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12 February 2018
Three Defendants Charged in White Plains Federal Court with New City Armed RobberyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and Raymond McCullagh, Chief of the Clarkstown Police Department, announced today the filing of a complaint charging three defendants with robbing a KeyBank branch located in New City, New York, on February 9, 2018. Two of the defendants were also charged with brandishing a firearm during the robbery. All three defendants were taken into custody on February 9, 2018, shortly after the robbery, and were presented in White Plains federal court the following morning before United States Magistrate Judge Lisa M. Smith.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Jason Parris and Demetrice Young, wearing masks, robbed a bank while brandishing a gun. Then after threatening the bank employees, they made their way to Iyibia Brown, who was driving the getaway car. They didn’t make it far, however, before law enforcement arrested all three.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “This case is the perfect example of great police work. The alleged robbers put customers’ and employees’ lives in danger by flashing a gun, and vaulting the counter during the robbery, but they didn’t get far. The FBI Westchester Safe Streets Gang Task Force wants to thank our law enforcement partners at the Clarkstown Police Department and the fast action they took to get armed criminals off the streets.”
Clarkstown Police Chief Raymond McCullagh said: “This arrest was a direct result of the entire law enforcement community working together to ensure the public's safety and to bring these suspects to justice.”
As alleged in the complaint filed on February 10, 2018, in White Plains federal court[1]:
On February 9, 2018, JASON PARRIS, DEMETRICE YOUNG, and IYIBIA BROWN conspired to rob, and did rob, a branch of KeyBank, located at 270 Little Tor Road, New City, New York. PARRIS and YOUNG entered the bank in masks and, using a firearm, threatened numerous bank employees. PARRIS and YOUNG then fled the bank on foot with cash taken from the bank, meeting up with BROWN, who then drove PARRIS and YOUNG away from the scene of the robbery. PARRIS, YOUNG, and BROWN were apprehended by law enforcement shortly thereafter. Money from the bank was found on PARRIS and in the car, and a firearm was found in the car, as well.
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PARRIS, 34, of Nyack, New York, YOUNG, 27, of Spring Valley, New York, and BROWN, 24, of Monsey, New York, are each charged with one count of bank robbery conspiracy, which carries a maximum sentence of 20 years in prison, and one count of bank robbery, which carries a maximum sentence of 20 years in prison. In addition, PARRIS and YOUNG are each charged with one count of brandishing a firearm during the robbery, which carries a maximum sentence of life in prison and a mandatory minimum sentence of seven years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding, coordinated investigative work of the FBI, the Clarkstown Police Department, the Ramapo Police Department, the Rockland County Sheriff’s Department, and the New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Celia V. Cohen is 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 Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Sisseton Woman Charged with Misprision of a FelonyRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, woman was indicted by a federal grand jury for Misprision of a Felony on August 16, 2016.
Tylynn St. John, age 25, appeared before U.S. Magistrate Judge William D. Gerdes on February 5, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 3 years of custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about June 10, 2014, St. John failed to report a crime of which she had knowledge, to the proper authorities. St. John and another are alleged to have witnessed an assault resulting in serious bodily injury and failing to report, or help seek aid, for a victim who ultimately died of her injuries.
The charge is merely an accusation and St. John is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
St. John was released pending trial, which has been set for April 10, 2018.
Shell Chemical LP to Install $10 Million in Pollution Monitoring and Control Equipment at Norco Chemical Facility in Louisiana to Resolve Alleged Federal and State Clean Air ViolationsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement today with Shell Chemical LP that each year will eliminate more than 150 tons of excess emissions of harmful air pollutants from Shell’s chemical plant located in Norco, Louisiana, in St. Charles Parish. The settlement resolves allegations that Shell violated the Clean Air Act and State law by failing to properly operate industrial flares at the facility.
The settlement, in the form of a Consent Decree, will require Shell to spend approximately $10 million to install and operate air pollution control and monitoring technology to reduce harmful air pollution from four industrial flares at the Norco plant. Once fully implemented, the pollution controls required by the settlement are estimated to reduce air emissions of volatile organic compounds (VOCs) by approximately 159 tons per year, and reduce other harmful air pollutants, including benzene, by approximately 18 tons per year.
“We are proud to partner with the State of Louisiana on this important Clean Air Act settlement, which will benefit the citizens of Louisiana,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “This agreement is the latest in EPA’s and the Justice Department’s continuing efforts to work with our state partners to protect the American public from harmful air pollution.”
“This settlement will improve air quality for citizens of Louisiana by reducing emissions of harmful air pollution,” said EPA Administrator Scott Pruitt. “Today’s agreement demonstrates EPA’s dedication to working with states to pursue violations of laws that are critical to protecting public health and bring companies into compliance.”
“We are committed to working hand-in-hand with our federal partners to reduce air pollution in Louisiana,” said LDEQ Secretary Dr. Chuck Carr Brown. “Actions like this one not only serve to clean up the air our citizens breathe, they send a message that we will not tolerate violations of federal or state laws.”
VOCs and benzene can seriously harm public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
The settlement agreement will reduce flaring and improve Shell’s flaring practices, reducing emissions at the facility. Industrial flares burn waste gases that otherwise would be released to the atmosphere. Well-operated flares have high “combustion efficiency,” meaning they burn nearly all the harmful components in the waste gas, including VOCs and hazardous air pollutants, turning them into water and carbon dioxide.
Under the consent decree, Shell will take steps to minimize the amount of waste gas sent to the flares. Shell will also operate a flare gas recovery system at the facility, which will save the company money by allowing it to use waste gas as fuel; this waste gas would otherwise be sent to the facility’s flares. In addition, by installing and maintaining state-of-the-art monitoring and control technology at its flares, Shell will ensure that the flares are operated at a high combustion efficiency. Finally, Shell will install and maintain monitoring equipment to detect air pollution along the facility fence line and publish the monitoring results on a public website. Shell will also pay civil penalties totaling $350,000, including $87,500 for LDEQ.
The consent decree, lodged in the Eastern District Court of Louisiana, is subject to a 30-day federal public comment period, a 45-day State public comment period, and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Sacramento Man Pleads Guilty to Arsons in Long-Running Arson Fraud Scheme and Is Sentenced to 30 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — On February 10, 2018, Jamal Shehadeh, 59, of Sacramento, pleaded guilty to two counts of arson to commit a felony in furtherance of a long-running arson and insurance fraud scheme and was sentenced by U.S. District Judge Morrison C. England Jr. to 30 years in prison, U.S. Attorney McGregor W. Scott announced.
“Jamal Shehadeh avoided prosecution for decades as he set fire after fire with complete disregard for the lives of anyone nearby including firefighters,” U.S. Attorney Scott stated. “Shehadeh’s time committing the violent crime of arson and insurance fraud for the purpose of enriching himself has come to an end thanks to the hard work of all the federal law enforcement agencies that investigated and assisted with this case, and the local Sacramento authorities who provided tremendous assistance.”
“Jamal Shehadeh intentionally set fires, which threatened the lives and safety of our community members. The FBI is proud to have partnered with the Sacramento Fire Department, Sacramento Metropolitan Fire District, and our federal partners to investigate the allegations against Shehadeh to ensure justice was served,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The length of Shehadeh’s sentence highlights the seriousness of his admitted crimes and ensures he will not pose a threat to the community for decades.”
“Jamal Shehadeh was a serial arsonist who profited over and over again while concealing those profits through nominees and other means,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “The scheme netted Shehadeh and his co-defendants over $1.5 million in insurance proceeds while endangering members of the community. Those who line their pockets with profits from these schemes should know that IRS Criminal Investigation will continue to use our financial investigative expertise and work with our great law enforcement partners to bring them to justice.”
According to court documents, from at least December 2009 through September 2013, Jamal Shehadeh participated in an arson fraud scheme with co-defendants Saber Shehadeh and Brian Stone and others. The scheme involved seven fires at six different commercial building locations in Sacramento and Carmichael. The dates and locations of the fires, and the names of businesses at those locations, are as follows:
- 1007 E Street and 427 10th St., Sacramento — December 27, 2009
- George’s Auto Care, 511 Broadway, Sacramento — June 9, 2010
- Tru Value Market, 427 10th St., Sacramento — August 15, 2010
- Galaxy Sacramento, 6964 65th St., Sacramento — April 23, 2012
- Escape Therapy, 5725 Marconi Avenue, Carmichael — September 24, 2012
- Cobblestone Café, 910 University Avenue, Sacramento — October 15, 2012
- Golden Star Auto Supply, LLC, 2764 Fulton Avenue, Sacramento — June 16, 2013
Jamal Shehadeh pleaded guilty to setting or causing to be set the fires at 910 University Avenue on October 15, 2012, and the fire at 2764 Fulton Avenue on June 16, 2013, for the purpose of carrying out insurance fraud. He also admitted to setting or causing to be set the fire on December 27, 2009, at 10th and E Streets in Sacramento, and the fire at 6964 65th Street in Sacramento on April 23, 2012, as a part of the arson and insurance fraud scheme.
According to court documents, the scheme involved numerous forms of fraud, including false statements when acquiring insurance policies, causing damage by fire, and seeking funds from insurance companies using false statements about the cause of the fires, the property and tenant improvements purported to have been damaged in the fire, lost business income resulting from the fires, and the true nature of the entities involved in the demolition and clean-up, as well as the actual clean-up costs. In some cases, the participants used a company named Wolf & Associates Construction Inc. to pursue insurance claims for demolition and cleanup costs while concealing their relation to it, or used Wolf Construction as a front company purporting to do cleanup that was in fact performed by someone else. Jamal Shehadeh meanwhile controlled a bank account associated with Wolf Construction.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorney Michael D. Anderson and Christopher S. Hales prosecuted the case.
Defendant Jamal Shehadeh is in custody. Co-defendants Saber Shehadeh and Brian Stone are pending trial. The charges against Saber Shehadeh and Brian Stone are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rockford Man Sentenced to More Than 12 Years in Federal Prison for Cocaine and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for possessing cocaine with the intent to distribute it and possessing a firearm as a convicted felon on April 8, 2016.
RYAN A. PANCYRZ, 29, was sentenced to 12 years and seven months in federal prison, to be followed by three years of supervised release. Pancyrz pleaded guilty to the charge on Nov. 6, 2017.
According to the written plea agreement, on April 8, 2016, Pancyrz, a convicted felon, possessed a loaded .32-caliber revolver and 49 plastic baggies of cocaine at a residence on South Fifth Street in Rockford. In the plea agreement, he admitted that he intended to sell the cocaine. He further admitted that he possessed other items associated with drug distribution, including a digital scale, two bottles of Inositol, a vitamin supplement used to dilute controlled substances, and $666 in cash. Pancyrz was arrested by Winnebago County Sheriff’s Office deputies at the residence on South Fifth Street on April 8, 2016, and has remained in custody since his arrest.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Joseph Bruscato, Winnebago County State’s Attorney; and Gary Caruana, Winnebago County Sheriff.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Providence Couple Indicted for Trafficking CocaineRead the Press Release
PROVIDENCE, RI – A Providence couple has been indicted by a federal grand jury on charges they allegedly participated in a conspiracy to smuggle significant quantities of cocaine from the Dominican Republic into Rhode Island. The indictment, returned on February 8, 2017, and unsealed by the Court on February 9, charges Victor Lopez, 42, and Johanna Liranzo, 37, with conspiracy to possess with the intent to distribute over 500 grams of cocaine and possession with the intent to distribute over 500 grams of cocaine.
The indictment is announced by United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to court documents, it is alleged that on January 22, 2018, U.S. Customs and Border Protection (CBP) officers conducting enforcement examinations of U.S. mail shipped from the Dominican Republic through the JFK International Airport Mail Facility discovered a heavily taped express mail parcel addressed to a residence in Providence, R.I. Inside the package, CBP officers discovered two metal cylinders. Agents drilled holes in the cylinders and found them to be tightly packed with a white powdery substance, which tested positive for cocaine.
On January 29, 2018, law enforcement agents and officers from the U.S. Postal Service and the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force established surveillance of the Providence address to which the package was addressed for delivery. They also began surveilling a vehicle seen repeatedly driving around the area of the residence, which appeared to be employing counter-surveillance measures. The package was delivered to the residence by a USPIS Inspector, operating in an undercover capacity. It is alleged that the package was accepted by Johanna Liranzo.
About 90 minutes after the package was delivered, and while members of the HIDTA Task Force were executing a court authorized search of the residence, a separate team of HIDTA Task Force members located and stopped the vehicle seen employing counter-surveillance measures in the area of the residence. The driver of the vehicle, Victor Lopez, and a passenger, Johanna Liranzo, were detained pending the investigation. Liranzo was found to be carrying a key to a storage unit located in Pawtucket.
According to court documents, an HSI agent located the storage unit and obtained surveillance video from the storage facility. The video allegedly showed the same vehicle which was seen employing counter-surveillance measures in the area of the residence arriving and departing from the storage unit to which Lopez and Liranzo had keys. A narcotics detection dog gave a positive response to the presence of narcotics at the storage unit. A court authorized search of the storage unit by HIDTA Task Force members and USPIS agents resulted in the seizure of three metal cylinders, two of which were found to have drill holes placed in them by CBP officers in New York. Also seized from inside the storage unit were four compressed cellophane packages containing a total of more than a kilogram of cocaine. Law enforcement also seized personal papers belonging to Lopez and Liranzo.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Victor Lopez has been detained in federal custody since his arrest and initial appearance in U.S. District Court on February 6, on a criminal complaint brought in this matter. He is scheduled to be arraigned on the indictment today. Johanna Liranzo was released on unsecured bond at her arraignment on Friday before U.S. District Court Magistrate Judge Patricia A. Sullivan.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chaffee.
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Prattville Man Convicted of Sex Trafficking of a MinorRead the Press Release
Montgomery, Alabama – On Thursday, February 8, 2018, Michael Graham Lowe, 25, of Prattville, Alabama, was found guilty by a federal jury of sex trafficking of a minor and conspiracy to commit sex trafficking, announced United States Attorney Louis V. Franklin Sr.
Previously, a federal grand jury returned an indictment against Lowe and his co-defendant, Joshua David Rose, after hearing evidence that the two recruited, enticed, and transported a minor victim knowing that the victim was under the age of 18 years and would be engaging in a commercial sex act. Joshua Rose, 29, also from Prattville, pled guilty to sex trafficking of a minor in August 2017.
According to evidence presented at the four-day trial, Lowe was friends with the 17-year-old minor victim and in May 2016, he introduced the victim to co-defendant Rose at a motel in Montgomery. On May 24 and 25, 2016, Rose took photographs of the victim and placed an ad on the classified advertising website Backpage.com. Lowe and Rose transported the minor victim to perform commercial sex acts in Montgomery and the surrounding areas and stood guard outside during the acts. Rose and Lowe used the money earned by the minor victim to purchase illegal narcotics. On May 26, 2016, the victim became upset and refused to perform further commercial sex acts. Lowe then transported the victim from the motel leaving her at a local residence. After hearing the evidence presented at trial, the jury found Lowe guilty of both counts in the federal indictment.
For the sex trafficking of a minor charge, Lowe faces a minimum of 10 years and a maximum of life in prison. For the conspiracy to commit sex trafficking, Lowe faces up to life in prison. Lowe is in the custody of the United States Marshals Service pending a sentencing hearing, which has not yet been scheduled.
“These human traffickers prostituted a child in order to have the money to feed their drug habit,” stated U.S. Attorney Franklin. “We will not allow the children of this District to be preyed-upon, prostituted and used by predators. This office will continue to use all resources necessary to take these criminals off the streets and ensure the safety of our children.”
“The Prattville Police Department is very thankful for the working relationship we have with the U.S Attorney’s Office and all the agencies involved in this case,” stated Prattville Police Chief Mark Thompson. “This should send a strong message to the criminal element committing these types of crime that we will find them and put them away. We are very proud of our Criminal Intelligence Unit for the effort put into this case. It shows that the Prattville PD is proactive and we will continue to develop better ways to combat crime.”
“Human trafficking is a horrific crime that traps its victims in a life of misery and abuse,” said Attorney General Steve Marshall. “This conviction is the result of a long and painstaking investigation by agents and officers who cared deeply about the harm being caused to the young victim, and were determined to stop this from happening to her and to others. I am thankful for the diligence of the Prattville Police Department, which initiated this case, working with agents of the Alabama Attorney General’s Office and the U.S. Department of Homeland Security and assisted by the Montgomery Police Department. I also want to thank the U.S. Attorney’s Office for its successful prosecution to bring this criminal to justice. As Alabama’s Attorney General, I am committed to continue this kind of cooperative and dedicated teamwork among agencies, which is the key to making our state a safer place.”
“HSI will tirelessly work to investigate and bring to justice anyone who thinks they can get away with preying upon our children for their sexual gratification,” said Homeland Security Investigations Acting Special Agent in Charge Thomas M. Annello. “This case highlights the exceptional commitment and devotion of the men and women who pursue the perpetrators of these depraved crimes every day.”
This case was jointly investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Prattville Police Department, and the Alabama Attorney General’s Office, with assistance from the United States Marshal’s Service and Montgomery Police Department.
The case was prosecuted by Assistant U.S. Attorney Hollie Worley Reed of the Middle District of Alabama and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section.
Papillion Man Sentenced to 66 Months for Receiving Child PornographyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Justin Haynes, 31, was sentenced today in federal court in Omaha for receiving child pornography. The Honorable Laurie Smith Camp sentenced Haynes to a 66-month term of imprisonment. There is no parole in the federal system. After his release from prison, Haynes will begin a five-year term of supervised release and be required to register as a sex offender.
A federal search warrant was executed on Haynes’s Papillion residence on February 28, 2017. Haynes admitted to downloading and saving videos of child pornography. Several videos were of children under the age of 8 and some under the age of 5 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Oshkosh Drug Dealer Receives 20 Years in Federal Prison for Overdose DeathRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 8, 2018, Anthony R. Chaplin (age: 41) of Oshkosh, Wisconsin, was sentenced to 20 years in federal prison for his distribution of fentanyl and methamphetamine to an Appleton woman, Joy Strader, resulting in her death in May of 2017.
Chaplin admitted dealing what he believed to be heroin to the victim on numerous occasions. The heroin was, unbeknownst to Chaplin and the victim, an especially potent form of fentanyl. At the same time he sold the fatal dose of fentanyl, Chaplin also sold the victim methamphetamine. The combination of fentanyl and methamphetamine were determined to be the cause of death according to the medical examiner’s findings.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the serious nature of Chaplin’s crime and the negative effect that fentanyl and methamphetamine has had on the community. He found that Chaplin was aware of the inherent dangers of distributing illegal substances, but continued to do so despite the risk to others. Following his release from prison, Chaplin will serve 5 years on federal supervised release.
The case was investigated by the Appleton Police Department and the Winnebago County Sheriff’s Office. Assistant United States Attorney Daniel R. Humble prosecuted the case.
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Norwalk Man Sentenced to Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN S. ROZYCKI, 41, of Norwalk, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by two years of supervised release, for tax evasion. Judge Shea also ordered ROZYCKI to pay a $50,000 fine.
According to court documents and statements made in court, ROZYCKI owns and operates bangthebook.com, a sports gaming information website, as well as other website businesses and rental properties. For the 2009 through 2014 tax years, ROZYCKI reported more than $1.6 million in gross receipts on his federal income tax returns, but failed to report more than $1.1 million in taxable income, which he had deposited into his personal bank accounts. ROZYCKI had worked with an accountant to prepare his tax returns, but did not provide his accountant with any information regarding his personal accounts and the business receipts that had been deposited into them.
As a result, ROZYCKI failed to pay more than $300,000 in federal income taxes.
ROZYCKI has paid full restitution of $336,780 to the IRS. He also will be required to pay interest and penalties.
On September 20, 2017, ROZYCKI pleaded guilty to one count of tax evasion.
Judge Shea ordered ROZYCKI, who is released on a $100,000 bond, to report to prison on April 30, 2018.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Northeast Ohio Man Charged with Buying Gun for Convicted Felon who Killed Westerville Police OfficersRead the Press Release
COLUMBUS, Ohio – Gerald A. Lawson III, 30, of Warrensville Heights, Ohio, was charged by criminal complaint for allegedly acting as a straw purchaser for Quentin L. Smith, a convicted felon who shot and killed two Westerville Police Officers on February 10.
Lawson was charged with aiding and abetting the possession of a firearm by a prohibited person. He was arrested today by federal agents and is scheduled to appear before U.S. Magistrate Judge Kimberly A. Jolson today at 3:30pm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the charges.
According to the affidavit filed in support of the complaint, when Westerville Police Officers Anthony Morelli and Eric Joering responded to a disturbance call on Cross Wind Drive in Westerville, Smith was armed with a Glock semi-automatic handgun.
As a convicted felon, Smith is prohibited from purchasing or possessing a firearm.
An undisclosed witness told investigators Smith provided Lawson money for the firearm and an extra $100 to compensate Lawson – who knew Smith had been convicted of a felony – for buying the gun for him.
Investigators learned that Lawson and Smith have a long history of friendship. A review of Lawson’s social media account after the incident on February 10 revealed a post by Lawson displaying three photographs of both of the men together. A comment by Lawson associated with the post also referenced the long-standing friendship between the two.
Firearm trace results indicate the Glock firearm was purchased by Lawson in Broadview Heights, Ohio.
Aiding and abetting the possession of a firearm by a prohibited person is a federal crime punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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North Tonawanda Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Scott Myers, 26 of North Tonawanda, NY, pleaded guilty to receipt of child pornography, before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in November 2013, the defendant met a 14-year-old female (Victim), on an internet dating site and the two eventually began communicating via text messaging on Kik and Skype. The communications, which were sexually explicit in nature, included Myers requesting sexually explicit phots from the Victim which she sent and he stored on a thumb drive. A subsequent analysis of the thumb drive revealed approximately nine images of child pornography depicting the Victim. Myers was aware that the Victim was a minor at the time she sent the sexually explicit images. The defendant also engaged in online sexual communications with another minor, a 13-year-old female using Kik and text messages.
In addition to the thumb drive, the defendant also possessed other electronic media, which contained child pornography, including a cellular telephone, two laptop computers, and a tablet.
The plea is the result of an investigation by agents of the Federal Bureau of Investigation, at the direction of Kevin P. Lyons, Acting Special Agent-in-Charge, the Cheektowaga Police Department, under the direction of Chief David Zack, and the Blasdell Police Department, under the direction of Lieutenant Joseph Gramaglia.
Sentencing is scheduled for May 23, 2018, at 10:00 a.m. before Judge Skretny.Natick Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Natick man was arrested and charged today in federal court in Boston with distribution and possession of child pornography.
Francis Castellino, 19, was charged with one count of distribution of child pornography, and one count of possession of child pornography. Castellino remains in custody, after agreeing to voluntary detention during an appearance before Magistrate Judge Marianne B. Bowler.
According to court records, law enforcement executed a search warrant at Castellino’s Natick home as part of an ongoing investigation into the online trade of child pornography through the use of Kik messenger. During the search, Castellino admitted to acting as a moderator of a Kik chat group dedicated to trading images and videos of child pornography with other Kik users. Preliminary on-scene forensic analysis of Castellino’s cell phone confirmed his admissions.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison. Both charges also provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations, made the announcement today. Assistant U.S. Attorneys Anne Paruti and Sandra S. Bower, of Lelling’s Major Crimes Unit, are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Myrtle Beach Man Charged in Federal Indictment for Conspiracy to Possess with Intent to Distribute OxycodoneRead the Press Release
Columbia, South Carolina ----- United States Attorney Beth Drake announced today that Leroy Anthony Griffin, age 30, of Myrtle Beach, was charged in a single-count indictment with conspiracy to possess with intent to distribute oxycodone. Griffin faces a maximum penalty of 20 years in federal prison and a fine of $1,000,000.
The case was investigated by the Drug Enforcement Administration Tactical Diversion Squad and the South Carolina Department of Health and Environmental Control, assisted by the South Carolina Law Enforcement Division, the Drug Enforcement Administration Florence Office, and the Fifteenth Circuit Drug Enforcement Unit. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Moncks Corner Man Sentenced to 210 months for Possession of Child Pornography Involving Prepubescent MinorsRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Kenneth Wayne Richardson, age 36, of Moncks Corner, South Carolina was sentenced in federal court in Charleston, South Carolina, for Possession of Child Pornography involving Prepubescent Minors, a violation of 18 U.S.C. § 2252A(a)(5)(B). United States District Judge David C. Norton, of Charleston, sentenced Richardson to 210 months (17.5 years), $8,500 restitution, and supervised release for life.
Evidence presented at the change of plea hearing established that on two different occasions Richardson posted web-links containing child pornography videos to internet chat rooms. Law enforcement agents traced the postings to internet protocol (IP) addresses associated with Richardson. Agents executed a search warrant at Richardson’s residence and seized a computer tablet belonging to Richardson that contained multiple images of child pornography. Richardson admitted that he possessed child pornography, including on his internet “cloud” account. He also admitted to posting web-links to chat rooms. Agents also executed a search warrant on Richardson’s internet “cloud” account and discovered over 4,000 images and 3,000 videos containing child pornography. These images and videos included adults engaged in sexual acts with prepubescent minors as well as sadistic and masochistic conduct.
The case was investigated by agents of ICE-Homeland Security Investigations. The Berkeley County Sheriff’s Office assisted in the execution of the residential search warrant. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Mexican national pleads guilty to immigration crimeRead the Press Release
HUNTINGTON, W.Va. – A Mexican national pled guilty today to an immigration crime, announced United States Attorney Mike Stuart. Nahum Ortiz-Perez, also known as Oscar Marin-Trujillo, 30, entered his guilty plea to illegally reentering the United States. U.S. Attorney Stuart commended the investigative efforts of the Milton Police Department and U.S. Immigration and Customs Enforcement.
“We are a nation of laws. Free sanctuary should never be provided to those that illegally enter our country,” said U.S. Attorney Stuart. “We will continue to prosecute individuals who illegally jump ahead of those following the rules and abiding by our immigration laws – laws that provide for critical immigration and protect American citizens.”
On December 3, 2017, Ortiz-Perez was spotted acting suspiciously in Milton in Cabell County near an auto repair shop. Milton Police Officers approached Ortiz-Perez, and he offered them a Mexican voter registration card as an identification document. The officers immediately contacted ICE agents, who responded to the scene, confirmed that Ortiz-Perez was not in the United States legally, and took him into custody.
Ortiz-Perez’s fingerprints matched him to a 2013 Idaho felony drug conviction. After his felony sentence in Idaho was discharged, Ortiz-Perez was deported from the United States. He reentered the United States in 2014, and was captured in Douglas, Arizona. Ortiz-Perez was again deported, and sometime afterward he reentered the United States. Ortiz-Perez gave a statement to law enforcement admitting he was not in the United States legally, that he had been deported on two prior occasions, and that he was a Mexican national subject to deportation proceedings. He also admitted to using multiple aliases while in the United States, including Oscar Marin-Trujillo, Wilson Ruiz-Martinez, Earnest Guzman, and Edgar Lucio.
Ortiz-Perez faces up to 10 years in federal prison when he is sentenced on May 14, 2018. He also faces deportation proceedings at the conclusion of his sentence.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
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Mexican Man Sentenced to 112 Days in Prison for Illegally Returning to the United States Following DeportationRead the Press Release
A Mexican man who had previously been deported following state convictions for domestic abuse and false imprisonment was sentenced today to 112 days in federal prison.
Efren Palacios-Ramirez, age 29, a citizen of Mexico who had been living in Polk County, Iowa, received the prison term after a November 16, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Palacios-Ramirez admitted he illegally reentered the United States without permission after having been deported from the United States in December 2012. Prior to his deportation, Palacios-Ramirez was convicted in Polk County, Iowa, of theft 5th degree in April 2012, and of domestic abuse and false imprisonment in October 2012. At the time of his arrest in October 2017, Palacios-Ramirez provided law enforcement a false name and his true identity could not be verified until his fingerprints were analyzed by immigration officials.
Palacios-Ramirez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Palacios-Ramirez was sentenced to 112 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Palacios-Ramirez is being held in the United States Marshal’s custody until he can be turned over to Immigration and Customs Enforcement.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-82.
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McLoud Woman Pleads Guilty to Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ksenia Ura Gubareva, age 38, of McLoud, Oklahoma, pled guilty to Wire Fraud, in violation of Title 18, United States Code, Section 1343, punishable by not more than 30 years imprisonment, up to a $1,000,000.00 fine, or both. A copy of the full indictment can be found online at /media/929731/dl?inline.
The Indictment alleged that from on or about May 23, 2017, through June 9, 2017, in the Eastern District of Oklahoma, the defendant, and others known and unknown to the Grand Jury, conspired to commit offenses against the United States, that is: To obtain money and property by means of materially false pretenses, representations and promises, in violation of 18 U.S.C. § 1343.The charges arose from an investigation by the Durant Police Department, the District 19 District Attorney’s Office, the Chickasaw Nation Tribal Police, the Choctaw Nation Tribal Police, the Bureau of Indian Affairs, and the United States Secret Service.
United States Attorney Brian J. Kuester said, “This investigation is the result of dedicated law enforcement professionals from local, state, tribal and federal jurisdictions working together to serve and protect our communities. This team effort by many different agencies is a wonderful example of the effectiveness of multi-jurisdictional efforts to investigate criminal activity.”
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Melody Nelson represented the United States.
Man Charged with Illegal Use of a Social Security NumberRead the Press Release
RUFINO MEJIA-ACOSTA, a/k/a Miguel A. Pacheco-Gonzalez (MEJIA-ACOSTA), age 38, a citizen of Mexico and residing in Chalmette, Louisiana, was charged in federal court in a one-count Bill of Information for illegal use of a Social Security Number.
MEJIA-ACOSTA faces a maximum term of imprisonment of not more than five years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, MEJIA-ACOSTA is subject to a period of supervised release after imprisonment of up to one year.
According to the Bill of Information, on or about July 3, 2017, MEJIA-ACOSTA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on a US Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him; all in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Love County Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Colby Ray Barrick, age 41, of Love County, Oklahoma, pled guilty to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about October 25, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Savage, Model 64, .22 caliber rifle, serial number 2593140, which had been shipped and transported in interstate commerce.The charges arose from an investigation by the Oklahoma Department of Wildlife Conservation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Jury Finds Eagle Butte Man Guilty of Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that Pete Knight, age 54, of Eagle Butte, South Dakota, was found guilty of Assaulting a Federal Officer as a result of a federal jury trial in Pierre, South Dakota. The verdict was returned on February 7, 2018.
The charges carry a maximum penalty of 8 years in custody and/or a $250,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Knight was indicted by a federal grand jury on June 14, 2017. The charge stemmed from an incident that occurred on May 8, 2017, in Ziebach County, when Sheriff Gary Cudmore responded to a call of a reckless driver. Sheriff Cudmore clocked the vehicle driving 95 mph and performed a traffic stop on the vehicle. Upon making contact with the driver, who is a tribal member, it was apparent that the person had been drinking and the Cheyenne River Sioux Tribe Police Department was contacted. The individual was placed in the back of Sheriff Cudmore’s patrol car until tribal officers arrived.
Prior to the tribal officers arriving, Knight and another individual stopped at the location of the traffic stop, as the vehicle stopped by Sheriff Cudmore belonged to Knight. Knight requested to talk to the occupant of the patrol car and the sheriff allowed it. When the door to the patrol vehicle was opened, Knight began to physically assault the occupant, who was handcuffed behind his back and defenseless. Sheriff Cudmore was able to pull Knight back, but Knight continued to get through the sheriff to get at the occupant. In the process, Knight shoved Sheriff Cudmore. Knight eventually left the scene.
Knight later returned riding a horse, and another altercation occurred. Knight was found not guilty regarding that incident.
U.S. Attorney Parsons stated, “Violence against our law enforcement officers will not be tolerated and will be prosecuted to the fullest extent of the law.”
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for April 30, 2018. The defendant is to self-report to the custody of the U.S. Marshals Service on February 14, 2018.
Illinois Resident Sentenced for Synthetic Drug ConspiracyRead the Press Release
FRESNO, Calif. — Timothy Ortiz, 47, of Waukegan, Illinois, was sentenced today to three years in prison for conspiring to ship misbranded synthetic drugs in interstate commerce with intent to defraud , U.S. Attorney McGregor W. Scott announced.
On August 14, 2017, Ortiz pleaded guilty. According to court documents, from December 2011 to October 2013, he, along with his co-defendants, Douglas Jason Way, 44, of Evanston, Illinois: Timothy New, 35, of Pensacola, Florida; and Natalie Middleton, 32, of Clovis, California, were involved in the importation of chemicals from China that were substantially similar in structure and pharmacological effect to a Schedule I controlled substance. Ortiz and his associates then diluted the chemicals with acetone and mixed it with dried plant material to produce a smokeable synthetic drug commonly known on the street as “spice.” The drugs were packaged and falsely labeled to say that the contents were legal and were not intended for human consumption, when in fact they were illegal and were intended for human consumption.
Ortiz and his associates then shipped the drug from warehouses in Pensacola, Florida and Millbrae and Stockton, California to smoke shops, gas stations, and retail outlets throughout the United States. Ortiz, utilizing an alias of Michael Fitton, set up and managed the Millbrae processing lab after the synthetic drug company was purchased by the owner of multiple smoke shops in the Central Valley operating under the name of The Stuffed Pipe that sold the synthetic drugs.
According to the plea agreement, Ortiz and his co-defendants shipped at least 24 tons of misbranded smokeable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11 to smoke shops and retail outlets throughout the United States. They generated in excess of $33 million in sales. At the time of the illicit enterprise, AM-2201 was a schedule I controlled substance and XLR11 was a controlled substance analogue that was placed under schedule I as a controlled substance in May 2013. In sentencing Ortiz, District Judge Dale A. Drozd also ordered Ortiz to forfeit $109,590, which Ortiz had derived from his four-month participation in the illegal operation.
This case is the product of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. As a result of this investigation, law enforcement agencies seized and forfeited over $6.6 million representing drug proceeds.
Co-defendant New previously entered a guilty plea to the fraudulent shipment of misbranded drugs and is currently serving a 30-month sentence. Middleton previously entered a guilty plea to money laundering, was sentenced to four months in prison, and is currently under supervised release for two years. Way has requested a jury trial, which is set for June 16, 2018. Way is charged with multiple controlled substance offenses, in addition to the misbranding charge, and faces a maximum penalty of 20 years in prison and a fine of $10 million. The charges against him are only allegations; Way is presumed innocent until and unless proven guilty beyond a reasonable doubt.
ISIS Supporter Sentenced to Prison for Firearms OffenseRead the Press Release
Casey Charles Spain, 29, of Richmond, Virginia, who is a previously convicted felon and supporter of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, was sentenced today to the statutory maximum of 10 years’ imprisonment, for being a felon in possession of a firearm less than three weeks after he was released from prison.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement. The sentence was issued by U.S. District Judge John A. Gibney, Jr.
According to court documents and statements made in court proceedings, Spain was in prison for over seven years after being convicted for abducting a 15-year-old girl with the intent to rape her. Separate and apart from this incident, Spain previously served time in prison for stabbing an individual with a sword. During his most recent period in prison, Spain became radicalized and swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also obtained a tattoo of the ISIS flag on his back, and repeatedly expressed a desire to engage in acts of violence. Spain was reportedly fixated on attacking a target such as the Marine Corps Base in Quantico, and was excited about potentially attacking police stations, as well as an armory in Richmond.
After Spain was released from prison on Aug. 11, 2017, he discussed on recorded telephone calls with still-incarcerated prisoners his desire to travel overseas and join ISIS. The FBI began conducting surveillance of Spain immediately upon his release, including making covert contact with him using FBI undercover employees (UCE) and a Confidential Human Source (CHS). Spain spoke on multiple occasions to the CHS about his strong desire to obtain a firearm. During that same time period, Spain established a Facebook account to speak with individuals located overseas about ISIS and his desire serve as a mujahid (fighter) for the terrorist organization.
During a meeting on Aug. 30, 2017, with the CHS and a UCE, Spain described his intention to purchase a semiautomatic handgun with a 50-round barrel canister, and that he had made arrangements to buy the handgun from an individual online. Given Spain’s criminal history, his desire to obtain a firearm, and his apparent impatience to obtain one, the CHS — as part of a controlled FBI undercover operation — offered to provide Spain what the CHS described as his own personal weapon. In reality, the firearm, which was a 9mm Glock semiautomatic handgun, was the property of the FBI that had been rendered inert for safety reasons.
The next day, as part of the undercover operation, the CHS and UCE met Spain outside of his Richmond residence. The CHS provided Spain the Glock handgun, at which point members of the FBI Richmond SWAT team moved in to arrest Spain. Spain initially attempted to escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued and quickly apprehended him.
Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Brian Hood prosecuted the case.
ISIS Supporter Sentenced to 10 Years in PrisonRead the Press Release
RICHMOND, Va. – A man who is a previously convicted felon and supporter of the Islamic State of Iraq and al-Sham (ISIS), was sentenced today to the statutory of maximum of 10 years in prison for being a felon in possession of a firearm less than three weeks after he was released from prison.
According to court documents and statements made in court proceedings, Casey Charles Spain, 29, of Richmond, was in prison for over seven years after being convicted for abducting a 15-year-old girl with the intent to rape her. Separate and apart from this incident, Spain previously served time in prison for stabbing an individual with a sword. During his most recent period in prison, Spain became radicalized and swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also obtained a tattoo of the ISIS flag on his back, and repeatedly expressed a desire to engage in acts of violence. Spain was reportedly fixated on attacking a target such as the Marine Corps Base in Quantico, and was excited about potentially attacking police stations, as well as an armory in Richmond.
After Spain was released from prison on Aug. 11, 2017, he discussed on recorded telephone calls with still-incarcerated prisoners his desire to travel overseas and join ISIS. The FBI began conducting surveillance of Spain immediately upon his release, including making covert contact with him using FBI undercover employees (UCE) and a Confidential Human Source (CHS). Spain spoke on multiple occasions to the CHS about his strong desire to obtain a firearm. During that same time period, Spain established a Facebook account to speak with individuals located overseas about ISIS and his desire serve as a mujahid (fighter) for the terrorist organization.
During a meeting on Aug. 30, 2017, with the CHS and a UCE, Spain described his intention to purchase a semiautomatic handgun with a 50-round barrel canister, and that he had made arrangements to buy the handgun from an individual online. Given Spain’s criminal history, his desire to obtain a firearm, and his apparent impatience to obtain one, the CHS—as part of a controlled FBI undercover operation—offered to provide Spain what the CHS described as his own personal weapon. In reality, the firearm, which was a 9mm Glock semiautomatic handgun, was the property of the FBI that had been rendered inert for safety reasons.
The next day, as part of the undercover operation, the CHS and UCE met Spain outside of his Richmond residence. The CHS provided Spain the Glock handgun, at which point members of the FBI Richmond SWAT team moved in to arrest Spain. Spain initially attempted to escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued and quickly apprehended him.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorney Brian Hood 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-123.
Honduran Man Sentenced to One Year in Prison for Returning to the United States Following Two DeportationsRead the Press Release
A Honduran man who had previously been deported following a federal conviction for illegal reentry was sentenced today to one year in federal prison.
Geovany Rodriguez-Carrasco, age 38, a citizen of Honduras who had been living in Cedar Rapids, Iowa, received the prison term after a December 1, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Rodriguez-Carrasco admitted he illegally reentered the United States without permission after having been last deported from the United States in August 2013. Prior to his deportation, Rodriguez-Carrasco was convicted in July 2013 in the United States District Court for the Northern District of Iowa on one count of illegal reentry of a removed alien, a felony offense. Rodriguez-Carrasco was also deported in 2004 following a misdemeanor conviction in the United States District Court for the Southern District of Texas for illegal entry into the United States.
Rodriguez-Carrasco was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Rodriguez-Carrasco was sentenced to 12 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez-Carrasco 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 Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-87.
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Hialeah Man Convicted of Conspiracy to Possess with Intent to Distribute Five Kilograms or More of CocaineRead the Press Release
A Miami jury convicted a Hialeah resident of conspiracy to possess with intent to distribute five kilograms or more of cocaine after a five-day trial.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Maikel Vigil Gallardo, 35, was convicted of one count of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, in violation of 21 U.S.C. § 846. He faces a statutory maximum of life imprisonment, and sentencing is scheduled before U.S. District Judge Marcia G. Cooke, on April 25, 2018, at 10:30 a.m.
The evidence presented at trial established that in April 2017, Gallardo met on multiple occasions with an FBI confidential human source (“CHS”) to develop a multi-kilogram cocaine pipeline from Miami to Chicago, Illinois. During the trial, the United States introduced recordings from these meetings, in which Gallardo talked about his experiences trafficking cocaine and marijuana around the United States, using trucking routes and paid off customs checkpoints to evade law enforcement. On April 26, Gallardo delivered a one-kilogram sample of cocaine to the CHS in the Orlando area, which triggered his arrest.
Mr. Greenberg commended the investigative efforts of the FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Jonathan K. Osborne and Breezye Telfair.
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 who, 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.
Hartford Man Sentenced to 40 Months in Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KHADAFI CASTRO, 40, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine.
According to court documents and statements made in court, between March and August 2017, investigators made eight controlled purchases of heroin, fentanyl and/or crack cocaine from CASTRO on Hungerford Street in Hartford. During the last three drug sales, all of which occurred in August 2017, CASTRO was assisted by his associate, Todd Peters.
CASTRO has been detained since his arrest on August 14, 2017. On November 20, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack”).
CASTRO has a criminal history that spans more than 20 years and includes 11 felony convictions, including convictions for sexual assault, criminal weapon possession, and drug trafficking. He was on state probation while engaged in the drug trafficking activity that led to this federal conviction.
Peters, of Hartford, pleaded guilty on November 16, 2017. He awaits sentencing.
This matter was investigated by the Hartford Police Department’s Vice and Narcotics Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Marc H. Silverman.
Harrison County man sentenced for firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jason Garcia Cano, of Clarksburg, West Virginia, was sentenced today to 27 months incarceration for a firearm charge, United States Attorney Bill Powell announced.
Cano, age 42, pled guilty to one count of “Unlawful Possession of a Firearm” in October 2017. Cano, having been previously convicted of a felony in the 426th District Court in Bell County, Texas, admitted to possessing a .22 caliber revolver in Harrison County in October 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Glenville Man Sentenced to 120 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Glenn Mears, age 46, of Glenville, New York, was sentenced today to 120 months in prison for distributing and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Kevin Kelly of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his guilty plea, Mears admitted to distributing child pornography using an Internet-based messaging application, and to possessing more than 1,000 images and videos of child pornography on 10 compact discs. Mears also admitted that he possessed child pornography involving prepubescent children and children under 12 years old.
Senior United States District Judge Thomas J. McAvoy also imposed a life term of supervised release, which will start after Mears is released from prison. As a result of his conviction, Mears will be required to register as a sex offender.
This case was investigated by HSI and the New York State Police, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Gilmer County man sentenced for illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA –Jeremy Allen Wolfe, of Glenville, West Virginia was sentenced today to 92 months incarceration for illegal possession of a firearm, United States Attorney Bill Powell announced.
Wolfe , age 32, pled guilty to one count of “Felon in Possession of Firearm” in September 2017. In November 2014, Wolfe was found in possession of multiple firearms, including three rifles and two shotguns, in Calhoun County, WV. Wolfe, having been convicted of a crime punishable by imprisonment for a term exceeding one year, that is, Delivery of a Controlled Substance, in Gilmer County, WV is prohibited from possessing firearms.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
Senior U.S. District Judge Irene M. Keeley presided.Getaway Driver Sentenced in Village West RobberyRead the Press Release
KANSAS CITY, KAN. – An Illinois man was sentenced Monday to 73 months in federal prison for driving the getaway car in a $53,000 holdup at a Verizon store in Village West, U.S. Attorney Stephen McAllister said. The robbers held store employees at gunpoint and bound them with zip ties.
Terry Curtis, 34, Rockford, Il., pleaded guilty to one count of commercial robbery. In his plea, he admitted that on Sept. 14, 2016, he was involved when four men robbed the Verizon Wireless store at 10621 Village West Parkway. Two of the robbers entered the store, followed two minutes later by the other two. The robbers locked the door and ordered the employees and a customer into a break room. The robbers ordered them to lay face down on the floor and tied their hands behind their backs. The robbers forced an employee to open a safe before they fled the store with phones and cash worth $53,000. Eventually, an employee managed to get loose and call police.
Investigators used surveillance photos from the robbery to tie the Kansas City robbery to a similar robbery weeks earlier at an AT&T Store in Rochester, Minn. They also received an anonymous call that led them to one of the co-defendants who was on parole in Illinois.
During the investigations, agents learned that some of the defendants in the Verizon robbery were part of a group involved in dozens of similar robberies in several states.
Co-defendants who are awaiting trial include:
Mario Lambert, 33, Rockford, Il.
Sir T. Love, 32, Rockford, Il.
Domonique V. Walker, 26, Rockford, Il.
Sharod Pitts, 35, Chicago, Il.
McAllister commended the Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Franklin County Man Charged in Connection with Large Cocaine SeizureRead the Press Release
SYRACUSE, NEW YORK – Jake Patnode, age 24, of Hogansburg, New York, was arrested on Saturday and charged with conspiracy to possess with intent to distribute cocaine.
The announcement was made by United States Attorney Grant C. Jaquith, U.S. Homeland Security Investigations (HSI)-Buffalo Field Office, Special Agent in Charge Kevin Kelly, Oswego County District Attorney Gregory Oakes, and Oswego County Sheriff Reuel A. Todd.
According to a criminal complaint, Oswego County Sheriff’s Deputies seized approximately 50 kilograms (110 pounds) of cocaine from a vehicle driven by the defendant northbound on Interstate Route 81 in the Oswego County Town of Hastings late Saturday evening after it was observed exceeding the posted speed limit. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
Patnode appeared in federal court today and was ordered held without bail pending a hearing scheduled for February 15, 2018.
The charge filed against Patnode carries a minimum sentence of 10 years and a maximum sentence of life in prison, a fine of up to $10 million and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by HSI and the Oswego County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Former Union Officer Sentenced to 1½ Years for Embezzling over $280,000 in Union FundsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Ryan Jones, 35 of Bath, Maine was sentenced today in U.S. District Court by Judge George Z. Singal to 1½ years in prison and three years of supervised release for embezzling $280,865 from a union during a period when he served as an officer of that union. He was also ordered to pay $280,865 in restitution. He pleaded guilty on September 6, 2017.
According to court records, from 2009 until January 2017, the defendant was the Secretary-Treasurer of the International Association of Machinists and Aerospace Workers, Local Lodge S6, a labor union. The defendant’s tenure ended when he failed to win re-election. In January, the newly elected union officials discovered discrepancies with union finances. The ensuing federal investigation revealed that the defendant made almost 200 unauthorized withdrawals from the union’s bank account, he fabricated monthly bank statements to conceal his withdrawals, he provided the fabricated bank statements to union auditors to deceive them, and he embezzled about $280,865 between May 2012 and November 2016.
The investigation was conducted by the Bath Police Department; the U.S. Department of Labor, Office of Labor-Management Standards; and the Federal Bureau of Investigation.
Former Niagara Falls Police Officer, Two Co-Defendants Plead Guilty for Their Roles in Drug ConspiracyRead 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 former Niagara Falls, NY, Police Officer Stephanie A. Costanzo, 29, pleaded guilty to managing a drug involved premises before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine. In addition, co-defendants Raymond Hopson and Lindsay Carrier pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine which is punishable by a mandatory minimum sentence of five years in prison, a maximum of 40 years and a fine of $5,000,000.
Assistant U.S. Attorney Joel Violanti, who is handling the case, stated that between July 28, 2016, and November 8, 2016, Raymond Hopson made several sales of crack cocaine to an undercover (UC) officer posing as a drug customer. During that time, Hopson was living with Stephanie Costanzo, at her residence on Grand Avenue in Niagara Falls. Hopson would store some of his cocaine, along with paraphernalia used to weigh and distribute the cocaine, at the residence.
On November 9, 2016, Special Agents from the Drug Enforcement Administration (DEA), along with the Niagara Falls Police Department executed a search warrant at Costanzo’s residence. Agents and officers recovered approximately 5.6 grams of cocaine, a digital scale used for weighing and distributing the cocaine, and drug paraphernalia used to package and distribute the cocaine. Although she did not participate in the distribution of the controlled substances, Costanzo was aware that Hopson stored his cocaine and paraphernalia at her residence.
Lindsay Carrier conspired with Raymond Hopson to distribute crack cocaine. On five occasions between July 28, 2016, and November 8, 2016, Hopson obtained crack cocaine from Carrier and then sold it to an undercover officer. A search warrant executed at the Willow Avenue residence of Carrier’s mother, resulted in the seizure of quantities of cocaine and crack cocaine.
The pleas are the result of an investigation by the Niagara Falls Police department, under the direction of Superintendent Bryan Dalporto, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Costanzo is scheduled to be sentenced on May 30, 2018, at 12:30 p.m. before Judge Arcara. Hopson and Carrier are scheduled to be sentenced on May 29, 2018, at 12:30 p.m. and 1:00 p.m. respectively, also before Judge Arcara.
Former Facilities Manager Sentenced to 30 Months in Prison for Theft from San Diego Workforce PartnershipRead the Press Release
Assistant U. S. Attorneys Emily Allen (619) 546-9738 and Benjamin Katz (619) 546-9604
NEWS RELEASE SUMMARY – February 12, 2018
SAN DIEGO – Jared Palmer, a former facilities manager for the San Diego Workforce Partnership, was sentenced to 30 months in prison today for embezzling more than $450,000 from the local Workforce Development Board that provides job training and placement to San Diego county residents and employers.
U.S. District Court Judge Larry A. Burns also ordered Palmer to pay $455,606.82 in restitution to the Partnership (SDWP).
According to court records, Palmer, as facilities manager, was responsible for approving payment of invoices submitted by janitorial companies contracted to clean SDWP’s facilities. Between 2011 and 2016, Palmer instructed these contractors to purchase items that he claimed were for SDWP’s use, including Nest Smart Thermostats, electronics, and pre-paid debit cards. Palmer then stole the items and replaced the hundreds of invoices that included the cost of these stolen items with false invoices that made it appear as if all of the charges were for legitimate janitorial services. Over the course of five years, Palmer’s scheme netted him at least $455,606.
Because SDWP is a Workforce Development Board funded largely by federal grant dollars, Palmer was convicted of Theft of Federal Program Funds, in violation of 18 U.S.C. § 666.
At sentencing, Judge Burns noted that Palmer’s theft consisted of “hundreds of discrete thefts that would have kept going if not discovered.” Judge Burns noted that Palmer conducted the theft with “great stealth, and great planning” and that the theft had “egregious consequences, not only for [SDWP] but also for the people it assists.”
“This organization does important work that provides job training, placement, and services to thousands of San Diegans every year,” said U.S. Attorney Adam Braverman. “This sentence shows that those who attempt to steal taxpayer dollars intended for worthy causes like this one will be brought to justice.”
“Federal grant dollars were stolen from the San Diego Workforce Partnership by Mr. Palmer, a trusted manager at this non-profit organization,” said FBI Special Agent in Charge John A. Brown. “The FBI will continue to expose and bring criminals to justice who attempt to line their pockets at the expense of federally funded programs intended to benefit our community.”
DEFENDANT Case Number: 17-cr-2157-LAB
Jared Palmer Age: 42
SUMMARY OF CHARGES
Theft of Federal Program Funds, 18 U.S.C. § 666
Maximum penalty: 10 years’ imprisonment, fine double amount obtained, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
U.S. Department of Labor – Office of Inspector General
Former Division of Highways engineer pleads guilty for fraudulent schemeRead the Press Release
CHARLESTON, W.Va. – A Lewis County man pleaded guilty today for his fake hotel invoice and expense report scheme to defraud the State of West Virginia, announced United States Attorney Mike Stuart. Steven Hull, 54, of Jane Lew, entered his guilty plea to mail fraud. U.S. Attorney Stuart commended the investigative efforts of the West Virginia Legislature Commission on Special Investigations.
“This scheme was literally highway robbery. Stealing from West Virginia taxpayers is a crime you won’t get away with,” said U.S. Attorney Stuart. “We take our obligation to protect taxpayer dollars extremely seriously, and I can assure you that my office is committed to uncovering public corruption and aggressively prosecuting this kind of theft.”
Hull admitted that from January 2011 through January 2017, he submitted false invoices attached to inflated expense reports for reimbursement by the State of West Virginia. Hull worked as an engineering technician at the West Virginia Division of Highways, and often traveled as part of his job, staying overnight throughout West Virginia. After each trip, the State of West Virginia would reimburse him. Hull admitted that during the course of his scheme, he provided expense reports for reimbursement that falsely represented the number of days he stayed at hotels, and further falsely represented that he paid for rooms for all those days.
Hull also admitted that from June 2014 until the end of his scheme, he entirely fabricated his hotel room expense reports. The reports would often state that he stayed at a Holiday Inn for a week at a time, when he was actually renting a room on a monthly basis from a less expensive hotel. Hull further admitted that he pocketed the difference in price between his monthly rental and his reimbursements. To disguise the scheme, Hull would produce detailed entries to legitimize the appearance of the fake invoices, including line items for taxes and a hotel rewards code number. From February 2011 through January 2017, Hull received $70,653.14 from submitting false hotel invoices. He paid approximately $18,144 for his monthly rental from June 2014 to December 2016.
Hull faces up to 20 years in federal prison when he is sentenced on May 15, 2018. As part of the plea agreement, he has also agreed to pay at least $52,509.14 in restitution.
Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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Former Arkansas Lawmaker Pleads Guilty to $4 Million Charity SchemeRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a former Arkansas state representative pleaded guilty in federal court today to his role in a conspiracy to embezzle more than $4 million from a Springfield, Mo.-based health care charity.
Eddie Wayne Cooper, 51, of Melbourne, Ark., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of conspiracy to embezzle from the nonprofit organization.
By pleading guilty today, Cooper admitted that he conspired with several executives of Preferred Family Healthcare, Inc., a non-profit charity headquartered in Springfield, to use the charity’s funds for unlawful political contributions, for excessive, unreported lobbying and to financially benefit themselves. Cooper received a total of at least $387,501 from a lobbying firm and at least $63,000 in kickbacks as a result of his participation in the conspiracy. Under the terms of today’s plea agreement, Cooper must forfeit his gain from the conspiracy to the government.
Cooper was an Arkansas State Representative from 2006 through January 2011, and a lobbyist registered with the Arkansas Secretary of State beginning Jan. 20, 2011. On April 20, 2009, Cooper was hired to the full-time position of regional director for Preferred Family Healthcare. Cooper’s employment with the charity ended on April 26, 2017. Cooper was a member of the charity’s board of directors from October 2009 through April 2015; he also worked as a lobbyist.
Court documents cite, but do not identify by name, five additional co-conspirators who are not charged in the fraud scheme. Person #1, Person #2 and Person #3 – all residents of Springfield – were executives at the charity. They include the founder and chief financial officer of the charity, the charity’s chief operating officer and the charity’s chief executive officer. Person #4, a resident of Rogers, Ark., served as an executive for company operations in the state of Arkansas. Person #4 also operated two lobbying firms.
According to today’s plea agreement, conspirators engaged in multiple schemes to unlawfully use the charity’s funds to make political contributions, for excessive and unreported lobbying and political advocacy, and to unjustly enrich themselves. For example, conspirators caused personal contributions to elected officials and their political campaigns to be reimbursed by the charity. Such indirect contributions are prohibited by law just as if the payments had been made by the charity directly.
In order to provide a veneer of legitimacy for the kickbacks paid to themselves and others, and to disguise the nature and source of the payments, conspirators caused the payments to be described in the records as business expenses, such as “consulting” and “training” services, and executed sham “consulting agreements.”
Part of the scheme involved $3 million in payments and kickbacks with a company identified in court documents as Lobbying Firm A, an Arkansas firm owned and operated by Person #4 that also employed Cooper as a lobbyist.
Preferred Family Healthcare paid Lobbying Firm A to provide lobbying and advocacy services. Cooper and others solicited the assistance of elected and appointed officials regarding legislative issues that impacted the charity, in particular matters involving the charity, and in steering grants and other sources of funding to the charity from 2010 through 2017. These funding sources included proceeds from the Arkansas General Improvement Fund.
Preferred Family Healthcare paid Lobbying Firm A more than $3 million from 2010 to 2017. These checks were falsely classified as a consulting expense in the books and records of the charity, when in fact the checks were payments for lobbying services, including direct contact with elected and appointed public officials, and for kickbacks paid to Person #1. From 2010 through 2015, the plea agreement says, Person #4 paid $640,500 in kickbacks to Person #1 by way of checks, and on numerous additional occasions, paid kickbacks in cash.
Part of the scheme also involved nearly $1 million in payments and kickbacks with a Philadelphia, Penn.-based lobbying firm. Donald Andrew Jones, also known as “D.A.” Jones, 62, of Willingboro, N.J., pleaded guilty on Dec. 18, 2017, to his role in the conspiracy.
Jones’s firm, D.A. Jones & Associates, based in Philadelphia, provides political and advocacy services, including consulting, analysis, and public relations. Jones admitted that he was paid approximately $973,807 by Preferred Family Healthcare for illegal lobbying and political activity on behalf of the charity. Two co-conspirators received a total of $264,000 in kickbacks from Jones.
According to court documents, Jones occasionally suggested that charity executives make political contributions to legislators they wanted to influence and/or thank for assistance. From time to time, Jones delivered their contribution checks directly to the legislators in Washington D.C., to increase the impact of the donations.
Between Jan. 12, 2012, and Jan. 17, 2017, Jones paid Person #4 a total of $219,000 in kickbacks. Additionally, at the direction of Person #4, Jones paid Cooper kickbacks of $25,000 on Jan. 8, 2013, and $20,000 on Dec. 26, 2013. On Jan. 18, 2012, Person #4 caused Lobbying Firm A to issue an $18,000 check Cooper, constituting Cooper’s share of Jones’s Jan. 2, 2012, kickback payment.
Under federal statutes, Cooper is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Preferred Family Healthcare & Dayspring Behavioral Health Services
Preferred Family Healthcare and its subsidiaries provide a variety of services to individuals, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. The charity, which reported more than $180 million in total revenue in 2016, received Medicaid reimbursements from the states of Missouri, Arkansas, Kansas and Oklahoma. The federal portion of those payments totaled more than $255 million from 2011 to 2016. The charity also received more than $53 million from the federal government (the Departments of Health and Human Services, Labor, Agriculture, Housing and Urban Development, Veterans Affairs, and Justice) under programs involving grants, contracts, loans, guarantees, insurance and other forms of federal assistance from July 1, 2010, to June 30, 2016.
Originally, and for most of its existence, Preferred Family Healthcare was known as Alternative Opportunities, Inc., which was incorporated in 1991. Alternative Opportunities merged with Preferred Family Healthcare of Kirksville, Mo., on May 1, 2015.
Dayspring Behavioral Health Services was an Arkansas company providing behavioral health services, which was acquired by Alternative Opportunities in 2007 and thereafter continued as a business alias of the charity. Doing business as Dayspring, the charity operated dozens of clinics throughout the state of Arkansas, offering a variety of behavioral health services to individuals, families, and groups.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the FDIC. This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, the Eastern District of Pennsylvania and the Public Integrity Section of the Department of Justice.
Five defendants plead guilty for roles in federal heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – Five defendants implicated in a federal heroin conspiracy pled guilty today, announced United States Attorney Mike Stuart. Ralph White, Jennifer Benson, Rachel Kuhn, all 36 and of Parkersburg, and Dennis Carter, 28, of Detroit, entered their guilty pleas to conspiracy to distribute 100 grams or more of heroin. Additionally, Heather Wells, 25, of Parkersburg, entered her guilty plea to distribution of heroin.
U.S. Attorney Stuart commended the collaborative investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Parkersburg Drug Task Force, the West Virginia State Police, the Wood County Sheriff’s Department, and the Police Departments of the cities of Parkersburg, Vienna, and Williamstown.
“This is exactly the kind of investigation and prosecution that’s going to help us take back our streets from the opioid crisis,” said U.S. Attorney Stuart. “Nearly a dozen drug criminals are facing hard time behind bars, and all as a result of the efforts of several law enforcement agencies working together. Job well done.”
White, Benson, Kuhn, and Carter admitted to their involvement with several other individuals in distributing heroin at various locations throughout the Parkersburg area. In addition, White, Kuhn, and Wells admitted selling heroin to a confidential informant working with the Parkersburg Drug Task Force and the FBI on numerous occasions between November 2016 and March 2017. Benson and Carter admitted distributing between one and three kilograms of heroin, while White and Kuhn admitted to distributing between 100 and 400 grams of heroin.
White, Benson, Kuhn, and Carter all face at least five and up to 40 years in federal prison when they are sentenced on May 7, 2018. Wells faces up to 20 years imprisonment when she is sentenced on the same date.
The five defendant who pled guilty today join Debra Martin, Joseph Reeder-Shaw, Bernard Spann, Jonathan Brown, and Sir Pritis Williams, all codefendants involved in the same conspiracy, who previously pled guilty to conspiracy to distribute 100 grams or more of heroin. These defendants face at least five and up to 40 years in federal prison when they are sentenced in April 2018. Additionally, Kennedy Michele Walker previously pled guilty to distributing heroin supplied by this organization, and she faces up to 20 years imprisonment when she is sentenced in April 2018.
Assistant United States Attorney John Frail is in charge of these prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
HOUSTON – Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Four of the defendants - Luis Carlos De Leon Perez (De Leon), 41, Nervis Gerardo Villalobos Cardenas (Villalobos), 50, Cesar David Rincon Godoy (Cesar Rincon), 50, and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017. Cesar Rincon was extradited from Spain on Feb. 9, 2018, and made his initial appearance today before U.S. Magistrate Judge Stephen Smith of the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant - Alejandro Isturiz Chiesa (Isturiz), 33, remains at large and a warrant remains outstanding for his arrest. All five defendants are citizens of Venezuela. De Leon is also a U.S. citizen.
De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering, while Cesar Rincon is charged with two counts of conspiracy to commit money laundering. De Leon, Cesar Rincon and Reiter are charged with four counts of money laundering, while Villalobos and Isturiz are charged with one and five counts of money laundering, respectively. De Leon and Villalobos are each also charged with one count of conspiracy to violate the FCPA.
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”
“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan. “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate. Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”
“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.”
The indictment alleges the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA. According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. The indictment further alleges the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions including to, from or through bank accounts in the United States. In some instances, they allegedly laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.
According to the indictment, two PDVSA vendors - Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida - sent more than $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers. The indictment alleges those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are currently awaiting sentencing.
With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger and ongoing investigation by the U.S. government into bribery at PDVSA.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid as well as from IRS Criminal Investigation. Deputy Chief John Pearson and Assistant U.S. Attorney (AUSA) Robert S. Johnson are prosecuting the case along with Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Four of the defendants, Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Cesar David Rincon Godoy (Cesar Rincon), 50; and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017. Cesar Rincon was extradited from Spain on Feb. 9, and made his initial appearance today before U.S. Magistrate Judge MJ Stephen Smith of the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant, Alejandro Isturiz Chiesa (Isturiz), 33, remains at large. All five defendants are citizens of Venezuela; De Leon is also a U.S. citizen.
De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering. Cesar Rincon is charged with two counts of conspiracy to commit money laundering. Each of the defendants is charged with one or more counts of money laundering, as follows: De Leon, Cesar Rincon and Reiter, four counts each; Villalobos, one count; and Isturiz, five counts. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA.
“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan. “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate. Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”
“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.
The indictment alleges that the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA. According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States, and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. The indictment further alleges that the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions, including to, from or through bank accounts in the United States, and, in some instances, laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.
According to the indictment, two PDVSA vendors, Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, sent over $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers. The indictment alleges that those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are currently awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Federal Jury Finds Scientist Guilty of Defrauding NASA, Navy, and Missile Defense AgencyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a jury has found Akbar Fard (53, formerly of Tampa) guilty of wire fraud. He faces a maximum penalty of 20 years in federal prison; his sentencing hearing is scheduled for May 24, 2018.
Fard was indicted on March 22, 2017.
According to testimony and evidence presented at trial, Fard defrauded the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs of the National Aeronautics and Space Administration (NASA), the Missile Defense Agency, and the United States Navy out of approximately $2.1 million. The SBIR/STTR programs support scientific excellence and technological innovation through the investment of federal research funds. Fard thwarted the fundamental purpose of these programs by using the funds to support his lifestyle instead of purchasing research materials.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Special Agent in Charge John Corbett, Central Field Office. “This jury verdict serves as a staunch reminder that such conduct will not be tolerated. The NASA OIG applauds the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to our continued cooperation with our law enforcement partners in the pursuit of justice.”
“This verdict demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that federal contractors do not defraud the U.S. Government and waste precious taxpayer dollars. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs,” said Special Agent in Charge John F. Khin, Southeast Field Office.
“The Naval Criminal Investigative Service works tirelessly to identify individuals who attempt to defraud United States Naval and Marine Corps forces around the globe. This verdict reflects a joint effort with our partner agencies and the Department of Justice to bring accountability to those individuals who waste taxpayer dollars,” said Special Agent in Charge Michael Wiest, NCIS Southeast Field Office.
This case was investigated by NASA’s Office of the Inspector General, the Defense Criminal Investigative Service, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Jury Convicts Rocky Mount Man of Felon in Possession ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that last Friday evening, BAKARI MAURICE TEACHEY aka “Double R”, a Rocky Mount resident, was convicted in a three-day jury trial before Senior United States District Judge W. Earl Britt. The jury found TEACHEY guilty of 3-counts of Possession of a Firearm and/or Ammunition by a Convicted Felon.
The evidence at trial showed that TEACHEY pistol-whipped a man on May 9, 2017, at his estranged wife’s home, and the victim received medical treatment. Two days later, TEACHEY was found in possession of a stolen Ruger 9 mm pistol during a traffic stop by the Rocky Mount Police Department. On August 4, 2017, Rocky Mount Police Officers executed a search warrant on the home that TEACHEY shared with his fiancée. The officers located numerous firearms and ammunition including a Smith and Wesson M&P 15 rifle, a Century Arms 7.62x39 rifle, a Glock 9mm pistol with an extended magazine, a .357 Taurus revolver, and assorted ammunition including ammunition for the caliber of firearms recovered and other ammunition. TEACHEY is scheduled to be sentenced on June 4, 2018.
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 Rocky Mount Police Department, the Cumberland County Sheriff’s Office, the North Carolina State Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette represented the government in this case.
Farmer Branch Man Sentenced to Serve a Total of 128 Months in Federal Prison on Drug ChargesRead the Press Release
DALLAS — Jose Humberto Solis, 39, of Farmers Branch, Texas, was sentenced last week by U.S. District Judge Jane J. Boyle to serve a total of 128 months in federal prison following his guilty pleas in January 2016 and September 2017 to drug offenses as charged in two Northern District of Texas cases, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
In one case, Solis pleaded guilty to one count of possession with intent to distribute a Schedule I controlled substance (heroin). He received 128 months on that drug conviction.
In the subsequent case, Solis pleaded guilty to one count of conspiracy to distribute a Schedule I controlled substance (heroin) and one count of conspiracy to commit money laundering and was sentenced to 128 months in federal prison. That sentence will run concurrently to the first sentence imposed.
In the first case, between August 31, 2015 and September 1, 2015, Solis possessed and agreed to sell kilogram quantities of heroin. Specifically, on September 1, 2015, Solis traveled to a Target store located in Farmers Branch, Texas, with the specific intent to distribute one kilogram of heroin. After arriving at the Target, Solis was detained by law enforcement agents and the one kilogram of heroin was seized from his vehicle.
According to the plea agreement factual resume filed in the subsequent case, in 2013, agents with the Drug Enforcement Administration began an investigation into heroin sales in the Ninth Ward of New Orleans, Louisiana. Solis was identified as facilitating the distribution of heroin in the Ninth Ward of New Orleans by supplying heroin he obtained in Dallas, Texas.
On December 19, 2014, a Louisiana State Police Trooper observed a white Honda Civic travelling on Interstate 10 in Jefferson Parish, Louisiana. The Trooper observed the vehicle’s driver swerving in and out of his lane and onto the shoulder of the freeway. The Trooper pulled the vehicle over for illegal use of traffic lanes. Solis was identified as the passenger of the vehicle. The trooper observed both the driver and Solis appearing very nervous. Based on his observations, the Trooper believed that the occupants may be engaged in illegal activity. Solis refused to give consent to search and a K-9 unit was requested. The K-9 alerted to narcotics in the passenger compartment. A search of the vehicle revealed approximately one-half kilogram of heroin in a Jack-in-the-Box food bag sitting on the front passenger side floorboard of the vehicle.
The case was investigated by the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
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Drug Dealer Sentenced to 235 Months ImprisonmentRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Daniel Woolem, age 49, of Moxee, Washington, was sentenced for Conspiracy to Distribute Methamphetamine and for Distribution of Methamphetamine. United States District Judge Stanley A. Bastian sentenced Woolem to a 235-month term of imprisonment, to be followed by five years of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in July 2015, a task force was created to investigate suspected drug trafficking organizations operating within Yakima County. During the investigation, law enforcement learned that Woolem was selling methamphetamine out of his residence in Moxee. In addition, law enforcement officers learned that Woolem was supplying street level drug dealers with methamphetamine. Law enforcement officers obtained multiple photographs of Woolem meeting with street level drug dealers at his residence. The investigators gathered evidence which resulted in the filing of a criminal Indictment.
On October 26, 2016, a search warrant was executed at the Woolem residence. In addition to other items, law enforcement officers discovered an elaborate security system, multiple firearms, loaded magazines, a suppressor, a bump stock, and drug paraphernalia.
In August, 2017, the case went to trial. Multiple witnesses testified concerning personal observations of Woolem selling methamphetamine at his residence. Several law enforcement officers testified and described the organization. The jury was provided with evidence obtained during the investigation. Woolem testified that he never sold drugs and that he was essentially a Good Samaritan who assisted the less fortunate. Woolem described how he occasionally would bring homeless people from Walmart to his home to bathe, and that he would provide them with food, cigarettes, and other items. On August 24, 2017, the jury found him guilty of all the charges.
At the February 7, 2017 sentencing hearing, Judge Bastian observed that Woolem lied when he testified under oath, which resulted in an obstruction of justice Enhancement. Judge Bastian determined that it was clear Woolem had a leadership role in the distribution of methamphetamine. It was based, in part, on Woolem’s obstruction of justice and leadership role that resulted in the 235-month term of imprisonment and five years of court supervision following release from federal prison.
Joseph H. Harrington stated, “I commend the law enforcement officers who worked on this case. Their seamless partnership resulted in the successful outcome in this matter. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for offenders who distribute drugs in this District.”
This investigation was conducted by the Drug Enforcement Administration, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, the Yakima Police Department, the Union Gap Police Department, the Moxee Police Department, the Toppenish Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security – Homeland Security Investigations, and the Law Enforcement Against Drugs Task Force. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Des Moines Man Sentenced to 15 Years in Prison for Firearms OffenseRead the Press Release
Shannon Maurice Johnson used a third party to illegally purchase guns
DES MOINES, Iowa – On February 12, 2018, Shannon Maurice Johnson, age 32, of Des Moines, Iowa, appeared before United States District Court Chief Judge John A. Jarvey and was sentenced to 180 months in prison following his plea of guilty to a felon in possession of firearms charge.
According to the plea agreement, Johnson admitted he utilized a third-party, his co-defendant Carolett Leyva, to purchase firearms for him from Des Moines area gun shops, as he was unable to do so because of a prior felony conviction. Defendant was found in possession of one of these firearms during a traffic stop by law enforcement in Illinois in February of 2017. Carolett Leyva is scheduled to be sentenced by Chief Judge Jarvey on February 20, 2018.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Illinois State Patrol, Mid Iowa Narcotics Task Force, and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Department of Justice FY 2019 Budget RequestRead the Press Release
President’s Request Invests in Department of Justice Criminal Justice Priorities, Including Protecting National Security, Supporting Law Enforcement, Enforcing Immigration Laws, and Protecting our Citizens from Violent Crime and the Scourge of the Opioid Epidemic.
President Trump’s FY 2019 Budget proposal totals $28 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening security efforts to reduce violent crime, enforce the nation’s immigration laws, combat the opioid epidemic, and continues its commitment to national security.
“The Department of Justice has the noble task of keeping the American people safe from drugs, gangs, and terrorists, and this budget proposal reflects our commitment to do just that,” said Attorney General Jeff Sessions. “President Trump has ordered us to accomplish these goals by supporting state and local law enforcement, dismantling transnational organized crime, and working to bring down crime rates. For the last year, we have aggressively carried out that agenda and have already seen major successes that benefit the American people. Congress should invest in these efforts—because all of us benefit from a safer America.”
The Department of Justice’s areas of investment include:
- +$295 million in program enhancements and transfers to fight the opioid crisis and support law enforcement safety. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
- +$65.9 million in immigration related program enhancements to enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration.
- +$109.2 million to strengthen federal law enforcement’s ability to reduce violent crime.
- +$10 million for BOP’s apprentice program giving inmates the necessary skills for successful post incarceration employment.
- +$13 million for the Criminal Division to support Mutual Legal Assistance Treaty (MLAT) reform.
- $3.9 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2019 Budget and Performance Summary at https://www.justice.gov/doj/fy-2019-budget-and-performance-summary.
Combating Violent Crime
Protecting the American people from violent crime is a top priority for the Department of Justice. Unfortunately, in recent years, crime has been on the rise in too many places across the country. FBI statistics show that, in 2015 and 2016, the United States experienced the largest increases in violent crime in a quarter-century. Over those two years, violent crime increased by nearly 7%. Robberies, assaults, and rapes all increased, and murder increased by a shocking 20%.
In 2017, the Department made some great strides, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally based strategies to reduce violent crime. The Department brought cases against the greatest number of violent criminals in at least 25 years—since the Department began tracking a “violent crime” category. Although preliminary numbers for 2017 show a decrease, violent crime rates are still excessively high.
The FY 2019 budget requests $109.2 million in program enhancements to reduce violent crime and combat transnational criminal organizations. These resources will enable the Department to dismantle the worst criminal organizations, target the most violent offenders, and protect the public.
For more information, view the Combating Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Enforce Immigration Laws
The FY 2019 President’s Budget strengthens the Nation’s security through stronger enforcement of the Nation’s immigration laws. The Department is requesting $65.9 million in immigration-related program enhancements for FY 2019, which will enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice. This budget supports the Department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Drug Enforcement and the Opioid Crisis
The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 63,600 Americans died from drug overdoses in 2016, a 21% increase from the previous year. Over 42,200, or approximately two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. The President declared this scourge a National Public Health Emergency in October 2017, and the Department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.
The FY 2019 budget requests $295 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources will enable the Department to target those drug trafficking organizations most responsible for the opioid epidemic and drug-related violence in our communities, as well as ensure the life and safety of first responders who are on the front lines protecting the American people.
For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
State, Local, and Tribal Assistance
The Justice Department is committed to reducing violent crime and addressing the opioid epidemic. Federal law enforcement officers constitute only 15% of the total number of law enforcement officers nationwide; therefore, 85% of the officer support relies upon strong partnership with state and local law enforcement. The Department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.
The FY 2019 Budget continues its commitment to state, local and tribal law enforcement by investing approximately $3.9 billion in discretionary and mandatory funding in programs to assist them. Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.Restructuring Initiatives
The President’s Administration is committed to establishing a smaller, leaner federal government that reduces, both, bureaucracy and costs to the American taxpayer. Since 2017, the Department of Justice has undertaking efforts to refocus resources and turn our efforts back to our core mission. To support the President’s Executive Order 13781 on reorganizing the Executive Branch, the Department of Justice has begun taking steps to streamline itself and to save taxpayer dollars. As part of the FY 2019 President’s Budget, the Department is proposing a number of initiatives to achieve savings, to reduce the size of government, and maximize agency performance.
For more information, view the Restructuring Initiative Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Dayton Man Sentenced to 120 Months in Prison for Distributing FentanylRead the Press Release
DAYTON – Nicholas Gay, 37, of Dayton, was sentenced in U.S. District Court to 120 months in prison for distributing fentanyl.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer and other members of the Sheriff’s Office RANGE Task Force announced the sentence handed by U.S. District Judge Walter H. Rice.
According to court documents, Gay sold a confidential informant fentanyl on three occasions, totaling approximately 14 grams of the drug. A recorded conversation between Gay and the confidential informant included Gay giving instructions on how to dilute the drug in order to make a larger profit when reselling it.
When executing a search warrant at Gay’s home, investigators found an additional 200 grams of fentanyl and fentanyl/heroin mixture in a Crown Royal bag in plain view on a table, as well as $5,000 in cash.
Gay pleaded guilty in September 2017 to one count of distributing fentanyl.
“Gay had in his home more than 200 grams of various fentanyl mixtures – the equivalent of thousands of potential sales to drug addicts,” U.S. Attorney Glassman said. “After having previously served time for dealing cocaine, Gay will now will spend the next decade in prison for trafficking fentanyl. His removal makes the community safer.”
U.S. Attorney Glassman commended the cooperative investigation by the Montgomery County Sheriff’s Office RANGE Task Force, as well as Assistant United States Attorneys Brent G. Tabacchi and Andrew J. Hunt, who are representing the United States in this case.
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Couple Pleads Guilty to Structuring Financial Transactions to Evade Reporting RequirementsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Bobby L. Ratcliffe (59) and Wanda F. Ratcliffe (55), both of Reddick, Florida, have pleaded guilty to conspiracy to structure financial transactions to evade reporting requirements. Each faces up to five years in federal prison; a sentencing date has not yet been set.
According to the plea agreement, Bobby and Wanda Ratcliffe structured cash deposits and withdrawals into and out of bank accounts that they controlled. The couple often traveled to Jacksonville, Orlando, and Tampa to conduct the transactions. To avoid Currency Transaction Reports, which are required for currency transactions exceeding $10,000 in a single day, they made individual deposits of less than $10,000 at different credit unions, or branches of the same credit union, on the same day or over consecutive days.
In addition to structuring cash deposits, the Ratcliffes made structured cash withdrawals by writing and cashing numerous personal checks made payable to themselves. Between August 2014 and July 2015, they wrote more than 1,750 checks to themselves for cash. Although the aggregate amount of withdrawals exceeded $10,000, no individual check was greater than $10,000 on a single day. In less than a year, the couple structured more than $4.5 million.
This case was investigated by the U.S. Treasury Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the Federal Insurance Deposit Corporation – Office of Inspector General, the Social Security Administriation – Office of Inspector General, the U.S. Secret Service, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
Christiansburg Couple Sentenced on Tax Fraud, Bankruptcy-Related ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Rick A. Mountcastle announced the sentencing of two Christiansburg residents who were previously convicted of tax fraud and multiple bankruptcy fraud charges.
Regan Dwayne Reedy, 56, was sentenced last week to 108 months in prison. He was previously convicted of conspiracy to commit tax fraud, making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.
Susan Annette Reedy, 50, was sentenced last week to 78 months in prison. She was previously convicted of making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.
According to evidence presented to the jury during the trial of Reagan and Susan Reedy by Assistant United States Attorney Joseph W. H. Mott, Reagan Reedy filed a number of fraudulent tax returns for individuals claiming refunds. The returns claimed excessive federal withholdings that resulted in excessive claims for tax refunds totaling over $1 million. A majority of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
In addition to the tax return fraud, Regan Reedy and Susan Reedy filed three Chapter 7 bankruptcies seeking to discharge debts to private and governmental creditors. In filings in 2012 and again in 2014, Regan and Susan Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. Those assets included bank accounts, real estate, and vehicles they had placed in nominee names. At a creditors meeting in December 2014, both falsely testified regarding their means of support and the extent of their assets. During their sentencing hearings last week, Regan and Susan Reedy were each held responsible for concealing over $1.8 million in assets during the course of the bankruptcies.
The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and the Office of the United States Trustee.
Chicago Restaurateur Charged with Fraud for Allegedly Swindling Investors in His West Loop EateryRead the Press Release
CHICAGO — A Chicago restaurateur was charged today with misappropriating funds and swindling investors in his West Loop eatery.
ATTILA GYULAI, who together with a relative owned a majority stake in Embeya restaurant, used company funds to pay personal expenses and illegally pocketed cash from investors, according to a criminal complaint and affidavit filed today in U.S. District Court in Chicago. From approximately 2011 to 2016, Gyulai misappropriated at least $300,000, to the detriment of co-owners and investors, the complaint states.
Embeya, which was located in the 500 block of West Randolph Street in Chicago, closed in 2016.
The complaint charges Gyulai, 45, most recently of Chicago, with wire fraud. In addition to the complaint, the Court today also authorized a warrant for Gyulai’s arrest.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
In order to open the restaurant and obtain a bank loan, Gyulai represented to shareholders that he and his relative had invested $140,000 of their own funds, the complaint states. Gyulai had in fact borrowed those funds from family and friends, and in 2013, he used company funds to pay them back, while concealing the payments from other shareholders, the complaint states. The following year, Gyulai made payments to himself and his relative totaling approximately $140,000 as a purported return of their initial capital, even though they had not invested their own money in the restaurant, the complaint states. Gyulai had thus paid himself and his relative double the purported initial investment amount, to the detriment of other shareholders, according to the complaint. He also used company funds for personal stock trading during the operation of the restaurant, the complaint states.
Not long before Embeya closed, Gyulai wired $103,750 from the restaurant’s corporate account to an account held overseas, the complaint states. The money represented a substantial amount of funds remaining in Embeya’s account at the time, the complaint states. Gyulai left the United States soon after transferring the funds.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Sunil Harjani.