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Friday 15 December 2017
Quincy Woman Charged with Stealing Nearly $600,000 from EmployerRead the Press Release
BOSTON – An accountant/bookkeeper at a Boston-based company was arrested yesterday and charged in federal court in Boston with stealing approximately $588,000 of her employer’s funds.
Thanh Tam Thao Huynh, a/k/a Tiffany Huynh, 30, a Canadian national residing in Quincy, was arrested yesterday and charged with three counts of wire fraud. Huynh will appear before U.S. District Court Magistrate Judge Donald L. Cabell for a detention and probable cause hearing today.
It is alleged that from March 2016 to December 2017, Huynh was employed by a Boston-based company as an accountant/bookkeeper. Between February and October 2017, Huynh caused at least 30 unauthorized wire transfers, totaling at least $400,000, from the company’s account at Royal Bank of Canada (RBC) to unknown accounts. Huynh allegedly provided her supervisor with false information concerning the RBC’s account balance and gave him an incorrect password so that he could not check the balance himself. The complaint also alleges that from September 2016 to November 2017, Huynh caused dozens of unauthorized charges, totaling more than $160,000, to be made on the company’s business credit card for her own expenses, including her rent, car payments, and to purchase thousands of dollars’ worth of gift cards. Huynh, who was responsible for managing the company’s credit card statements, concealed her actions by deleting the details of her personal charges before providing the statements to her supervisor for review. When Huynh’s company discovered Huynh’s theft and unauthorized use of the credit card, they confronted her and Huynh admitted to both.
The charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, or twice to gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Queens Man Convicted of Enticing 16-Year-Old Girl to Travel from Abroad to Engage in Sexual ActivityRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Sean Price on four counts of a superseding indictment charging him with interstate and foreign enticement to engage in sexual activity, interstate and foreign transportation of a minor to engage in sexual activity, a Mann Act violation, and attempted sexual exploitation of a child. The verdict came after a four-day trial before United States District Judge Nicholas G. Garaufis.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations New York (HSI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The jury has held defendant Sean Price accountable for his predatory conduct, which included luring a teenage girl from her home in Australia across the world to the United States so that he could engage in an illicit sexual relationship with her,” stated Acting United States Attorney Rohde. “Today’s verdict should send a strong message that this Office, together with our law enforcement partners, will work tirelessly to identify those who would sexually exploit minors and prosecute those abusers to the fullest extent of the law.” Ms. Rohde expressed her appreciation to the New South Wales Police Force and the Australian Federal Police for their assistance in the investigation and prosecution of this matter, and commends the Australian authorities and the NYPD on the investigation and cooperation that ultimately led to the recovery of the missing girl.
“Price lured a teenage girl across the globe to satisfy his own sordid desires, taking advantage of her youth and preying on her vulnerability,” stated HSI Special Agent-in-Charge Melendez. “These cases are a harsh reminder of the importance of educating our young people on the dangers of sexual predators on the internet. HSI New York’s Trafficking in Persons Unit maintains an unwavering commitment to investigate these crimes around the world, targeting and arresting predators who transport minors for sex. And we continue to collaborate with our global partners, like the Australian Federal Police, while relying on local partnerships as with the NYPD.”
The evidence at trial established that in the fall of 2016, Price established an online relationship with a 16-year-old girl who lived in Australia. By January 2017, they were communicating with each other daily through messages on Facebook, with much of the discussion concerning Price’s desire to engage in sex with the girl, and how she could travel from Australia to join Price in New York City without law enforcement or her parents finding out. The Facebook chat messages demonstrated that Price, who was 39-years-old at the time, openly discussed the girl’s age with her, and Price told her repeatedly that he wanted to be sexually intimate with her.
Price and the girl also discussed obtaining a fake passport so the girl could travel internationally, and Price offered to impersonate her father to help her get through airport security in the United States. In chat messages, Price told the girl that they would soon be laughing at her parents and when she told Price that she did not need parental permission to fly internationally, Price responded: “So you coming to papa?” After months of planning, Price wired the girl over $900 to purchase a plane ticket to fly to Los Angeles in late March of this year. Shortly afterwards, on April 11, 2017, the girl flew on a roundtrip ticket from Sydney, Australia to Los Angeles, California, where Price was waiting for her arrival. Price hired a rental car, and he drove across the country to Price’s home in Jamaica, Queens.
Price admitted in a post-arrest statement that he and Jane Doe were involved sexually during their cross-country trip, and while they were living in Queens until she was found by law enforcement in his home four weeks later. Following her successful recovery by officers of the NYPD, Jane Doe was returned to her family in Australia.
When sentenced, Price faces up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn A. Merkl and Monica K. Castro.
The Defendant:
SEAN PRICE
Age: 39
Residence: Queens, New YorkE.D.N.Y. Docket No. 17-CR-301 (NGG)
Pennsylvania Man Admits Trading on Inside Information Related to Mercer County, New Jersey, Pharmaceutical CompanyRead the Press Release
NEWARK, N.J. – A Yardley, Pennsylvania, man today admitted his role in an insider trading conspiracy that profited from yet-to-be public information concerning a pharmaceutical company that developed a drug to treat cancer, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel Perez, 28, pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of securities fraud.
According to documents filed in the case and statements made in court:
Celator Pharmaceuticals Inc. (Celator) was a biopharmaceutical company headquartered in Ewing Township, New Jersey, that developed the drug Vyxeos to treat acute myeloid leukemia. In December 2012, Celator began Phase 3 clinical trials for Vyxeos, the results of which were highly confidential within the company. On March 14, 2016, Celator issued a press release announcing that the clinical trial results were positive.
Prior to the March 2016 announcement, Evan Kita, 27, of Yardley, who was a Celator employee from June 2013 through April 2016, learned that the Vyxeos clinical trials had produced positive results. Kita then shared that information with Perez and Richard Yu, 27, of Pennington, New Jersey, who both traded on the information.
On May 31, 2016, Celator and Jazz Pharmaceuticals PLC (Jazz) – a publicly-traded company headquartered in Dublin, Ireland – announced that they had entered an agreement for Jazz to purchase Celator in a transaction valued at approximately $1.5 billion. Jazz completed the acquisition of Celator in 2016, and now operates Celator as a wholly-owned subsidiary.
Kita learned of the potential acquisition prior to the public announcement from two close friends who still worked at Celator. Again, Kita shared the information with Perez and Richard Yu, who both traded on the information. Richard Yu, in turn, shared the information with his father, Chiang Yu, 55, of Pennington, who also traded on the information.
Perez admitted that the gain resulting from his insider trading scheme was more than $150,000, but less than $250,000.
The securities fraud charge carries a potential penalty of 20 years in prison and a $5 million fine. Kita, Richard Yu, and Chiang Yu pleaded guilty to their roles in the scheme on Aug. 31, 2017. Sentencing for all four defendants is currently set for April 18, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone, and its Philadelphia Regional Office, under the direction of G. Jeffrey Boujoukos.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Louis R. Busico Esq., Newton, Pennsylvania
Pasco County Woman Sentenced to Four Years in Prison for Tax Fraud and ObstructionRead the Press Release
Tampa, Florida – United States District Judge James D. Whittemore today sentenced Ingrid McBride Rich to four years in prison for presenting a false claim to an agency of the United States, and for obstructing and impeding the Internal Revenue Service (IRS) in the collection of taxes. As part of her sentence, the Court also ordered her to pay restitution to the IRS in the amount of $510,222.
Rich was found guilty by a federal jury on August 17, 2017.
According to evidence presented at trial, in March 2009, Rich submitted a fraudulent tax return to the IRS for tax year 2008, which resulted in her obtaining a refund check in the amount of $510,222. After obtaining the check, she deposited it into a brand new bank account, then immediately began transferring the money into various accounts, in her name and in the names of entities she owned. In an attempt to prevent the IRS from recouping the funds, Rich used cashier’s checks and at least 10 bank accounts and 4 banking institutions to hide the money. She bought nearly 100 cashier’s checks and engaged in hundreds of financial transactions over a period of nearly three years. The evidence also showed that Rich incorporated two companies in order to hide the tax refund, and hid additional money in accounts of corporations she had previously controlled.
Rich also sent the IRS various frivolous correspondence, including bogus money orders and tax documents, with the intent that it would impede the collection of the funds. Because of this obstruction, the IRS was only able to recoup a nominal amount of the fraudulently obtained funds.
This case was investigated by Internal Revenue Service–Criminal Investigation. It was prosecuted by Assistant United States Attorneys Rachel Jones and Adam Saltzman.
Ohio County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Quashad Maurante Pugh, of Wheeling, West Virginia, was indicted by a federal grand jury on December 5, 2017 on drug charges, United States Attorney Bill Powell announced.
Pugh, also known as “Q” and “Quavo,” age 23, was indicted on one count of “Distribution of Cocaine Base” and one count of “Possession with Intent to Deliver Cocaine Base within 1,000 Feet of a Protected Location.” Pugh is accused of selling cocaine and distributing cocaine near Jensen Playground in October 2017 in Ohio County.
Pugh faces up to 20 years incarceration and a fine of up to $1,000,000 for Count 1, and he faces up to 40 years incarceration and a fine of up to $2,000,000 for Count 2. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Norton Doctor Sentenced on Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Norton, Virginia physician who specialized in urology was sentenced this morning in the United States District Court for the Western District of Virginia in Abingdon on a federal drug distribution charge, United States Attorney Rick A. Mountcastle and Virginia Attorney General Mark Herring announced.
Felix Eugene Shepard, Jr., 57, was sentenced today to six months in federal prison. Shepard Jr. previously pleaded guilty to one count of distributing oxycodone, a Schedule II controlled substance.
According to evidence presented to the court by Special Assistant United States Attorney and Assistant Attorney General Suzanne Kerney-Quillen, Shepard admitted to writing 47 prescriptions for oxycodone to a person he was involved with in a sexual relationship. Over the course of two years, Shepard issued prescriptions for over 2,000 dose units of oxycodone to the person and later admitted to investigators that he had concerns the person was either addicted to or diverting the pills.
Shepard admitted to the Virginia Board of Medicine that the narcotic prescriptions were written to the person outside of a bona fide doctor-patient relationship and with whom he had a sexual relationship. Shepard continuously prescribed narcotic medications to the person without performing physical examinations, evaluations, or diagnostic testing, for conditions that were outside the scope of his urological practice. In statements Shepard made to the Virginia Board of Medicine, he expressed concern regarding the amount of oxycodone he had prescribed the person and said the amounts were indicative of addiction. However, Shepard took no action to address the person’s possible addiction and/or diversion of the oxycodone he prescribed.
The investigation of the case was conducted by the Drug Enforcement Administration-Tactical Diversion Squad. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Northfield Man Pleads Guilty to Methamphetamine, Heroin, Fentanyl, and Carfentanil Trafficking and Firearm OffensesRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced today that Justin Gauthier, 39, formerly of Northfield, New Hampshire, pleaded guilty to charges that he unlawfully possessed methamphetamine, heroin, fentanyl, and carfentanil with the intent to distribute and that he unlawfully possessed firearms in furtherance of drug trafficking crimes.
Court documents and statements in court showed that law enforcement officers executed two search warrants on Gauthier’s Northwood residence. During the first search on August 5, 2016, law enforcement officers seized quantities of methamphetamine and fentanyl, multiple firearms, and $13,980 in cash. During the second search on March 10, 2017, quantities of methamphetamine, fentanyl, carfentanil, multiple firearms, and $6,791 in cash were seized.
“Guns and drugs are a deadly combination and those who use guns as part of the drug trade present a substantial threat to our community,” said Acting U.S. Attorney Farley. “This case is particularly notable because the defendant was distributing carfentanil. Carfentanil is far more powerful than fentanyl and presents a serious public safety concern. In order to protect the public, we will work closely with all of our law enforcement partners to identify and prosecute those who seek to profit from the distribution of carfentanil and other deadly substances.”
"ATF will continue to work with our law enforcement counterparts, to aggressively combat drug traffickers and the threat they pose to our citizens by illegally possessing firearms in furtherance of their illegal drug trade," said Mickey Leadingham, Special Agent in Charge, ATF Boston Field Division.
Gauthier’s sentencing is scheduled for March 27, 2018.
This case is being investigated by the New Hampshire State Police, Narcotics Investigation Unit, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tilton and Northfield, New Hampshire Police Departments. The case is being prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Northern District of Ohio to get two additional prosecutors to focus on violent crimeRead the Press Release
Today Attorney General Jeff Sessions announced the Department of Justice’s new steps in combating violent crime. The Department has selected 27 locations to receive aid in the fight against violent crime. Those locations will receive a total of 40 Assistant U.S. Attorneys, and new violent crime task forces will be launched in Charlotte, NC, and Pittsburgh, PA. The new violent crime task forces will focus on the proliferation of violent crime in the counties adjacent to Pittsburgh and Charlotte.
"Led by our 94 United States Attorney’s Offices, Project Safe Neighborhoods (PSN) task forces are hitting the streets across America to apprehend and bring violent criminals to justice. I have asked Congress for additional PSN funding next year because I believe nothing will be more effective at reducing violent crime" said Attorney General Sessions. "Under this program, I am asking a great deal of our United States Attorneys. I am both empowering them and holding them accountable for results. To put them in the best position to impact and reduce violent crime, it is my privilege to announce today that through a re-allocation of resources, we will be enlisting and deploying 40 additional violent crime prosecutors across the United States."
More information on the locations of those 40 Assistant United States Attorneys and violent crime task forces is below:AUSA Breakdown by District
Northern District of Alabama - 1
Eastern District of Arkansas - 1
Northern District of California - 2
Southern District of California - 1
District of Connecticut - 1
District of Columbia - 1
Central District of Illinois - 1
Northern District of Illinois - 3
Southern District of Indiana - 1
Eastern District of Louisiana - 1
District of Maryland - 3
Western District of Michigan - 1
Eastern District of Missouri - 2
Western District of Missouri - 1
District of Nevada - 2
District of New Mexico - 1
Eastern District of New York - 2
Western District of New York - 1
Northern District of Ohio - 2
Eastern District of Pennsylvania - 1
Middle District of Tennessee - 2
Western District of Tennessee - 2
Eastern District of Texas - 1
Northern District of Texas - 1
Southern District of Texas - 2
Western District of Texas - 1
Eastern District of Wisconsin - 2Summary of the Charlotte Violent Crime Task Force (CE VCTF) for the Western and Middle Districts of North Carolina
The CE VCTF is focused on the investigation of violent crime in the greater Charlotte metropolitan area, to include Mecklenburg, Gaston, Cleveland, Cabarrus, Union, Stanly, Anson and Montgomery Counties. The Task Force will be assigned to the FBI Charlotte Division Headquarters. The CE VCTF will focus on the significant proliferation of violent crime. Gang-related crime is already being addressed by the FBI’s Charlotte Division Safe Streets Task Force, and the new Task Force will concentrate on other violent criminal activity. Violent crime rates in Charlotte-Mecklenburg, Gaston, and Anson County exceed the national average. The CE VCTF will focus on crime exercising a significant impact on these communities. The CE VCTF will be staffed with local law enforcement as well as federal agents.
Summary of the Pittsburgh Violent Crime Task Force (PG VCTF) for the Western District of PennsylvaniaThe PG VCTF will focus on the proliferation of violent crime in the counties including and adjacent to Pittsburgh—Allegheny, Armstrong, Beaver, Butler, Clarion, Lawrence, and Mercer. The Task Force will be assigned to the FBI Pittsburgh Division Headquarters. Pittsburgh’s violent crime rating is significantly higher than the national median. With the exception of the city of Pittsburgh, each of the counties in the area of the proposed Task Force has a violent crime per capita rate that is higher than the city of Philadelphia as calculated based on 2015 FBI crime statistics. Despite the fact that violent crime has declined in several categories, the overall trend reflects a disturbing increase in violent crime. The PG VCTF will focus on violent crimes that impact public safety. The PG VCTF will enable law enforcement to work more strategically and to address violent crime with data-driven strategies. Staffing of the proposed Task Force will include federal law enforcement and representatives from local law enforcement agencies.
North Ogden Woman Pleads Guilty to Mail Fraud, Tax Evasion; Admits She Embezzled $843,673 from Her EmployerRead the Press Release
SALT LAKE CITY -- Hailey Keele, age 35, of North Ogden, pleaded guilty to one count of mail fraud and one count of tax evasion in federal court Wednesday afternoon in connection with a $843,673 embezzlement scheme at the business where she worked.
In court documents filed Wednesday, Keele admitted that from July 2006 through about November 2014, the company she worked for gave her access to its online American Express credit card account. She prepared checks drawn on her employer’s bank account to American Express and presented the checks to the company’s business manager for signature. She did this under the pretense the checks would be used to pay the company’s American Express account.
Keele admitted she did not disclose that the company’s American Express account would be fully paid by automatic online payments she set up using her online access. She also did not tell the company that she intended to use the checks to American Express for payments for her personal American Express account. Relying on her representations and omissions, the business manager signed the checks. She admitted she used the funds to pay for personal expenses and sometimes withdrew the funds in the form of cash advances, gift cards, and credit balance refund checks from American Express.
As a part of a plea agreement reached with federal prosecutors, Keele admitted she committed mail fraud in furtherance of the scheme when she contacted American Express in August 2012 to request a credit balance refund check of $36,681.15. She received the check by mail. The tax evasion conviction involves tax returns she filed for tax year 2014. According to the plea agreement, Keele knew that she had obtained significant income through her fraud scheme. However, she did not report or pay taxes on any of the $377,789 in income she obtained in 2014 through the scheme. The total amount of income tax due on the unreported income was $100,300.
U.S. District Judge Dee Benson set sentencing in the case for Feb. 21, 2018, at 2 p.m. The potential maximum penalty for the mail fraud conviction is 20 years in federal prison. The tax evasion count has a potential penalty of five years in prison. She also agreed to forfeit all property acquired or traceable to her criminal conduct, including as money judgment of $843.673.
Special agents of IRS-Criminal Investigation investigated the case. Assistant U.S. Attorneys Carl D. LeSueur and Kevin L. Sundwall of the U.S. Attorney’s Office are prosecuting the case.
North Country Man Sentenced on Methamphetamine ChargesRead the Press Release
SYRACUSE, NEW YORK – Eric Campbell, age 36, formerly of Lewis County, was sentenced today to 72 months imprisonment for possessing methamphetamine and for possessing pseudoephedrine knowing it would be used to manufacture methamphetamine, announced Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division and New York State Police Superintendent George P. Beach II.
The evidence against Campbell established that between January 2014 and November 2015, he and others purchased pseudoephedrine pills weighing more than 100 grams from different drug stores in and around Lewis County. Campbell knew there were restrictions on the sale of pseudoephedrine, and to avoid scrutiny often rotated the stores where he bought the pills. Campbell purchased the pseudoephedrine and possessed pseudoephedrine purchased by others knowing it would be used to illegally manufacture methamphetamine. On November 13, 2015, Campbell possessed approximately 107 grams of a liquid containing methamphetamine, the result of an unfinished methamphetamine “cook.”
After serving his term of imprisonment, Campbell will be on supervised release for 3 years.
This case was investigated by the New York State Police (NYSP), including the NYSP Contaminated Crime Scene Emergency Response Team (CCERT) and New York State Intelligence Center (NYSIC), the Lewis County Sheriff’s Office, and the U.S. Drug Enforcement Agency, and was prosecuted by Assistant U.S. Attorney Carl Eurenius.
New York Attorney Sentenced to over Four and A Half Years in Prison for Obstruction of Justice and PerjuryRead the Press Release
SAN FRANCISCO – Joel Zweig, an attorney who resides in New York, was sentenced to 56 months in prison for obstruction of justice and perjury, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The sentence was handed down yesterday by the Honorable William H. Orrick, U.S. District Judge, following Zweig’s guilty plea to the charges on September 19, 2017.
According to the plea agreement, Zweig, 54, admitted he manufactured evidence in an effort to establish damages in the lawsuit Pet Food Express, Limited v. Royal Canin USA, Inc., C09-1483 EMC. The lawsuit was pending in the Northern District of California. Zweig admitted he created a phony commercial lease, complete with fake signatures and a fake notarial stamp, as evidence that a business was being established in New York City. In addition, Zweig acknowledged he directed an architect to visit a property in New York City so the architect could create drawings showing a store was being opened at the property. Zweig admitted that at the time, he wrote to the architect it was unlikely that the store would be built. Nevertheless, Zweig then failed to produce his communications with the architect in response to a grand jury subpoena and lied to a postal inspector by denying he knew the phony lease would be used to support a claim for damages in the California litigation.
On May 17, 2016, a federal grand jury indicted Zweig, charging him with four counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of obstruction of justice, in violation of 18 U.S.C. § 1503; four counts of perjury, in violation of 18 U.S.C. § 1623(a); one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of false statements to a government agency, in violation of 18 U.S.C. § 1001. A trial on the charges commenced on September 11, 2017, however, on September 19, 2017, Zweig pleaded guilty to the obstruction of justice and perjury counts. Pursuant to the plea agreement, the remaining counts were dismissed.
Assistant U.S. Attorneys Robin Harris and William Frentzen are prosecuting the case. The prosecution is the result of an investigation by the FBI and the U.S. Postal Inspection Service.
New Hampshire Man Pleads Guilty to Obstruction of Justice in Connection with U.S. Department of Labor Investigation and LawsuitRead the Press Release
CONCORD, N.H. - Kevin Corriveau, 42, of Nashua, New Hampshire, pleaded guilty in federal court today to one count of obstruction of justice in connection with an investigation and litigation by the U.S. Department of Labor, Acting United States Attorney John J. Farley of the District of New Hampshire announced today.
According to court documents, Corriveau owned and operated a painting company, Kevin Corriveau Painting, Inc. Corriveau admitted that he caused an employee of his company to provide false information to investigators from the Department of Labor’s Wage and Hour Division in 2009 and 2011 regarding the extent of overtime hours worked by employees of the company.
From 2007 through April 2011, Corriveau had been directing employees to report only non-overtime work payroll and time records to conceal Fair Labor Standards Act overtime violations from being found in those records. In 2011, Corriveau himself also falsely stated to investigators that his employees did not work overtime on a Needham, Massachusetts, construction project.
In 2013, in connection with a civil suit filed against him by the Department of Labor for alleged overtime violations, Corriveau knowingly created and provided the Department’s attorneys with fraudulent invoices and an altered change order that falsely stated that his employees did not work overtime on the Needham project.
Corriveau is scheduled to be sentenced on March 26, 2018.
This is believed to be the first federal criminal prosecution arising from a Labor Department wage and hour investigation in New Hampshire. The U.S. Department of Labor’s Wage and Hour Division and Office of the Inspector General investigated the case with assistance from the Department’s Office of the Solicitor and Employee Benefits Security Administration.
The case is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella and Special Assistant U.S. Attorney Scott Miller. Scott Miller is also a Senior Trial Attorney at the Labor Department’s Office of the Solicitor in Boston, Massachusetts.
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New Castle Doctor Charged with Distributing Medications Outside the Course of Professional PracticeRead the Press Release
PITTSBURGH – On Dec. 13, 2017, a resident of New Castle, Pa., was indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The 26-count indictment named Dr. Thomas A. Ranieri, 64, of New Castle, Pa.
According to the indictment presented to the court, from Jan. 2, 2013 to June 26, 2013, Dr. Ranieri prescribed and distributed quantities of Schedule II controlled substances (i.e., Oxycodone, Fentanyl, and Opana ER) outside the usual course of professional practice.
The law provides for a maximum sentence, at each of the 26 counts, of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Ranieri.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Myrtle Beach Man Sentenced to 132 Months in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that James Coppers McKee, Jr., age 45, of Myrtle Beach, was sentenced in Florence yesterday to 132 months imprisonment followed by a three-year term of supervised release. On July 24, 2017, McKee entered a guilty plea in federal court to conspiracy to possess with intent to distribute and distribution of methamphetamine. United States District Judge R. Bryan Harwell, of Florence, imposed the sentence.
The evidence presented at the guilty plea hearing and sentencing hearing established that, as part of an extensive investigation into methamphetamine distribution in the Horry County, a team of law enforcement from multiple agencies learned that McKee was a possible methamphetamine distributor. In 2014 and 2015, agents made three controlled buys of methamphetamine from McKee. McKee was also identified as being in possession of multi-ounce quantities of methamphetamine during the conspiracy.
The case was investigated by agents with the Drug Enforcement Administration (DEA) in Florence, the Fifteenth Circuit Drug Enforcement Unit (DEU), the Florence County Sheriff’s Office (FCSO), and the Rockdale County Sheriff’s Office (RCSO) in Conyers, Georgia. Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
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Muskegon Man Sentenced to 120 Months in Federal Prison for Firearms OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Terrell Churchwell, 27, of Muskegon, Michigan was sentenced to 120 months (10 years) in federal prison for firearm offenses, U.S. Attorney Andrew B. Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 3-year term of supervised release that will commence once Churchwell is released from imprisonment.
Churchwell pled guilty on June 27, 2017, to two counts of being a felon in possession of a firearm. Churchwell admitted at the plea hearing that he possessed a handgun in the summer of 2015 and a rifle in the spring and summer of 2016. Investigation revealed that the handgun was stolen. Churchwell had previously been convicted of two felonies: a drug offense and failing to register as a sex offender.
In its sentencing memorandum, the U.S. Attorney’s Office noted that Churchwell had an "extensive history of violence – a history that started when he was 14 years old and has continued, unabated to the present." The United States detailed Churchwell’s long history of assaults, threats, and domestic violence, as well as his history of drug offenses, repeatedly failing to register as a sex offender, and other crimes. In addition, the United States proved at sentencing that Churchwell illegally possessed a number of additional firearms, which he used to threaten and intimidate others. The United States further proved that Churchwell obstructed justice in this case by tampering with witnesses. The U.S. Attorney’s Office wrote that Churchwell’s history and conduct warranted a ten-year sentence to "reflect the seriousness of the defendant’s conduct, promote respect for the law, deter future criminal conduct by the defendant, deter others from engaging in similar conduct, and provide just punishment for his criminal conduct."
U.S. Attorney Birge stated: "The defendant’s sentence sends a clear message that violence and witness tampering will not be tolerated, particularly not in Muskegon."
The charges in this case are the result of a joint investigation by the Muskegon City Police Department, the Michigan State Police, and the Bureau of Alcohol, Tobacco, and Firearms (ATF). Assistant U.S. Attorney Sean M. Lewis prosecuted the case. The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and witness tampering in the Muskegon area.
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Mount Pleasant Woman Sentenced to 6 Months Imprisonment for Tax ChargeRead the Press Release
Charleston, South Carolina---- United States Attorney Beth Drake stated that Cynthia Cave, age 45, of Mount Pleasant, was sentenced in federal court in Charleston for three counts of Filing False Tax Returns, in violation of 26 U.S.C. § 7206(1). United States District Judge Richard Mark Gergel, of Charleston, sentenced Cave to 6 months imprisonment followed by 6 months home detention.
Evidence presented at the change of plea and sentencing hearing established that Cave intentionally filed false tax returns for three separate tax years knowing that they did not accurately reflect her income. Specifically, Cave admitted that in 2010, she stated that her total income was $92,700, when in fact, her actual income was at least $148,262; in 2011, she stated that her total income was $99,975, when in fact her total income was at least $168,578; and in 2012, she stated that her total income was $95,400, when in fact her total income was at least $195,726.
Under the terms of a plea agreement reached between Cave and the Government, Cave agreed to pay Dr. Tom Funcik, her former employer, $130,000 to settle claims that she took excess compensation. Cave also agreed to pay restitution to the Government in the amount of $105,276 reflecting the tax loss to the Government.
The case was investigated by agents of the IRS and FBI. Assistant United States Attorneys Matt Austin and Winston Holliday prosecuted the case.
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More Than 20 People Sentenced to Federal Prison for Methamphetamine Trafficking and Money LaunderingRead the Press Release
Over the last year, more than twenty people have been sentenced to federal prison for their roles in a methamphetamine and money laundering conspiracy centered in Marshalltown, Iowa.
Michael Vincent Woodbury Bent, age 38, from Dubuque, Iowa, received a 300-month prison term after a November 15, 2016, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Dennis Sharkey II, age 51, from Dubuque, Iowa, received a 140-month prison term after a November 23, 2016, guilty plea to conspiracy to distribute methamphetamine.
Adam Fullbright, age 38, from Dubuque, Iowa, received a 58-month prison term after a November 23, 2016, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Chris Nauman, age 31, from Dubuque, Iowa, received an 85-month prison term after an October 27, 2016, guilty plea to conspiracy to distribute methamphetamine.
John Husemann, age 52, from Dubuque, Iowa, received a 24-month prison term after a December 21, 2016, guilty plea to conspiracy to distribute methamphetamine.
Heather Harris, age 38, from Waterloo, Iowa, received a 42-month prison term after a November 17, 2016, guilty plea to conspiracy to distribute methamphetamine.
Zach Miller, age 28, from Waterloo, Iowa, received a 90-month prison term after a November 3, 2016, guilty plea to conspiracy to distribute methamphetamine.
Jacob Burton, age 36, from Waterloo, Iowa, received a 154-month prison term after a December 21, 2016, guilty plea to conspiracy to distribute methamphetamine.
Edward Behrens, age 52, from La Crosse, Wisconsin, received a 53-month prison term after a December 28, 2016, guilty plea to conspiracy to distribute methamphetamine.
Chad Ellis Weyland, age 38, from Waterloo, Iowa, received a 144-month prison term after a February 21, 2017, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Deis Ray, age 41, from Waterloo, Iowa, received an 80-month prison term after an October 17, 2016, guilty plea to conspiracy to distribute methamphetamine.
Jay Seehase, age 38, from Waterloo, Iowa, received a 240-month prison term after a February 9, 2017, guilty plea to conspiracy to distribute methamphetamine.
Kevin Hemmer, age 42, from Waterloo, Iowa, received a 78-month prison term after a February 9, 2017, guilty plea to conspiracy to distribute methamphetamine.
Aldo Omar Lopez Martinez, age 23, of Marshalltown, Iowa, received a 360-month prison term, after a March 23, 2017, jury verdict finding him guilty of conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Adan Sanchez-Chavez, age 26, of Marshalltown, Iowa, received a 240-month prison term after a December 29, 2016, guilty plea to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
Roque Rodriguez Arellano, age 33, of Marshalltown, Iowa, received a 48-month prison term after a January 3, 2017, guilty plea to conspiracy to distribute methamphetamine.
Susana Martinez Arreola, age 30, of Marshalltown, Iowa, received a 24-month prison term after a December 20, 2016, guilty plea to conspiracy to commit money laundering.
Michael Corwin, age 31, of Marshalltown, Iowa, received a 151-month prison term after a December 1, 2016, guilty plea to conspiracy to distribute methamphetamine.
Alejandro Hernandez, age 39, of Marshalltown, Iowa, received a 42-month prison term after a December 28, 2016, guilty plea to conspiracy to distribute methamphetamine.
Alfredo Morales, age 26, of Des Moines, Iowa, received a 120-month prison term after a December 28, 2016, guilty plea to conspiracy to distribute methamphetamine.
Isaias Lopez Martinez, age 40, of Marshalltown, Iowa, received a 144-month prison term after a May 4, 2017, guilty plea to conspiracy to distribute methamphetamine.
Ashley Marie Dean, age 30, of Waterloo, Iowa, received a 65-month prison term after a May 8, 2017, guilty plea to conspiracy to distribute methamphetamine.
Evidence at trial, and other court hearings throughout the case, showed that as early as the summer of 2013, a group of individuals agreed with each other to distribute methamphetamine. The group was centered in Marshalltown, Iowa, and was responsible for distributing hundreds of pounds of ice methamphetamine throughout Northern Iowa. Members of the conspiracy returned cash from the sale of methamphetamine to Mexico, either by wire transfer or by using cars to smuggle cash across the border. The investigation cumulated on May 9, 2016, when investigators executed 29 search warrants in Iowa and Wisconsin, and seized over $250,000, six pounds of methamphetamine, and 14 firearms. The methamphetamine had a street value of approximately $272,880.
All defendants were sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand and were ordered to pay a special assessment and to serve a term of supervised release after their prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department), Mid Iowa Drug Task Force (Marshalltown Police Department; Marshall County Sheriff’s Office; Tama County), and Dubuque Drug Task Force (Dubuque Police Department; Dubuque County Sheriff’s Office).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 16-cr-1021, 16-cr-2027, 16-cr-2028, 16-cr-2046, and 17-cr-2025.
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Mobile Phone Industry Executive Convicted at Trial in Multimillion-Dollar Consumer Fraud SchemeRead the Press Release
Joon H. Kim, the United States Attorney for the Southern District of New York, announced today that DARCY WEDD, the CEO of a U.S. mobile aggregation company called Mobile Messenger, was convicted after a two-week jury trial on eight counts for his participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.”
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a Manhattan jury has unanimously found today, Darcy Wedd engaged in a scheme known as ‘auto-subscribing,’ forcing mobile phone users to pay charges for unsolicited and unwanted text messaging services, including horoscopes and celebrity gossip. The conduct of Wedd and his co-conspirators ultimately netted over a hundred million dollars in illegal profits. Thanks to the diligence of the IRS and FBI, the message is clear: perpetrators of consumer fraud schemes beware, federal investigators and prosecutors will protect everyday consumers and look to hold you accountable for your criminal fraud.”
According to the allegations contained in the Superseding Indictment and evidence presented at trial, from in or about 2011, through in or about 2013, WEDD and other co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, without the consumers’ knowledge or consent, through a practice known as “auto-subscribing.”
WEDD was the Chief Operating Officer, and eventually the Chief Executive Officer, of Mobile Messenger. In the relevant time period, mobile aggregators like Mobile Messenger compiled, or “aggregated,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills.
In or about 2010, Lin Miao, one of WEDD’s co-conspirators, who was the CEO of another company in the cellphone industry that provided premium text messaging content (the “Content Provider”), decided to begin auto-subscribing mobile phone users to the Content Provider’s premium text messaging services in order to boost the Content Provider’s sagging revenues. Miao and others built a computer program that could spoof the required consumer authorizations for premium text messaging services – i.e., a program that could generate the text message correspondence that one would ordinarily see if a consumer was genuinely signing up to receive the services (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011.
In or about October 2011, Miao met with WEDD and told him, in sum and substance, that MIAO wanted to auto-subscribe consumers through Mobile Messenger’s billing platform and needed phone numbers to do so. WEDD agreed to assist Miao. WEDD further told Miao, in sum and substance, that co-conspirator Michael Pajaczkowski, who was the Vice President of Compliance and Consumer Protection at Mobile Messenger, would provide phone numbers and assistance to Miao and that all payments needed to go through Pajaczkowski. WEDD later received his portion of the payments from Miao via Pajaczkowski.
Also in or about early 2012, WEDD, Pajaczkowski, and two other co-conspirators, Erdolo Eromo and Fraser Thompson, had discussions about how to increase revenues at Mobile Messenger, which were flagging because premium text messaging services had become less profitable. Among other things, WEDD, Pajaczkowski, Eromo, and Thompson agreed to allow co-conspirator Eugeni Tsvetnenko, who operated a content provider in Australia (“the Australian Content Provider”), to begin auto-subscribing consumers through Mobile Messenger. By at least in or about April 2012, Tsvetnenko had started auto-subscribing consumers. Over the course of the next several months through in or about mid-2013, Tsvetnenko and the Australian Content Provider auto-subscribed hundreds of thousands of phone numbers through Mobile Messenger and generated millions of dollars of revenue, which Tsvetnenko shared with WEDD, Pajaczkowski, Eromo, and Thompson.
The auto-subscription scheme affected hundreds of thousands of consumers and generated over $100 million dollars in proceeds, which the defendants apportioned among themselves and used to fund lavish lifestyles of expensive vacations, luxury cars, and gambling.
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WEDD, 40, was convicted of two counts of conspiracy to commit wire fraud, two counts of wire fraud, and two counts of conspiracy to commit money laundering, each of which carries a maximum term of 20 years in prison. WEDD was also convicted of two counts of aggravated identity theft, each of which carries a minimum term of two years in prison. WEDD was remanded into custody following the verdict and is scheduled to be sentenced on April 2, 2018, before Judge Katherine B. Forrest.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
To date, six additional defendants, Andrew Bachman, Miao, Pajackowski, Jonathan Murad, Francis Assifuah, and Eromo have pled guilty in connection with their participation in the fraud, and one additional defendant, Thompson, was convicted by a jury on September 5, 2017, following a three-week trial.
Assifuah was sentenced to 33 months in prison. Thompson is scheduled to be sentenced on January 12, 2018. Sentencing dates have not been set for Bachman, Miao, Pajackowski, Murad, or Eromo.
Mr. Kim praised the investigative work of the IRS-CI and the FBI, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul, Richard Cooper, and Jennifer L. Beidel are in charge of the prosecution.
Mississippi Doctor Sentenced to Prison for Bribery of Former Corrections CommissionerRead the Press Release
Jackson, Miss – Dr. Carl Reddix, 59, of Jackson, was sentenced today for paying bribes and kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps in exchange for receiving contracts involving the MDOC and its operations, announced United States Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Reddix was sentenced to serve 72 months in federal prison followed by 2 years of supervised release. He was also fined $15,000 and ordered to forfeit $1,266,438.00.
Reddix was a part owner of an inmate health care services provider known as Health Assurance, LLC. Reddix began paying bribes and kickbacks to Epps in 2012 to obtain contracts for Health Assurance to provide inmate health care services at East Mississippi Correctional Facility and Marshall County Correctional Facility. In 2013, Health Assurance obtained an additional contract to provide inmate health care services at Wilkinson County Correctional Facility. Reddix paid monthly bribes and kickbacks to Epps for these contracts and other potential contracts. When the scheme was discovered, Reddix had paid Epps a total of $187,500 in kickbacks. In return, Reddix and his company, Health Assurance, had obtained over $22 million in contracts with the MDOC.
"Today, justice was served. Dr. Carl Reddix personally bribed MDOC Commissioner Chris Epps at least 36 times over an approximately three-year period for numerous contracts worth millions of dollars. This wasn’t a mistake or a one-time occurrence. Sadly, it was simply greed, coupled with callousness for our government, public institutions and the criminal justice system," said U.S. Attorney Mike Hurst. "Those who allow greed and rapacity to corrupt our system of government and rule of law will be held to answer for their crimes and wrongdoings. Today’s sentence illustrates that the illegal sale of our jails will end in a jail cell."
FBI Special Agent in Charge Christopher Freeze applauded the investigators and prosecutors, whose hard work and determined efforts revealed these additional participants in this conspiracy of public corruption and led to the sentence announced today.
Reddix is scheduled to report to prison on January 29, 2018.
Mission Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 11, 2017, by U.S. District Judge Roberto A. Lange.
Richard William Neiss, age 46, was sentenced to 46 months in custody, followed by 3 years of supervised release, a $1,000 fine, forfeiture of $1,141.76 and ammunition seized by law enforcement on November 24, 2016, and a special assessment of $100 to the Federal Crime Victims Fund.
Neiss was indicted by a federal grand jury on March 15, 2017, for Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance. Neiss pled guilty to Conspiracy to Distribute a Controlled Substance (methamphetamine) on September 26, 2017.
Neiss admitted to possessing methamphetamine on three separate occasions, with the intent to further distribute it: 1) on July 22, 2014, Neiss was caught with 4 grams of methamphetamine at the Rosebud Sioux Tribe’s Casino; 2) on November 24, 2016, Neiss was stopped by Rosebud Sioux Tribal Police in Mission, and inside his vehicle was found 2.5 grams of methamphetamine, three digital scales, a large quantity of plastic baggies, $1,147.76 in U.S. currency, and a box of shotgun shells; and 3) on April 8, 2017, in Mission, Niess was arrested with 22.17 grams of methamphetamine, and a pipe and small plastic bowl with methamphetamine residue.
Further, Neiss admitted to distributing 11.1 grams of methamphetamine to another individual in Eagle Butte on February 8, 2017, for $1,050.00.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Cheyenne River Sioux Tribe Narcotics Division, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Niess was immediately turned over to the custody of the U.S. Marshals Service.
Miami Man Pleads Guilty to Bank Fruad ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Yordani Ramirez Salgado, 28, of Miami, Florida, pleaded guilty to conspiracy to commit bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that on January 18, 2017, the defendant and co-conspirators Ernesto Alvarez Santos and Abel Garcia Fernandez, flew from Miami, Florida to Hartford, Connecticut. After arriving in Connecticut, Salgado and Santos rented a car and drove to Hamburg, NY where they re-united with Fernandez. In Hamburg, Fernandez provided the defendant and Santos with numerous counterfeit access devices including gift cards re-encoded with account numbers for actual credit card or debit card accounts at various financial institutions.
Between January 23, and January 24, 2017, Salgado and Santos used 129 different counterfeit access devices to purchase gift cards at various Walmart stores in Erie, Niagara, and Orleans Counties. Upon purchasing the legitimate Walmart gift cards, the defendants transmitted the legitimate gift card numbers by cellular telephone to another co-conspirator. In addition, Salgado and Santos possessed an additional 102 different counterfeit access devices, which consisted of gift cards re-encoded with account numbers for actual credit card or debit card accounts at various financial institutions. The account holders of these credit card or debit card accounts did not authorize use of their credit card or debit card account information. The total estimated loss amount is $120,689.02.
Ernesto Alvarez Santos has previously been convicted and sentenced.The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for March 5, 2018, before Chief Judge Geraci.
Member of Cowboys Gang in South Carolina Sentenced to 20 Years in Prison for RICO ConspiracyRead the Press Release
The last indicted member of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina, was sentenced today to 20 years in prison in federal court in Charleston, South Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Dashawn Trevell Brown, aka TOB and Shawny, 24, of Walterboro, South Carolina, was sentenced to 240 months in prison by U.S. District Court Judge David C. Norton. Judge Norton sentenced Brown to three years of supervised release following his prison sentence, and restitution for victims injured as a result of his criminal activity.
According to the plea agreement, Brown was a member of the Cowboys gang, a violent street gang that originated in the “Eastside” area of Walterboro, South Carolina. Members of the Cowboys show their allegiance by wearing red, white, and blue clothing, and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body. The Cowboys gang was also, for a time, aligned with another violent street gang called the “Wildboys,” that originated out of the Green Pond area of Walterboro. In addition to sharing a common interest in posting threats, firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, Cowboys and Wildboys shared common enemies. These shared interests resulted in shootings, aimed at rival gang members, which left innocent by-standers seriously injured.
Brown was sentenced for his role in four shootings committed on behalf of his membership as a Cowboys. On May 12, 2011, after an encounter with an individual believed to be a member of a rival gang, Brown fired shots at the victim. The shooting occurred because of an on-going dispute between the Cowboys and the rival gang. Brown was identified by witnesses to the shooting. As a result of this, a retaliatory shooting occurred on May 14, 2011, during which, another innocent bystsander was shot and seriously injured. Brown was also identified as having fired shots during this incident.
Second, Brown was sentenced for his role in a June 30, 2013 shooting in the Druid Hills areas of Walterboro. Brown, who was in a vehicle occupied by two other members of the Cowboys, participated in a drive-by shooting of individuals believed to be members of a rival gang. Brown, who fired shots resulting in injuries to the victim’s arm, days later encountered the victim and told him, “I should have killed you.”
Third, Brown was sentenced for his role in the July 14, 2013 shooting at the Starlite Lounge in St. George. Brown, and other members of the Cowboys, attended a party at the lounge while dressed in Cowboys colors, including displays of red, white, and blue bandanas. While members of the Cowboys were on stage, members of the Cowboys exchanged words with a patron. After they believed they were disrespected by the patron, members of the Cowboys left the club and waited outside. As individuals began to leave the club, Brown and at least four other members of the Cowboys fired guns toward those coming out of the club. As a result of the shooting, at least three victims were shot and injured.
Lastly, Brown was sentenced for his role in a Nov. 6, 2015 attempted murder. Brown, along with co-defendants Khiry Broughton and Quintin Fishburne, attended a drag race outside of Walterboro. After bets were placed, Broughton questioned the results of the race and demanded the winnings, which were held by one of the race drivers. Broughton decided to rob the winner of the race and in so doing retrieved a backpack containing firearms from Fishburne’s vehicle. Broughton provided the firearms to Brown and other members of the Cowboys. After the winner refused to provide the money, the winner and another innocent bystander were shot and severely injured. After the shooting occurred, Fishburne, who transported Brown and Broughton, drove Brown and Broughton from the scene to avoid apprehension by the police.
Khiry Broughton, Clyde Naquan Hampton, Matthew Rashuan Jones, William Lamont Cox, Bryant Jameek Davis, Zaquann Ernest Hampton, Christopher Sean Brown, and Quintin Fishburne were all sentenced in November for their roles in criminal activity related to the Cowboys.
In August, Attorney General Jeff Sessions delivered remarks to the 2017 Gangs Across the Carolinas Training Symposium in Winston-Salem, North Carolina. Since the beginning of this year, the Department of Justice has secured more than 1,260 convictions against gang members.
The case was investigated by the ATF Charleston, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
McConnellsburg Man Charged with Distribution of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Clay Aaron Rasp, age 32, of McConnellsburg, Pennsylvania, was indicted on December 6, 2017, by a federal grand jury on charges relating to child pornography. The case was unsealed and Rasp is scheduled to appear before United States Magistrate Judge Susan E. Schwab on December 21, 2017, for his initial appearance and arraignment.
According to United States Attorney David J. Freed, the indictment alleges that Rasp possessed and distributed child pornography between and including January 2017 and July 2017. The indictment also alleges that Rasp produced a morphed image of child pornography.
The Lower Heidelberg Police Department, the Pennsylvania State Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Chiropractor Convicted of Filing Fraudulent Tax Returns and Obstructing the IRSRead the Press Release
A jury convicted a Salisbury, Maryland, chiropractor yesterday of filing fraudulent income tax returns and attempting to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the evidence presented at trial, Dr. Warren Gregory Belcher, 59, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that did not report that he operated a chiropractic business and fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting payments made to him for his services to the Internal Revenue Service (IRS) on a Form 1099-MISC. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. The evidence showed that Belcher himself submitted fraudulent Forms 1099-MISC to the IRS falsely representing that companies that had reported his income to the IRS had not actually paid him income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. The evidence established that Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
At trial, Belcher testified that he filed these “zero returns” based on a theory he read in a book called Cracking the Code. Belcher admitted that he knew the author of the book, Peter Hendrickson, and the author’s wife, Doreen Hendrickson, had both convicted of tax crimes.
U.S. District Judge Richard D. Bennett set sentencing for March 9, 2018. Belcher faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Sean R. Delaney of the District of Maryland, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Maryland Chiropractor Convicted of Filing Fraudulent Tax Returns and Obstructing the IRSRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland – A jury convicted a Salisbury, Maryland, chiropractor yesterday of filing fraudulent income tax returns and attempting to obstruct the internal revenue laws. The conviction was announced by Acting U.S. Attorney Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the evidence presented at trial, Dr. Warren Gregory Belcher, 59, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that did not report that he operated a chiropractic business and fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting payments made to him for his services to the Internal Revenue Service (IRS) on a Form 1099-MISC. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. The evidence showed that Belcher himself submitted fraudulent Forms 1099-MISC to the IRS falsely representing that companies that had reported his income to the IRS had not actually paid him income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. The evidence established that Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
At trial, Belcher testified that he filed these “zero returns” based on a theory he read in a book called Cracking the Code. Belcher admitted that he knew the author of the book, Peter Hendrickson, and the author’s wife, Doreen Hendrickson, had both convicted of tax crimes.
U.S. District Judge Richard D. Bennett set sentencing for March 9, 2018. Belcher faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release, restitution and monetary penalties.
U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg and Acting commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Sean R. Delaney and Trial Attorney Melissa S. Siskind of the Tax Division, who are prosecuting the case.
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Marshall County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Carl N. Hooker, of Moundsville, West Virginia, was arraigned today in federal court after being indicted by a federal grand jury on December 5, 2017 on drug charges, United States Attorney Bill Powell announced.
Hooker, age 55, was indicted on one count of “Conspiracy to distribute and to possess with the intent to distribute oxycodone” and three counts of “Distribution of Oxycodone.” Hooker is accused of conspiring with others to distribute oxycodone, as well as selling oxycodone from 2009 to November 2017 in Marshall County.
Hooker faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Magistrate Judge James E. Seibert presided.
Manhattan U.S. Attorney Announces Charges Against President of Park Avenue Art Gallery in Manhattan for Defrauding Art Dealers and Collectors of Valuable Artwork and Millions of DollarsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Division (“FBI”), announced today the unsealing of a complaint charging EZRA CHOWAIKI with fraud and transportation of stolen property for using his art gallery located on Park Avenue in Manhattan to defraud art dealers and collectors of millions of dollars. EZRA CHOWAIKI surrendered this morning to FBI agents and will be presented before Magistrate Judge Katharine H. Parker this afternoon.
Acting U.S. Attorney Joon H. Kim said: “While Ezra Chowaiki appeared to buy and sell high-end artwork in his upscale Manhattan gallery, as alleged, he sold clients nothing more than an illusion. Chowaiki allegedly tricked his clients into investing hundreds of thousands of dollars in artwork that he never actually bought and secretly sold artwork that they had entrusted to him. As a result of Chowaiki’s alleged fraud, valuable works of art have been stolen from their rightful owners and unlawfully distributed all over the world.”
FBI Assistant Director William F. Sweeney Jr. said: “Investors believed the subject in this case had their best interests at heart, taking their money in an investment, but never followed through on his promises. When they dared to demand their money back, he allegedly refused. We believe there may be others out there who could be a victim of this scheme, and we ask that they contact us at [email protected].”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
Until November 2017, EZRA CHOWAIKI was the president and the minority owner of a private art gallery located on Park Avenue in New York, New York (the “Gallery”). CHOWAIKI founded the Gallery in or about 2004, and since that time, CHOWAIKI has used the Gallery to facilitate the purchase, sale, and consignment of works of fine art, as well as for the hosting of various art exhibitions featuring works of art and sculptures by well-known artists such as Pablo Picasso, Alexander Calder, Marc Chagall, and others. CHOWAIKI lost control of the Gallery in or about November 2017 when the Gallery filed for bankruptcy and was taken over by a trustee to oversee its liquidation.
Between at least in or about 2015 and 2017, through the Gallery, CHOWAIKI engaged in a scheme to deceive other dealers and collectors of fine artwork into sending him money or valuable artwork under the false pretenses that CHOWAIKI would engage in legitimate transactions such as the purchase, sale, or consignment of those artworks. In truth, however, CHOWAIKI did not, and often could not, conduct the transactions as promised, and instead kept funds and artwork for himself and the Gallery, or sold them to others both in and outside the United States, without authorization.
For example, a number of victims reported being asked by CHOWAIKI to invest money to purchase artwork through the Gallery that would then be sold by the Gallery, thereby generating profit for the investors. After a number of these investors sent hundreds of thousands of dollars to CHOWAIKI, CHOWAIKI did not use the funds to purchase the artwork, nor did he return the money to the investors. Similarly, other victims reported consigning artwork to CHOWAIKI for sale by the Gallery. After these victims attempted to cancel the consignments, CHOWAIKI refused to return the artwork and, in some cases, purported to sell the artwork to other galleries and auctioneers located in the United States and abroad with the authorization of the work’s rightful owner.
At the time the Gallery filed for bankruptcy and CHOWAIKI was removed as president, the Gallery purported to have only approximately $276,681 in assets, whereas the Gallery owed at least approximately $11.8 million in claims to dozens of art dealers and others, including those who had sent money to the Gallery to buy artwork or who had consigned artwork to the Gallery that was never returned.
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CHOWAIKI, 49, of Brooklyn, New York, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum potential sentence of 20 years in prison, and one count of interstate transportation of stolen goods, which carries a maximum potential sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the work of the FBI and the New York City Police Department’s Major Case Squad. Any person who believes he/she is a victim of this crime is encouraged to send an email to [email protected].
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Daniel M. Tracer is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced for Conspiring to Distribute OpioidsRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 90 months in prison for his participation in a conspiracy to distribute oxycodone and methadone.
According to court documents, Robert T. Hancasky, III, 32, conspired with others, including his father, Robert T. Hancasky, Jr., to obtain oxycodone and methadone and distribute it to others. In particular, Hancasky, Jr. obtained oxycodone and methadone through a prescription from his doctor. The father and son duo then agreed to distribute these prescription opioids to customers and addicts in northern Virginia. Hancasky, III also participated in a scheme to obtain oxycodone by passing fraudulent prescriptions at local pharmacies. In furtherance of this scheme, Hancasky, III produced a fraudulent prescription for oxycodone, recruited “runners” to pass fake prescriptions at local pharmacies, and compensated the runners with oxycodone pills. In his plea papers, Hancasky, III also admitted to distributing heroin as well as buprenorphine, a Schedule III controlled substance.
Hancasky, Jr., pleaded guilty to his role in the conspiracy on December 8, and is scheduled to be sentenced on April 13, 2018.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Kyle Reynolds and Assistant U.S. Attorney Whitney Russell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-158.
Los Angeles-Area Woman Charged in Federal Case that Alleges Murder-for-Hire Plot Against Boyfriend with Life Insurance PolicyRead the Press Release
LOS ANGELES – Federal authorities this week arrested a Bellflower woman on federal charges that she contracted with an FBI informant to kill her boyfriend in exchange for a portion of the proceeds she expected to collect from a life insurance policy.
Rasheeda Johnson Turner, 37, was arrested Wednesday evening and was charged in a criminal complaint with use of interstate commerce facilities in the commission of murder for hire.
Turner, who has used the online monikers “Fiesty” and “Mz. Fiesty,” made her first court appearance yesterday afternoon and was ordered detained pending trial.
The criminal complaint filed in United States District Court alleges that Turner sought assistance in murdering her boyfriend – who is identified in court documents by the initials L.G. – so that she could collect the proceeds from his life insurance policy. Turner told the informant she was the beneficiary of a $150,000 life insurance policy and that she would pay the killer $50,000.
During a series of conversations over the past two weeks that are outlined in the affidavit in support of the criminal complaint, Turner told the informant that she initially planned to kill the intended victim herself – and she had obtained “pure acid” as part of the scheme – but feared being discovered and did not follow through with the plan.
In the days after their initial meeting and discussion of the plot on December 4, Turner called the informant and made statements – such as “that fly needs to be swatted” – which the informant interpreted as meaning Turner wanted the murder to occur soon. During a meeting in a Lakewood park on December 8, Turner told the informant that she wanted the boyfriend killed before he could take her off the life insurance policy and cut off her access to his bank accounts, according to the affidavit. Turner labeled the murder plot “Operation Dumbo,” and told the informant that she wanted the man killed this week.
Turner had shown the informant an app on her mobile telephone which allowed her to track the location of the victim’s telephone. On Wednesday, the informant called Turner and asked where the victim was located at that moment. Turner provided the location of the intended victim and confirmed that the informant would be paid for the murder. The FBI then contacted the victim and arrested Turner.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
At yesterday’s court hearing, a United States Magistrate Judge scheduled a preliminary hearing for December 28 and ordered Turner to appear for an arraignment on January 4.
If she were to be convicted of the murder-for-hire charge alleged in the complaint, Turner would face a statutory maximum sentence of 10 years in federal prison.
The investigation into Turner’s alleged scheme is being conducted by the Federal Bureau of Investigation.
The case against Turner is being prosecuted by Assistant United States Attorney Justin Rhoades, Chief of the Violent and Organized Crime Section.
Los Angeles County Man Arrested in Fresno County for Possessing CocaineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment Thursday against Omar Patron-Valdez, 25, of Santa Fe Springs, charging him with possession of one kilogram or more of cocaine with the intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on November 30, 2017, Patron-Valdez was driving northbound on I-5 near Nees Avenue in Fresno County when CHP stopped him for having illegally tinted windows. The CHP narcotics detection dog alerted to the vehicle Patron-Valdez was driving, and a hidden compartment was located. Officers found four kilogram-sized bricks in the compartment that tested positive for cocaine.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Patron-Valdez faces a mandatory term of five years in prison and a maximum statutory penalty of 40 years in prison and a $4 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of Violent International Drug Trafficking and Gambling Enterprise Sentenced to More than 21 YearsRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin Katz (619) 546-9714 or Mark W. Pletcher (619) 546-9604
NEWS RELEASE SUMMARY – December 15, 2017
SAN DIEGO – Owen Hanson, the leader of the violent “ODOG” racketeering enterprise, was sentenced to 255 months in prison and a lifetime of supervised release for leading an international drug trafficking, gambling and money laundering enterprise that operated in the United States, Central and South America and Australia from 2012 to 2016.
According to court records, ODOG trafficked thousands of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), marijuana, anabolic steroids and Human Growth Hormone (“HGH”). As Hanson admitted, ODOG’s drug operation routinely distributed controlled substances at wholesale and retail levels, including selling performing enhancing drugs to numerous professional athletes. The organization also operated a vast illegal gambling operation focused on high-stakes wagers placed on sporting events. The Enterprise used threats and violence against its gambling and drug customers to force compliance. One particular victim who owed ODOG more than $2 million described in graphic detail at today’s hearing how Hanson sought to collect the debt by sending DVD’s to the victim and the victim’s wife showing beheadings, as well as a photo of victim’s desecrated family’s gravestone.
United States District Judge William Q. Hayes explained that a severe sentence was warranted because of the “staggering” and “astounding” size and scope of ODOG’s criminal activities. Noting that Hanson moved hundreds of kilograms of drugs, all over the globe, month after month made him truly an “international drug trafficker.” Judge Hayes commented to Hanson: “It is difficult to understand how you got here, other than greed.”
According to the government’s sentencing papers, Hanson’s criminal activity started while he was a football player at the University of Southern California, where he “birth[ed] his drug trafficking empire by selling recreational drugs and steroids to his teammates” of a national championship football team, and used his business degree to “to build a criminal enterprise that exploited people at their lowest moments.”
“Transnational racketeering organizations like ‘ODOG’ represent a clear and present danger to the safety and security of our communities, our country, and our international partners,” observed United States Attorney Adam Braverman. “From shipping enormous quantities of dangerous drugs around the globe, to operating illegal bookmaking enterprises, to laundering millions of dollars in criminal proceeds, the breadth and scope of Hanson’s illicit activity was truly staggering, and is directly reflected by the more than two-decades long sentence imposed today.”
“Dismantling major international and national organized criminal enterprises is a longstanding area of Bureau expertise,” said FBI Special Agent in Charge Eric S. Birnbaum. “The goal of the FBI is to bring down entire organizations, especially those with a wide reach. Today's sentence, along with the 21 other convicted co-conspirators, emphasizes that the 'ODOG criminal organization' will no longer traffic drugs on our streets; will no longer run its illegal gambling ring; and will no longer bring violence upon those who are obstacles to their greed and desire to grow an illegal and dangerous enterprise.”
“The long prison sentence handed down today is appropriate and well deserved. Mr. Hanson was held accountable for his brazen actions as a leader and an organizer of a criminal enterprise,” stated Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation. “The government will now use asset forfeiture as the final lever to seize a significant portion of the illegal proceeds generated by this drug distribution and gambling operation. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
Hanson’s criminal career was ascendant when the FBI took down his operation. According to sentencing papers, “Hanson showed no signs of stopping this criminal activity. He bragged to undercover agents about the success of his operation and his aspirations to be even bigger. In the days leading up to his arrest, Hanson communicated with an undercover FBI agent to coordinate a methamphetamine deal. The night before Hanson was arrested, the undercover agent sent Hanson a message letting him know the deal was done and that the methamphetamine was ‘fine stuff.’ Hanson replied, ‘Told u – we don’t **** around.’ In response, the undercover agent thanked Hanson and told him to get a good night’s sleep. Hanson replied, ‘Money doesn’t sleep.’” Ultimately, the government argued that Hanson’s downfall brought down others, noting that associating with Hanson “turned gamblers into bookies, drug addicts into dealers, and friends into felons.”
In addition to serving more than 21 years in prison, Hanson was also sentenced to pay a criminal forfeiture in the amount of $5 million, including $100,000 in gold and silver coins, a Porsche Panamera, two Range Rovers, luxury watches, homes in Costa Rica, Peru and Cabo San Lucas, a sailboat, and interests in several businesses.
So far, 21 of the 22 defendants charged in connection with this case have pleaded guilty, including:
- Luke Fairfield, a San Diego based Certified Public Accountant who assisted Hanson with laundering the proceeds of his various illegal endeavors by setting up shell corporations and advising members of the Enterprise on how to structure bank transactions to avoid detection by bank security and law enforcement;
- Derek Loville, a former professional football player, who pleaded guilty to distributing retail quantities of drugs for the ODOG Enterprise in Arizona;
- Daniel Portley-Hanks, a Los Angeles based private investigator who assisted Hanson with tracking down delinquent gamblers and other individuals who owed the enterprise money; and
- Jack Rissell, an “enforcer” who, in one instance, travelled from Southern California to Minneapolis to attack a delinquent gambler
One remaining defendant, Khalid Petras, awaits trial.
The case arose out of a joint investigation by FBI and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015 after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine. Assistant U. S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case.
DEFENDANT Case Number: 15CR2310-WQH
Owen Hanson Age: 34
Luke Fairfield Age: 40
Kenny Hilinski Age: 39
Giovanni Brandolino Age: 42
Daniel Portley-Hanks Age: 70
Jack Rissell Age: 50
Derek Loville Age: 48
Chalie D’Agostino Age: 52
Marlyn Villareal Age: 32
Dylan Anderson Age: 34
Tim Bryan Age: 48
Jim Muse Age: 53
Jeff Bellandi aka “Jazzy” Age: 50
Curtis Chen Age: 33
James Duley Age: 41
Dee Foxx Age: 35
Khalid Petras Age: 55
Rahul Bhagat Age: 31
David Kipper Age: 35
Todd Oldham Age: 32
Daniel Ortega Age: 42
SUMMARY OF CHARGES
Count 1
Racketeering Conspiracy to Conduct RICO Enterprise Affairs, 18 U.S.C. § 1962(d)
Maximum penalty: Life in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of any property obtained or operated by RICO enterprise, 5 years’ supervised release.
Count 4
Conspiracy to Distribute Narcotics, 21 U.S.C. § 841(a)(1) and 846
Maximum penalty: Life in prison, fine of $10,000,000 or twice the gross gain or loss caused by the offense, forfeiture of any proceeds, 10 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
*As to defendant Khalid Petras, the charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Kaufman Man Sentenced to 123 Months in Federal Prison for Bank RobberiesRead the Press Release
DALLAS — A Kaufman man, Danny Hall, 51, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 123 months in federal prison for committing multiple bank robberies, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Hall pleaded guilty in June 2017 to one count of bank robbery. He has been in custody since the time of his arrest in January 2017.
According to the plea agreement factual resume, on January 9, 2017, Hall entered the Wells Fargo Bank branch located at 1405 E. Renner Road, Richardson, Texas, and approached a teller. He handed her a note that read, “I have a gun, this is a robbery, and give me cash.” The teller gave Hall cash from the teller drawer totaling $2,692. Hall collected the money and left the bank. Later, he was identified in a photographic line-up by the teller and then arrested.
According to the factual resume, Hall also admitted to the following robberies: November 28, 2016 robbery of the BB&T Bank branch located at 11800 Preston Road, Dallas; January 18, 2017 robbery of the Capital One Bank branch located at 4208 Lemmon Avenue, Dallas; and December 22, 2016 robbery of the Chase Bank branch located at 11611 Preston Road, Dallas.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Shane Read prosecuted.
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Investment Fund Manager Sentenced in Brooklyn Federal Court to 55 Months’ Imprisonment for Orchestrating Multi-Million Dollar Fraud SchemesRead the Press Release
Earlier today, John R. Lakian, a manager of Capital L Financial Group, LLC (Capital L) and Aegis Capital Fund, LLC (Aegis Capital Fund), was sentenced to 55 months’ imprisonment, having pleaded guilty to two counts of securities fraud for defrauding investors out of millions of dollars in two separate schemes. The Court also ordered Lakian to pay restitution to the victims in the amount $15,640,582.46. The sentencing took place before United States District Judge Frederic Block at the federal courthouse in Brooklyn.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Lakian and his co-defendant stole millions of dollars entrusted to them by investors, many of them hard-working individuals who have been robbed of financial security in their retirement years by the defendants’ fraudulent scheme,” stated Acting United States Attorney Rohde. “This Office, together with our partners at the FBI, is committed to bringing to justice those who deceive the investing public in order to line their own pockets.”
“While Lakian and his co-defendant were living in the lap of luxury, those who invested not only their money with him, but their faith in him, were unwittingly funding this lavish lifestyle,” stated FBI Assistant Director-in-Charge Sweeney. “Today's sentencing should remind all investment fund managers of their obligation to put the interests of their clients ahead of their own. If you don't, we won't let you get away with it.”
Between 2009 and 2013, Lakian was involved in two schemes to steal investors’ money. In the first, he and his co-defendant, Diane Lamm, obtained more than $11 million by promising Capital L investors that their money would be used to purchase, consolidate, and sell registered investment advisory businesses. Instead, Lakian and his co-defendant diverted more than $3 million to themselves and to entities, including hospitality businesses, that they owned and controlled. In the second scheme, Lakian and his co-defendant embezzled money through their management of Aegis Capital Fund, a North Carolina-based investment fund that was placed into liquidation in 2011. Prior to the liquidation, Lakian and his co-defendant directed more than $2.4 million of Fund assets into hospitality businesses without informing the Fund’s investors that Lakian and his co-defendant owned and controlled these businesses. More than $1.9 million of the $2.4 million of fund assets was never recovered by the investors. Additionally, following the Fund’s liquidation, instead of returning investment proceeds to investors, Lakian and his co-defendant diverted more than $2 million of investors’ money to themselves and to their hospitality businesses. The government has identified credit card charges and company expenses or purposes unrelated to the purchase, consolidation and sale of registered investment advisers. Charges were incurred, for example, for clothing, furniture and fine art from luxury stores such as Bergdorf Goodman, Gucci, and Paul Stewart; stays at the Palace and Waldorf Astoria hotels in New York City; getaways at luxury resorts; and items for Lakian and his co-defendant’s restaurant business.
Lakian’s co-defendant, Diane Lamm, pleaded guilty in February 2016 to two counts of securities fraud and is scheduled to be sentenced on January 25, 2018.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Whitman G.S. Knapp is in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendants:
JOHN R. LAKIAN
Age: 74
New York, New York
E.D.N.Y. Docket No. 15-CR-0043 (FB)
Investment Adviser Sentenced in Brooklyn Federal Court to 42 Months’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Marc Broidy, the founder, Principal, and Chief Executive Officer of Broidy Wealth Advisors, LLC, was sentenced by United States District Judge Eric N. Vitaliano to 42 months’ imprisonment for committing investment adviser fraud, to be followed by three years of supervised release. The Court also ordered Broidy to pay $1,694,464.00 in restitution to his victims.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
According to court filings and facts presented at his guilty plea proceeding, from November 2010 to July 2016, Broidy engaged in a scheme to defraud his clients both by taking $640,000 in management fees to which he was not entitled, and also by stealing more than $865,000 worth of stock held in trusts, over which he was trustee, to repay a client who discovered his fraudulent overbilling scheme. Broidy used the money he stole to pay for personal expenses such as his home mortgage, overseas travel and car payments. To cover up his theft, Broidy falsified tax records and invoices, and lied to an accountant for one victim. When one of the victims discovered Broidy’s theft and demanded repayment, Broidy stole from the trust accounts of another client’s children, over which Broidy was trustee, to make the payments. Broidy also failed to disclose to his clients, as required by law, that he was receiving commissions from companies whose stock he caused his clients to purchase.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew Amatruda is in charge of the prosecution. Ms. Rohde thanked the U.S. Securities and Exchange Commission, New York Regional Office (SEC), for their assistance during the investigation.
The Defendant:
MARC BROIDY
Age: 43
Residence: Los Angeles, CaliforniaE.D.N.Y. Docket No. 17-CR-64 (ENV)
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on December 14, 2017 and entering pleas of Not Guilty were:
- LAFAVEN DESHAWN ADAMS, a 46-year-old resident of Paramount, California, appeared on charges of conspiracy to possess with intent to distribute oxycodone, and possession with intent to distribute oxycodone. If convicted of the most serious charge contained in the indictment, ADAMS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by Homeland Security Investigations and the Russell Country Drug Task Force. PACER Case Reference. 17-49
Appearing before U.S. Magistrate Johnston in Great Falls on December 12, 2017 and entering pleas of Not Guilty were:
- KORDELL KYLE BIG KNIFE, a 23-year-old resident of Box Elder, appeared on charges of assault resulting in substantial bodily injury. If convicted of the charge contained in the indictment, BIG KNIFE faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-79
- WACEY MOUNTAIN CHIEF, a 30-year-old resident of Browning, appeared on charges of strangulation. If convicted of the charge contained in the indictment, MOUNTAIN CHIEF faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the, Federal Bureau of Investigation. PACER Case Reference. 17-83
Appearing before U.S. Magistrate Lynch in Missoula on December 12, 2017 and entering pleas of Not Guilty were:
- TYRELL BELGARDE, a 27-year-old resident of Browning, appeared on charges of strangulation and assault resulting in substantial bodily injury. If convicted of the most serious charge contained in the indictment, BELGARDE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-72
Appearing before U.S. Magistrate Johnston in Great Falls on December 5, 2017 and entering pleas of Not Guilty were:
- CHERYLE WHITE HAWK JORDAN, a 50-year-old resident of Sidney, appeared on charges of mail fraud, false claim to the federal government, and false statement to federal agent. If convicted of the most serious charges contained in the indictment, JORDAN faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General. PACER Case Reference. 17-74
- GEORGIE ELAINE RUSSELL, a 36-year-old resident of Box Elder, appeared on charges of theft from an Indian tribal government receiving federal grants, theft from an Indian tribal organization, and false statements regarding federal funding. If convicted of the most serious charges contained in the indictment, RUSSELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the, Federal Bureau of Investigation, Bureau of Indian Affairs, and the U.S. Department of Interior Office of Inspector General. PACER Case Reference. 16-46
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Individual Indicted for Hobbs Act Robbery and Firearms ViolationsRead the Press Release
SAN JUAN, Puerto Rico – On December 14, 2017, a federal grand jury returned a seven-count indictment against Herbert Santiago-De Jesús for Hobbs Act (18 U.S.C. 1951 (Interference with commerce by robbery) (two counts), possessing, brandishing and discharging firearms and a machinegun in furtherance of a crime of violence (18 U.S.C.§ 924(c)(1)(A)(i)(ii),(iii), and (B)(ii)), and being a felon in possession of firearms (18 U.S.C. 922 (g)(1)), announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
According to the indictment, on September 17, 2016 Santiago-De Jesús did unlawfully take U.S. Currency four hundred and fifty dollars ($450.00), from Mi Barrita Familiar in Juana Díaz, PR, in the presence of employees and clients, against their will by means of actual and threatened force, violence, and fear of injury, immediate and future to their persons, that is, threatening the employees and clients with a machinegun in order to commit the robbery. In this incident, two persons were injured.
On or about September 10, 2017, the defendant herein, aided and abetted by others, did unlawfully take U.S. Currency from Delgens Bar, also in Juana Díaz, PR, threatening the employees and clients with a machinegun in order to commit the robbery. During the robberies, the defendant fired machineguns and patrons were injured.
For these crimes, the defendant is facing a maximum penalty of 20 years in prison for each robbery count, 10 years mandatory minimum for each count of discharging a firearm in furtherance of a crime of violence, and 30 years mandatory minimum on each count of possession of a machinegun in furtherance of a crime of violence. For the felon in possession charge, the maximum penalty is 10 years imprisonment. Special Assistant U.S. Attorney Penélope Castellanos-Diloné is in charge of the prosecution of the case.
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Illegal Alien from Mexico Sentenced to Prison after Returning to the United States Following Two DeportationsRead the Press Release
A Mexican man who had previously been deported two times was sentenced on December 12, 2017, to 18 months in federal prison.
Ramiro Abarca-Martinez, age 29, a native and citizen of Mexico illegally residing in Tama County, Iowa, received the prison term after a September 14, 2017, guilty plea to illegal reentry of a removed alien after a felony conviction.
Abarca-Martinez admitted he illegally reentered the United States without permission in 2014 after having been deported from the United States in November 2009 and in November 2012. Abarca-Martinez was first deported in 2009 after being convicted in Idaho of felony possession of cocaine. On August 3, 2017, Abarca-Martinez was convicted in Iowa District Court for Tama County of the felony offense of burglary in the third degree.
Abarca-Martinez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Abarca-Martinez was sentenced to 18 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Abarca-Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-58.
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Houston Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – A 37-year-old Houston man has been ordered to federal prison following his conviction of receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Jose Pico pleaded guilty July 26, 2017.
Today, U.S. District Judge Melinda Harmon handed Pico 121 and120 months for the receipt and possession convictions, respectively. Pico will also serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation revealed Pico was uploading and storing child pornography into a virtual storage account. Law enforcement conducted a search at Pico’s residence, at which time they seized a cell phone and gaming device that were forfeited as part of the sentence imposed today. Examination of his virtual storage account also revealed images of prepubescent minors who were under the age of 12. The virtual storage account contained 291 images and 446 videos of child pornography.
Pico was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri Zack prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARCIO RODOLFO OCHOA-BORJAS, age 31, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien after deportation.
According to the Bill of Information, OCHOA-BORJAS reentered the United States on or about June 30, 2017, after having been previously removed therefrom on or about August 16, 2012.
OCHOA-BORJAS faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for January 25, 2018.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
High Point Man Sentenced on Child Pornography ChargeRead the Press Release
GREENSBORO, N.C. – An individual who pleaded guilty to receipt of child pornography was sentenced yesterday, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
ROBERT EDWARD ABELL III, 35, of High Point, North Carolina, pleaded guilty on August 14, 2017, to one count of receipt of child pornography. He was sentenced by United States District Judge Catherine C. Eagles to 262 months imprisonment followed by lifetime supervised release. ABELL was previously convicted of taking Indecent Liberties with a Child in Guilford County in 2005.
Investigators searched ABELL’s apartment on March 8, 2016, after observing that someone using ABELL’s IP address was sharing child pornography via a peer-to-peer network. They found child pornography files depicting prepubescent children being sexually molested and peer-to-peer software on ABELL’s computer.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including the North Carolina State Bureau of Investigation, Homeland Security Investigations, and the High Point Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Hialeah Woman Sentenced to 36 Months Imprisonment for Embezzling over $2.6 Million from Local BusinessRead the Press Release
A Hialeah woman was sentenced to 36 months in prison, to be followed by three years of supervised release, for embezzling over $2.6 million from local business.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Carmen Silvia Rodriguez, 55, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the charging document, from April 2010 through May 2016, Rodriguez worked for Starboard Cruise Services, Inc. (“SCS”), a Florida company that operates tax- and duty-free retail stores aboard cruise ships.
During the course of the scheme, Rodriguez worked as a supervisor in SCS’s Finance and Administration Department. There, Rodriguez accessed company records related to two former SCS vendors (“SCS Vendor #1” and “SCS Vendor #2”) and added her own bank account information to the two vendors’ accounts. SCS Vendor #1 and SCS Vendor #2 did not do business with SCS after 2010.
Between April 1, 2010, and May 31, 2016, Rodriguez created false internal invoices that inflated the price of certain products purchased by SCS, often by overstating the shipping and handling costs associated with SCS’s purchase of the products. Rodriguez also created false internal invoices that purportedly reflected the purchase of certain products by SCS. For each of the inflated and/or false internal invoices, Rodriguez created a false purchase order, listing either SCS Vendor #1 or SCS Vendor #2 as the payee, for the difference between the money actually owed to the vendor, if any, and the inflated and/or false invoice price.
By creating the false purchase orders and making them payable to SCS Vendor #1 and/or SCS Vendor #2, Rodriguez caused approximately $2,669,372.30, in electronic Automated Clearinghouse payments to be transmitted from SCS’s bank account to Rodriguez’s personal bank accounts.
At sentencing, Rodriguez was ordered to pay restitution to SCS in the amount of $2,669,372.30.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Christopher Browne.
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.
Gulfport Man Sentenced for False Statement in Purchasing FirearmRead the Press Release
Gulfport, Miss. – Isaac Q. Coleman, 25, of Gulfport, Mississippi, was sentenced yesterday to seven months in federal prison and five months of home confinement, followed by 2 years of supervised release, for knowingly making a false statement in connection with the purchase of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Coleman was also ordered to pay a $3,500.00 fine. He pled guilty to the charge on September 20, 2017, before U.S. District Judge Louis Guirola, Jr.
On January 13, 2017, Coleman purchased a handgun at Cook’s Gun Shop, in D’Iberville, Mississippi, for Tony D. Crawford, a convicted felon. Coleman and Crawford entered the Gun Shop together and shopped for a firearm together. Crawford then paid Coleman, and Coleman purchased a 9mm pistol from the store. In purchasing the firearm, Coleman knowingly provided a false and fictitious written statement to the federal firearms licensee. Coleman knew his false statement on the ATF Form 4473 contained information which was required to be kept in official records, and that the gun shop could not complete the transaction if it was known that the firearm actually was being purchased in what is commonly known as a "straw purchase".
Ultimately, the firearm was found by ATF agents in the possession of Crawford. He was charged and pled guilty to illegal possession of a firearm by a convicted felon. Crawford is scheduled to be sentenced on January 22, 2018, by U.S. District Judge Sul Ozerden, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Biloxi Police Department, and the D’Iberville Police Department. It was prosecuted by Assistant U.S. Attorney Stan Harris.
Guilty Verdict for Connecticut Man Charged with Identity Theft and Related CrimesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that a federal jury unanimously convicted WALTER GLENN, of Connecticut, following a week-long jury trial before Chief U.S. District Judge Brian A. Jackson.
The defendant had been charged in a Superseding Indictment with conspiracy to make and pass counterfeit checks, produce fraudulent identification documents, and use unauthorized access devices, in violation of Title 18, United States Code, Sections 371 and 2, access device fraud, in violation of Title 18, United States Code, Sections 1029(a)(3) and (2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. GLENN is scheduled to be sentenced on April 6, 2018, and he faces a significant term of imprisonment, including a mandatory term of imprisonment of 2 years on the aggravated identity theft count, which, by statute, will be consecutive to the sentences imposed on the first two offenses. Following his convictions today, the Court revoked GLENN’s bond and remanded GLENN to the custody of the United States Marshal’s Service.
The evidence at trial demonstrated that GLENN and others obtained and possessed the personal identifying information of more than four hundred (400) individual victims, and used the information to create fraudulent identification cards and counterfeit checks that would allow them to engage in fraudulent transactions at retailers. Using rental vehicles, GLENN and others traveled across the country and engaged in fraudulent transactions using their victims’ identifiers. Through their scheme, between January of 2014 and August of 2015, GLENN and others attempted to cash almost $2,000,000 in counterfeit checks and defrauded various retailers out of almost $1 million.
Earlier this week, on the first day of the scheduled trial, GLENN’s co-conspirator, THOMAS JAMES, entered guilty pleas to the charges against him. JAMES also faces a significant term of imprisonment as a result of his convictions in this case.
Acting United States Attorney Corey R. Amundson stated, “Justice was served today. The evidence at trial demonstrated that the defendant was behind a significant identity theft and access device fraud scheme that victimized more than 400 individuals and caused nearly $1,000,000 in actual loss. I commend the excellent work of all of the prosecutors and agents who have worked on this matter, and I am especially appreciative of the successful teamwork demonstrated by the seven different law enforcement agencies who contributed to this conviction.”
This multi-jurisdictional investigation was led by the United States Secret Service, which received valuable assistance from the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Massachusetts State Police, the Connecticut State Police, the Hartford Police Department, and the Garland Police Department in Garland, Texas. The case is being prosecuted by Assistant U.S. Attorneys M. Patricia Jones, Kevin R. Sanchez, and Jessica M.P. Thornhill.
Greenville Man Pleads Guilty to Child Porn ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Micah R. Vickery, age 37, of Greenville, pled guilty in federal court in Anderson, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Timothy M. Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement conducted a proactive investigation involving a file-sharing network used by individuals with an interest in child pornography. An undercover officer downloaded a video that Vickery had available for sharing.
A federal search warrant was obtained and executed. Electronic devices were seized and law enforcement found 900 images of child pornography. Vickery admitted to having a problem with all sorts of pornography and admitted to searching for and downloading child pornography. Agents found images of children under the age of 18, and some prepubescent, engaged in the lascivious display of the genitals and sexual activity.
Ms. Drake stated the maximum penalty Vickery can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with ICE - Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Four Men Plead Guilty in Manhattan Federal Court to Two 2016 Bank BurglariesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that four defendants have pled guilty to participating in two bank burglaries. In April and May 2016, MICHAEL MAZZARA, CHARLES KERRIGAN, and ANTHONY MASCUZZIO, assisted by CHRISTOPHER KERRIGAN, stole more than $5 million in cash, jewelry, collectables, and other valuables from the banks’ vaults and safe deposit boxes.
Acting U.S. Attorney Joon H. Kim said: “Like a scene from a movie, these defendants used blow torches to cut into bank roofs, and subsequently vaults and safe deposit boxes, to steal more than $5 million in cash and customer valuables. But the scene in court today was of guilty pleas under oath and the prospect of real-life prison.”
According to the Complaint and Indictments filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
In April and May 2016, MAZZARA, CHARLES KERRIGAN, MASCUZZIO, and CHRISTOPHER KERRIGAN formed a crew that burglarized banks in Brooklyn and Queens, New York, by cutting into the banks’ vaults and the safe deposit boxes inside. Specifically, from about April 8 to April 10, 2016, MAZZARA, CHARLES KERRIGAN, and MASCUZZIO, with the assistance of CHRISTOPHER KERRIGAN, burglarized an HSBC Bank branch in Brooklyn, and from about May 19 to May 22, 2016, MAZZARA, CHARLES KERRIGAN, and MASCUZZIO, with the assistance of CHRISTOPHER KERRIGAN, burglarized a Maspeth Federal Savings Bank branch in Queens. On both occasions, the burglars used acetylene blowtorches to cut into the top of the banks’ vaults from the roof of the building. At the Maspeth Federal Savings Bank branch, they shielded their activities from view by constructing a plywood shed on the roof of the bank. The burglars then entered the vaults from above and took cash belonging to the bank and broke open customers’ safe deposit boxes, stealing the valuables inside. In total, the crew obtained more than $600,000 in cash and more than $4.3 million in valuables from both banks. Surveillance footage captured some of the burglars’ activities as they prepared for and executed the burglaries. Financial records and video surveillance also showed MAZZARA and MASCUZZIO purchasing some of the supplies that appear to have been used in the Maspeth burglary.
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MAZZARA, 45, of Brooklyn, New York, pled guilty before Hon. Katherine B. Forrest on December 13, 2017, to two counts of bank theft, each of which carries a maximum sentence of 10 years in prison. MAZZARA will be sentenced by Judge Forrest on April 13, 2017.
CHARLES KERRIGAN, 42, of Brooklyn, New York, pled guilty before Judge Forrest on December 11, 2017, to one count of conspiracy to commit bank burglary and bank theft, which carries a maximum sentence of five years in prison, two counts of bank burglary, each of which carries a maximum sentence of 20 years in prison, and two counts of bank theft, each of which carries a maximum sentence of 10 years in prison. CHARLES KERRIGAN also pled guilty to one count of witness retaliation while on pre-trial release, in connection with his assault of an individual who he believed had provided information regarding the burglaries to the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”). That count carries a maximum sentence of 20 years in prison, and a mandatory consecutive term of 10 years in prison. CHARLES KERRIGAN will be sentenced by Judge Forrest on April 6, 2017.
MASCUZZIO, 38, of Brooklyn, New York, pled guilty before Judge Forrest on December 15, 2017, to two counts of bank theft, each of which carries a maximum sentence of 10 years in prison. MASCUZZIO will be sentenced by Judge Forrest on May 4, 2018.
CHRISTOPHER KERRIGAN, 40, of Staten Island, New York, pled guilty before Judge Forrest on November 9, 2017, to one count of conspiracy to commit bank burglary and bank theft, which carries a maximum sentence of five years in prison, one count of bank burglary, which carries a maximum sentence of 20 years in prison, and one count of bank theft, which carries a maximum sentence of 10 years in prison. CHRISTOPHER KERRIGAN will be sentenced by Judge Forrest on March 30, 2018.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative efforts of the FBI and NYPD.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Benet J. Kearney and David W. Denton, Jr., are in charge of the prosecution.
Four Individuals Indicted for Distribution of FentanylRead the Press Release
LEXINGTON, Ky. — A federal grand jury has indicted four individuals for drug crimes related to the distribution of large quantities of fentanyl. Gadiel Ortiz-Flores, age 39, of Lawrenceburg, Ky., Brian Walker Hensley, age 38, also of Lawrenceburg, Ky., Miguel Alberto Esparza, age 29, of Lexington, and Megan Nicole Slone, age 24, also of Lexington, were indicted yesterday for both conspiracy and distribution offenses related to fentanyl. Fentanyl is an extremely potent opioid, which is as much as 80 to 100 times more potent than morphine and 25 to 100 times more potent than heroin.
The indictment alleges that, beginning in August 2017 and continuing through December 5, 2017, the four named defendants conspired to distribute 400 grams or more of fentanyl in Fayette and Anderson counties. The indictment further alleges distribution of fentanyl in Fayette County, on specific dates in August, September, and November 2017. Finally, the indictment charges each of the defendants with possessing 400 grams or more of fentanyl with the intent to distribute it.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Chris Evans, Special Agent in Charge, DEA, jointly announced the return of the indictment.
The investigation preceding the indictment was conducted by the DEA and the Anderson County Sheriff’s Department. The indictment was presented to the grand jury by Assistant United States Attorney Todd Bradbury.
Appearances for the defendants, before the United States District Court, have not yet been set. If convicted, each defendant faces a maximum sentence of life in prison. However, any sentence following conviction would be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
Fort Wayne Man Sentenced to 74 MonthsRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that, Patrick Davis , 30 of Fort Wayne, Indiana, was sentenced by Chief District Court Judge Theresa L. Springmann, for Sex Trafficking of Children.
Davis was sentenced to 74 months imprisonment followed by 2 years of supervised release.
According to Court filings, between January, 2016 and March, 2016, Davis engaged a minor female in online conversation. Over a period of time, Davis convinced the minor female to run away from home with him. It was Davis’ intention to have the minor female engage in prostitution to make money for Davis.
This case was investigated by the Federal Bureau of Investigation and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Washington D.C.-Based Internal Revenue Service Attorney Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Jack Vitayanon pleaded guilty to conspiring with others to distribute over 500 grams of methamphetamine. According to court filings and facts presented during the plea proceeding, at the time of his February 2017 arrest in Washington, D.C., Vitayanon was employed as an Attorney-Advisor by the United States Treasury Department, Internal Revenue Service, Office of Professional Responsibility.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations New York (HSI), announced the guilty plea.
Ms. Rohde also expressed her grateful appreciation to the United States Treasury Department Inspector General, HSI’s High Intensity Drug Trafficking Area group in Washington, D.C. and the United States Attorney’s Office for the District of Columbia.
As detailed in the complaint, Vitayanon conspired with others in Arizona and on Long Island to distribute methamphetamine for several years. Vitayanon negotiated and consummated the sales of distribution quantities of methamphetamine to undercover HSI special agents on Long Island. The negotiations occurred via recorded internet-based video chats and text messages, and the defendant shipped the methamphetamine from his apartment in Washington D.C. to Long Island via Federal Express.
The recipient of the package, acting at the direction of law enforcement, recorded a video chat with Vitayanon over the internet on Dec. 15, 2016, and, during the recorded conversation, Vitayanon was observed in his residence smoking what appeared to be methamphetamine from a glass pipe, according to the complaint.
A search of the Vitayanon’s Washington D.C. apartment executed pursuant to a court-authorized search warrant led to the seizure of additional quantities of suspected methamphetamine, drug paraphernalia, packaging materials and drug ledgers.
Today’s proceeding took place before United States District Judge Joanna Seybert. When sentenced, Vitayanon faces up to life in prison, as well as forfeiture and a fine of up to $10 million.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant:
JACK VITAYANON
Age: 42
Washington, D.C.E.D.N.Y. Docket No. 17-CR-80 (JS)
Former Teacher Arrested for Production of Child PornographyRead the Press Release
LAREDO, Texas – A 37-year-olf former teacher has been charged in a criminal complaint with production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Ruben Guillermo Ulloa was taken into custody today and made his initial appearance before U.S. Magistrate Judge Guillermo Garcia. At that time, Ulloa was ordered into custody pending a probable cause and detention hearing set for Dec. 20.
The case originated when a 15-year-old who was receiving piano lessons from the Ulloa made a report to authorities, according to the complaint. Ulloa had allegedly been having a sexual relationship with the teenager, whom he had previously taught at a Laredo area school.
The criminal complaint alleges that authorities executed a search warrant on Ulloa’s home and recovered several computers and electronic devices. A forensic search of these devices uncovered pornographic images of the child, which Ulloa had allegedly taken.
Ulloa is charged with production of child pornography and faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas A&M International University Police and the Laredo Police Department.
Assistant U.S. Attorney Alfredo De La Rosa is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Substitute Teacher and Private Tutor Sentenced to more than 16 years in Prison for Child Pornography OffensesRead the Press Release
Assistant U. S. Attorneys Alessandra P. Serano (619) 546-8104 or Connie V. Wu (619) 546-8592
NEWS RELEASE SUMMARY – December 15, 2017
SAN DIEGO –Marlin Lee Gougher was sentenced today to 200 months in prison and 20 years of supervised release for distributing, receiving and possessing child pornography. Gougher, a former substitute teacher in the Temecula School District and private tutor, was convicted after a jury trial in September 2017.
At trial, Gougher was found to have possessed two laptop computers with over 300 videos of child pornography, some of which depicted children as young as four years of age. The FBI executed the search warrant on his Oceanside apartment in January 2013 where they located names of children Gougher had privately tutored over several years. To date, no one has come forward claiming any sexual misconduct by Gougher.
In imposing the 200 month sentence, United States District Court Judge William Q. Hayes commented that the images were “the worst I’ve ever seen.” Judge Hayes noted that the “horrific and heart-breaking nature” of the child pornography videos. Some videos depicted children under the age of five being raped by adult males. Judge Hayes said that the victims of child pornography suffer “psychological damage that can’t be undone. They don’t get a determinate sentence.”
U.S. Attorney Adam L. Braverman said, “All child exploitation cases are heinous, but the actions of this defendant, whose profession afforded him special access to young students, are particularly appalling. We will use the full resources of the Department of Justice to seek the longest sentences possible for those who victimize children.”
“Each video and each image that Mr. Gougher possessed represented the victimization of a child. This case is particularly disturbing given the defendant’s former position as a teacher and tutor.” said FBI Special Agent in Charge Eric S. Birnbaum. “We hope the resulting sentence from this investigation sends a clear message to anyone involved in the online sexual exploitation of a child: the FBI is steadfast and committed to identifying child predators and protecting the innocence of our children.”
DEFENDANT Case Number 14cr0635-WQH
Marlin Lee Gougher Age: 59 Oceanside, CA
SUMMARY OF CHARGES
Distribution and Receipt of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2)
Maximum penalty: 20 years’ imprisonment with a mandatory minimum sentence of 5 years. Lifetime of supervised release
Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(4)
Maximum penalty: 20 years’ imprisonment. Lifetime of supervised release
AGENCY
Federal Bureau of Investigation