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8 February 2018
Brazilian National Sentenced for Scheme to Launder $20 Million in Proceeds from the TelexFree FraudRead the Press Release
BOSTON – A Brazilian national was sentenced today in federal court in Boston for conspiring to launder approximately $20 million in proceeds from the TelexFree pyramid scheme.
Cleber Rene Rizerio Rocha, 28, was sentenced by U.S. District Court Judge Leo T. Sorokin to 33 months in prison and one year of supervised release. In October 2017, Rocha pleaded guilty to one count of conspiring to commit money laundering and one count of money laundering.
In April 2014, a search warrant was executed at the headquarters of TelexFree Inc., a massive pyramid scheme based in Marlborough, Mass., that caused billions of dollars in losses to nearly two million victims worldwide. Later that same day, Carlos Wanzeler, one of the founders of the company, fled first to Canada and then to Brazil, his native country. In his haste to flee the United States, however, Wanzeler left millions of dollars hidden in the greater Boston area.
In mid-2015, an intermediary working on Wanzeler’s behalf contacted an associate for help transferring the money from the United States to Brazil. The associate, who later cooperated with federal authorities, arranged with Wanzeler’s representative in Brazil to launder cash through Hong Kong, convert it to Brazilian Reals, and then transfer it to Brazilian accounts. In January 2017, Rocha, working as a courier for Wanzeler’s representative in Brazil, flew from Brazil to New York City. Rocha later met the cooperating witness in Hudson, Mass., where Rocha gave him a suitcase containing $2.2 million of Wanzeler’s hidden TelexFree money, intending that the cooperating witness help launder the cash out of the United States. After the meeting, agents followed Rocha to an apartment in Westborough, Mass., and he was later arrested. A search of the apartment resulted in the seizure of approximately $20 million in cash found hidden in a mattress box spring.
Wanzeler and TelexFree co-founder James Merrill were indicted in July 2014 on charges that they operated TelexFree as a massive pyramid scheme. Merrill pleaded guilty to those charges and was sentenced in March 2017 to six years in prison. Wanzeler remains a fugitive.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. U.S. Attorney Lelling and Assistant U.S. Attorney Neil J. Gallagher Jr. of the Economic Crimes Unit prosecuted the case.
Bradenton Man Sentenced to Fifteen Years for Firearm and Drug Trafficking Related OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Travis Marcel Hickman (32, Bradenton) to 15 years and 1 day in federal prison for possessing a firearm as a convicted felon and for possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on June 13, 2017.
According to court documents, on November 17, 2017, deputies from the Manatee County Sherriff’s Office initiated a traffic stop on Hickman’s car. He fled, leading the deputies on a chase that resulted in him colliding with another vehicle in a residential neighborhood. Hickman emerged from his car with a backpack containing various narcotics, including morphine and crack cocaine. Law enforcement officers recovered a loaded .40 caliber pistol from his disabled vehicle, and a subsequent search of Hickman’s motel room revealed a loaded 9mm pistol, ammunition, and various narcotics, including opioids, cocaine, and crack cocaine. At the time, Hickman was a convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Bradenton Felon Convicted of Drug Trafficking and Possessing Five FirearmsRead the Press Release
Tampa, Florida– United States Attorney Maria Chapa Lopez announces that a federal jury has found Woodrow Pressey, Jr. (47, Bradenton) guilty of possessing cocaine with the intent to distribute it, and possessing five firearms and several rounds of ammunition as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison.
Pressey was indicted on September 6, 2017.
According to testimony and evidence presented at trial, on June 12, 2017, the Manatee County Sheriff’s Office and the Federal Bureau of Investigation executed a search warrant at Pressey’s home and found crack cocaine, fentanyl, a razorblade used for cutting crack cocaine, and two digital scales in his bedroom. In a locked shed in the backyard, investigators found a .38 caliber revolver, a .357 magnum caliber revolver, a 12-gauge shotgun, a .30-06 caliber rifle, a 7.62 caliber assault rifle, five rounds of 12-gauge shotgun ammunition, five rounds of .357 magnum caliber ammunition, and two rounds of .38 caliber ammunition. Pressey had two keys in his possession that unlocked the shed.
Following his arrest, Pressey told investigators that he had been released from Florida state prison on April 29, 2017, and began selling heroin and crack cocaine two days later. He said he had hidden the firearms in the shed while he was in prison and was planning to find a buyer for the guns.
Pressey has prior felony convictions for trafficking heroin, possessing cocaine with the intent to sell it, and aggravated assault and is therefore prohibited from possessing firearms or ammunition under federal law.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Hot Batch.” It was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Manatee County Sheriff’s Office and it is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.
It is also part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Bobby Willis Sentenced to Two Years in Federal Prison for Wire Fraud Conviction Arising Out of Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – Bobby Willis, 45, a resident of Kirtland, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 24 months in prison followed by three years of supervised release for his conviction on wire fraud charges. The court will be scheduling a hearing to determine the amount of restitution Willis will be required to pay to the victims of his fraudulent conduct.
Willis was charged in a two-count indictment filed on Oct. 20, 2015, alleging that, from March 2010 through Aug. 2011, he executed an illegal scheme to defraud two victims out of a $1,000,000.00. According to the indictment, Willis offered the victims an opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000.00 with the understanding that he and other individuals had also invested millions of dollars in the company. Willis then spent the victims’ money instead of investing the funds.
Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000.00 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account. Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account.
On July 12, 2017, Willis pled guilty to the two-count indictment. In entering the guilty plea, Willis admitted meeting the victims in 2010 and devising a plan to cause the victims to give him $1,000,000.00 to invest in a real estate LLC created by Willis. Willis further admitted directing the victims to work with his associates to invest the money in a real estate company. That same real estate company transferred $995,000.00 into an account held by Willis and his wife on Oct. 25, 2010 and Nov. 18, 2010.
In his plea agreement, Willis admitted that he and his wife spent the victims’ money. Willis also admitted that he did not invest the victims’ money in any real estate, and when the victims inquired about the status of their investment, he had associates falsely assure the victims that their investment had grown in value.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney C. Paige Messec.
Berkeley County man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Bunker Hill, West Virginia man has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
David Smeltzer, of Bunker Hill, West Virginia, age 36, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin.” Smeltzer admitted to selling heroin in Berkeley County in January 2017.
Smeltzer faces up to 20 months incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belmont County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Phillip Weir, of Bridgeport, Ohio, was sentenced today to 51 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Weir, age 32 pled guilty to one count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school” in November 2017. Weir admitted to working with another to sell crack cocaine near Madison Elementary School in Wheeling, WV on September 22, 2016.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U. S. District Judge John Preston Bailey presided.
Bank Robber SentencedRead the Press Release
U.S. Attorney Duane A. Evans announced that KRISTEN WILLIAMS, age 44, was sentenced today after previously pleading guilty to one count of bank robbery, in violation of 18 U.S.C § 2113(a).
U.S. District Judge Susie Morgan sentenced WILLIAMS to a term of imprisonment of 70 months, 3 years of supervised release, and a $100 mandatory special assessment.
According to court documents, WILLIAMS robbed the Gulf Coast Bank and Trust located at 201 North Carrollton Avenue in New Orleans on November 5, 2016. WILLIAMS, whose actions were recorded by surveillance video, robbed the bank of $4,983.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Maria Carboni and J. Ryan McLaren were in charge of the prosecution.
Arvada Man Sentenced to Federal Prison for Mailing MarijuanaRead the Press Release
DENVER – Mark Herbert Koenig, age 36, of Arvada, Colorado, was recently sentenced by U.S. District Court Judge R. Brooke Jackson to serve one year and a day in federal prison for possession of a controlled substance with the intent to distribute, U.S. Attorney Bob Troyer and U.S. Postal Inspector in Charge Dana Carter announced. Koenig was sentenced on January 25, 2018, following his entering a guilty plea on October 27, 2017.
According to the stipulated facts contained in the plea agreement, in four separate times, October 5, 2015, November 17, 2015, December 16, 2015, and January 6, 2016, Koenig was observed mailing a package. U.S. Postal Inspectors seized each package after a drug dog alerted to it. A warrant was obtained in each instance, and the packages opened, containing between 950 grams to 1.600 kilograms of marijuana. On January 13, 2016, a search warrant was obtained for the defendant’s residence. Inside Postal Inspectors found 123 mature marijuana plants. For purposes of sentencing, both the prosecution and defense agreed in the plea agreement that the total amount of marijuana that was considered for relevant conduct was 18,672 grams.
“U.S. Postal Inspectors continue to aggressively target individuals who use the postal service to distribute controlled substances,” said Dana Carter, Inspector in Charge of the U.S. Postal Inspection Service, Denver Division. “Our efforts to protect the nation’s mail, and postal customers, from illegal drug shipments are highlighted in cases such as these, where repeat offenders are sent to federal prison.”
This case was investigated by the U.S. Postal Inspection Service, along with the Arvada Police Department and the West Metro Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Armed Career Criminal Sentenced to 20-Year Federal Prison Term for Possession of a Firearm by a Convicted FelonRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that Chief U.S. District Court Judge Brian A. Jackson has sentenced DERRICK SHELBIA, age 40, of Baton Rouge, Louisiana, to serve 20 years in federal prison for possession of a firearm by a convicted felon. SHELBIA will also be required to serve a five-year term of supervised release upon his release from prison.
In July 2017, SHELBIA pleaded guilty to being a felon in possession of a firearm. SHELBIA was apprehended for possessing a firearm after a spree of violent crimes in Ascension and East Baton Rouge Parishes during a one-month period in October and November of 2016. SHELBIA’s crime spree ultimately ended after he was caught in a stolen car that he acquired during one of the armed robberies, through the cooperation of local police and the ATF.
SHELBIA was previously convicted of multiple armed robberies and was prohibited from possessing a firearm.
Acting U.S. Attorney Corey Amundson stated, “Defendant Shelbia is a violent predator who deserves every minute of his 20-year prison term. This is yet another illustration of how the federal firearms laws can be excellent tools in our collective fight against violent crime. I commend the agents, officers, and prosecutors who worked together on this important case, and I look forward to continuing to bring the fight to those who seek to victimize our community.”
ATF-Baton Rouge Resident Agent-in-Charge Antonio L. Pittman stated, "Through partnerships with our federal, state and local partners, ATF is able to contribute to the safety of our communities. The conviction and sentencing of DERRICK SHELBIA displays the commitment all law enforcement agencies have for the citizens of Louisiana.”
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Department, Ascension Parish Sherriff’s Office, and the Louisiana State Police. It was prosecuted by Assistant United States Attorney Cal Leipold.
Antitrust Division Establishes the “Jackson-Nash Address” and Announces Professor Alvin Roth as Inaugural SpeakerRead the Press Release
The Antitrust Division is pleased to announce the establishment of the Jackson-Nash Address, and to announce that Professor Alvin Roth, the McCaw Professor of Economics at Stanford University, will be the inaugural speaker. Professor Roth is the 2012 winner of the Nobel Prize for Economics for the theory of stable allocations and the practice of market design, and the author of “Who Gets What and Why.” He will deliver his address on February 26, 2018, at The Great Hall, The Robert F. Kennedy Building, Department of Justice, 950 Pennsylvania Avenue NW, Washington, DC, at 2:00 p.m.
“The goals of the Jackson-Nash Address series are to recognize the contributions of former Supreme Court Justice Robert H. Jackson and Nobel Laureate economist John Nash, and to honor the speaker, recognizing and celebrating the role of economics in the mission of the Division,” said Assistant Attorney General Makan Delrahim. “Professor Roth’s important contributions to game theory and market design make him an exemplary inaugural speaker.”
Justice Jackson served as Assistant Attorney General of the Antitrust Division prior to his appointment to the Supreme Court. During his tenure at the Division, he set the stage for the expanded role of economics in antitrust, replacing vague legal standards with the “protection of competition” as the goal of antitrust law.
Professor John Nash’s research has provided the Division’s economists with the analytic tools necessary to protect competition. In particular, Professor Nash’s strategic theory of games and his axiomatic bargaining model have had a profound effect on the Division’s enforcement mission. The Division’s economists commonly rely on these theories to guide investigations and to help evaluate the effects of mergers, monopolization, and collusion.Non-Division attendees must enter through the entrance between 10th and Constitution Avenue, NW, and clear building security. Any inquiries regarding security and logistics should be directed to Jeremy Edwards in the Office of Public Affairs at (202) 514-2007 or [email protected].
Albany Felon Sentenced on Firearms ConvictionsRead the Press Release
ALBANY, NEW YORK – Shawn Faircloth, age 46, of Albany, was sentenced today to 68 months in prison following his guilty plea to possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his guilty plea, Faircloth admitted that in early 2013, in downtown Albany, he traded heroin to a drug addict in exchange for a loaded Smith & Wesson .38-caliber revolver. On August 9, 2013, while executing a search warrant at Faircloth’s apartment, police found the revolver hidden inside a bathroom. The gun was loaded. Also in the bathroom, police found a digital scale and supply of Ziploc bags that Faircloth admitted he used to package heroin and crack cocaine, which he sold in Albany.
Senior United States District Judge Frederick J. Scullin Jr. also ordered Faircloth to serve 3 years of supervised release upon Faircloth’s release from prison.
This case was investigated by ATF and the Albany Police Department, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Wayne A. Myers.
25 Defendants of the “Major Stackz Entertainment” Street Gang have been Indicted on Federal Drug Trafficking ChargesRead the Press Release
Memphis, TN – Twenty-five members and associates of an armed drug trafficking organization, Major Stackz Entertainment, have been indicted for conspiring to distribute large quantities of cocaine, methamphetamine, heroin and marijuana throughout West Tennessee. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
On January 10, 2018, a federal grand jury returned the indictment, which remained sealed until the defendants’ arrest. On Wednesday, February 7, 2018, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Members and associates of Major Stackz used firearms to protect their supply of drugs, supply routes, profits and distribution territory from competing drug trafficking organizations. The members and associates are from different, traditional street gangs, including the Young Mob, Vice Lords, Gangster Disciples, Kitchen Crip, and Bloods that have joined together to make money through criminal activity.
Symbolism played a large role in Major Stack culture. The primary symbol with which the gang associated was the acronym "MSE" for "Major Stackz Entertainment." Shirts and social media posts containing words like "MSE," "Major Stack," or "Stackz," were also known as gang identifiers.
Major Stackz started in and primarily operated out of the East Memphis area near the intersection of Kerr and Pillow Street in an area known to the locals as "DHG" or "Dope, hoes and guns." This area is located in the Western District of Tennessee.
The eighteen defendants listed are currently in custody:
Jarvis Cooper, a/k/a/ "J-Bo" "J-Bizzle," 31, Memphis, Tennessee
Terence Harper, a/k/a/ "Red," 44, Memphis, Tennessee
Jackie Arnold, a/k/a "Jackie Red," 47, Memphis, Tennessee
Joseph Newberry, 40, Memphis, Tennessee
Pamela Perkins, 28, Memphis, Tennessee
Anthony Jones, a/k/a "Squirt," 24, Memphis, Tennessee
Calvin Myers, a/k/a "CJ," 20, Memphis, Tennessee
Antonio Worles, a/k/a "Joe," 19, Memphis, Tennessee
Sandreka Wright, 34, Memphis, Tennessee
Delbert Harrison, a/k/a "Clay," 30, Henning, Tennessee
Sanitory Campbell, a/k/a "Toe," 43, Memphis, Tennessee
Antwan Miles, a/k/a "Twan," 20, Memphis, Tennessee
Darnell Ward, a/k/a "D," 37, Memphis, Tennessee
Amanda Harrison, 35, Henning, Tennessee
Alberto Chavoya, 34, Memphis, Tennessee
Daryl Mason, a/k/a/ "D," 28, Memphis, Tennessee
Tim Scotto, 53, Cordova, Tennessee
Sergio Lopez, 34, Compton, California
Count 1 charges Jarvis Cooper; Terence Harper; Jackie Arnold; Pamela Perkins; Joseph Newberry; Anthony Jones; Calvin Myers; Antonio Worles; Darnell Ward; Antwan Miles; Sandreka Wright; Amanda Harrison; and Sanitory Campbell with knowingly possessing firearms in furtherance of drug trafficking crimes; knowingly using and carrying firearms during and in relation to drug trafficking crimes.
Count 2 charges Jarvis Cooper; Terence Harper; Darnell Ward; Joseph Newberry; Anthony Jones; Calvin Myers; Antonio Worles; Antwan Miles; Amanda Harrison; Sandreka Wright; Delbert Harrison; Alberto Chavoya; Daryl Mason; Tim Scott; Sergio Lopez and Sanitory Campbell with the intent to distribute over 50 grams of methamphetamine, a Schedule II controlled substance.
Count 3 charges Terence Harper; Darnell Ward; Sergio Lopez; Sanitory Campbell and others with the intent to distribute over one kilogram of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Count 4 charges Terence Harper; and Jackie Arnold with the intent to distribute over 5 kilograms of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
Count 5 charges Terence Harper, Jackie Arnold and Sanitory Campbell with the intent to distribute over 50 kilograms of marijuana.
Count 6 is redacted at this time as the defendant is not in custody.
Count 7 is redacted at this time as the defendant is not in custody.
Count 8 charges Darnell Ward with knowingly possessing in and affecting interstate commerce a firearm, Taurus Millennium 9mm pistol.
Count 9 charges Terence Harper with knowingly possessing in and affecting interstate commerce a firearm, Ruger SR9C 9mm pistol and a Beretta PX4 Storm .45-caliber pistol.
Count 10 charges Jackie Arnold with knowingly possessing in and affect interstate commerce a firearm, FNS .40 caliber pistol.
Count 11 is redacted at this time as the defendant is not in custody.
Count 12 charges Jarvis Cooper; Antonio Worles; Joseph Newberry and Antwan Miles and others with knowingly and intentionally carrying a firearm, that is: a .380 caliber pistol, during and in relation to a drug trafficking crime; conspiracy to possess with the intent to manufacture and distribute a controlled substance.
Count 13 charges Darnell Ward with knowingly possessing a firearm in furtherance of and in relation to a drug trafficking crime with intent to distribute a controlled substance.
Count 14 charges Terrence Harper and Jackie Arnold with conspiracy to possess with intent to distribute a controlled substance.
Count 15 charges Terrence Harper with intentionally possessing a firearm, Beretta PX4 Storm .45 caliber pistol, which had transported in interstate commerce.
Count 16 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 17 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 18 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 19 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 20 charges Jarvis Cooper; Darnell Ward; Calvin Myers and Anthony Jones with intent to distribute and distribution ofa mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 21 charges Jarvis Cooper; Darnell Ward; Calvin Myers and Anthony Jones with knowingly possessing a firearm in furtherance of and in relation to a drug trafficking crime, with intent to distribute a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Count 22 charges Sandreka Wright and Darnell Ward with the intent to promote the carrying on of specified unlawful activity that is knowing that the property involved in the financial transaction represented the proceeds of some form of unlawful activity, in violation of Title 18.
Currently 7 defendants indicted remain at large and are not listed in this release.
The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Jarvis Cooper; Pamela Perkins; Terence Harper; Jackie Arnold; Darnell Ward; Joseph Newberry; Antwan Miles; Amanda Harrison; Anthony Jones; Calvin Myers; Antonio Worles; Sandreka Wright; Delbert Harrison; Alberto Chavoya; Sanitory Campbell; Daryl Mason; Tim Scott and Sergio Lopez.
During this investigation, agents seized approximately $90,000 in U.S. currency, 40 pounds of methamphetamine, two kilograms of heroin, four kilograms of cocaine, 11 ounces of crack cocaine, over 150 pounds of marijuana and 22 firearms. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Memphis Police Department, Multi Agency Gang Unit and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proved guilty.
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18 Members of Mexican Drug Trafficking Organization Sentenced for Smuggling Marijuana Through the Tohono O’odham ReservationRead the Press Release
PHOENIX – Yesterday, Arturo Tellez-Berrelleza, 32, a citizen of Mexico, was sentenced by U.S. District Judge James A. Soto to 21 months’ imprisonment. Tellez-Berrelleza, who previously pleaded guilty to a drug trafficking offense, is the final defendant to be sentenced in a multi-agency investigation into a marijuana smuggling network.
“Our office is committed to prosecuting transnational criminal organizations that seek to smuggle drugs through Arizona,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “Homeland Security Investigations and the United States Border Patrol deserve particular commendation for their painstaking efforts to apprehend the smugglers who were brought to justice during this investigation.”
“Members of this drug trafficking organization will no longer plague the southern border with their illicit criminal activity and flood our community with large quantities of drugs,” said Scott Brown, special agent in charge of Homeland Security Investigations (HSI) Phoenix. “HSI, along with our law enforcement partners, will continue to work tirelessly to target and dismantle organizations who seek to operate in the dessert undetected.”
In October 2015, federal law enforcement officials initiated an investigation into the smuggling activities of a Mexican drug trafficking organization (“DTO”) operating on the Tohono O’odham Nation. This DTO placed heavy reliance on so-called “scouts,” who are individuals who remain on high ground for extended periods of time in order to guide marijuana backpacking groups past law enforcement, and “resuppliers,” who are responsible for providing scouts with food, water, binoculars, cellphones, camping equipment, cold and hot weather clothing, and communications equipment. During the course of the investigation, law enforcement officials seized approximately 5,478 kilograms of marijuana and successfully prosecuted at least 18 members of the DTO, who received sentences ranging up to 37 months’ imprisonment. On one occasion, a DTO member attempted to hide near a cliff with a 15- to 20-foot drop, then assaulted a law enforcement agent who was attempting to arrest him by striking the agent, grabbing the agent’s radio, and damaging the radio so it could not be used to call for backup. During the course of the struggle, the agent was pushed close to the edge of the cliff.
The investigation in this case was conducted by Homeland Security Investigations under the NATIVE Task Force and the U.S. Border Patrol Casa Grande Station. These prosecutions were handled by Assistant U.S. Attorneys Adam Rossi and Susanna Martinez, District of Arizona, Tucson.
CASE NUMBERS: 4:17-CR-00480-JAS-BPV;4:17-CR-00291-RCC-LAB;4:17-CR-00480- JAS-BPV; 4:17-CR-00557-JAS-EJM;4:17-CR-00509-JGZ-BPV;4:17-CR-00508-RCC-BPV
RELEASE NUMBER: 2018-011_ Tellez-Berrelleza et al.
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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14 New Defendants Added to Federal Racketeering Indictment Against Chicago Gang Members; New Charges Allege Multiple Murders and Acts of ViolenceRead the Press Release
CHICAGO — A federal indictment unsealed this week charges 34 alleged members of the Latin Kings street gang with participating in a criminal organization that murdered its rivals and violently protected its drug-dealing territories in Chicago and the suburbs.
Authorities uncovered the criminal activity through an investigation conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). During the course of the probe, law enforcement agents confiscated 18 firearms.
Original charges in the case were filed in 2016 against 20 alleged members of the Latin Kings. The superseding indictment unsealed this week adds 14 more defendants and charges numerous acts of violence, including six murders, three attempted murders, and three arsons. Thirty three of the defendants are charged with racketeering conspiracy, while the 34th defendant faces a firearm charge.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie T. Johnson, Superintendent of the Chicago Police Department. Substantial investigative assistance was provided by the Cook County Sheriff's Police Department and Hammond (Ind.) Police Department. The FBI Task Force investigating the case was comprised of agents and task force officers from the Joliet Police Department, Evergreen Park Police Department, Bolingbrook Police Department, Orland Park Police Department, Cook County Sheriff's Police Department, Will County Sheriff’s Office, and the Internal Revenue Service Criminal Investigation Division. Additional support was provided by the Merrillville (Ind.) FBI office, and the U.S. Attorney’s Office for the Northern District of Indiana.
The superseding indictment was returned on Feb. 1, 2018, and ordered unsealed this week. Several of the new defendants were arrested this week, and arraignments for most of the defendants have been held in federal court in Chicago.
The superseding indictment alleges that members of the Latin Kings violently enforced discipline within their ranks and retaliated against rivals and former members to prevent cooperation with law enforcement. The charges accuse nine defendants of committing six murders in furtherance of the gang’s activities:
ALONZO HORTA, 20, of Hammond, Ind., and GEOVANNI LOPEZ, 28, of Oak Forest, allegedly murdered Alfonso Calderon on April 9, 2017, in Chicago.
DEAN TREVINO, 25, of Chicago, and EMANUEL MENDEZ, 29, of Hammond, Ind., allegedly murdered Ismael Perez on Nov. 3, 2012, in Chicago.
GERONIA FORD, 23, of Chicago, and WILLIAM HAYSLETTE, 24, of Chicago, allegedly murdered Sergio Hernandez on May 15, 2012, in Chicago.
JUAN JIMENEZ, 35, of Blue Island, allegedly murdered Isiah Cintron on Jan. 18, 2007, in Hammond, Ind.
THOMAS LUCZAK, 44, of Chicago, allegedly murdered Juan Serratos on June 11, 2000, in Chicago.
JOSE JARAMILLO, 35, of Hammond, Ind., allegedly murdered Jeremy Ward on Nov. 15, 1999, in Chicago.
Mendez and two other defendants – ORLANDO MARIN, 29, of Chicago, and ROY VEGA, 35, of Chicago – are also charged with committing attempted murders.
The defendants participated in the Southeast Region of the Latin Kings, which contains more than a dozen chapters answering to a regional structure of leadership, according to the indictment. Each chapter is typically named after the city in which it operates, or by a street or streets that run through the chapter. Among the Chicago chapters in the Southeast Region are 82nd Street, 88th and 89th Streets, 97th Street, 99th Street, 102nd Street, 104th Street, and the Roseland neighborhood. Other regional chapters operated in the south suburbs of Blue Island, Dolton, Harvey and Chicago Heights, as well as in Kankakee and communities across the border in Indiana, according to the indictment.
The indictment charges defendants who serve in various high-ranking positions of the Latin Kings. These positions include “Regional Enforcers,” who violently instill discipline within the ranks; “Incas,” who serve as chapter leaders; “Caciques,” who are second in command behind the Incas; “Soldiers,” who often carry dangerous weapons to carry out the gang’s activities; and “Regional Treasurer,” who collects dues from Latin King chapters to finance the gang’s activities.
Several firearm offenses are also charged in the indictment, including unlawful possession of guns, assault with a dangerous weapon, illegal dealing of guns, and multiple counts of witness intimidation.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Racketeering conspiracy generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities, including certain murders charged in the indictment. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Brian Wallach, Derek Owens and Vikas Didwania are representing the government.
7 February 2018
Youngstown man sentenced to 14 years in prison for trafficking heroin and cocaineRead the Press Release
A Youngstown man was sentenced to more than 14 years in prison for drug trafficking, said U.S. Attorney Justin E. Herdman and ATF Special Agent in Charge Trevor Velinor.
Michael Williams, 32, was sentenced to 174 months in prison after pleading guilty to possession with intent to distribute heroin, cocaine and crack cocaine.
Williams possessed cocaine, crack cocaine, heroin, tramadol, alprazolam and clonazepam on July 1, 2016, with the intent to sell the drugs, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys David M. Toepfer and Elliot Morrison following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force.
Young Undocumented Alien Sentenced for Smuggling DrugsRead the Press Release
LAREDO, Texas – A 26-year-old undocumented alien from Nuevo Laredo, Tamaulipas, Mexico, has been ordered to prison following his conviction of conspiracy to import methamphetamine, announced U.S. Attorney Ryan K. Patrick. Eduardo Sanchez-Obregon pleaded guilty Oct. 3, 2017, to one count each of conspiracy to import more than 50 grams of methamphetamine and more than 500 grams of a mixture of methamphetamine.
Today, U.S. District Judge Marina Garcia-Marmolejo sentenced him to 70 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his prison term.
On July 28, 2017, Sanchez-Obregon took part in a conspiracy to smuggle 7.5 kilograms of methamphetamine. He was traveling from Mexico on a Turimex commercial passenger bus with the drugs contained inside a small suitcase in the luggage compartment. Authorities searched the bus as it arrived at the IH-35 U.S. Border Patrol Checkpoint. He was arrested shortly thereafter.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Young Local Man Sentenced for Trafficking Nearly Five Kilograms of MethRead the Press Release
BROWNSVILLE, Texas – A 21 year old Brownsville resident has been ordered to federal prison for methamphetamine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Ernesto Alonso Valdez pleaded guilty Aug. 31, 2017.
Today, U.S. District Judge Andrew Hanen sentenced Valdez to a total of 132 months imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, Judge Hanen stated “So take this to heart. Try to turn this into a positive. You have one advantage that you are young.”
On Nov. 24, 2016, Ernesto Alonso Valdez arrived at the Gateway port of entry in Brownsville driving a Chevrolet HHR. At the time, he claimed to be en route to visit his girlfriend at the hospital. However, agents soon discovered 4.28 kilograms of methamphetamine concealed in the back seats and rear bumper of the vehicle. A small quantity of narcotics was also found in his shoe during a personal search. Valdez admitted knowing the personal use in his shoe was cocaine or methamphetamine.
Valdez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Wilmington Man Sentenced to More Than 17 Years for Drug Distribution ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced JERMAINE DALE ROGERS, 39, of Wilmington, to 210 months of imprisonment followed by 6 years of supervised release.
ROGERS was named in an Indictment filed on July 19, 2017. On October 25, 2017, ROGERS pled guilty to Distribution of a Quantity of Heroin.
In February 2017, a Confidential Informant (informant) advised law enforcement in New Hanover County that ROGERS was actively selling heroin. At the time, ROGERS was residing in a Federal halfway house in Wilmington following his release from the Bureau of Prisons. The informant admitted to purchasing 2 clips or 2 grams of heroin from ROGERS approximately 15 times over the course of three months. In April 2017, under the direction of law enforcement, the informant made arrangements to conduct a controlled purchase of heroin from ROGERS. On April 18, 2017, the informant purchased approximately 2 grams of heroin from ROGERS in exchange for $600 in United States currency.
On June 21, 2017, ROGERS was subsequently arrested and the defendant admitted to selling heroin to the CI.
The New Hanover County Sheriff’s Office and the FBI conducted the criminal investigation of this case. Assistant United States Attorney Bradford Knott handled the prosecution of this case for the government. At the sentencing, Judge Dever highlighted, among other reasons, ROGERS’ persistent involvement in drug trafficking as a motivating factor for the sentence imposed.
Warm Springs Woman Pleads Guilty to Assault with Intent to Commit Murder of Two Family MembersRead the Press Release
PORTLAND, Ore. – On Wednesday, February 7, 2018, Rhyan Leigh Smith, 26, of Warm Springs, Oregon, pleaded guilty in U.S. District Court to two counts of assault with the intent to commit murder in violation of 18 U.S.C. §§ 113(a) and 1153, and one count of possession of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c).
According to court documents, in the early morning hours of March 16, 2016, Smith returned to a house she had periodically resided in with five of her family members. At approximately 8:00 a.m., Smith retrieved a pistol she had taken from the owner without permission. Smith conversed briefly with a family member in doorway of the family member’s bedroom before shooting him five times. A second family member heard the gunshots and tried to stop Smith, but Smith shot her multiple times. Both victims suffered life-threatening injuries.
The Warm Springs Police Department and the FBI responded to the house and found Smith hiding in sagebrush near the house with an AR-15 assault rifle. Investigators later found a camouflage rifle bag with multiple AR-15 magazines, loose ammunition and a 9mm pistol in a vehicle at the house.
Smith faces a maximum sentence of life in prison and mandatory minimum sentence of 10 years. Her sentencing hearing is scheduled for May 21, 2018 before United States Chief District Court Judge Michael W. Mosman.
This case was investigated by the FBI and the Warm Springs Police Department and prosecuted by William Narus and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.
On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Virginia Man Indicted on Charges in 2017 Vehicular Attack on Police and Transit WorkerRead the Press Release
WASHINGTON – Brandon Figures-Mormon, 24, of Disputanta, Virginia, was indicted today on felony charges accusing him of using his vehicle to assault two uniformed Metropolitan Police Department officers and one District of Columbia Department of Transportation worker, with the intent to kill, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Figures-Mormon was indicted by a grand jury in the Superior Court of the District of Columbia on three counts of assault with intent to kill while armed, three counts of aggravated assault while armed, two counts of felony assault on a police officer while armed, and related charges. He remains held pending trial and is expected to be arraigned on Feb. 16, 2018. If convicted of the charges, he faces a maximum sentence of 90 years of incarceration.
According to the government’s evidence, on June 8, 2017, shortly before 9 p.m., Figures-Mormon entered a white Dodge Ram pickup truck parked on the 2300 block of 18th Street NW, near the intersection of 18th Street NW and Belmont Road NW. Figures-Mormon allegedly drove at a high rate of speed up the median on 18th Street NW toward Columbia Road NW. According to the government’s evidence, Figures-Mormon drove at and struck the three victims, who were working in the median. As onlookers rushed to the victims’ aid, Figures-Mormon allegedly sped through the intersection with Columbia Road and proceeded onto Adams Mill Road NW before crashing into a parked sanitation truck. Figures-Mormon was found in the driver’s seat of the truck and was later arrested on scene.
The victims, who sustained serious injuries after being hit by the speeding truck, were rushed to local hospitals. All three survived the assault.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Liu and Chief Newsham commended the work of the Metropolitan Police Department, particularly the detectives of the Major Case/Cold Case Unit. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Computer Forensic Examiner John Marsh, Victim/Witness Advocate James Brennan, and Paralegal Specialist Tiffany Fogle.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Natasha Smalky and John B. Timmer, who are investigating and prosecuting the case with assistance from Assistant U.S. Attorney Jennifer Kerkhoff.
United States Attorney R. Trent Shores to Testify Before the United States Sentencing CommissionRead the Press Release
United States Attorney R. Trent Shores will give testimony before the United States Sentencing Commission on Thursday, February 8, 2018, at 9:30 a.m. EST
WHO: United States Attorney R. Trent Shores
WHAT: Public hearing on proposed amendments to the Federal Sentencing Guidelines concerning (1) implementation of the Bipartisan Budget Act as it relates to Social Security fraud offenses, (2) Tribal Court convictions and protection orders, and (3) eligibility for acceptance of responsibility sentence reductions for defendants who falsely or frivolously deny relevant conduct
WHEN: 9:30 a.m. EST
United States Sentencing Commission
Washington, D.C.
NOTE: Public Hearing Agenda and Statement of U.S. Attorney Shores attached
U.S. Attorney’s Office Collected Nearly $75 Million in Civil, Criminal and Asset Forfeiture Actions in Fiscal Year 2017Read the Press Release
CHICAGO — The United States Attorney’s Office for the Northern District of Illinois collected nearly $75 million in criminal, civil and asset forfeiture actions in Fiscal Year 2017, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today.
The 2017 collections included $29.7 million in criminal actions, $28.7 million in civil actions, and $16.07 million in asset forfeiture actions. The total exceeds $74.5 million and is more than double the office’s Fiscal Year 2017 budget of approximately $29.2 million.
“Our attorneys and staff work diligently to recover meaningful funds for the federal treasury and victims of federal crimes,” said U.S. Attorney Lausch. “We have an important responsibility to do everything within our power to ensure that the proceeds of criminal and civil fraud are recovered, and that restitution is made to the victims whenever possible.”
The collections included $234,308 in criminally forfeited proceeds from the tax prosecution of northwest suburban couple Patty and Mario Cordoba, and $315,170 in criminal and administrative forfeitures arising from the south suburban drug prosecution of Emiliano Cruz.
The office in Fiscal Year 2017 restored more than $2 million to victims of federal crimes, including a significant amount to the victims of Chicago accountant Nina Mendez’s fraud scheme.
The office worked with other U.S. Attorney’s Offices across the country and components of the Department of Justice to collect an additional $218.9 million in criminal and civil cases pursued jointly with those offices.
Nationally, the Department of Justice collected more than $15 billion in civil and criminal actions in Fiscal Year 2017, which ended Sept. 30, 2017. The largest collections nationally were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Two Pittsburgh Men Charged in Fentanyl Trafficking Scheme, One Also Facing Gun ChargesRead the Press Release
PITTSBURGH – Two residents of Pittsburgh’s North Side have been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The five-count indictment, returned on February 6 and unsealed today, named the defendants as Davon Stevens, age 24, and Demetrius Mitchell-Yarbrough, age 24, both of Pittsburgh, Pennsylvania.
According to the indictment, on or about July 28, 2017, Stevens and Mitchell-Yarbrough conspired to possess with the intent to distribute and distribute quantities of cyclopropyl fentanyl, acetyfentanyl and fentanyl. On that same day, both defendants are also charged with possession with intent to distribute those same drugs. Individually, Mitchell-Yarbrough is charged with possession of a firearm as a convicted felon, and possession of that firearm in furtherance of a drug trafficking crime. Federal law prohibits a felon from possessing a firearm.
For the drug charges, the law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000. Mitchell-Yarbrough faces a maximum total sentence on the firearms charges of not less than five years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the indictment in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Palm Beach County Residents Sentenced to Prison for Identity Theft SchemeRead the Press Release
Jean Germain, 24, of West Palm Beach, was sentenced to 134 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,129,809. Richekad Jean, 26, of Belle Glade, was sentenced to 57 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $250,234.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Defendants Germain and Jean previously pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; one count of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1); and one count of theft of government funds, in violation of Title 18, United States Code, Section 641.
According to court documents, the defendants used personally identifiable information (PII) of real persons, including names, dates of birth, and Social Security numbers, to file false federal income tax returns with the IRS. The defendants opened personal bank accounts and purchased prepaid debit cards to receive the fraudulent federal income tax refunds. The defendants registered the pre-paid debit cards not in their own names, but in the names of the persons whose PII was obtained without authorization, to hide and conceal the conspirators' involvement. After the fraudulent IRS refunds were sent to the bank accounts or to the prepaid debit card accounts, the defendants withdrew the funds at automatic teller machines (ATMs) or used bank debit cards and pre-paid debit cards tied to the different accounts containing the stolen monies. Court documents showed the defendants tried to steal more than $2,000,000 from the United States.
Co-defendants Auberson Paul, 24, of West Palm Beach, and Nigel Simmonds, 25, of Port St. Lucie, were each sentenced to time served.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant United States Attorney Stephen Carlton.
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.
Two Beckley felons sentenced to federal prison for gun crimesRead the Press Release
BECKLEY, W.Va. – Two Beckley felons were sentenced to federal prison today on gun charges, announced United States Attorney Mike Stuart. Ryan Henry Guerrant, 27, previously entered his guilty plea to being a felon in possession of a firearm, and was sentenced to three years and 10 months in federal prison. In a separate prosecution, Clennel Pierre Cobb, 46, also previously pleaded guilty to being a felon in possession of a firearm, and was sentenced to six years in federal prison to run consecutively to the sentence for his 2017 Raleigh County drug felony. U.S. Attorney Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Beckley Police Department on these cases.
“Prison time awaits those who break our gun laws. My office is serious about keeping guns out of the hands of dangerous criminals,” said U.S. Attorney Stuart. “We will continue working with law enforcement to target felons who think they are above the law.”
On August 10, 2017, an officer with the Beckley Police Department conducted a traffic stop in Beckley. Guerrant, a passenger in the back seat, informed the officer that he had an Omega, Model 100, .22 caliber revolver at his feet. Guerrant later admitted to law enforcement that he possessed the gun, and that he knew he was not supposed to possess the gun because he was a convicted felon. Guerrant was prohibited from possessing any firearm because of felony convictions in Raleigh County Circuit Court for possession of a firearm by a prohibited person in 2013 and escape and attempted robbery in 2010.
In a separate prosecution, Cobb admitted that on August 12, 2016, he possessed a Hi-Point, Model C9, 9mm pistol. Cobb was prohibited from possessing any firearm under federal law because of multiple felony convictions, including drug convictions in 2006 and 2017 in Raleigh County Circuit Court.
United States District Judge Irene C. Berger imposed the sentences.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Troy Man Sentenced to 120 Months for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Joshua Lozo, age 36, of Troy, New York, was sentenced today to 120 months in prison for receiving and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his October 16, 2017 guilty plea, Lozo admitted that between December 1, 2015 and December 14, 2016, he used the Internet and file-sharing software to download child pornography videos and still images. Lozo possessed about 25 child pornography videos and approximately 350 still images of child pornography.
United States District Judge Mae A. D’Agostino also imposed a lifetime term of supervised release, which will start after Lozo is released from prison. As a result of his conviction, Lozo will be required to register as a sex offender after leaving prison.
This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Rick Belliss.
This case is being 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), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Thirty-six Defendants Indicted for Alleged Roles in Transnational Criminal Organization Responsible for More than $530 Million in Losses from CybercrimesRead the Press Release
A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.
Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan. “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale. Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion. The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes. We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”
“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”
“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated. The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice. HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”
According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.
According to the indictment, Infraud members held defined roles within the organization’s hierarchy. “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members. “Super Moderators” oversaw and administered specific subject-matter areas within their expertise. “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise. “Vendors” sold illicit products and services to Infraud members. Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities. As of March 2017, there were 10,901 registered members of the Infraud Organization.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:
- Svyatoslav Bondarkeno of Ukraine;
- Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
- Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
- Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
- Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
- Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
- Besart Hoxha aka “Pizza,” 25, of Kosovo;
- Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
- Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
- Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
- John Doe #8 aka “Aimless88;”
- Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
- Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
- John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
- Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
- Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
- Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
- Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
- Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
- Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
- Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
- Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
- John Doe #7 aka “Muad’Dib;”
- John Doe #1 aka “Carlitos,” aka “TonyMontana;”
- David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
- John Doe #2;
- Marko Leopard aka “Leopardmk,” 28, of Macedonia;
- John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
- Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
- John Doe #5 aka “Deputat,” aka “Zo0mer;”
- Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
- John Doe #6 aka “Goldenshop,”aka “Malov.”
In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.
The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.
The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.
Thirty-Six Defendants Indicted for Alleged Roles in Transnational Criminal Organization Responsible for More Than $530 Million in Losses from CybercrimesRead the Press Release
LAS VEGAS, Nev. – A federal indictment was unsealed today charging 36 individuals for their alleged roles in the Infraud Organization, an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband.
Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,” said Acting Assistant Attorney General Cronan. “As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale. Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion. The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes. We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.”
“The U.S. Attorney’s Office is steadfastly committed to protecting America’s national and economic security,” said U.S. Attorney Elieson. “Criminals cannot hide behind their computer screens. We are working vigilantly with American and international law enforcement partners to identify and disrupt transnational cybercrime organizations, such as the Infraud Organization.”
“Criminal cyber organizations like Infraud threaten not just U.S. citizens but people in every corner of the globe,” said HSI Acting Executive Associate Director Benner. “The actions of computer hackers and identity thieves not only harm countless innocent Americans, but the threat they pose to our financial system and global commerce cannot be overstated. The criminals involved in such schemes may think they can escape detection by hiding behind their computer screens here and overseas, but as this case shows, cyberspace is not a refuge from justice. HSI will continue working with our law enforcement partners in this country and around the world to aggressively target cyber thieves to ensure the perpetrators face the full weight of the law.”
According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” aka “Rector,” aka “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet. Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods. It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.
According to the indictment, Infraud members held defined roles within the organization’s hierarchy. “Administrators” managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members. “Super Moderators” oversaw and administered specific subject-matter areas within their expertise. “Moderators” moderated one or two specific sub-forums within their areas of subject-matter expertise. “Vendors” sold illicit products and services to Infraud members. Finally, “VIP Members” and “Members” used the Infraud forum to gather information and to facilitate their criminal activities. As of March 2017, there were 10,901 registered members of the Infraud Organization.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked.
The defendants indicted for their alleged roles in the Infraud Organization’s transnational racketeering conspiracy include:
- Svyatoslav Bondarenko of Ukraine;
- Amjad Ali aka “Amjad Ali Chaudary,” aka “RedruMZ,” aka “Amjad Chaudary,” 35, of Pakistan;
- Roland Patrick N’Djimbi Tchikaya aka “Darker,” aka “dark3r.cvv,” 37, of France;
- Miroslav Kovacevic aka “Goldjunge,” 32, of Serbia;
- Frederick Thomas aka “Mosto,” aka “1stunna,” aka “Bestssn,” 37, of Alabama;
- Osama Abdelhamed aka “MrShrnofr,” aka “DrOsama,” aka “DrOsama1,” 27, of Egypt;
- Besart Hoxha aka “Pizza,” 25, of Kosovo;
- Raihan Ahmed aka “Chan,” aka “Cyber Hacker,” aka “Mae Tony,” aka “Tony,” 26, of Bangladesh;
- Andrey Sergeevich Novak aka “Unicc,” aka “Faaxxx,” aka “Faxtrod” of the Russian Federation;
- Valerian Chiochiu aka “Onassis,” aka “Flagler,” aka “Socrate,” aka “Eclessiastes,” 28, of Moldova;
- John Doe #8 aka “Aimless88;”
- Gennaro Fioretti aka “DannyLogort,” aka “Genny Fioretti,” 56, of Italy;
- Edgar Rojas aka “Edgar Andres Viloria Rojas,” aka “Guapo,” aka “Guapo1988,” aka “Onlyshop,” 27, of Australia;
- John Telusma aka “John Westley Telusma,” aka “Peterelliot,” aka “Pete,” aka “Pette,” 33, of Brooklyn, New York;
- Rami Fawaz aka “Rami Imad Fawaz,” aka “Validshop,” aka “Th3d,” aka “Zatcher,” aka “Darkeyes,” 26, of Ivory Coast;
- Muhammad Shiraz aka “Moviestar,” aka “Leslie” of Pakistan;
- Jose Gamboa aka “Jose Gamboa-Soto,” aka “Rafael Garcia,” aka “Rafael101,” aka “Memberplex2006” aka “Knowledge,” 29, of Los Angeles, California;
- Alexey Klimenko aka “Grandhost,” 34, of Ukraine;
- Edward Lavoile aka “Eddie Lavoie,” aka “Skizo,” aka “Eddy Lavoile,” 29, of Canada;
- Anthony Nnamdi Okeakpu aka “Aslike1,” aka “Aslike,” aka “Moneymafia,” aka “Shilonng,” 29, of the United Kingdom;
- Pius Sushil Wilson aka “FDIC,” aka “TheRealGuru,” aka “TheRealGuruNYC,” aka “RealGuru,” aka “Po1son,” aka “1nfection,” aka “1nfected,” 31, of Flushing, New York;
- Muhammad Khan aka “CoolJ2,” aka “CoolJ,” aka “Secureroot,” aka “Secureroot1,” aka “Secureroot2,” aka “Mohammed Khan,” 41, of Pakistan;
- John Doe #7 aka “Muad’Dib;”
- John Doe #1 aka “Carlitos,” aka “TonyMontana;”
- David Jonathan Vargas aka “Cashmoneyinc,” aka “Avb,” aka “Poony,” aka “Renegade11,” aka “DvdSVrgs,” 33, of San Diego, California;
- John Doe #2;
- Marko Leopard aka “Leopardmk,” 28, of Macedonia;
- John Doe #4 aka “Best4Best,” aka “Wazo,” aka “Modmod,” aka “Alone1,” aka“Shadow,” aka “Banderas,” aka “Banadoura;”
- Liridon Musliu aka “Ccstore,” aka “Bowl,” aka “Hulk,” 26, of Kosovo;
- John Doe #5 aka “Deputat,” aka “Zo0mer;”
- Mena Mouries Abd El-Malak aka “Mina Morris,” aka “Source,” aka “Mena2341,” aka “MenaSex,” 34, of Egypt; and
- John Doe #6 aka “Goldenshop,”aka “Malov.”
In addition, Novak and “Goldenshop” are charged with three counts each and “Deputat” and Musliu one count each of possession of 15 or more counterfeit and unauthorized access devices.
The superseding indictment is the result of an investigation conducted by the Las Vegas Office of Homeland Security Investigations; the Henderson, Nevada, Police Department; the Criminal Division’s Organized Crime and Gang Section; and the U.S. Attorney’s Office for the District of Nevada.
The international operation to dismantle the Infraud Organization would have been impossible without the significant efforts and timely cooperation of the Justice Department’s Office of International Affairs and International Organized Crime Intelligence and Operations Center; Interpol Rome; Interpol Tirana; the Italian National Police (Postal and Communications Police); the Australian Federal Police and the International Crime Cooperation Central Authority, Australian Government Attorney-General’s Department; the U.S. Diplomatic Security Service, Regional Security Office at U.S. Embassy Tirana, Albania; the City of London Police, DCPCU; the French Ministry of Justice, the Paris Prosecutor, L’Office Central de Lutte contre la Criminalité liée aux Technologies de l’Information et de la Communication; the judicial and police authorities of the Grand Duchy of Luxembourg; the Directorate for Organized Crime Investigation, Sector for Cyber Crime Investigation; the Basic Prosecution Office Pristina, Kosovo; and the Ministry of Justice of the Republic of Kosova, Department for International Legal Cooperation and the Special Prosecution Office for High-Tech Crime of the Republic of Serbia.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Kelly Pearson and Chimaobim Nwachukwu of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Chad W. McHenry of the District of Nevada are prosecuting the case.
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Tennessee Resident, Last Defendant Sentenced in Methamphetamine Ring Operating in Barren County, KentuckyRead the Press Release
BOWLING GREEN, Ky. – The last defendants in a methamphetamine conspiracy operating out of Barren County, Kentucky, was sentenced in United States District Court this week, by United States District Judge Greg N. Stivers, to 60 months in prison for the sale of 6.5 kilograms of methamphetamine announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Meth and those who trade in that poison are no respecter of lives.” stated U.S. Attorney Russell Coleman. “Incarcerating its dealers and diminishing its supply are critical to protecting Western Kentucky families and our Commonwealth.”
Andrea Parks, 37, of Robertson County, Tennessee, was charged by grand jury indictment with co-defendants Teresa Lynn Jackson, 47, Danny Ray Delplane, 46, and Christopher Lynn Thomason, 47, from Glasgow, Kentucky, and Eddie Joe Simpson, 47, of Bowling Green, Kentucky. The defendants were charged with conspiracy to possess with intent to distribute 50 grams or more of meth.
According to information presented in court, Parks supplied nearly 11 pounds of meth to Jackson, for distribution in Barren County. Specifically, between May 1, 2015, and October 29, 2015, Jackson would travel to Tennessee to receive meth from Parks, then distribute it to Thomason, Delplane, and Simpson. During that time period, law enforcement made five recorded controlled buys from Jackson. During this time period, Parks directly supplied Jackson with 1.5 and 5 kilograms of meth.
Further, Jackson was charged as being a convicted felon in possession of firearms. She was sentenced to 156 months in prison followed by a five year term of supervised release. Thomason was sentenced to 57 months in prison, Delplane was sentenced to 33 months in prison, and Simpson was sentenced to 46 months in prison. All were sentenced in United States District Court in Bowling Green, by District Judge Stivers.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Ten Charged with Trafficking Heroin/FentanylRead the Press Release
BOSTON – Three Lawrence men and a Leominster man were arrested today and charged in federal court in Worcester in connection with a joint federal and state investigation targeting narcotics trafficking in central Massachusetts. Six additional defendants were charged by the Massachusetts Attorney General’s Office with state drug offenses.
Carlos Rodriguez, 42; Ernesto Rodriguez, 48; and Joshua Sanchez, 27, all of Lawrence, and Jorge Burgos, 39, of Leominster, were charged today with conspiring to distribute and possess with the intent to distribute in excess of 100 grams of heroin and fentanyl, possession with the intent to distribute heroin and fentanyl, and use of a telecommunications facility in furtherance of narcotics trafficking. Sanchez and Burgos appeared in federal court in Worcester today and were ordered detained pending a detention hearing on Feb. 16, 2018. Carlos and Ernesto Rodriguez will appear in federal court in Worcester tomorrow.
According to court documents, as a result of various wiretaps capturing the defendants’ discussions of sales and purchases of heroin/fentanyl, in November and December 2017, law enforcement agents conducted surveillance of Burgos purchasing heroin for resale from Carlos Rodriguez, Ernesto Rodriguez, and others. In addition, on Dec. 19, 2017, law enforcement stopped Sanchez after he left Carlos Rodriguez’s home and found Sanchez in possession of approximately 60 grams of suspected heroin/fentanyl. The following day, after intercepted communications suggested that Carlos Rodriguez would be delivering 50 grams of heroin to Burgos at his residence in Leominster, agents conducted a vehicle stop of the vehicle Carlos Rodriguez was driving and recovered approximately 50 grams of suspected heroin and/or fentanyl. Further investigation led to the recovery of at least 100 additional grams of suspected heroin and fentanyl from Ernesto Rodriguez. It is further alleged that intercepted communications captured Carlos Rodriguez discussing with Burgos how agents had stopped him on the way to Burgos’ residence and captured him discussing with another individual where to hide a firearm from authorities.
Additional intercepts of Burgos’ phone on Dec. 27, 2017, included discussions that agents believed to relate to a number of firearms hidden on Burgos’ property.
The Massachusetts Attorney General’s office charged six additional individuals associated with the investigation with state crimes. Jose Ortiz, 57; Roberto Ortiz 58; and Gilberto Victoriano 51, all of Worcester, were each charged with two counts of distribution of heroin and two counts of conspiracy to violate the drug laws. Additionally, the Ortiz brothers were charged with one count each of possession of heroin with intent to distribute. Roberto Ortiz and Victoriano face up to two and a half years in the House of Correction. Jose Ortiz faces at least three and a half years and up to 15 years in state prison. Caroline Cartagena, 43, of Worcester, was charged with one count of trafficking in over 200 grams of cocaine. She faces a minimum of 12 years and up to 20 years in state prison. Tina Murphy, 40, of Shirley, was charged with one count of distribution of fentanyl and one count of conspiracy to violate the drug laws. Murphy faces no greater than two and a half years in the House of Correction. The remaining defendant is still at-large.
The charge of conspiring to distribute in excess of 100 grams of heroin provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. The charge of possession of heroin and fentanyl with the intent to distribute provides for a sentence of no greater than 20 years in prison, at least three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of use of a telecommunications device in furtherance of a narcotics offense provides for a sentence of no greater than four years in prison, up to one year 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the United States Postal Inspection Service; Massachusetts Attorney General Maura Healey; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Leominster Interim Police Chief Michael Goldman; Milford Police Chief Thomas J. O’Loughlin; and Leicester Police Chief James J. Hurley made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Taos County Businessman Sentenced to Prison for Federal Tax Conviction and Ordered to Pay $182,771 in RestitutionRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Division of IRS-Criminal Investigation announced the sentencing of a Taos County businessman for his federal tax conviction.
Robert Baños, 46, of Red River, N.M., was sentenced late yesterday afternoon in federal court in Albuquerque, N.M., to 15 months of imprisonment followed by one year of supervised release. Baños also was ordered to pay $182,771 in restitution to the IRS, which covers the amount involved in the criminal activity charged in the indictment as opposed to the amount involved in the crime of conviction.
Baños is the owner and operator of the Old Tymer’s Café and Bighorn Sports and Rental, both of which are located in Red River in Taos County, N.M. Baños was indicted on April 12, 2016, and charged with five counts of filing false tax returns. The indictment charged Baños with violating the federal tax laws during five tax years – 2009 through 2013 – by filing tax returns that failed to report his true income. During each of those tax years, Baños falsely reported that he had a negative income in the individual income tax returns he filed with the IRS.
On March 3, 2017, Baños pled guilty to Count 5 of the indictment charging him with making and subscribing a false tax return for tax year 2013. In entering the guilty plea, Baños admitted that during tax years 2009 through 2013, he underreported his businesses’ true income to a tax return preparer knowing the tax return preparer would rely on this false information to prepare and submit Baños’ tax returns. Baños also acknowledged signing, under penalty of perjury those tax returns, which he knew to be materially false for the purpose of evading federal income taxes.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and was prosecuted by Assistant U.S. Margaret M. Vierbuchen.
The Justice Department’s Criminal Division, U.s. Attorney’s Office for the District of Nevada and Homeland Security Investigations to Hold Press Call to Discuss Takedown of International Cybercrime RingRead the Press Release
WASHINGTON – The Justice Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) will hold a media call on WEDNESDAY, FEBRUARY 7, 2018 at 12:00 p.m. EST - 9:00 a.m. PST, to announce criminal charges against individuals around the world for their alleged roles in an Internet-based cybercriminal organization that defrauded over $530 million from victims.
WHO: Deputy Assistant Attorney General David Rybicki
U.S. Attorney Dayle Elieson for the District of Nevada
Special Agent in Charge Joseph Macias of HSI Los AngelesWHAT: Announcement of significant enforcement actions around the world dismantling an Internet- based cybercriminal organization
WHEN: WEDNESDAY, FEBRUARY 7, 2018
12:00 p.m. EST - 9:00 a.m. PSTWHERE: Domestic Media Dial in Number (Toll Free) 1-877-883-0383
International Media Dial in Number 1-412-902-6506
Dial in Code: 0791953NOTE: Please RSVP to [email protected] and Nicole Navas Oxman at [email protected]. Press inquiries regarding logistics or interviews should be directed to the Office of Public Affairs at 202-514-2007.
Texas Woman Sentenced for Multi-State Identity Theft SpreeRead the Press Release
St. Louis, MO – Heidi Jones was sentenced to 45 months in prison to be followed by 3 years supervised release and $92,401.20 in restitution to 11 different victims.
Jones admitted to using multiple identities and to obtaining goods and services using counterfeit credit cards in California, Illinois and Missouri during 2017.
Jones, 33, of Arlington, TX, pled guilty in November to three felony counts of using a counterfeit access device and one count of aggravated identity theft. She appeared today for sentencing in front of U.S. District Judge Stephen N. Limbaugh, Jr.
The case was investigated by the Walnut Creek (California) Police Department, the Arnold Police Department and the U.S. Postal Inspection Service. Assistant United States Attorney Jennifer Roy is prosecuting the case for the U.S. Attorney’s Office.
St. Louis County Man Sentenced for Scamming IndividualsRead the Press Release
St. Louis, MO – David E. Schultz was sentenced to 96 months in prison for wire fraud. Schultz was also ordered to pay restitution in the amount of $452,376.00.
David E. Schultz defrauded multiple victims by falsely stating that he could provide various legal remedies to them. He demanded victims provide him cash or assets, such as jewelry, gold, silver, and other items of value that could quickly be converted into cash in exchange for future services. Schultz demanded victims borrow money from their family members or open lines of credit in order to provide him with money in exchange for future services.
As part of his fraudulent scheme, Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended in 2014. David E. Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David E. Schultz approximately $50,000 for services which were never provided and which David E. Schultz never intended to provide.
He also developed a relationship with victim E.B. Victim E.B. owned and operated a health care products distribution firm and was convicted of health care fraud in 2015. David E. Schultz falsely represented to Victim E.B. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. David E. Schultz represented to Victim E.B. that in exchange for payments, he would be able to have E.B.’s conviction overturned. In July 2016, David E. Schultz presented to Victim E.B. two fraudulent and forged documents falsely representing that E.B.’s conviction was overturned. Victim E.B. paid David E. Schultz approximately $81,000 for services which were never provided.
Schultz also developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in 2014. David E. Schultz falsely represented to Victim D.G. that in exchange for payments, he would have D.G.’s conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David E. Schultz approximately $17,000 for services which were never provided.
Schultz also developed a relationship with Victim O.G. Victim O.G. was the sister of Victim D.G. David E. Schultz falsely represented to Victim O.G. that he was working with attorneys to secure her brother’s release from prison. David E. Schultz also falsely represented to Victim O.G. that upon Victim D.G’s release from prison, he intended to open several Dollar Stores with Victim D.G. David E. Schultz represented to Victim O.G. that in exchange for payments, he would pay attorneys to have her brother released from prison and pay for hotel and meal expenses for Dollar Store executives that he hosted. Victim O.G. paid David E. Schultz approximately $22,000 for services which were never provided.
Schultz developed a relationship with Victim R.J. Victim R.J. was a former cardiologist convicted of health care fraud in 2002 and 2009. David E. Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David E. Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney, V.A., to secure “immunity” for Victim R.J. Additionally, David E. Schultz falsely represented that he would pay attorneys to testify for R.J. during the medical license reinstatement process; hire private investigators; and make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David E. Schultz approximately $162,000 for services which were never provided.
Furthermore, Schultz developed a romantic relationship with Victim S.M. David E. Schultz falsely represented to Victim S.M. that he was a “hard money lender” and was a wealthy real estate investor. David E. Schultz promised to marry Victim S.M. and provide her with a lifetime of financial security. David E. Schultz represented to Victim S.M. that he needed to borrow money from her only until he received several large cash payments from his overseas accounts. Victim S.M. drained her own saving and retirement accounts, borrowed money from her parents, borrowed money from her siblings and opened credit accounts to generate money for David E. Schultz. In total, Victim S.M. paid David E. Schultz approximately $120,000.
Schultz, 50, of St. Louis County, pled guilty in November to two felony counts of wire fraud. He appeared today for sentencing in front of U.S. District Judge Ronnie White.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office.
Sarasota Man Sentenced to Six Years in Federal Prison for Firearms OffenseRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Edrick McCary (25, Sarasota) to six years in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on October 31, 2017.
According to court documents, McCary and two of his associates traveled to a Walmart parking lot to rob a person who was scheduled to arrive with drugs that had been paid for in advance. Police, acting on information, arrived in the parking lot and approached McCary and his associates’ car. Police found three firearms in the car, including a Glock 9mm handgun and a Ruger 9mm handgun with a high-capacity magazine. McCary had previously been convicted twice in Florida for possession of cocaine. As a result of his convictions, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
San Antonio Man Sentenced to 10 Years Imprisonment for Series of Bank RobberiesRead the Press Release
In San Antonio today, a federal judge sentenced 31–year-old David Lee Sartin to 121 months in federal prison for his role in five bank robberies and one attempted bank robbery during the summer of 2016, announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Sartin pay $26,204 restitution and be placed on supervised release for a period of five years after completing his prison term.
According to the factual basis filed in this case, Sartin was responsible for robberies that occurred at: Comerica Bank in Helotes, TX, on July 21, 2016; Southwest Research Center Federal Credit Union in San Antonio on July 22, 2016; Chase Bank in San Antonio and Randolph-Brooks Federal Credit Union in Bulverde, TX, on July 29, 2016; Generations Federal Credit Union in San Antonio (*attempted) and Amegy Bank of Texas in San Antonio on August 8, 2016. During all of the robberies, Sartin wore an olive green/tan suit, a baseball hat, sunglasses and a unique silicone “old man” mask.
FBI agents arrested Sartin as he arrived at his residence following the Amegy Bank of Texas robbery on August 8, 2016. At the time of Sartin’s arrest, agents recovered the money stolen from Amegy Bank along with the demand note used and the clothing and mask worn by the defendant during the robbery.
On January 30, 2017, Sartin’s roommate and co-defendant, Jason Lynn Hathorn, was sentenced to 78 months in federal prison for assisting Sartin in carrying out the bank robberies.
FBI agents investigated this case together with San Antonio, Helotes and Bulverde Police Departments. Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Salvadoran Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Juan David Monzon Tejada, age 29, and a citizen of El Salvador, was sentenced today to time served (80 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Monzon Tejada admitted that he was removed from the United States to his native El Salvador on September 22, 2015. On November 19, 2017, an ICE Officer arrested Monzon Tejada in Glenville, New York.
Monzon Tejada was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Removed Alien Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 6, named Juan Garcia-Cabrera, age 37, of Mexico, as the sole defendant.
According to the indictment presented to the court, Juan Garcia-Cabrera, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on July 6, 2007. Juan Garcia-Cabrera was found to be illegally present in Pittsburgh, Pennsylvania, on January 11, 2018.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James R. Wilson is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Pittsburgh sub-office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Registered Sex Offender Detained on Child Pornography ChargeRead the Press Release
PROVIDENCE, RI – A registered sex offender serving lifetime federal supervised release, having been convicted of possession and distribution of child pornography in 2011, and sentenced to 84 months in federal prison followed by lifetime supervised release, was ordered detained in federal custody today, less than 5 months after completing his term of incarceration on a criminal complaint charging him with possession child pornography.
Robert L. MacGregor, 55, of Providence, was arrested by Homeland Security Investigations (HSI) agents and members of the Rhode Island State Police Internet Crimes Against Children ( RI ICAC) task force earlier today, following an investigation that determined that MacGregor was allegedly in possession of approximately 100 images of child pornography.
According to court documents, during a routine home visit on January 24, 2018, a United States Probation Officer allegedly observed inappropriate materials on MacGregor’s cell phone. A subsequent forensic examination of the phone by members of the RI ICAC task force allegedly revealed approximately 100 images of child pornography.
MacGregor’s arrest and detention are announced by United States Attorney Stephen G. Dambruch; Michael S. Shea, Acting Special Agent in Charge of HSI for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Possession of child pornography in this matter (2nd offense) is punishable by statutory penalties of a mandatory minimum of 10 years in prison, with a maximum penalty of 20 years of incarceration; lifetime supervised release; and a fine of up to $250,000.
A criminal complaint 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.
MacGregor was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Red Oak Man Sentenced to 170 Months on Child Pornography ChargeRead the Press Release
DALLAS — Noah Ray Evans, 35, of Red Oak, Texas, was sentenced this week before U.S. District Judge Jane J. Boyle to 170 months in federal prison on a federal child pornography charge, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Evans pleaded guilty to one count of transportation and shipping child pornography in October 2017.
According to the plea agreement factual resume filed in the case, on January 29, 2017, Evans used his computer to send files of a prepubescent minor engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Homeland Secutiry Investigations and Ozark, Arkansas Police Department investigated the case. Assistant U.S. Attorney Shane Read prosecuted.
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Rabobank NA Pleads Guilty, Agrees to Pay over $360 MillionRead the Press Release
Rabobank National Association (Rabobank), a Roseville, California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., appeared today before U.S. Magistrate Judge Jill L. Burkhardt and pleaded guilty to a felony conspiracy charge for impairing, impeding and obstructing its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (the OCC) by concealing deficiencies in its anti-money laundering (AML) program and for obstructing the OCC’s examination of Rabobank. Rabobank will forfeit $368,701,259 as a result of allowing illicit funds to be processed through the bank without adequate Bank Secrecy Act (BSA) or AML review.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Adam L. Braverman for the Southern District of California, Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Diego and Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
At today’s hearing, Rabobank pleaded guilty to conspiracy to defraud the United States and to corruptly obstruct an examination of a financial institution. In pleading guilty, Rabobank admitted to conspiring with several former executives to defraud the United States by unlawfully impeding the OCC’s ability to regulate the bank, and to obstruct an examination by the OCC of its operations throughout California, including its Calexico and Tecate bank branches. Rabobank admitted that its deficient AML program allowed hundreds of millions of dollars in untraceable cash, sourced from Mexico and elsewhere, to be deposited into its rural bank branches in Imperial County, and transferred via wire transfers, checks, and cash transactions, without proper notification to federal regulators as required by law. Knowing these failures, during the OCC’s 2012 examination of Rabobank’s BSA/AML compliance program, Rabobank executives actively sought to hide and minimize the deficiencies in its AML program in an effort to deceive the regulators as to its true state in hopes of avoiding regulatory sanctions that had previously been imposed on Rabobank in 2006 and 2008 for nearly identical failures.
Rabobank’s guilty plea comes less than two months after a former Rabobank vice president, George Martin, entered into a deferred prosecution agreement with the United States for his role in aiding and abetting Rabobank’s failure to maintain an AML program that met BSA requirements. Martin admitted his conduct in federal court in San Diego on Dec. 14, 2017. As part of its guilty plea, Rabobank agreed to cooperate with the United States’ continuing investigation.
“When Rabobank learned that substantial numbers of its customers’ transactions were indicative of international narcotics trafficking, organized crime, and money laundering activities, it chose to look the other way and to cover up deficiencies in its anti-money laundering program,” said Acting Assistant Attorney General Cronan. “Worse still, Rabobank took steps to obstruct an examination by its regulator into those same deficiencies. The integrity of our financial system depends on prompt reporting by banks and other financial institutions of suspicious, potentially criminal transactions, and on these entities’ truthfulness and transparency with their regulators. Rabobank’s guilty plea today and forfeiture of more than $360 million is a warning to financial institutions that there are significant consequences for banks that engage in obstructive conduct in an effort to hide their anti-money laundering program failures from their regulators.”
“Rabobank had an obligation to shine light on suspected drug traffickers, money launderers and organized crime,” said U.S. Attorney Braverman. “Instead, this bank deliberately allowed hundreds of millions of dollars of suspicious cash transactions and wire transfers to flow through its branches and took measures to hide this activity from regulators. We will vigorously protect the integrity of the banking system, and we will not allow the financial institutions in our communities to play any role in facilitating international money laundering or financing transnational criminal organizations.”
“It is the responsibility of Homeland Security Investigations to monitor and investigate activity which exploits the global infrastructure, to include financial systems,” said Special Agent in Charge Shaw. “This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk that it was processing hundreds of millions of dollars related to transnational crime and international money laundering – activity which plagues the Southwest Border. This plea and significant forfeiture send a strong message to financial institutions that this activity will not be tolerated.”
“Today, Rabobank is being held accountable for its illegal actions involving the movement of more than $360 million through the U.S. financial system on behalf of high risk customers,” said Special Agent in Charge Rowe. “In today’s environment of increasingly sophisticated financial markets, it’s critical that global institutions follow U.S. law and abide by our anti-money laundering regulations. The IRS is proud to share its world-renowned financial investigative expertise in this and other complex financial investigations.”
The BSA requires financial institutions to implement and maintain an AML compliance program reasonably designed, among other things: (i) to detect suspicious activity indicative of money laundering and other crimes and (ii) to assure and monitor compliance with the BSA’s recordkeeping and reporting requirements, including to report to the U.S. Department of the Treasury any suspicious transactions (through the filing “suspicious activity reports” or “SARs”) indicative of a possible violation of the law. In its plea agreement, Rabobank admitted knowing that between 2009 and 2012 its BSA/AML program failed in significant ways. Some of these BSA/AML program failures resulted from policies and procedures at Rabobank that precluded and suppressed investigations into suspicious transactions that occurred at its branches, by its accountholders, or by individuals conducting transactions on behalf of its accountholders that had various indications of being involved in, derived from, or promoting illegal conduct.
According to court documents, Rabobank received regular alerts of transactions by “High-Risk” customers, or through accounts deemed to be “High-Risk,” and that had been the subject of prior SARs filed by Rabobank. These High-Risk customers and accounts included those controlled and managed by Mexican businesses, nonresident aliens, and U.S.-based accountholders who transacted hundreds of millions of dollars in untraceable cash, sourced from Mexico and elsewhere, into and through Rabobank accounts.
According to court documents, Rabobank also created and implemented policies and procedures to prevent adequate investigations into these suspicious transactions, customers, and accounts. Among those policies and procedures was Rabobank’s “Verified List” – a policy that effectively resulted in Rabobank executing an end-run the BSA/AML and SAR requirements. In particular, Rabobank instructed its employees that if a customer was on the “Verified List,” no further review of that customer’s transactions was necessary -- even if the transactions generated an internal alert, or the customer’s activity had changed dramatically from when it was “verified.” Rabobank’s BSA/AML staff were further instructed to aggressively increase the number of bank accounts on the Verified List, as evidenced by the fact that in 2009, Rabobank had less than 10 “verified” customers, but by 2012, as a result of its defective BSA/AML policies and procedures, it had more than 1,000 “verified” customers.
Additionally, Rabobank admitted failing to monitor and conduct adequate investigations into these transactions and submit SARs to the Financial Crimes Enforcement Network (FinCEN), as required by the BSA. Rabobank’s border branches, including those located in Calexico and Tecate in Imperial County, California, were heavily dependent on cash deposits from Mexico. Rabobank knew that millions of dollars in cash deposits at these branches were likely tied to illicit conduct. In particular, the Calexico branch, located about two blocks from the U.S.-Mexico border, was the “highest performing” branch in the Imperial Valley region due to the cash deposits from Mexico. Throughout the relevant time period, Rabobank continued this practice of soliciting cash-intensive customers from Mexico and elsewhere, all the while employing the foregoing inadequate BSA/AML policies and procedures to address the obvious, known “High Risks” associated with these accounts, transactions, and transactors.
When the OCC began conducting its periodic examination of Rabobank in 2012, Rabobank, acting through three of its executives, agreed to, among other things, knowingly obstruct the OCC’s examination. Rabobank responded to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program. Rabobank also made false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant, which detailed the deficiencies and resulting ineffectiveness of Rabobank’s BSA/AML program.
To further conceal the inadequate nature of its BSA/AML program and to avoid “others contradicting our findings” and statements to the OCC, Rabobank demoted or terminated two RNA employees who were raising questions about the adequacy of Rabobank’s BSA/AML program.
The investigation was conducted by HSI, IRS-CI, and the Financial Investigations and Border Crimes Task Force (the FIBC), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (TEOAF). The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division. The case is being prosecuted by Trial Attorneys Kevin G. Mosley and Maria Vento of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher and David J. Rawls from the Southern District of California.
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Pittsford Man Sentenced in Million Dollar Food Stamp Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Irving Feldman, 62, of Pittsford, NY, who was convicted of food stamp fraud, was sentenced to 12 months in prison and ordered to pay $729,630 in restitution by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the defendant owned Upstate Fish, Inc., at 826 Joseph Avenue in Rochester, NY. Feldman was authorized to accept and redeem food stamps as the owner of Upstate Fish, Inc. Food stamp benefits are issued by the Food and Nutrition Service of the United States Department of Agriculture (“USDA”) and are distributed to recipients through the use of Electronic Benefit Transfer (“EBT”) cards. When purchasing certain eligible food items, the beneficiary provides the EBT card through an EBT terminal at the authorized retailer. This electronic transfer of benefits is initiated at the retailer’s terminal by deducting benefits from the beneficiary’s account and crediting the amount through an electronic transfer directly from the United States Treasury Department to the retailer’s designated bank account. A retailer is prohibited from exchanging cash for food stamps.
Between January 2010 and October 2015, the defendant illegally purchased food stamp benefits for less than half their full value for cash from eligible beneficiaries. Feldman engaged in approximately $1,227,063 of illegitimate transactions.
In addition, the defendant directed beneficiaries to purchase fish at other fish stores using their EBT card. The beneficiaries would then bring the fish to the defendant at Upstate Fish, Inc. and Feldman would provide cash to the beneficiaries in amounts less than the cost to purchase the fish. The loss amount from this additional scheme was approximately $202,620.
“The schemes concocted by defendant—real-life fish stories—resulted not only in nutrition assistance being withheld from low-income individuals but also led to significant sums of money being fraudulently diverted from the needy to defendant,” noted U.S. Attorney Kennedy. “I’d like to commend our federal, state, and local partners for their excellent cooperation and assistance in helping us to catch this defendant and successfully prosecute him in federal court.”
“This corner fish market was a front for the owner’s brazen seven-figure criminal scheme in which he took advantage of society’s most financially vulnerable, as well as our critical welfare system, for his own personal greed,” said New York State Inspector General Catherine Leahy Scott. “I will continue to work closely with my law enforcement partners to put a stop to corrupt business owners illegally profiting from vital government programs.”
The sentencing is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction Special Agent-in-Charge Bethanne M. Dinkins; the Rochester Police Department, Economic Crimes Division, under the direction of Chief Michael Ciminelli; the Monroe County Department of Social Services, under the direction of Corinda Crossdale; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the New York State, Office of Inspector General, under the direction of Inspector General Catherine Leahy Scott.Pittsburgh Felon Charged with Illegally Possessing a Gun with an Obliterated Serial NumberRead the Press Release
PITTSBURGH – A federal grand jury has returned a superseding indictment charging a resident of Pittsburgh with violations of federal firearms laws, United States Attorney Scott W. Brady announced today.
The two-count superseding indictment, returned on February 6, named Nazim Burton, age 41, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the superseding indictment, on June 24, 2017, Burton illegally possessed a firearm with an altered or obliterated serial number. Burton has previously been convicted of a felony, and is prohibited from possessing a firearm.
For possessing a firearm as a convicted felon, the law provides for a minimum mandatory sentence of 15 years up to a maximum of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
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.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Charged in ShootingRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man was charged in federal district court with Assault Resulting in Serious Bodily Injury.
Lester Waters Jr. was charged on January 29, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on February 2, 2018, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Waters shooting two men near Pine Ridge on January 25, 2018. The charge is merely an accusation and Waters is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Pubic Safety. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Waters was detained pending further hearing. A trial date has not been set.
Oregon Man Sentenced to 2 Years in Prison for Trafficking MarijuanaRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN G. KOUKOURAS, 40, of Eugene, Oregon, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for trafficking marijuana. Judge Arterton also ordered KOUKOURAS to pay a $4,000 fine.
According to court documents and statements made in court, in the summer of 2017, KOUKOURAS and William Reyes, of Stamford, utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. On July 26, 2017, investigators executed a federal search warrant at the Lagrangeville residence and seized approximately 140 marijuana plants and equipment used to grow, process and distribute marijuana.
On September 14, 2017, KOUKOURAS was arrested at 720 Brookside Drive in Eugene. On that date, investigators searched the residence and seized approximately 50 marijuana plants and equipment used to grow and process marijuana.
The investigation also revealed that Reyes was being supplied with large quantities of marijuana by Gustavo Garcia, of Queens, New York. In July 2017, Garcia delivered approximately 40 pounds of marijuana to Reyes in exchange for approximately $80,000.
On November 15, 2017, KOUKOURAS pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana.
Judge Arterton ordered KOUKOURAS to report to prison on March 13, 2018. He is released on a $25,000 bond.
Reyes and Garcia have pleaded guilty to related charges and await sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
Norwich Man Sentenced to More Than 8 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMAEL ARTIS, also known as “Rah,” 36, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 106 months imprisonment, followed by five years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on March 15, 2016, a court-authorized search of ARTIS’ Norwich apartment revealed approximately 50 grams of heroin, a quantity of cocaine, and items used to process and package narcotics for street sale.
The investigation revealed that between July 2015 and March 2016, ARTIS obtained four handguns by trading heroin for each firearm.
ARTIS has been detained since his arrest on March 15, 2016. On October 4, 2017, he pleaded guilty to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
ARTIS’s criminal history includes felony convictions for firearm, narcotics, robbery and larceny offenses.
This investigation was conducted by the FBI’s Northern Connecticut Safe Streets Task Force, and the Town of Groton, Norwich and Waterford Police Departments. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Northside Felon Charged with Illegally Possessing a Gun and AmmunitionRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of federal firearm violations, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on February 6, named Ambrose J. Sample, II, age 37, as the sole defendant.
According to the indictment, on or about June 17, 2017, Ambrose J. Sample, II, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence at each count of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Norfolk Man Sentenced for Wire Fraud in Metal Building Construction ScamRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Bradley S. Leffers, 47, formerly of McCook, Nebraska, was sentenced today in Lincoln, Nebraska, to 2 years in prison by United States Senior District Judge Richard G. Kopf, for wire fraud. Leffers was also ordered to pay $712,066.64 in restitution and serve 3 years on supervised release.
In 2013 and early 2014, Bradley Leffers, doing business as Rocklin Steel, placed ads in magazines and on the radio, targeted at farmers and ranchers, offering to construct metal buildings. The typical pattern was for a customer to contact Leffers in response to an ad. Leffers would then personally visit the customer and enter into a contract to erect a building, accepting a down payment at the time the contract was signed. Frequently Leffers would contact the customer once or twice more within the first 30 days and explain the need for more money, and would receive more money. The explanations given varied from the need to pay the foundation sub-contractor, the need to pay more up front for ‘extras’ desired for the building, the switch from one materials supplier to another, etc. The payments by the customers were deposited into Leffers’ bank account, resulting in interstate wire transmissions. The customers are primarily in northeast Nebraska, with a couple in Kansas.
Leffers did build some buildings, but there are individuals from whom Leffers took money but never acquired any materials nor did he begin any construction. These victims confirmed they entered into contracts with Leffers for the construction of buildings on their property and made substantial payments while never receiving anything in return. With some victims, Leffers did place an order for materials with a supplier, but he never sent the supplier any money so no materials were supplied. For other victims Leffers never ordered any materials nor did he send any money to any supplier.
This case was investigated by the Federal Bureau of Investigation.
Non-Indian Sex Offender from Vanderwagon Sentenced for Sexual Abuse and Kidnapping of Navajo ChildrenRead the Press Release
ALBUQUERQUE – William Detwiler, 68, a non-Indian who resides in Vanderwagon, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 150 months in prison followed by five years of supervised release for his conviction on child sexual abuse and kidnapping charges. Detwiler will be required to register as a sex offender after completing his prison sentence.
The sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and New Mexico State Police Chief Pete N. Kassetas.
Detwiler, who has a prior conviction for criminal sexual contact with a minor, was arrested on May 31, 2016, on a four-count indictment, charging him with two counts of aggravated child sexual assault and two counts of kidnapping. According to the indictment, Detwiler kidnapped an Indian child under the age of 16 years and sexually abused the victim on two occasions between Nov. 2013 and June 2014. Detwiler was charged with committing the four crimes on the Navajo Indian Reservation in McKinley County, N.M.
On Aug. 11, 2016, Detwiler pled guilty to a felony information charging him with abusive sexual contact and kidnapping. In entering the guilty plea, Detwiler admitted that in Nov. 2013, he engaged in sexual contact with the victim and acknowledged that the victim was under the age of 16 years. Detwiler further admitted that on a date between Aug. 1, 2014 and Sept. 30, 2014, he kidnapped a different Indian child under the age of 16 years.
This case was investigated by the Gallup office of the FBI and the New Mexico State Police. It was prosecuted by Assistant U.S. Attorneys Nicholas Marshall and Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
New York Man Sentenced to Prison for Trafficking PCP in New MexicoRead the Press Release
ALBUQUERQUE – Taylor Overton Foster, 28, of White Plains, N.Y., was sentenced today in federal court in Albuquerque, N.M., to 46 months in prison followed by three years of supervised release for his conviction on a phencyclidine (PCP) trafficking offense.
The DEA arrested Foster on Feb. 8, 2017, after seizing seized approximately 508.9 grams (1.12 pounds) of PCP from him during an interdiction investigation at the Amtrak Train Station in Albuquerque. Thereafter Foster was charged by criminal complaint with possessing PCP with intent to distribute on Feb. 8, 2017, in Bernalillo County, N.M. Foster subsequently was indicted on Feb. 28, 2017, on the same charge.
On July 14, 2017, Foster pled guilty to a felony information charging him with possession of PCP with intent to distribute. In entering the guilty plea, Foster admitted transporting PCP to Albuquerque on the Amtrak train on Feb. 8, 2017. Foster further admitted that a DEA agent discovered the PCP in a leaking bottle inside Foster’s backpack.
This case was investigated by the DEA Albuquerque District Office. Assistant U.S. Attorney Eva Fontanez prosecuted the case.