Pacific Railway (CPR), a transcontinental railroad company headquartered in Alberta, Canada, with U.S. headquarters in Minneapolis. On Dec. 15, 2015, following a 12-day suspension, GRUPE was notified by CPR management that he was going to be fired due to insubordination. However, at his request, GRUPE was instead allowed to resign, effective that same day. In his resignation letter, GRUPE indicated that he would return all company property, including his laptop, remote access device, and access badges, to the CPR office.
The evidence presented at the trial proved that on Dec. 17, 2015, before returning his laptop and remote access device, GRUPE used both to gain access to the CPR computer network’s core “switches” – high-powered computers through which critical data in the CPR network flowed. Once inside, GRUPE strategically deleted files, removed administrative-level accounts, and changed passwords on the remaining administrative-level accounts, thereby locking CPR out of these network switches. GRUPE then attempted to conceal his activity by wiping the laptop’s hard drive before returning it to CPR.
The evidence presented further showed that on Jan. 6, 2016, while trying to address a networking problem, the CPR network staff discovered that they were unable to access the main network switches. After CPR IT staff was able to regain access to the switches through a risky, but successful, rebooting procedure, they discovered evidence in logging data stored in the memory of the switches connecting the damage to GRUPE. CPR hired an outside computer security company to identify the source and scope of the intrusion as well as conduct an incident analysis, which also connected the damage to GRUPE.
This case is the result of an investigation conducted by the FBI, with assistance from the Digital Forensic Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section.
Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Defendant Information:
CHRISTOPHER VICTOR GRUPE, 46
Minneapolis, Minn.
Convicted:
- Intentional damage to a protected computer, 1 count
Sentenced:
- One year and one day in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former IT Employee of Transcontinental Railroad Sentenced to Prison for Damaging Ex-Employer’s Computer NetworkRead the Press Release
A former IT employee for the Canadian Pacific Railway was sentenced today to one year and one day in prison for causing intentional damage to critical portions of Canadian Pacific’s computer network.
Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
Christopher Victor Grupe, 46, was sentenced by U.S. District Judge Patrick J. Schiltz of the District of Minnesota. Grupe was convicted of one count of intentional damage to a protected computer on Oct. 6, 2017, following a five-day jury trial in Minneapolis, Minnesota.
As proven through evidence presented at the trial, from September 2013 until December 2015, Grupe was employed as an IT professional by Canadian Pacific Railway (CPR), a transcontinental railroad company headquartered in Alberta, Canada, with U.S. headquarters in Minneapolis. On Dec. 15, 2015, following a 12-day suspension, Grupe was notified by CPR management that he was going to be fired due to insubordination. However, at his request, Grupe was instead allowed to resign, effective that same day. In his resignation letter, Grupe indicated that he would return all company property, including his laptop, remote access device, and access badges, to the CPR office.
The evidence presented at the trial proved that on Dec. 17, 2015, before returning his laptop and remote access device, Grupe used both to gain access to the CPR computer network’s core “switches” – high-powered computers through which critical data in the CPR network flowed. Once inside, Grupe strategically deleted files, removed administrative-level accounts, and changed passwords on the remaining administrative-level accounts, thereby locking CPR out of these network switches. Grupe then attempted to conceal his activity by wiping the laptop’s hard drive before returning it to CPR.
The evidence presented further showed that on Jan. 6, 2016, while trying to address a networking problem, the CPR network staff discovered that they were unable to access the main network switches. After CPR IT staff was able to regain access to the switches through a risky, but successful, rebooting procedure, they discovered evidence in logging data stored in the memory of the switches connecting the damage to Grupe. CPR hired an outside computer security company to identify the source and scope of the intrusion as well as conduct an incident analysis, which also connected the damage to Grupe.
This case is the result of an investigation conducted by the FBI, with assistance from the Digital Forensic Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section.
Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota are prosecuting the case.
Former Director of Arts Center Charged with Wire Fraud and Filing False Tax ReturnsRead the Press Release
PANAMA CITY, FLORIDA – Vicki Dyer Middlemas, 48, of Panama City, was arraigned today in the U.S. District Court in Panama City after a federal grand jury returned an indictment charging her with five counts of wire fraud and four counts of filing false tax returns. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that between May 2010 and May 2015, Middlemas used her position as Executive Director of the Visual Arts Center of Northwest Florida (“the VAC”) in Panama City to fraudulently obtain money by writing herself checks on the VAC bank account and by making unauthorized charges for personal expenses on the VAC debit card. The indictment further alleges that Middlemas falsified invoices and VAC records to conceal her thefts. In addition, Middlemas is charged with filing false federal income tax returns that underreported her income and tax owed.
The maximum penalty for wire fraud is 20 years in prison. The maximum penalty for filing false tax returns is 3 years in prison. The trial is scheduled for April 16, 2018, at 8:15 a.m. at the United States Courthouse in Panama City.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation and the Panama City Police Department. Assistant United States Attorney Aine Ahmed is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Five Defendants Plead Guilty to Methamphetamine Trafficking ChargesRead the Press Release
Five defendants pled guilty in unrelated cases to methamphetamine trafficking charges in the Southern District of Florida.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
On January 18, 2018 and January 30, 2018, respectively, Saul Bustos Bustos, 38, and Irepan Juanchi Salgado, 24, each of Mexico, pled guilty to conspiring to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. § 846. According to court records, the defendants met on November 28, 2017, with a DEA undercover officer in Miami to sell him five kilograms of crystal methamphetamine, at $14,500 per kilo. During the transaction, the defendants, who possessed a total of 3,717 grams of 98% pure crystal methamphetamine, worked together to transfer the drugs from their vehicle to the undercover officer. Bustos Bustos also pled guilty to illegal reentry after removal, after reentering the United States subsequent to removal on April 13, 2017, July 6, 2017, and July 19, 2017.
On January 31, 2018, Reitilly Fuentes Ramos, 32, of Miami-Dade County, pled guilty to possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 841(a)(1). According to court records, on October 25, Fuentes Ramos distributed 56.2 grams of 100% pure methamphetamine to a DEA confidential source. Following that transaction, the confidential source purchased an additional four ounces of crystal methamphetamine from Fuentes Ramos. During execution of a search warrant at the residence of Fuentes Ramos, agents seized four more ounces of crystal methamphetamine as well as distribution quantities of cocaine.
On January 30, 2018 and February 9, 2018, respectively, Jeremy Robert Macroy, 30, and Andrew Ronald Lord, 38, each of Broward County, pled guilty to conspiring to possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. § 846. According to court records, Macroy and Lord facilitated the mailing of a UPS parcel from California to Hollywood, Florida, containing crystal methamphetamine. On November 15, 2017, Lord picked up the package, a portion of which he intended to distribute to Macroy. A search of the parcel revealed that it contained 430.3 grams of 98% pure methamphetamine.
At sentencing, Bustos Bustos and Juanchi Salgado face potential prison sentences of up to life imprisonment, to be followed by supervised release terms of at least five years on their respective narcotics convictions. Bustos Bustos also faces a maximum term of three years imprisonment, to be followed by up to three years supervised release, for his immigration violation. Bustos Bustos is scheduled to be sentenced before United States District Judge K. Michael Moore on March 29, 2018, at 2:00 p.m. A sentencing date for Juanchi Salgado has not been scheduled.
Fuentes Ramos faces a potential prison sentence of up to life imprisonment, to be followed by supervised release of at least five years. Fuentes Ramos is scheduled to be sentenced before United States District Judge K. Michael Moore on April 11, 2018, at 2:00 p.m.
Macroy and Lord face potential prison sentences of up to 40 years, to be followed by supervised release terms of at least four years. Macroy and Lord are scheduled to be sentenced before United States District Judge Beth Bloom on April 30, 2018, at 10:30 a.m., and April 24, 2018, at 2:30 p.m., respectively.
Mr. Greenberg commends the investigative efforts of DEA and ICE-HSI. These cases are being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused the nation’s illicit drug trafficking threats.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Defendants Charged in Connection with Crack Cocaine Dealing in Seattle’s Pioneer Square NeighborhoodRead the Press Release
Three Seattle men are in custody, and two are being sought by law enforcement in connection with a 6-month investigation by the Seattle Police Department and DEA of significant drug trafficking in Seattle’s Pioneer Square neighborhood, announced U.S. Attorney Annette L. Hayes. PATRICK TABLES, 53 and MICHAEL TURNER, 49, were taken into custody this morning. MARVIN TRAYLOR, 49, and JONATHON RUSHING, 39, both of Seattle are being sought by law enforcement. CLYDE MCKNIGHT, 49, of Seattle was taken into custody in January 2018, when law enforcement seized significant amounts of crack cocaine, cocaine, fentanyl, and heroin from his vehicle. The defendants taken into custody today will make their initial appearance in U.S. District Court in Seattle at 2:00 PM.
According to the indictments and criminal complaint filed in the case, CLYDE MCKNIGHT, the apparent leader of the drug distribution ring was arrested outside a Portland, Oregon motel room in January 2018, following the seizure of 3 kilos of cocaine, 2 kilos of heroin, 1.5 lbs. of crack cocaine, and 187 grams of fentanyl from his vehicle in Seattle. At the time of his arrest, MCKNIGHT had $39,000 and a handgun in his vehicle. Other defendants in the case are charged with drug distribution and gun crimes. RUSHING, TABLES and TRAYLOR are charged with conspiracy to distribute controlled substances. RUSHING is charged with possession of crack cocaine and methamphetamine with intent to distribute, being a felon in possession of a firearm, and carrying a firearm during and in relation to a drug trafficking crime. TABLES is charged with multiple counts of possession of crack cocaine with intent to distribute and TRAYLOR is charged with possession of crack cocaine with intent to distribute. TURNER is charged by complaint with possession with intent to distribute crack cocaine and possession of a weapon in furtherance of drug trafficking.
RUSHING has prior convictions in King County Superior Court for second degree murder (1997) and a federal conviction for being a felon in possession of a firearm (2012).
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case is being investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA).
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Kate Vaughan.
Federal Jury Convicts Jacksonville Man of Narcotic Distribution and Firearm ChargesRead the Press Release
ELIZABETH CITY – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that, ERIC HALL, a Jacksonville resident, was convicted in a two-day jury trial before United States District Judge Terrance W. Boyle. The jury found HALL guilty of possession with the intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime and two counts of possession of a firearm by a convicted felon.
The evidence at trial showed that on February 19, 2016, a Jacksonville Police Officer smelled marijuana coming from a room in a hotel. He obtained a search warrant and HALL, a convicted felon, was found in the room in Jacksonville in possession of 6 ounces of cocaine, a .45 caliber handgun and $3,800 dollars in cash. On May 4, 2016, a search warrant was executed at HALL’s residence outside Jacksonville, resulting in the seizure of a handgun and two assault rifles.
HALL is scheduled to be sentenced in about 90 days.
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.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Jacksonville Police Department and the Onslow County Sheriff’s Office. Assistant United States Attorney John Bennett represented the government in this case.
Federal Inmate Sentenced to More Than a Year in Prison for EscapeRead the Press Release
A man who escaped from custody at the Gerald Hinzman Center in June 2017 was sentenced on February 12, 2018, to more than a year in federal prison.
Gabriel Mangum, age 41, from Iowa City, Iowa, received the prison term after an August 24, 2017, guilty plea to one count of escape from custody.
At the plea hearing, Mangum admitted that, on June 20, 2017, he was in the custody of the federal government and imprisoned at the Gerald Hinzman Center in Cedar Rapids, Iowa. He further admitted that on that day he left the Gerald Hinzman Center to go to work, but did not return to the Center on that day. Mangum was later arrested by the United States’ Marshal Service on July 12, 2017.
Mangum was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Mangumwas sentenced to 18 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Mangum is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lyndie Freeman and investigated by the United States’ Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-56.
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Federal Inmate Sentenced to 14 Months for Escaping from Half-Way HouseRead the Press Release
CONCORD, N.H. – Eric Judkins, 34, formerly of Nashua, has been sentenced to serve 14 months in prison for escaping from the Hampshire House Residential Reentry Center in Manchester, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, Judkins received a 210-month federal prison sentence in 2000 for a bank robbery he committed in New Hampshire. While serving the sentence in a federal prison in Pennsylvania, Judkins pleaded guilty to assaulting an inmate and received an additional 27-month prison sentence.
On June 13, 2017, Judkins was transferred from a federal prison in Kentucky to the Hampshire House, with an expected release date of April 8, 2018. With permission from the Hampshire House staff, Judkins left the facility on August 28, 2017, and was required to return before 4:30 p.m. He failed to return as required. On August 31, 2017, Judkins was arrested by Deputy United States Marshals and local law enforcement officers in Howard, Pennsylvania.
Judkins pled guilty to escaping from the Hampshire House on November 3, 2017.
The case was investigated by the United States Marshals Service and was prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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Federal Agents Make Arrests Related to Kidnapping for Ransom SchemeRead the Press Release
LAREDO, Texas – Two Laredo men have been arrested for conspiracy to violate interstate communications by demanding money prior to releasing two hostages, announced U.S. Attorney Ryan K. Patrick.
John Daniel Pavon, 21, and Juan Manuel Ancira, 21, made their initial appearance yesterday before U.S. Magistrate Judge Guillermo R. Garcia, at which time the court ordered them into custody pending a preliminary hearing and a detention hearing set for Feb. 16, 2018, at 10:00 a.m.
On Feb. 8, 2018, a Wichita, Kansas, man reported to authorities that he received a phone call from an unknown male in Laredo claiming to be holding his son against his will, according to the complaint. The unknown male allegedly instructed him to send $2,000 through Money-gram or he would not release his son.
The next day, the FBI spoke to a group of people outside a residence in the 4000 block of Guadalajara Street in Laredo. Agents learned that two men had allegedly ran out of the residence and jumped the fence. They were the Wichita man’s son and another kidnapping victim. The second victim reported that his captors asked his family in Baton Rouge, Louisiana, for $4,000 before they would release him, according to the allegations.
The criminal complaint alleges both victims identified Pavon and Ancira as individuals involved in their kidnapping and who held them against their will.
If convicted of use of interstate communications containing demand for ransom, the defendants face up to 20 years in federal prison.
The FBI conducted the investigation with the assistance of Border Patrol, Drug Enforcement Administration, Texas Rangers, Texas Department of Public Safety, Laredo Police Department and Laredo Airport Police. Assistant U.S. Attorney Julian Castaneda is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is considered innocent unless and until convicted through due process of law.
Elkhart Man Sentenced to 84 Months in PrisonRead the Press Release
SOUTH BEND - Thomas Hamet, age 38, of Elkhart, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possession of methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Thomas L. Kirsch II.
Hamet was sentenced to 84 months imprisonment followed by two years of supervised release.
According to documents in this case, on February 3, 2017, Mr. Hamet possessed methamphetamine in his car and he intended to sell the methamphetamine. He also possessed a Beretta handgun to protect and further his drug business.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms with the assistance of the St. Joseph County Police Department. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Detroit Doctor Sentenced to Six Years in Prison for Role in $10.4 Million Health Care Fraud SchemeRead the Press Release
A Detroit, Michigan-area doctor was sentenced to 72 months in prison today for his role in a $10.4 million conspiracy to defraud the Medicare program.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Acting Special Agent in Charge Timothy Waters of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Mahmoud Rahim, M.D., 65, of West Bloomfield, Michigan, was sentenced by U.S. District Judge Nancy G. Edmonds of the Eastern District of Micihgan. Judge Edmonds also ordered the defendant to forfeit $1,679,505. The restitution amount will be determined at a later hearing.
After a one-week trial in September 2017, Rahim was convicted of one count of conspiracy to commit health care fraud and wire fraud, one count of wire fraud, one count of conspiracy to receive health care kickbacks and two counts of receiving healthcare kickbacks. According to the evidence presented at trial, Rahim accepted kickbacks from his co-conspirators in exchange for referring Medicare patients for electromyogram tests (EMGs), some of which were unnecessary, and physical therapy performed by unlicensed individuals. Rahim disguised these payments as “rent” and set up a shell company to hide this illegal scheme.
Rahim was charged along with office manager Janet Nahkle, 58, of Dearborn, Michigan, in an indictment returned in June 2016. Nakhle pleaded guilty to conspiracy to receive health care kickbacks in December 2016 and was sentenced to serve 18 months in prison.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Jessica Collins and Amy Markopoulos prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Dearborn county man sentenced in child pornography caseRead the Press Release
On parole for previous child pornography conviction in Indiana
PRESS RELEASE
Indianapolis - United States Attorney Josh Minkler announced today a Dearborn County, Indiana, man who was on parole of a previous conviction on child pornography charges, was sentenced for possession of child pornography. Wayne D. Brown 48, Aurora, was sentenced to 135 months (over 11 years) imprisonment by U. S. District Judge Tanya Walton Pratt late last week.
“This Office has sent a consistent message when it comes to child pornography and the re-victimization of our children,” said Minkler. “Child Pornography is child abuse, and individuals who continue to traffic in child abuse imagery will go to prison.”
According to court records, Brown was on Indiana parole for convictions of Possession of Child Pornography and Child Exploitation in Dearborn County from 2007. Following his prison sentence, Brown signed a condition of parole release agreement, allowing for reasonable visitation to his residence by the Indiana Department of Correction, no out-of-state travel, no on-line computer access, no alcohol use and no possession of obscene material.
Less than 3 months after his release from prison, on December 15, 2016, Brown met his parole officer and was confronted about being out of state without authorization. Later that evening, Indiana parole agents then conducted an unannounced home visit at Brown’s residence and removed an internet-enabled cell phone and a laptop computer. An examination of the devices revealed large quantities of child pornography, including images of infants and toddlers and other pre-pubescent children being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the Dearborn County Prosecutor’s Office, the Indiana State Police Cyber Crimes Unit and Indiana State Parole.
“The FBI investigates all child pornography cases with a sense of urgency due to the extreme vulnerability of the victims involved – our children,” said Robert Alex Middleton, Acting Special Agent in Charge of the FBI’s Indianapolis Division. “This case demonstrates our commitment, and that of our law enforcement partners, to protect those who can’t protect themselves and ensure those who would harm them are brought to justice.”
“Mr. Brown’s repeated criminal acts demonstrate that he cannot be free in society,” said Dearborn County Prosecutor Lynn Deddens. “Thank you to the U.S. Attorney’s Office for prosecuting the case and leveraging additional penalties available under federal law that do not exist under our state criminal code. Brown’s deviant acts, that were investigated by county, state and federal law enforcement officials working hand in hand led to his arrest. Because of this teamwork, we have one more perpetrator incarcerated and one less person committing child abuse.”
“This case is an example of the diligent efforts of Indiana State Parole Agents. Here, we had an officer who took his responsibility to protect the community seriously, and once he detected violations by the defendant, he acted immediately. It was his quick search of the defendant’s residence that uncovered the defendant’s repeated crimes against children,” said Minkler.
According to Assistant United States Attorney Kristina M. Korobov who prosecuted this case for the government, Brown must serve 10 additional years of supervised release after his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.2.
Collin County Couple Sentenced for Lying to Federal AgentsRead the Press Release
PLANO, Texas – A Plano, Texas couple has been sentenced to federal prison for making false statements to federal agents in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson.
Mohommad Ali, 57, and his wife, Sumaiya Ali, 49, pleaded guilty on Dec. 13, 2017 to making false statements to the Federal Bureau of Investigation regarding international terrorism. Mohommad Ali was sentenced to 12 months in federal prison today by U.S. District Judge Marcia Crone, while Sumaiya Ali was sentenced to 30 months in prison.
According to information presented in court, in 2014 and 2015 the Alis were in communication with their sons whom the Alis knew were in Syria fighting for ISIS. In May 2015, the Alis were questioned by agents with the FBI about their sons' whereabouts. The Alis denied any knowledge that their sons were in Syria or that their sons were associated with ISIS.
"There is an object lesson here," said U.S. Attorney Alan R. Jackson. "We will remain vigilant against those who support terrorism and those who attempt to shield supporters of terrorism from scrutiny."
This case was investigated by the Federal Bureau of Investigation and was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterterrorism Section of the U.S. Department of Justice in Washington, D.C.
Chelsea Bomber Ahmad Khan Rahimi Sentenced to Life in Prison for Executing September 2016 Bombing and Attempted Bombing in New York CityRead the Press Release
Ahmad Khan Rahimi, aka, Ahmad Rahami, 30, of Elizabeth, New Jersey, was sentenced to life in prison for his execution and attempted execution of bombings in New York City on Sept. 17, 2016.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement.
“Today our legal system delivered on its promise to provide swift and resolute justice to those who would target innocent victims by perpetrating terrorist attacks against our homeland,” said Acting Assistant Attorney General O’Callaghan. “I commend all of the agents, analysts and prosecutors whose commitment and dedication made this result possible.”
“Inspired by ISIS and al Qaeda, Ahmad Khan Rahimi planted and detonated bombs on the streets of Chelsea, and in New Jersey, intending to kill and maim as many innocent people as possible,” said U.S. Attorney Berman. “Less than a year-and-a-half after his attacks, Rahimi has now been tried, convicted, and sentenced to life in prison. Rahimi’s conviction and sentencing are victories for New York City and our nation in the fight against terror.”
“Today’s sentencing assures us that Ahmad Khan Rahimi will spend the rest of his life behind bars. Once again, the lesson learned is clear: if you plot to cause catastrophic damage against this city and our citizens, you will be held accountable,” said Assistant Director Sweeney. “I would like to thank the FBI Joint Terrorism Task Forces here in New York and New Jersey, along with many other law enforcement partners, who moved with speed in this investigation and who work every day to protect Americans from acts of terror. I would also like to express my gratitude to the public who remained engaged throughout this investigation. That partnership and the public's continued cooperation are crucial to ensuring we stay ahead of threats, and enhance law enforcement's response following attacks like this.”
“Rahimi attempted to wreak havoc in the Chelsea neighborhood of New York City. He failed,” said Commissioner O’Neill. “Committing terrorism may seem, from the darkest places of the internet and espoused in propaganda, as a higher calling. It is not. Today’s sentencing — of life in prison — should be the strongest deterrent to future acts of terror. My thanks to the police officers from the 13th precinct, NYPD detectives, investigators on the Joint Terrorism Task Force, and prosecutors here in Manhattan for making today’s sentencing possible.”
Rahimi was convicted on Oct. 16, 2017, following a two-week jury trial before U.S. District Judge Richard M. Berman, who also imposed today’s sentence.
According to the Complaint, the Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:
On Sept. 17, 2016, Rahimi transported two improvised explosive devices from New Jersey to New York, New York. Rahimi placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York, New York (the 23rd Street Bomb) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York, New York (the 27th Street Bomb).
At approximately 8:30 p.m., the 23rd Street Bomb – containing a high explosive main charge and thousands of ball bearings – detonated, causing injuries to over 30 people and hundreds of thousands of dollars in property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs, and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone; and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left near a dumpster. The explosion propelled a more-than-100-pound dumpster – which was introduced as an exhibit at trial – more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, a civilian identified the 27th Street Bomb and promptly called 911, which recorded call was introduced in evidence and played at trial. The 27th Street Bomb, which was rendered safe prior to detonation, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings, and steel nuts.
Earlier that day, at approximately 9:35 a.m. on Sept. 17, 2016, another improvised explosive device, which had been planted by Rahimi in the early morning hours, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed. Had the race started on time, the bomb would have detonated as runners were passing by where Rahimi had planted it.
On Sept. 18, 2016, at approximately 8:40 p.m., six additional improvised explosive devices that Rahimi also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth, New Jersey. One of these devices detonated as law enforcement used a robot to defuse it.
On September 19, 2016, at approximately 9:30 a.m., Rahimi was arrested by police in Linden, New Jersey. Rahimi fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued, and placed under arrest. In the course of Rahimi’s arrest, a handwritten journal was recovered from Rahimi’s person. Written in the journal were, among other things, mentions of explosive devices (including “The sounds of bombs will be heard in the streets” and “Bombs set off in the streets they plan to run a mile”), and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, Mohammed al-Adnani, a former senior leader of the Islamic State in Iraq and al Sham, and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
* * *
In addition to the prison term, Rahimi was sentenced to five years of supervised release and ordered to pay $562,803 in restitution.
In addition to the charges for which he was sentenced in Manhattan federal court, Rahimi also has been charged in a Complaint in the District of New Jersey with offenses in connection with his alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. O’Callaghan and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.
Assistant U.S. Attorneys Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Chelsea Bomber Ahmad Khan Rahimi Sentenced to Life in Prison for Executing September 2016 Bombing and Attempted Bombing in New York CityRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Edward C. O’Callaghan, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (“FBI”), and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced today that AHMAD KHAN RAHIMI, a/k/a “Ahmad Rahami,” was sentenced to life in prison for his execution and attempted execution of bombings in New York City on September 17, 2016. RAHIMI was convicted on October 16, 2017, following a two-week jury trial before U.S. District Judge Richard M. Berman, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Inspired by ISIS and al Qaeda, Ahmad Khan Rahimi planted and detonated bombs on the streets of Chelsea, and in New Jersey, intending to kill and maim as many innocent people as possible. Less than a year-and-a-half after his attacks, Rahimi has now been tried, convicted, and sentenced to life in prison. Rahimi’s conviction and sentencing are victories for New York City and our nation in the fight against terror.”
Acting Assistant Attorney General Edward C. O’Callaghan said: “Today our legal system delivered on its promise to provide swift and resolute justice to those who would target innocent victims by perpetrating terrorist attacks against our homeland. I commend all of the agents, analysts, and prosecutors whose commitment and dedication made this result possible.”
FBI Assistant Director William F. Sweeney Jr. said: “Today’s sentencing assures us that Ahmad Khan Rahimi will spend the rest of his life behind bars. Once again, the lesson learned is clear: if you plot to cause catastrophic damage against this city and our citizens, you will be held accountable. I would like to thank the FBI Joint Terrorism Task Forces here in New York and New Jersey, along with many other law enforcement partners, who moved with speed in this investigation and who work every day to protect Americans from acts of terror. I would also like to express my gratitude to the public who remained engaged throughout this investigation. That partnership and the public's continued cooperation are crucial to ensuring we stay ahead of threats, and enhance law enforcement's response following attacks like this.”
Police Commissioner James P. O’Neill said: “Ahmed Kahn Rahimi placed two ticking bombs in a crowded Manhattan neighborhood on a warm Saturday night. He then walked away. It was the most cowardly of all crimes. His clear intention was to take as many lives as possible. Rahimi had other bombs and likely other plans. I want to thank the NYPD officers who responded that night, the agents and NYPD detectives of the JTTF, the NYPD Intelligence Bureau, Detective Bureau, Bomb Squad, ATF Agents, and the officers of the Linden New Jersey Police Department who all had important contributions in the investigation and arrest. I also want to thank the prosecutors of the US Attorney for the Southern District of New York, the most experienced terrorism prosecutors in the nation for bringing New Yorkers justice.”
According to the Complaint, the Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:
On September 17, 2016, RAHIMI transported two improvised explosive devices from New Jersey to New York, New York. RAHIMI placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York, New York (the “23rd Street Bomb”) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York, New York (the “27th Street Bomb”).
At approximately 8:30 p.m., the 23rd Street Bomb – containing a high explosive main charge and thousands of ball bearings – detonated, causing injuries to over 30 people and hundreds of thousands of dollars in property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs, and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone; and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left near a dumpster. The explosion propelled a more-than-100-pound dumpster – which was introduced as an exhibit at trial – more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, a civilian identified the 27th Street Bomb and promptly called 911, which recorded call was introduced in evidence and played at trial. The 27th Street Bomb, which was rendered safe prior to detonation, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings, and steel nuts.
Earlier that day, at approximately 9:35 a.m. on September 17, 2016, another improvised explosive device, which had been planted by RAHIMI in the early morning hours, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed. Had the race started on time, the bomb would have detonated as runners were passing by where RAHIMI had planted it.
On September 18, 2016, at approximately 8:40 p.m., six additional improvised explosive devices that RAHIMI also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth, New Jersey. One of these devices detonated as law enforcement used a robot to defuse it.
On September 19, 2016, at approximately 9:30 a.m., RAHIMI was arrested by police in Linden, New Jersey. RAHIMI fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued, and placed under arrest. In the course of RAHIMI’s arrest, a handwritten journal was recovered from RAHIMI’s person. Written in the journal were, among other things, mentions of explosive devices (including “The sounds of bombs will be heard in the streets” and “Bombs set off in the streets they plan to run a mile”), and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, Mohammed al-Adnani, a former senior leader of the Islamic State in Iraq and al Sham, and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
* * *
In addition to the prison term, RAHIMI, 30, was sentenced to five years of supervised release and ordered to pay $562,803 in restitution.
In addition to the charges for which he was sentenced in Manhattan federal court, RAHIMI also has been charged in a Complaint in the District of New Jersey with offenses in connection with his alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. Berman praised the outstanding efforts of the Federal Bureau of Investigation’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department, and the 13th Precinct of the NYPD. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
California Man Pleads Guilty to Federal Sex Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and Bernalillo County Sheriff Manuel Gonzales III announced today that Cordny Henry, 31, of Oakland, Calif., pleaded guilty yesterday evening to federal sex trafficking charges. Henry entered the guilty plea in federal court in Albuquerque, N.M., shortly after a jury had been impaneled and as the trial on a two-count second superseding indictment charging him with federal child sex trafficking offenses was about to commence.
During yesterday evening’s change of plea hearing, Henry pled guilty to the two-count superseding indictment under a plea agreement with the U.S. Attorney’s Office. The first count of the indictment charged Henry with recruiting and enticing a 13-year-old victim to engage in commercial sex acts by use of force, fraud and coercion in Bernalillo County, N.M., from Sept. 2, 2015 through Sept. 12, 2015. The second count charged Henry with transporting the 13-year-old victim in interstate commerce for the purpose of having the victim engage in prostitution.
The plea agreement recommends that Henry be sentence to a term of imprisonment within the range of 15 to 25 years followed by ten to 20 years of supervised release. Henry also will be required to register as a sex offender after his release from prison. The plea agreement also requires the imposition of a money judgment against Henry in the amount of $10,000 and that Henry pay restitution to the victim of his criminal conduct. Henry has been in federal custody since his arrest on April 8, 2016, and will remain detained pending his sentencing hearing, which has yet to be scheduled.
The U.S. Marshals Service arrested Henry in Nevada on April 8, 2016, on a criminal complaint filed in New Mexico that charged him with federal child sex trafficking offenses. Henry subsequently was transferred to New Mexico to face the charges against him. According to the criminal complaint, the 13-year-old victim ran away from her home in Albuquerque on Sept. 2, 2015, and was found in California on Sept. 12, 2015, after having been sex trafficked in both Albuquerque and Los Angeles. The investigation, which was initiated by the Bernalillo County Sheriff’s Office (BCSO) and later included the FBI, revealed that Henry was the “pimp” who sex trafficked the victim and transported her to California. It also revealed that Juanita Williams, 29, of Pittsburgh, Calif., aided and abetted Henry in committing these offenses.
The FBI and BCSO previously had arrested Williams on March 15, 2016, on a criminal complaint on charges similar to those filed against Henry. On March 23, 2016, a federal grand jury filed an indictment charging Williams with a child sex trafficking offense. On April 26, 2016, the indictment charging Williams was superseded to add Henry as a defendant. The indictment was superseded a second time on Jan. 11, 2018, to add the second count of transporting the victim in interstate commerce for the purpose of engaging in criminal sexual activity against Henry.
Williams entered a guilty plea on April 28, 2017, to a felony information charging her with being an accessory after the fact to sex trafficking. In entering the guilty plea, Williams admitted that on March 16, 2016, she aided and abetted Henry in avoiding apprehension and prosecution for sex trafficking of a minor by providing false information during a law enforcement interview. At sentencing, which yet to be scheduled, Williams faces up to 15 years of imprisonment followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office Ghost Unit, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Sarah J. Mease and Nicholas Jon Ganjei are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Henry ComplaintBurlington Man Sentenced to 242 Months in Prison for Distributing MethamphetamineRead the Press Release
DAVENPORT, Iowa-- On February 12, 2018, Gregory Louis Baxter, Jr., age 34, formerly of Burlington, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 242 months in prison following his guilty plea to possession with the intent to distribute methamphetamine, announced United States Attorney Marc Krickbaum. Baxter was ordered to serve ten years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund. Baxter faced an enhanced statutory mandatory minimum sentence based on a 2014 state conviction for conspiracy to deliver marijuana.
According to the plea agreement, on April 4, 2017, Baxter possessed 312 grams of actual “ice” methamphetamine with the intent to distribute. Baxter admitted to distributing ounces of methamphetamine to another on that date. Baxter also admitted he intentionally attempted to flee from law enforcement agents in a vehicle and attempted to destroy evidence.
This investigation was conducted by the Iowa Department of Public Safety, Division of Narcotics Enforcement; Southeast Iowa Narcotics Task Force; Johnson County Drug Task Force; Burlington Police Department; West Burlington Police Department; Iowa State Patrol; and Des Moines County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Buffalo Woman Pleads Guilty to Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Elisa Rivera Ortiz, 36, of Buffalo, NY, pleaded guilty, before U.S. District Judge Richard J. Arcara, to attempted possession, with intent to distribute, cocaine. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on April 8, 2017, United States Postal Inspectors intercepted a package that was addressed to the defendant. Inside, the Postal Inspectors found cocaine. On June 30, 2017, inspectors again intercepted a package addressed to the defendant. Once again, they found cocaine.
On July 6, 2017, a controlled delivery of a package containing sham cocaine and a monitoring device was made to the defendant’s Warren Avenue residence. Once the monitor alerted investigators that the package had been opened, they entered the residence and executed a search warrant. Ortiz attempted to run out the side door but was taken into custody.
During the search, investigators located drug packaging materials, a digital scale with suspected cocaine residue, and a small bag of marijuana. Ortiz’s son and three other minor children were in the residence at the time.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector in Charge Shelly Binkowski.
Sentencing is scheduled for May 25, 2018, at 12:30 p.m. before Judge Arcara.
Buffalo Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Feliciano-Miranda, 37, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine, and possession of a firearm in furtherance of drug trafficking, was sentenced to 147 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Scott S. Allen, Jr., and Wei Xiang, who handled the case, stated that between April 2015 and April 2016, Feliciano-Miranda assisted co-defendant Manuel Freire who coordinated the receipt, and subsequent distribution, of wholesale quantities of heroin and cocaine in Buffalo from sources in Puerto Rico and New York City.
On April 24, 2015, federal law enforcement officers intercepted a parcel mailed from Puerto Rico destined for a residence on Hudson Street in Buffalo. A half a kilogram of cocaine was hidden in speakers contained in the parcel. Two other co-conspirators, who, at Freire’s direction, went to retrieve the parcel, were arrested.
In early 2016, Feliciano-Miranda and Freire began selling heroin out of 247 Niagara Street in Buffalo. On April 1, 2016, law enforcement officials executed a search warrant at that property. During the search of Feliciano-Miranda’s Jeep Cherokee, law enforcement officials discovered a “trap,” a hydraulic powered concealment chamber that can only be opened after several sequential steps, which drug traffickers use to conceal quantities of contraband when traveling long distances.
Another search warrant was executed at a residence on Byrd Way, which led to the recovery of a loaded firearm.
Manuel Freire has been convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Acting Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Erie County Sheriff’s Office, under the direction of Timothy Howard; the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Kevin P. Lyons; and the United States Postal Inspection Service, under the direction of Boston Division Acting Inspector-in-Charge Raymond Moss.
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Buffalo Man Sentenced on Cocaine ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kelley Thomas, 43, of Buffalo, NY, who was convicted of possession with intent to distribute cocaine, was sentenced to 70 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that the defendant was arrested on August 3, 2017, with a kilogram-sized brick of cocaine. Thomas was stopped by Buffalo Police Officers while driving on Richmond Avenue. The only other occupant in his car was a minor female. The cocaine was in his glove compartment.
Buffalo Police were alerted to the defendant by the FBI following physical surveillance and interceptions of wire and electronic communications over a mobile telephone used by Thomas’s supplier.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Buffalo Police Department, under the direction of Acting Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett.
Bronx Man Charged with Possessing and Distributing Child PornographyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest today of LANCELOT PAUL LUTCHMAN for possession and distribution of child pornography. LUTCHMAN will be presented before United States Magistrate Judge Debra Freeman in Manhattan.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendant possessed and distributed hundreds of files containing child pornography. Trafficking in child pornography fuels demand for such vile images, which means that in a very real sense, every time an image is shared, a child is victimized. Working with partners like the NYPD, our mission is to protect children and prosecute child predators.”
Police Commissioner James P. O’Neill said: “The defendant in this case is a Bronx man who is charged with possessing and distributing child pornography – hundreds and hundreds of video files. I want to thank the investigators and prosecutors on this case for their work to hold those who allegedly victimize and exploit children accountable for their crimes.”
According to the allegations in the Complaint filed in Manhattan federal court:[1]
Between January 31, 2016 and January 21, 2017, LUTCHMAN used a peer-to-peer file sharing network to share approximately 845 unique video files known to contain child pornography. The child pornography included depictions of prepubescent children engaged in sexual activity with other children or adults. On January 26, 2017, law enforcement officers executed a search warrant for LUTCHMAN’s apartment and recovered his laptop computer, which contained numerous files of child pornography. As officers were entering the apartment, LUTCHMAN hid the laptop in his oven.
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LUTCHMAN, 44, of the Bronx, New York, is charged with one count of distribution and receipt of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and one count of possession of child pornography, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the New York City Police Department for its outstanding investigative work. Mr. Berman also thanked the Bronx District Attorney’s Office for its invaluable assistance with this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel Loss is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
British Luxury Knitwear Retailer and CEO Agree to Pay $908,100 to Settle False Claims Act Allegations Concerning Improper Avoidance of Customs DutiesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that Pure Collection Ltd. (“Pure”) and its CEO, Samantha Harrison (“Harrison”), both of Harrogate, England, have entered into civil settlement agreements with the U.S. under which they will pay a total of $908,100 to resolve allegations that they violated the False Claims Act (“FCA”). The FCA is the government’s primary civil remedy to redress false claims involving government funds.
The settlements resolve allegations that Pure and Harrison improperly avoided U.S. customs duties owed on merchandise shipped from the United Kingdom to U.S. customers, including many customers in Maine. See United States ex rel. Patrick v. Pure Collection Ltd., 2:16-cv-00230-GZS (D. Me.). Generally, U.S. customers owed no customs duties on single shipments of merchandise into the U.S. worth less than $200 (a limit later raised to $800). The complaint alleged that Pure and Harrison improperly evaded customs duties that would have been paid by U.S. customers by breaking up single shipments worth more than those amounts into multiple shipments of lesser value in order to avoid the applicable duties.
The FCA action was originally filed by Andrew Patrick, a citizen of the United Kingdom, under the Act’s whistleblower, or qui tam, provisions that allow private individuals who have knowledge of fraud committed against the government to file lawsuits on the government’s behalf. The FCA permits the government to recover up to three times the amount of damages incurred by the U.S., in addition to civil penalties for each violation. The government may also intervene and file its own lawsuit for damages and penalties, as it did in this case. If the government prevails in the action, the whistleblower, also known as the relator, may receive a share of the recovery. Here, the government will pay the relator, Mr. Patrick, a share of the settlement proceeds.
The government was represented by the U.S. Attorney’s Office for the District of Maine, the National Courts Section of the Department of Justice, and U.S. Customs and Border Protection. Pure and Harrison cooperated throughout the investigation.
Brazilian Woman Sentenced for Involuntary ManslaughterRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on February 13, 2018, Chief United States District Judge Daniel L. Hovland sentenced Bruna De Paula Cardoso, 24, Brazil, on a charge of involuntary manslaughter. Judge Hovland sentenced Cardoso to serve three years and one month in prison, followed by three years of supervised release and to pay restitution.
On September 24, 2016, while in Parshall, North Dakota, Cardoso drove a vehicle while intoxicated, lost control of the vehicle and hit an "End School Zone" sign, then struck a tree. The passenger in the vehicle she was operating was killed. At the time of the accident, Cardoso’s Blood Alcohol Content (BAC) was .130 and it was determined that the speed of the vehicle was approximately 40 miles per hour, which was 15 mph over the posted 25 mph speed limit.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Three Affiliated Tribes Police Department.
Assistant United States Attorney Jonathan O’Konek prosecuted the case
Berkeley County woman admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia woman has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Shonna Marie Thomas, age 32, pled guilty to one count of “Distribution of Heroin.” Thomas admitted to selling heroin in February 2017 in Berkeley County.
Thomas 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.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Artesia Man Sentenced to Ten Years for Conviction on Federal Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Odis Levi Booher, 28, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months of imprisonment for his conviction on federal firearms and drug trafficking charges. Booher will be on supervised release for three years after completing his prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Booher on Nov. 15, 2016, on a criminal complaint charging him with committing firearms and methamphetamine trafficking offenses in Chaves County, N.M. According to the complaint, on Nov. 10, 2016, law enforcement agents found approximately 511.2 grams of methamphetamine, a handgun, $2,205 in cash, and drug paraphernalia while executing search warrants on Booher and his vehicle.
On July 18, 2017, Booher pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute, possession of a handgun in relation to a drug trafficking crime, and being a felon in possession of a firearm. In entering the guilty plea, Booher admitted that on Nov. 10, 2016, he possessed the methamphetamine, firearm and ammunition found inside his truck by law enforcement officers. Booher acknowledged that on Nov. 10, 2016, he was prohibited from possessing firearms or ammunition because of his prior felony conviction for residential burglary.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chaves County Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Army Most Wanted Fugitive Sentenced to More Than 3 Years in Federal Prison for Identity Theft and Misuse of a Social Security NumberRead the Press Release
A man who has been wanted by the Army since the early 1980s was sentenced today to more than 3 years in federal prison.
Daryl Grigsby, age 57, most recently from Dyersville, Iowa, received the prison term after a September 6, 2017, guilty plea to one count of aggravated identity theft and one count of misuse of a Social Security Number.
Information from the sentencing hearing showed that Grigsby was convicted at court-martial of aggravated assault while serving in the Army in the 1980s. Following his conviction and while pending additional criminal charges, Grigsby ran from the Army. He was later convicted of bank robbery in federal court Oregon in the 1990s while using the name “Aaron Davis.” In 2001, Grigsby absconded from federal supervised release. At some point after his bank robbery conviction, Grigsby began using the identity and Social Security Number of another person. He continued to use that identity until his arrest in Iowa last year. Grigsby is still wanted by the Army. He was on the Army’s most wanted list until his arrest in Iowa.
Grigsby was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Grigsby was sentenced to 40 months’ imprisonment. A special assessment of $200 was imposed and he was ordered to make $19,401 in restitution to the Social Security Administration and $46,118.48 in restitution to the State of Iowa. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Grigsby is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Social Security Administration – Office of the Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1020.
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Amarillo Man Convicted on Drug and Firearm Charges Sentenced to Life in Federal PrisonRead the Press Release
AMARILLO — Moises Jimenez, 39, of Amarillo, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to life in federal prison. Jimenez was convicted of felony drug and firearm offenses in August 2017, following a four-day jury trial. The announcement was made by U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
Jimenez was convicted of one count of distribution and possession with intent to distribute cocaine, one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Fitzwater sentenced Jimenez to 240 months for the distribution of cocaine count, 60 months for the possession of a firearm count and life in federal prison without the possibility for parole for the distribution and possession of 500 grams or more of methamphetamine.
Jimenez has been in custody since the time of his arrest in December 2016.
The government presented evidence at trial that on January 20, 2015, the Amarillo Police Department executed a search warrant at Moises Jimenez’s apartment. A search of the apartment yielded one kilogram of methamphetamine, almost 300 grams of cocaine, a Lorcin, .25 caliber pistol, approximately $22,000 in cash, and drug trafficking paraphernalia. During post-arrest interviews with a detective of the Amarillo Police Department, Jimenez admitted to possessing the controlled substances and firearm. He also admitted that he had delivered 50 pounds of methamphetamine less than a week before officers executed the search warrant. A search of Jimenez’s cell phones yielded text messages consistent with drug trafficking. Further, recorded telephone calls made by Jimenez while he was in jail corroborated his involvement in drug trafficking.
The Amarillo Police Department investigated the case with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorneys Russell Lorfing, Sean Long, and Sean Taylor prosecuted the case.
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Akron man charged with making threatsRead the Press Release
The Federal Bureau of Investigation and the United States Attorney’s Office, Northern District of Ohio, announce the arrest of Raynard Clayton, 34, of Akron.
Clayton was placed into custody by the Adult Parole Authority on Feb. 8, 2018 without incident. Clayton was transferred to federal custody by FBI agents assigned to the FBI Akron Resident Agency on Feb. 12.
Clayton is charged with transmitting in interstate commerce a threat to injure another person and also threatening a person with physical force with the intent to hinder, delay, or prevent communication to a law enforcement officer.
Clayton is alleged to have posted a publicly available Facebook Live video, approximately 21 minutes in length, threatening to assault and kill an individual known to law enforcement. In the video, Clayton, also known as Raynard Dutch, stated “I’ll shoot you point blank range, no mask......Get you and your family wrapped up. AR-15, you know what I mean.” Clayton continues on stating, “…basically what I’m sayin’ to you is keep my name out your mouth fo (before) I take yo (your) life.” Clayton also stated in the video, “The best type of cop is a dead cop.”
A complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
12 February 2018
Woman Faked Death in Cross-Country Luxury Vehicle Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman who faked her own death in connection with an elaborate bank fraud scheme was sentenced today to four years in prison.
According to court documents, Alexandra Hatcher, 50, conspired with her husband, Albert Hatcher Jr., 49, to collect on life insurance policies the two had obtained to insure Hatcher’s life. After traveling to Washington state and changing her legal name in August 2015, Hatcher and her husband submitted false death claims on at least two of these policies. In support of these claims, Hatcher created fake death certificates and published a death notice in the Daily Press. After insurers denied their claims, Hatcher and her husband undertook a cross-country fraud scheme through which they fraudulently obtained at least 20 new and newer-used luxury vehicles by presenting worthless and counterfeit checks and forged documents to car dealerships in several states. Hatcher and her husband retitled these vehicles and then used them as collateral for loans and other vehicles. The two also resold vehicles to other dealerships for cash. Hatcher used the legal name she adopted just prior to faking her death to purchase, title, and resell vehicles in furtherance of the scheme.
The Hatcher’s each pleaded guilty to conspiracy to commit bank fraud, possessing and uttering a counterfeit security of an organization, and conspiracy to commit mail fraud. Albert Hatcher was sentenced to four years in prison on January 22 for his role in the scheme.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-48.
Wichita Man Charged with Operating Gambling BusinessesRead the Press Release
WICHITA, KAN. – A Wichita man was charged Monday in federal court with operating illegal gambling businesses, U.S. Attorney Stephen McAllister said.
Jack Oxler, 41, Wichita, Kan., was charged with one count of operating an illegal poker gambling business and one count of operating an illegal sports betting business.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The FBI, the Wichita Police Department and the Internal Revenue Service investigated. Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Mona Furst are prosecuting.
Virginia Man Convicted of Receiving Child Pornography on Tor Network Forum for Child PredatorsRead the Press Release
A Purcellville, Virginia man who was a member of a website dedicated to the advertising and sharing of child pornography on an online anonymous network pleaded guilty today to receipt of child pornography.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia made the announcement.
Nikolai Bosyk, 40, was charged on Oct. 17, 2017, and pleaded guilty before U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia. Sentencing is scheduled for May 4.
According to admissions made in conjunction with the guilty plea, Bosyk was a member of an online bulletin board that operated on an anonymous online network and was dedicated to the sharing of child pornography. He downloaded child pornography, from that website and other places on the Internet. A forensic review of his laptop discovered thousands of images and videos of child pornography.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case, with assistance from the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and the Northern Virginia-Washington, D.C. Internet Crimes Against Children Task Force.
CEOS Trial Attorney Lauren E. Britsch and Assistant U.S. Attorney Nathaniel Smith III of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorneys announce initiative to combat violent crime and drug trafficking in Tri-State areaRead the Press Release
ASHLAND, Ky. – Today, the three United States Attorneys for the Tri-State area: Robert M. Duncan, Jr., of the Eastern District of Kentucky; Michael B. Stuart, of the Southern District of West Virginia; and Benjamin C. Glassman, of the Southern District of Ohio, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), state and local law enforcement and prosecutors, and other law enforcement partners announced the formation of a law enforcement working group, to enhance joint efforts to combat violent crime and drug trafficking in the Kentucky, West Virginia, and Ohio Tri-State area.
The working group met for the first time on February 9, 2018, in Ashland.
The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime. PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.
The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area. As part of the collaborative partnership, members of ATF, FBI, DEA, and state and local law enforcement personnel will meet regularly to share intelligence, and to review cases about the most dangerous offenders in the area, including those cases in which the offender’s conduct involves possession or use of a firearm. The cases will be evaluated to ensure that the most appropriate penalties will be applied to the offenders, whether in federal or state court. The ultimate goal of the collaboration is to reduce violent crime and access to illegal drugs, and make the Tri-State safer.
“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By working together to investigate and prosecute the most dangerous individuals in the Tri-State, we are sending a clear message that we will protect our communities against those who do them harm. If you are using firearms to commit acts of violence or illegally selling drugs – especially those that cause an overdose death – you are on notice: your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”
“The good people of the Tri-State and good cities like Huntington, Ashland, Ironton and Portsmouth, have paid too high a price because of violent crime and the drug scourge. Effective partnerships, sharing resources and intelligence, and aggressive enforcement are the best offense to defeat those that bring chaos and despair to our communities,” said U.S. Attorney Stuart. “Now is the time to take our streets back from violent offenders and drug dealers that cause havoc. We are committed to working together as true partners in this fight to reduce violent crime, protect our citizens, and put dangerous criminals behind bars for as long as possible.”
“State lines don’t stop criminals from committing violence in our communities, so they shouldn’t stop our law enforcement efforts, either,” U.S. Attorney Glassman said. “Today’s announcement highlights our dedication to working together across governmental levels and geographic boundaries to get the job done.”
Today’s announcement follows U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors, to reinvigorate the Project Safe Neighborhoods Program in an effort to reduce rising violent crime in America, and to combat access to illegal drugs, particularly opiates and opioids.
U.S. Attorneys Announce Initiative to Combat Violent Crime and Drug Trafficking in Tri-State AreaRead the Press Release
ASHLAND, Ky. – Today, the three United States Attorneys for the Tri-State area: Robert M. Duncan, Jr., of the Eastern District of Kentucky; Michael B. Stuart, of the Southern District of West Virginia; and Benjamin C. Glassman, of the Southern District of Ohio, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), state and local law enforcement and prosecutors, and other law enforcement partners announced the formation of a law enforcement working group, to enhance joint efforts to combat violent crime and drug trafficking in the Kentucky, West Virginia, and Ohio Tri-State area.
The working group met for the first time on February 9, 2018, in Ashland.
The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime. PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.
The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area. As part of the collaborative partnership, members of ATF, FBI, DEA, and state and local law enforcement personnel will meet regularly to share intelligence, and to review cases about the most dangerous offenders in the area, including those cases in which the offender’s conduct involves possession or use of a firearm. The cases will be evaluated to ensure that the most appropriate penalties will be applied to the offenders, whether in federal or state court. The ultimate goal of the collaboration is to reduce violent crime and access to illegal drugs, and make the Tri-State safer.
“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By working together to investigate and prosecute the most dangerous individuals in the Tristate, we are sending a clear message that we will protect our communities against those who do them harm. If you are using firearms to commit acts of violence or illegally selling drugs – especially those that cause an overdose death – you are on notice: your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”
“The good people of the Tri-State and good cities like Huntington, Ashland, Ironton and Portsmouth, have paid too high a price because of violent crime and the drug scourge. Effective partnerships, sharing resources and intelligence, and aggressive enforcement are the best offense to defeat those that bring chaos and despair to our communities,” said U.S. Attorney Stuart. “Now is the time to take our streets back from violent offenders and drug dealers that cause havoc. We are committed to working together as true partners in this fight to reduce violent crime, protect our citizens, and put dangerous criminals behind bars for as long as possible.”
“State lines don’t stop criminals from committing violence in our communities, so they shouldn’t stop our law enforcement efforts, either,” U.S. Attorney Glassman said. “Today’s announcement highlights our dedication to working together across governmental levels and geographic boundaries to get the job done.”
Today’s announcement follows U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors, to reinvigorate the Project Safe Neighborhoods Program in an effort to reduce rising violent crime in America, and to combat access to illegal drugs, particularly opiates and opioids.
U.S. Attorneys Announce Initiative to Combat Violent Crime and Drug Trafficking in Tri-State AreaRead the Press Release
ASHLAND, Ky. – Today, the three United States Attorneys for the Tristate area: Robert M. Duncan, Jr., of the Eastern District of Kentucky; Michael B. Stuart, of the Southern District of West Virginia; and Benjamin C. Glassman, of the Southern District of Ohio, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), state and local law enforcement and prosecutors, and other law enforcement partners announced the formation of a law enforcement working group, to enhance joint efforts to combat violent crime and drug trafficking in the Kentucky, West Virginia, and Ohio Tri-State area.
The working group met for the first time on February 9, 2018, in Ashland.
The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime. PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.
The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area. As part of the collaborative partnership, members of ATF, FBI, DEA, and state and local law enforcement personnel will meet regularly to share intelligence, and to review cases about the most dangerous offenders in the area, including those cases in which the offender’s conduct involves possession or use of a firearm. The cases will be evaluated to ensure that the most appropriate penalties will be applied to the offenders, whether in federal or state court. The ultimate goal of the collaboration is to reduce violent crime and access to illegal drugs, and make the Tri-State safer.
“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By working together to investigate and prosecute the most dangerous individuals in the Tristate, we are sending a clear message that we will protect our communities against those who do them harm. If you are using firearms to commit acts of violence or illegally selling drugs – especially those that cause an overdose death – you are on notice: your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”
“The good people of the Tristate and good cities like Huntington, Ashland, Ironton and Portsmouth, have paid too high a price because of violent crime and the drug scourge. Effective partnerships, sharing resources and intelligence, and aggressive enforcement are the best offense to defeat those that bring chaos and despair to our communities,” said U.S. Attorney Stuart. “Now is the time to take our streets back from violent offenders and drug dealers that cause havoc. We are committed to working together as true partners in this fight to reduce violent crime, protect our citizens, and put dangerous criminals behind bars for as long as possible.”
“State lines don’t stop criminals from committing violence in our communities, so they shouldn’t stop our law enforcement efforts, either,” U.S. Attorney Glassman said. “Today’s announcement highlights our dedication to working together across governmental levels and geographic boundaries to get the job done.”
Today’s announcement follows U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors, to reinvigorate the Project Safe Neighborhoods Program in an effort to reduce rising violent crime in America, and to combat access to illegal drugs, particularly opiates and opioids.
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Two Defendants Charged in Manhattan Federal Court with Sex Trafficking and Other OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrests of LAVELLEOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” and GLORIA PALMER, a/k/a “Gloria Hearn.” PURCELL is charged with sex trafficking and related offenses. PALMER is charged with conspiracy to use interstate commerce to promote PURCELL’s illegal sex trafficking activity. PURCELL was presented Friday in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron and detained. PALMER was presented Friday in federal court in Rochester and released on bail. The case has been assigned to United States District Judge Denise L. Cote.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Lavelleous Purcell’s conduct was exploitive, forcing women to engage in sex for money, and keeping the money for himself. Thanks to the FBI and NYPD, Purcell and his alleged accomplice, Gloria Palmer, are in custody.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The subject in this case allegedly forced women to have sex for money. Our FBI agents and law enforcement partner detectives won’t ever stop pursuing pimps who profit from using women not as human beings, but as objects and as a way to make money. However, the practice isn’t going to ever go away unless the demand goes away. We ask anyone with information about this case, or any other situation they suspect may be human trafficking, to call us.”
According to the Indictment unsealed today in Manhattan federal court,[1] and statements made in court during the defendants’ presentments:
For the past several years, PURCELL has worked as a sex trafficker and pimp under the alias “King Casino.” From 2012 to 2016, PURCELL trafficked women, forcing them to engage in commercial sex, for which he was paid. Since at least 2015, PURCELL has recruited women to travel in interstate commerce to engage in prostitution and has transported women across state lines to engage in prostitution. PALMER used the facilities of interstate commerce to promote the prostitution business by booking hotel rooms for PURCELL and the women.
To date, law enforcement agents have identified over 50 women who appear to have engaged in commercial sex at PURCELL’s direction.
PALMER assisted in PURCELL’s sex trafficking business by, among other things, booking hotel rooms for PURCELL and the women he trafficked, for which PURCELL paid PALMER a monthly fee.
* * *
The charges in the Indictment against LAVELLEOUS PURCELL, 39, of Hempstead, New York, and GLORIA PALMER, 26, of Rochester, New York, are included in the chart below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Any individuals who believe they have information that may be relevant to the investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Berman thanked the FBI and NYPD for their outstanding investigative work in this matter. Mr. Berman also thanked the New York County District Attorney’s Office for its assistance with this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sheb Swett is in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.