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6 February 2018
United States Attorney’s Office Recovers Nearly $18,000,000 in Fiscal Year 2017Read 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 in Fiscal Year (FY) 2017, the Western District of New York Office recovered $17,889,000 as a result of wide‐ranging efforts in criminal, civil and asset forfeiture cases. Of that amount, $7,223,745 was given to victims of crime in the past year, while $772,000.22 was provided as aid to state and local law enforcement agency partners who worked hand in hand with the office on criminal cases. In addition, as part of an effort to combat fraud, waste, and abuse directed against the government, the Office collected $7,477,119 in affirmative civil enforcement actions, which include proceedings involving health care fraud, government fraud, and more.
“Speaking both literally and figuratively, the tremendous work done by the dedicated women and men of this Office is truly priceless,” said U.S. Attorney Kennedy. “For not only are the ideals embodied by the work done by this Office—ideals such as upholding the rule of law and preserving justice and equality—themselves without a price, by bringing in more money than we are allocated each year in our budget, we accomplish our virtuous mission while giving more back to the government coffers than we receive. By any measure, ours is a highly successful business model.”
In addition to recovering funds, a total of 167 dangerous firearms, along with ammunition were forfeited in FY 2017 as instrumentalities of criminal conduct in drug and violent gang cases. Computers and electronic media devices—most related to child exploitation cases—were also forfeited.
Kennedy specifically credited the work done by his Office’s Asset Forfeiture and Financial Litigation Unit, under the leadership of Chief Richard D. Kaufman and Deputy Chief Kevin D. Robinson, and his Office’s Affirmative Civil Enforcement Unit, under the leadership of Civil Chief Mary Pat Fleming and ACE Coordinator AUSA Kathleen A. Lynch.
Two felons plead guilty to federal gun crimesRead the Press Release
CHARLESTON, W.Va. – Two men pleaded guilty today to federal gun charges, announced United States Attorney Mike Stuart. Donnie Ray Evans, 33, of Williamson, entered his guilty plea to being a felon in possession of a firearm. In a separate prosecution, Brandon Cantrell, 32, of Charleston, also pleaded guilty to being a felon in possession of a firearm.
U.S. Attorney Stuart commended the investigative efforts of the Mingo County Sheriff’s Department, the West Virginia State Police, the Kentucky State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the Evans case. He also commended the Charleston Police Department and the ATF for the investigation of Cantrell.
“These felons chose to ignore the law, and they are facing substantial prison sentences for their crimes. Make no mistake, keeping guns out of the hands of dangerous criminals is a top priority of my office,” said U.S. Attorney Stuart. “I strongly support the Second Amendment, but those who break our gun laws will pay a heavy price. We will keep working with our law enforcement partners to get the message out – if you possess guns illegally, you will end up behind bars.”
On February 17, 2016, a deputy with the Mingo County Sheriff’s Department was following up on a suspicious person complaint near Kermit in Mingo County. The deputy found Evans in a stolen 2004 Chevy Tracker and arrested him. Evans admitted that at the time of his arrest, he possessed a Springfield XDS, .45 caliber pistol that had been stolen from the same place as the Chevy Tracker. Evans was prohibited from possessing any firearm under federal law because of a 2009 conviction in Cabell County Circuit Court for assault during the commission of a felony.
In a separate prosecution, Cantrell admitted that on April 20, 2017, he possessed a Hi-Point, model C-9, 9mm pistol at a residence on Charleston’s West Side. Cantrell was prohibited from possessing any firearm under federal law because of a 2008 felony conviction in Kanawha County Circuit Court for breaking and entering.
Evans and Cantrell each face up to 10 years in federal prison. Evans is scheduled to be sentenced on May 10, 2018. Cantrell is scheduled to be sentenced on May 9, 2018.
Assistant United States Attorney Timothy D. Boggess is in charge of the Evans prosecution. Assistant United States Attorney Matt Davis is responsible for the Cantrell prosecution. United States District Judge John T. Copenhaver, Jr., presided over the plea hearings.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Two Men Charged with Alien SmugglingRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that Irvin Munoz-Diaz, 23, a citizen of Mexico who now lives in Canada, and Candido Emanuel Noriega-Quezada, 20, a Guatemalan citizen who lives in Rhode Island, appeared yesterday in United States District Court in Burlington on a charge that they conspired to smuggle and transport five illegal aliens into and within the United States. U.S. Magistrate Judge John M. Conroy released Noriega-Quezada on conditions but ordered that Munoz-Diaz be detained pending further proceedings on February 7.
According to the criminal complaint, on the evening of February 2, agents at the Beechers Falls Border Patrol station learned that a group of persons were entering the United States from Canada, near an area known as Peewee’s fence line in Canaan. Agents followed footprints in the snow that appeared to have come from Canada. Agents found six people, including the defendant Munoz-Diaz, hiding in the snow and tree brush. Five of those persons were citizens of Romania who have no status in the United States and who were going to pay to be smuggled across the border into the United States.
About one-half hour after the aliens were intercepted, other agents encountered the defendant Noriega-Quezada driving a car with Rhode Island license plates near Peewee’s fence line. Investigation showed that Noriega-Quezada had been in cellphone contact with Munoz-Diaz and had been recruited to meet up with Munoz-Diaz in Vermont, pick up the aliens and drive them back to Rhode Island. For his efforts, Noriega-Quezada was to be paid $1000.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Munoz-Diaz is represented by Federal Public Defender Michael Desautels and Noriega-Quezada is represented by David Watts. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Two Individuals Indicted for Wire FraudRead the Press Release
SAN JUAN, P.R. – On February 1st, a Federal grand jury returned a thirteen-count indictment charging Joel De Jesús-Ocasio and Marangelis Rivera-Colón with wire fraud and false statements in loan applications, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Internal Revenue Service (IRS) and Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) are in charge of the investigation.
According to the indictment, since 2004 Joel De Jesús-Ocasio was a licensed life insurance broker/agent who worked for National Western Life Insurance Company. In 2010, the Office of the Commissioner of Insurance of Puerto Rico (CIPR) revoked De Jesús-Ocasio’s insurance broker license and as a result, on or about February 14, 2011, National Western Life Insurance Company suspended its contract with the defendant. Marangelis Rivera-Colón was not an insurance agent, but De Jesús-Ocasio submitted false insurance license documentation in her name to National Western Life Insurance Company so that De Jesús-Ocasio could continue to sell insurance policies and annuities.
From December 2010 to November 2011, using the fraudulently acquired insurance agent status with National Western Life Insurance Company for Rivera-Colón, De Jesús-Ocasio sold insurance policies and annuities and obtained $283,718.05 in commissions for these sales. These payments were wire transferred from National Western Life Insurance Company to a Scotiabank personal account belonging to Rivera-Colón, but controlled and utilized by De Jesús-Ocasio.
The defendants made or caused to be made, material false statements to three different banks to obtain three loans. To wit, Western Bank for the purposes of obtaining a home loan for a total amount of $304,000.00; to First Bank for the purposes of obtaining an automobile loan for a total amount of $47,231.00 for a Jeep Grand Cherokee; and to Scotiabank for the purposes of obtaining an automobile loan for a total amount of $124,200.00 for the purchase of a Nissan Skyline GTR.
The false statements included the following: defendants stated that Rivera-Colón worked for National Western Life Insurance Company as an Insurance Agent and had a monthly salary, when in truth and in fact, defendants well knew that Rivera-Colón was not an insurance agent, did not have an insurance agent license, could not sell insurance policies, and had not been employed by National Western Life Insurance Company as an Insurance Agent.
“These defendants knowingly participated in a scheme to defraud an insurance company and three financial institutions for their personal economic gain,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “We remain committed to investigating and prosecuting financial crimes and fraud and will hold those who cheat the system accountable for their actions.”
“IRS Criminal Investigation will continue to devote resources to investigating all financial violations, including bank fraud. The actions of these individuals had a negative impact not only on financial institutions but on the people of Puerto Rico as well. Rest assured we will continue to bring to justice individuals who employ such schemes for personal gain,” said Kelly R. Jackson, IRS-CI Special Agent in Charge, Miami Field Office.
If convicted, the defendants face a maximum possible sentence of 30 years. The case is being prosecuted by Assistant United States Attorney Edward Veronda. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
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Two Convicted of Conspiring to Rob Drug Money from Undercover AgentRead the Press Release
McALLEN, Texas – Two illegal aliens residing in Pharr have entered guilty pleas to conspiring to interfere with commerce by threats or violence and to carrying a firearm during and in relation to a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Rogelio Acosta-Moctezuma, 39, and Jose Israel Villa-Reyes, 27, admitted they conspired to rob an undercover agent. Acosta-Moctezuma also pleaded guilty to an unrelated charge of conspiring to export defense articles.
On Feb. 1, 2017, a confidential informant negotiated the purchase of two kilograms of cocaine and three kilograms of methamphetamine for $60,000. The informant arrived at a parking lot in Pharr with an undercover agent to meet with Acosta-Moctezuma and Villa-Reyes and pick up the narcotics.
Shortly after their arrival, the agent said he was going to call for the delivery of the money. While on the phone, Acosta-Moctezuma exited the vehicle and approached the agent, at which time law enforcement arrested him. A pistol was in his waistband, which he admitted was given to him for the purpose of meeting with the buyers. Villa-Reyes remained in the vehicle, but was also found with a pistol.
The packages they brought to the transaction revealed the presence of Styrofoam and another substance, but no narcotics.
Both admitted they went to the meeting with the weapons not to sell drugs but to steal the $60,000.
U.S. District Judge Micaela Alvarez accepted the pleas today and set sentencing for April 19, 2018. At that time, both face up to 20 years imprisonment for the conspiracy as well as a mandatory five years for the firearms charge that must be served consecutively.
Acosta also faces up to 20 years for the conspiracy to export defense articles. In that case, he admitted to supplying a .223 rifle to an undercover agent posing as a buyer who was going to smuggle the rifle to Mexico.
Both men will remain in custody pending sentencing.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Border Patrol’s Evidence Collection Team and the Pharr Police Department. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the unrelated defense articles investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Two Brooklyn Men Indicted for Gunpoint KidnappingRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Michael Crumble and Ramell Markus with kidnapping, extortion and possessing and brandishing a firearm in relation to those crimes. The defendants were arrested today and are scheduled to be arraigned this afternoon before United States Magistrate Judge James Orenstein.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged in the indictment, the defendants kidnapped and viciously assaulted an individual for eight hours, forcing him to turn over narcotics and cash,” stated United States Attorney Donoghue. “This Office and our law enforcement partners, are committed to ridding our community of individuals, like these defendants, who are responsible for drug-related violence.” Mr. Donoghue gave particular thanks to the New York Metropolitan Safe Streets Task Force, which is comprised of agents from the FBI and detectives from the NYPD.
“Not only did the subjects in this investigation allegedly rob their victim, but kidnapped and tortured him to extract information. No human deserves to be beat, burned and pistol-whipped into submission,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI Metro Safe Streets Task Force works each day with our law enforcement partners to uncover, and investigate cases to get these violent criminals off the streets and out of our communities.”
As alleged in the indictment and detailed in court filings, the defendants Michael Crumble and Ramell Markus, along with a third co-conspirator (“CC-1”), abducted, assaulted, and extorted a victim (“John Doe”) in the early morning hours of December 18, 2017. At that time, Doe left his home to meet Markus in Markus’s car. As Doe got into the backseat, Crumble and CC-1 came out of the shadows and pushed Doe further into the car, where CC-1 pressed a gun against Doe’s head. Markus, sitting in the front seat, told CC-1 to check Doe for any weapons and, if Doe had one, to shoot him in the face. Markus then took the gun from CC-1 and pistol-whipped Doe across the head. While in the vehicle, Markus demanded, in sum and substance, that Doe give Markus narcotics that the defendants believed Doe had at his home.
Subsequently, Markus, Crumble and CC-1 drove Doe to a residence in Brooklyn and forced him inside. The defendants again demanded that Doe give them money and narcotics, and also disclose an address where the perpetrators believed additional narcotics and money were located. To force Doe to comply, Markus broke a glass on Doe’s face, and CC-1 repeatedly burned both of Doe’s arms with a hot iron. Doe eventually called his fiancée and told her to gather his cash and narcotics, which Markus and Crumble retrieved from outside Doe’s home and then brought back to the residence with Doe and CC-1.
Not satisfied with the drugs and cash, the defendants and CC-1 continued to keep Doe captive, and drove him to a hotel. The perpetrators forced Doe to stay at the hotel while they waited for another individual to call Doe, who would supposedly provide the address that the defendants sought. After waiting a number of hours, the defendants forced Doe back inside the car and took him back to his home. Because Doe refused to provide the perpetrators with the address, they forced Doe to provide a pound of marijuana as collateral. In total, the defendants kidnapped Doe for approximately eight hours.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of all counts, the defendants face a mandatory minimum of seven years’ imprisonment and a maximum of life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
MICHAEL CRUMBLE
Age: 34
Brooklyn, New YorkRAMELL MARKUS (also known as “Rah,” “Dollah” and “Smooth”)
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-32 (ARR)
Troy Woman Pleads Guilty to Distributing HeroinRead the Press Release
ALBANY, NEW YORK – Angelina L. Cedeno, age 35, of Troy, New York, pled guilty today to distributing heroin in Albany County.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of her guilty plea, Cedeno admitted to distributing heroin in the Town of Bethlehem, in Albany County, in August 2016.
Cedeno is in custody pending sentencing.
United States District Judge Mae A. D’Agostino will sentence Cedeno on June 6, 2018. Cedeno faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and New York State Police, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Treatment Facility Worker Pleads Guilty to Obstruction of a Healthcare Fraud InvestigationRead the Press Release
An employee of a Coral Springs addiction treatment center pled guilty to his role in obstructing an ongoing healthcare fraud investigation in Federal Court today.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Jeffrey Adedoyin Williams, 30, of North Lauderdale, pled guilty to one count of obstruction of a criminal health care investigation, in violation of Title 18, United States Code, Section 1518(a), in connection with his employment at Deerfield Medical Center (DMC). Williams is the fifth DMC employee to plead guilty.
According to court documents, Williams worked at DMC where he assisted with the collection of urine samples and provided administrative support at the facility. Although owned by a non-physician, DMC operated as a doctors’ group and provided medical services to various substance abuse treatment facilities located in Palm Beach and Broward Counties, including Reflections Treatment Center and New Life Treatment Center. At the direction of the center’s owner, Richard Botero, other employees would visit substance abuse treatment centers and prescribe controlled substances even though none of them were medically licensed to do so. Licensed and unlicensed medical staff also ordered unnecessary bodily fluid testing, conducted patient visits and conducted patient evaluations.
As part of its federal healthcare fraud investigation, on February 16, 2017, members of the FBI-led Greater Palm Beach Health Care Fraud Task Force, served a grand jury subpoena on DMC seeking DMC records, patient files, and other information. On February 22, 2017, Botero delivered documents and information to the FBI and was questioned, but did not provide complete information or all of the documents sought by the subpoena. The following morning, Williams drove Botero to the Miami International Airport where Botero purchased a plane ticket and fled to Colombia. Another DMC employee, Katherine Gonzalez, also fled from Miami to Colombia later that day.
While in Colombia, Botero and Gonzalez maintained contact with Williams, directing him to remove computers, documents, and other items from DMC’s offices to prevent and delay the FBI from obtaining the items. After learning that Botero and Gonzalez had fled, agents obtained a search warrant for DMC. Upon executing the warrant, agents found that the clinic had been cleared out. When questioned by the agents, Williams admitted that he had removed documents and equipment from DMC. Williams then took agents to the storage space where he had placed most of the items. During questioning, Williams neglected to inform the agents that he also had sold some of Gonzalez’s computer equipment that contained relevant information.
U.S. District Judge Robin L. Rosenberg accepted Williams’ guilty plea and set the matter for sentencing at 10:30 a.m. on April 17, 2018. Williams faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
Williams is the fifteenth defendant convicted in the federal investigation into fraud involving substance abuse treatment in the Southern District of Florida.
Mr. Greenberg commended the investigative efforts of the Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
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.
Thai National Indicted for International Arms Trafficking and Witness TamperingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Thai national, Apichart Srivaranon, age 32, of Patumthanee Province, Thailand, on charges related to a conspiracy, between 2012 and 2016, to unlawfully export arms and munitions from the United States to Thailand and witness tampering. The indictment was returned on November 9, 2016, and was unsealed on January 23, 2018, upon the arrest of Srivaranon in Las Vegas, Nevada.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Ashan M. Benedict Special Agent in Charge for New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF.)
The case against Srivaranon is assigned to U.S. District Court Judge George J. Hazel of the District of Maryland.
According to the five-count indictment, Srivaranon obtained firearm parts in the United States that are and were listed on the United States Munitions List and exported them to Thailand without having first obtained the required license or written authorization from the Directorate of Defense Trade Controls, an office in the United States Department of State.
In furtherance of the conspiracy, Srivaranon purchased firearms parts online from United States gun manufacturers. These firearms parts included key components for AR-15 and M-16 military-style assault rifles. Srivaranon then had the firearms parts sent to addresses in the United States where his co-conspirators lived, visited, or conducted business, including Ohio, New York, Maryland and Nevada. Srivaranon recruited his co-conspirators, often Thai women who were living in the United States for the first time as au pairs and, in one instance, a University of Maryland college student, through social media. Upon receipt of the munitions, Srivaranon directed his co-conspirators to repackage the parts and falsely label United States Postal Service (USPS) Customs forms. Srivaranon also directed his co-conspirators to falsely declare the contents of these packages upon shipment, listing the contents as spare parts, bicycle parts, fishing parts, or toy parts, and then ship them to Thailand via the USPS and private shipping companies. To avoid detection, Srivaranon instructed his co-conspirators to alternate the frequency and addresses of shipments, as well as the estimated value of the contents of the shipments.
In addition, following the detection of one of Srivaranon’s co-conspirators, an au pair in New York, the co-conspirator advised Srivaranon that the ATF was investigating their conduct. Srivaranon responded and advised this co-conspirator to tell the ATF that she had never sent any firearms “barrels” to Thailand. Srivaranon also contacted the Chief Operating Officer of an American firearms manufacturer with which Srivaranon had previously placed multiple firearms parts orders, and asked that the Chief Operating Officer delete Srivaranon’s order history from the manufacturer’s database.
Srivaranon is charged with: (1) conspiring to violate the Arms Export Control Act (“AECA”), 22 U.S.C. § 2778, and 18 U.S.C. § 554, in violation of 18 U.S.C. § 371; (2) three substantive AECA violations for attempts to export firearms parts to Thailand in September 2013 and October 2013; and (3) tampering with a witness, in violation of 18 U.S.C. § 1512(b)(3). Srivaranon faces a maximum sentence of five years in prison for the conspiracy; and a maximum sentence of twenty years in prison for unlawfully attempting to export arms and munitions and witness tampering. An initial appearance has been scheduled for today at 11:45 a.m. in the U.S. District Court in Greenbelt.
The Justice Department’s National Security Division, Counterintelligence and Export Control Section (CES) and the Criminal Division’s Office of International Affairs (OIA) have both provided significant assistance in this matter. The Department also thanks Thailand’s Department of Special Investigation for providing valuable assistance with the investigation and prosecution of the case.
Acting United States Attorney Stephen M. Schenning commended ICE-HSI, the ATF and the U.S. Customs and Border Protection for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Bryan Foreman who are prosecuting the case.
Susan Blaue Sentenced for Central Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Susan Blaue, 39, of Bridgewaters Corners, was sentenced today in United States District Court in Burlington to two years of probation following her guilty plea to a federal forgery charge. U.S. District Judge William K. Sessions III also ordered that Blaue serve three months of home confinement, perform 100 hours of community service and pay restitution totaling $94,736.20.
On March 29, 2017, a federal grand jury in Rutland returned a three count indictment charging Blaue with forgery, mail fraud and credit card fraud. According to the indictment, between 2012 and early 2015, Blaue was employed by ABLE Waste Management and two related companies in Plymouth. Beginning in early 2013, Blaue served as a bookkeeper for the companies, handling accounts receivables and payables and the companies’ payroll. Although she did not have check signing authority on the companies’ accounts, she did have access to a signature stamp of the companies’ owner, who was a signer.
According to the indictment, beginning in approximately April 2013 and continuing through the end of her employment in January 2015, Blaue stole approximately $130,000 from ABLE Waste Management and the related companies. Blaue did this by issuing many checks to herself without authorization, forging the owner’s signature on the checks or using the signature stamp without permission, then depositing the checks into her own bank account. Blaue also used company funds to pay her personal bills, and used ABLE credit cards to make purchases for herself. In addition, Blaue used company funds to pay the rent on the company-owned house she lived in while employed by ABLE.
Blaue pled guilty to the forgery charge last fall.
This case was investigated by the United States Secret Service and the Windsor County Sheriff’s Office.
Blaue is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Stuarts Draft Man Pleads Guilty to Traveling in Foreign Commerce to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
Harrisonburg, VIRGINIA – United States Attorney Rick A. Mountcastle announced today the guilty plea of a local man to a charge of traveling in foreign commerce to engage in illicit sexual conduct with a minor.
James Daniel Arbaugh, 40, of Stuarts Draft, Va., pleaded guilty today in the United States District Court in Harrisonburg to one count of traveling in foreign commerce from the United States to Haiti and engaging in illicit sexual conduct with a person under the age of 18. The defendant will be sentenced on June 13, 2018 at 10:30 a.m. and faces a maximum statutory penalty of up to 30 years in prison and/or a fine of up to $250,000. The court will determine the appropriate sentence after considering federal sentencing statutes and the advisory United States Sentencing Guidelines.
According to a factual proffer presented to the court at today’s hearing by Assistant United States Attorney Jeb Terrien, Arbaugh admitted to engaging in illicit sexual conduct with minors while traveling in Haiti between 2008 and 2017. While traveling in Haiti, Arbaugh regularly visited communities and villages throughout the country, including remote villages, where he evangelized and showed Christian-themed movies. While engaging in these missionary activities, Arbaugh befriended, groomed, and ultimately engaged in illicit sexual conduct with multiple, minor male children between the ages of 5 and 17 years old.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Harrisonburg Police Department. Assistant United States Attorney Jeb Terrien and Kaylynn Shoop, a Trial Attorney with the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Springdale Man Sentenced to over 6 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Carlos Mendoza-Mojica, age 30, of Springdale, was sentenced today to 78 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in the summer of 2015, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Mendoza-Mojica. In April of 2017, the DEA arranged and conducted a controlled purchase of methamphetamine from Mendoza-Mojica from his place of business in Springdale, Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 105.5 grams of actual methamphetamine.
Mendoza-Mojica was indicted by a federal grand jury in June 2017 and entered a guilty plea in August 2017.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
School Bus Company Owners Sentenced to Prison for Bid Rigging and Fraud Involving Puerto Rico Public School Bus ServicesRead the Press Release
Four owners of school bus transportation companies were sentenced today for participating in bid rigging and fraud conspiracies related to school bus transportation contracts in Puerto Rico, the Department of Justice announced.
Gavino Rivera Herrera, Luciano Vega Martínez, Alfonso Gonzalez Nevarez, and René Garay Rodríguez were convicted after trial in 2017 in the U.S. District Court for the District of Puerto Rico in San Juan. The jury found that they conspired to rig bids and allocate the market for public school bus transportation contracts in the municipality of Caguas from approximately August 2013 until May 2015. Each was also found guilty of conspiracy to commit mail fraud and four counts of mail fraud for defrauding the municipality of Caguas to obtain contracts for school bus transportation services.
For their roles in the collusive and fraudulent conduct, defendants Vega Martínez, Gonzalez Nevarez, and Garay Rodríguez were each sentenced to serve 12 months and a day in prison. Defendant Rivera Herrera was sentenced to a term of two years’ probation, the first six months to be served in home confinement, after a departure based on the defendant’s medical condition. Restitution will be imposed in an amount to be decided at a later date.
“These transportation company owners lined their own pockets with public funds that were intended to provide essential services to at-risk school districts,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The sentences imposed today reflect the serious harm caused by the actions of the defendants who enriched themselves at the expense of schoolchildren and American taxpayers.”
As proved during the trial, the four school bus company owners carried out the conspiracy by agreeing to allocate contracts for transportation routes awarded by the Municipality of Caguas. Trial evidence showed that the conspirators submitted fraudulent certifications and received award letters by certified mail in connection with their conspiracy to defraud the Municipality of Caguas.
Today’s sentencings are the result of a federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. The investigation was conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office, and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this or related conduct is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Schenectady Felon Indicted for Gun and Ammunition PossessionRead the Press Release
ALBANY, NEW YORK – Christopher L. Morgan, age 31, of Schenectady, New York, was arraigned last week on a charge of being a felon in possession of a firearm and ammunition.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, on September 6, 2016, Morgan possessed a .38 caliber Colt Cobra revolver, as well as 10 rounds of .38 caliber ammunition. The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
Morgan is in custody pending trial. If convicted, Morgan faces up to 10 years in prison and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Capital District Safe Streets Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department and the Schenectady County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Savannah Resident Sentenced for Firearm and Drug CrimesRead the Press Release
Savannah, GA – Bobby L. Christine, United States Attorney for the Southern District of Georgia, announced today that Savannah resident, Joseph Nathaniel Blake, 34, was sentenced yesterday by Senior Judge William T. Moore, Jr. to 151 months imprisonment for federal drug and weapons charges. He was also sentenced to serve 3 years supervised release upon his release from prison.
Blake had previously pled guilty in October 2017, to the charges of possession of a firearm as a felon and possession of cocaine with intent to distribute. Evidence presented at the guilty plea and the sentencing hearing established that Blake had 6 previous drug convictions, 3 previous firearms convictions and 3 previous fleeing to elude convictions. Blake was classified as a career offender under the federal sentencing guidelines.
United States Attorney Christine said: We will not tolerate those who continuously break the law like this defendant did. We will be relentless in our pursuit and prosecution of those who illegally possess firearms and narcotics.”
The U.S. Attorney’s Office prosecuted Blake as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subject to stiffer federal sentences, without the possibility of parole.
The case was investigated by the United States Bureau of Alcohol, Tobacco and Firearms and the Savannah Chatham Metropolitan Police Department. Assistant United States Attorney Charlie Bourne prosecuted the case on behalf of the United States.For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Saudi Citizen Charged in Oklahoma with Concealing Attendance at Al Qaeda Training CampRead the Press Release
Oklahoma City, Oklahoma — Naif Abdulaziz M. Alfallaj, 34, a citizen of Saudi Arabia and a current resident of Weatherford, Oklahoma, has been arrested for visa fraud and making a false statement to the FBI by, among other things, concealing his application to and attendance at an al Qaeda training camp in Afghanistan in late 2000.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, Acting U.S. Attorney Robert J. Troester of the Western District of Oklahoma, and Special Agent in Charge Kathryn Peterson of the FBI’s Oklahoma City Division made the announcement.
Based on a criminal complaint signed in the Western District of Oklahoma and unsealed today, Alfallaj was taken into custody by the FBI without incident on Monday, February 5. A grand jury returned a three-count indictment against him today. He was arraigned this afternoon before U.S. Magistrate Judge Bernard M. Jones and is currently in the custody of the U.S. Marshals Service.
According to the complaint, the FBI found 15 of Alfallaj’s fingerprints on an application to an al Qaeda training camp, known as al Farooq, which was one of al Qaeda’s key training sites in Afghanistan. The document was recovered by the U.S. military from an al Qaeda safe house in Afghanistan. The document is also alleged to include an emergency contact number associated with Alfallaj’s father in Saudi Arabia. Alfallaj is alleged to have first entered the U.S. in late 2011 on a nonimmigrant visa based on his wife’s status as a foreign student. According to the complaint, he answered several questions on his visa application falsely, including whether he had ever supported terrorists or terrorist organizations.
The indictment returned today charges two counts of visa fraud. Count One alleges that from March 2012 to the present, Alfallaj possessed a visa obtained by fraud. Count Two alleges he used that visa in October 2016 to apply for lessons at a private flight school in Oklahoma. The third count in the indictment charges Alfallaj with making a false statement to the FBI during a terrorism investigation when he was interviewed and denied ever having associated with anyone from a foreign terrorist group.
"Protecting our national security is the highest priority of the Department of Justice," said Acting U.S. Attorney Troester. "I commend the outstanding efforts of the FBI’s Joint Terrorism Task Force for its collaborative and focused work in this investigation."
"This is an isolated incident from one individual based on historical data," said FBI Special Agent in Charge Kathryn Peterson. "Our investigation to date has not uncovered any indication that the potential threat extends beyond this particular individual. The FBI and our JTTF partners will always work to ensure the safety and security of residents throughout our state."
If convicted of visa fraud, Alfallaj faces up to ten years in prison on each count. He also faces up to eight years in prison for making a false statement involving international terrorism. Deportation proceedings are expected to commence at the conclusion of these criminal proceedings. Reference is made to the criminal complaint and the indictment for further information.
The public is reminded these charges are merely accusations and that Alfallaj is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the FBI Joint Terrorism Task Force, which includes members from the U.S. Department of Homeland Security, the United States Secret Service, the Transportation Security Administration, the Oklahoma Highway Patrol, the University of Oklahoma Police Department, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Scott E. Williams of the Western District of Oklahoma and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section are prosecuting the case.
Saudi Citizen Charged in Oklahoma with Concealing Attendance at Al Qaeda Training CampRead the Press Release
Naif Abdulaziz M. Alfallaj, 34, a citizen of Saudi Arabia and a current resident of Weatherford, Oklahoma, has been arrested for visa fraud, and making false statements to the FBI by, among other things, concealing his application to and attendance at an al Qaeda training camp in Afghanistan in late 2000.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, Acting U.S. Attorney Robert J. Troester of the Western District of Oklahoma and Special Agent in Charge Kathryn Peterson of the FBI’s Oklahoma City Division made the announcement.
Based on a criminal complaint signed in the Western District of Oklahoma and unsealed today, Alfallaj was taken into custody by the FBI without incident on February 5. A grand jury returned a three-count indictment against him today. He was arraigned this afternoon before U.S. Magistrate Judge Bernard M. Jones and is currently in the custody of the U.S. Marshals Service.
According to the complaint, the FBI found 15 of Alfallaj’s fingerprints on an application to an al Qaeda training camp, known as al Farooq, which was one of al Qaeda’s key training sites in Afghanistan. The document was recovered by the U.S. military from an al Qaeda safe house in Afghanistan. The document is also alleged to include an emergency contact number associated with Alfallaj’s father in Saudi Arabia. Alfallaj is alleged to have first entered the U.S. in late 2011 on a nonimmigrant visa based on his wife’s status as a foreign student. According to the complaint, he answered several questions on his visa application falsely, including whether he had ever supported terrorists or terrorist organizations.The indictment returned today charges two counts of visa fraud. Count One alleges that from March 2012 to the present, Alfallaj possessed a visa obtained by fraud. Count Two alleges he used that visa in October 2016 to apply for lessons at a private flight school in Oklahoma. The third count in the indictment charges Alfallaj with making a false statement to the FBI during a terrorism investigation when he was interviewed and denied ever having associated with anyone from a foreign terrorist group.
If convicted of visa fraud, Alfallaj faces up to ten years in prison on each count. He also faces up to eight years in prison for making a false statement involving international terrorism. Deportation proceedings are expected to commence at the conclusion of these criminal proceedings. Reference is made to the criminal complaint and the indictment for further information. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
This case is the result of an investigation by the FBI Joint Terrorism Task Force, which includes members from the U.S. Department of Homeland Security, the U.S. Secret Service, the Transportation Security Administration, the Oklahoma Highway Patrol, the University of Oklahoma Police Department, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Scott E. Williams of the Western District of Oklahoma and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section are prosecuting the case.
Roseville Wealth Advisor Sentenced to 12 Years in Prison for Investment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Lee Loomis, aka Lawrence Leland Loomis, 60, of Granite Bay, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for schemes that caused millions of dollars in losses to more than 183 investors, U.S. Attorney McGregor W. Scott announced.
On January 29, 2016, Loomis pleaded guilty to wire fraud. According to court documents, from 2006 through 2008, Loomis was president of Loomis Wealth Solutions, a business operating in California, Illinois, Washington and elsewhere. Through seminars and face-to-face meetings, he induced individuals to invest money in the Naras Funds, which he claimed were liquid savings account-like investments that yielded a 12 percent annual return. He also claimed the investment was secured by a third party that was using the money to make loans secured by residential properties.
In fact, Loomis and his co‑defendants used the funds to pay for ongoing business expenses and to pay previous investors. Loomis took in more than $10 million in investor funds as part of the Naras scheme. He also took in money through other means, including a mortgage fraud scheme. At the time law enforcement executed search warrants at the business, only $4,313 was left in investor accounts.
“Loomis Wealth Solutions was built on a foundation of lies and deceit,” stated U.S. Attorney McGregor W. Scott. “The sentence imposed today helps to ensure that Loomis won’t again be in a position to cause financial harm to others, and represents some measure of justice for the many victims who were lured into trusting Loomis with their hard-earned money.”
“The FBI is committed to working with its partners to ensure people who defraud the American people—often devastating their financial future in the process—face justice,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Dozens of investors who trusted Lee Loomis suffered significant financial losses. Many of these victims withdrew funds from retirement accounts accrued over the course of decades, forcing then to restart the process of preparing for retirement.”
“Lee Loomis was the leader and architect of a scheme that resulted in millions of dollars of losses to dozens of families,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “He lied to investors, stole their hard earned savings and spent it within months of receipt. His conduct led to ruined credit and home foreclosures. While this sentence cannot reverse the damage caused by Loomis and his co-defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the United States Securities and Exchange Commission, and the California Bureau of Real Estate. Assistant U.S. Attorneys Paul Hemesath and Jared Dolan prosecuted the case.
Loomis has been in custody since September 14, 2012. Co-defendants John Hagener, 79, of Granite Bay; Joseph Gekko, 47, of Yorba Linda; Dawn C. Powers, 45, of Lincoln; and Peter Woodard, 47, of Ventura, have previously pleaded guilty and are scheduled to be sentenced on March 13, 2018.
Rochester Man Sentenced for Selling Counterfeit CoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Timothy Meacham, 32, of Rochester, NY, who was convicted of selling counterfeit coins, was sentenced to three years probation and ordered to pay $5,184.00 in restitution by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that in May 2017, Meacham posted an ad on Craigslist advertising the sale of two genuine United States gold collector coins. The defendant used a false name and concealed his phone number in the ad in order to hide his true identity. The victim, a Pennsylvania man, contacted Meacham and traveled to Rochester on May 15, 2017, at which time he purchased the counterfeit coins for $5,000.00 cash. As part of the fraud, the defendant falsely represented that the coins were authentic and had been passed to Meacham from his deceased grandfather. The defendant also falsely represented that he needed to sell the coins in order to pay for funeral expenses related to the unexpected death of a family member. Upon his return to Pennsylvania, the victim discovered that the coins were counterfeit and contacted the United States Secret Service in Rochester which began an investigation leading to the arrest of Meacham.
The sentencing is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Quincy Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Quincy man was sentenced yesterday in federal court in Boston for bank robbery.
Perry C. Learning, 36, was sentenced by U.S. District Court Judge Indira Talwani to 30 months in prison, three years of supervised release, and ordered to pay restitution of $1,480 to Citizens Bank. In July 2017, Learning pleaded guilty to one count of unarmed bank robbery.
On Dec. 15, 2015, an individual entered a branch of Citizens Bank in Quincy and demanded money from a teller. The teller gave the individual $1,480 from her drawer, and the individual exited the bank. The bank’s surveillance cameras captured images of the individual, and surveillance cameras on neighboring businesses captured images of the robber walking away. Photographs of the robber were disseminated to law enforcement who recognized the individual as Perry Learning. On Jan. 11, 2016, Learning was arrested.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Queens Man Sentenced to 18 Years’ Imprisonment for ISIS-Directed Terrorist Attacks in New York CityRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Munther Omar Saleh was sentenced by United States District Judge Margo K. Brodie to 18 years’ imprisonment, to be followed by a term of 10 years’ supervised release. Saleh had pleaded guilty on February 10, 2017 to all counts in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and with assaulting and conspiring to assault federal officers.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Munther Omar Saleh and his coconspirators conducted attacks on members of law enforcement who worked tirelessly to keep our city safe,” stated United States Attorney Donoghue. “Saleh’s sentence will not only incapacitate the defendant for a significant period of time, but should also serve as a deterrent to those who contemplate waging violent jihad in New York City at the direction of a foreign terrorist organization. This Office, and our partners on the Joint Terrorism Task Force, will never relent in our efforts to hold terrorists accountable for their cowardly acts, including attacks on those who protect us.”
“Inspired by ISIS’s violent and hateful ideology, the defendant conspired with others to use a pressure-cooker bomb in a terrorist attack in New York and attempted to attack members of law enforcement who were conducting surveillance of him,” said Acting Assistant Attorney General O’Callaghan. “Today’s sentence is but one example of our resolve to bring to justice homegrown violent extremists who plot and attempt attacks on innocent people, including law enforcement agents, in the U.S. in the name of foreign terrorist organizations.”
“Saleh attempted to turn our city into a staging ground for violent attacks, including those aimed at both local and federal law enforcement officials. Directed by a known terrorist organization responsible for civilian massacres and other heinous crimes worldwide, he supported and attempted to facilitate the martyrdom of those with similar views,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s sentencing promises he’ll remain behind bars for a significant period of time, upholding our faith in a justice system that has little compassion for those who wish to harm our way of life.”
As alleged in the indictment and in other court filings, Saleh, together with other coconspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIS-controlled territory. Saleh personally accompanied Saadeh to John F. Kennedy International Airport where Saadeh departed on a flight for Jordan in the first leg of a planned trip to ISIS-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in federal court in New Jersey to conspiring to provide material support to ISIS.
Working with ISIS attack facilitators located overseas, Saleh coordinated a plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from ISIS attack facilitator Junaid Hussain to construct a pressure-cooker bomb and discussed with him potential targets for a terrorist attack in New York City, such as the Statue of Liberty. As detailed in court documents, Saleh informed ISIS attack facilitators that his coconspirators—five individuals located in New York and New Jersey—had confronted law enforcement officers who were surveilling them continuously. Saleh also sought and received authorization from Junaid Hussain permitting codefendant Fareed Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the coconspirators and thus preventing them from traveling to join ISIS.
On June 13, 2015, Saleh and another coconspirator were arrested in Queens after they attempted to attack members of law enforcement by charging at a federal officer who was performing physical surveillance of Saleh. Saleh and the coconspirator were armed with knives. The law enforcement officer reversed his vehicle into a multilane intersection and escaped the attack without incident or injury. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s protective body armor, and he sustained only minor injuries. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIS member had sanctioned Mumuni’s planned suicide attack on law enforcement and that Saleh and Mumuni had discussed using a pressure-cooker bomb to carry out the attack.
Mr. O’Callaghan and Mr. Donoghue also praised the agents, analysts and prosecutors for their dedication and commitment to this investigation and prosecution.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson are in charge of the prosecution, with assistance provided by Trial Attorney Robert Sander and Justin Sher of the National Security Division’s Counterterrorism Section.
The Defendant:
MUNTHER OMAR SALEH
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 15-CR-393 (MKB)
Prior Sex Offender from Silver City Sentenced to 25 Years for Child Exploitation and Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Michael Ray Sepulveda, 39, of Silver City, N.M., was sentenced yesterday afternoon in Las Cruces, N.M., federal court to 25 years in prison followed by a lifetime of supervised release for his conviction on federal child exploitation and child pornography charges. Sepulveda will be required to continue to register as a sex offender after he completes his prison sentence.
The sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, and Sheriff Raul D. Villanueva of the Grant County Sheriff’s Office.
Sepulveda, who previously was convicted on state child sexual abuse charges in California, was prosecuted under a federal anti-violence initiative that targets the “worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“The U.S. Attorney’s Office is committed to working with its federal and local law enforcement partners to investigate and prosecute child exploitation offenses and ensure that those who prey on the most vulnerable among us are brought to justice,” said Acting U.S. Attorney James D. Tierney. “Those who attempt to hide behind fake profiles on social media would do well to heed this warning: you will be discovered, caught, and prosecuted.”
“This sexual predator is looking at spending a very long time in prison. We hope this case sends a strong message that you won’t be able to hide behind a computer screen when you victimize children,” said Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI. “The FBI worked closely with Homeland Security Investigations and the Grant County Sheriff’s Office on this case, and we congratulate the U.S. Attorney’s Office on a successful prosecution.”
“This investigation is another example of how today’s child predators aren’t always in the same room with their victims,” said Jack P. Staton, Acting Special Agent in Charge of HSI El Paso. “There is no room in our communities for criminals who prey on our children, and our goal is to continue to identify, arrest and pursue prosecution of individuals who commit such heinous crimes.”
Sepulveda was arrested on Oct. 28, 2016, on a criminal complaint charging him with enticing a child to engage in sexual activity and to produce child pornography, which was transmitted in interstate commerce. According to the criminal complaint, Sepulveda committed these crimes between July 2015 and Nov. 2015. Court filings reflect that law enforcement authorities began investigating Sepulveda in the summer of 2016, immediately after learning about his crimes while investigating other conduct.
According to the criminal complaint, Sepulveda used an online social networking website to engage in sexually explicit communications with an underage minor (victim) between July 2015 and Nov. 2015. In these communications, Sepulveda, who pretended to be a 16-year-old girl, sent sexually explicit photographs to the victim and persuaded the victim to send him sexually explicit photographs of the victim to Sepulveda. Sepulveda also attempted unsuccessfully to meet with the victim for the purpose of engaging in sexual activity.
On May 24, 2017, Sepulveda pled guilty to a felony information charging him with child exploitation and receipt of child pornography. In entering the guilty plea, Sepulveda admitted that between July 29, 2015 and Nov. 15, 2015, he attempted to persuade the minor victim to produce pornographic images of the victim and attempted to meet the victim to engage in sexual activity through a social media website. Sepulveda further admitted that while communicating with the victim, Sepulveda claimed to be a teenage female. Sepulveda admitted sending the victim images of female genitalia and heterosexual pornography and having sexually explicit conversations with the victim in an effort to induce the victim to produce child pornography for Sepulveda. According to the plea agreement, between July 29, 2015 and Nov. 15, 2015, in response to Sepulveda’s requests for sexually explicit photos of the victim, the victim sent five pornographic images depicting the victim to Sepulveda.
Under the terms of his sentencing, Sepulveda is prohibited from using or accessing the social media website he used to facilitate his criminal activity, and if Sepulveda wishes to become a member of, visit, or access any other social media website he must seek prior approval from his probation officer. Sepulveda also was ordered to pay $15,000 in restitution to the victims of his crimes.
This case was investigated by the Las Cruces offices of FBI and HSI and the Grant County Sheriff’s Office. Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Passaic County, New Jersey, Man Admits String of Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic, New Jersey, man today admitted robbing six banks in Hudson, Union, and Passaic counties in June and July of 2016, U.S. Attorney Craig Carpenito announced.
Quentin Morales, a/k/a “Quinton Morales,” 27, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with three counts of bank robbery. He also admitted to robbing two additional banks and attempting to rob another.
Prior to his arrest in August 2016, Morales was one of Newark FBI’s most wanted bank robbers.
According to documents filed in this case and statements made in court:
Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank (attempted)
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
Wells Fargo Bank
Union, New Jersey
July 25, 2016
At each bank, Morales presented a note demanding cash from bank tellers. For example, during the June 24, 2016 robbery, Morales handed the teller a note stating “You are being robbed. Give me all the large bills you have, no alarms, no noise.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
The bank robbery charges to which Morales pleaded guilty each carry a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 14, 2018.
U.S. Attorney Carpenito credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s plea. He also thanked the N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office Criminal Division in Trenton.
18-050
Defense counsel: Linda D. Foster, Esq., Assistant Federal Public Defender
Pass Christian Woman Pleads Guilty to Selling MethadoneRead the Press Release
Gulfport, Miss. – Sheila Bosarge Mendez, 51, of Pass Christian, pled guilty yesterday before United States District Judge Louis Guirola, Jr. to possession with intent to distribute methadone, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Mendez sold methadone to a confidential informant at her residence on two occasions – January 4, 2017, and January 11, 2017. Agents with the Mississippi Bureau of Narcotics obtained a search warrant for Mendez’s residence and executed it on January 24, 2017.
During the search of the residence, agents found a mail package containing 390 dosage units of methadone from Mexico and an envelope with approximately $3,827 and 10 dosage units of methadone. Agents also discovered 11 prescriptions written to Mendez for 100 dosage units each.
Mendez will be sentenced on May 8, 2018 at 10:00 a.m. by Judge Guirola, and faces a maximum penalty of 20 years in prison and a $1 million fine.
The case was investigated by Homeland Security Investigations, with assistance from the Mississippi Bureau of Narcotics, and is being prosecuted by Assistant United States Attorney Shundral H. Cole.
Pana Man Indicted on Meth Trafficking and Gun ChargesRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury today returned its indictment of a rural Pana, Ill., man, Michael Williams, on methamphetamine trafficking and gun charges. Williams, 49, was arrested on Jan. 26, 2018, and charged by criminal complaint with distribution of methamphetamine. During a court appearance on Jan. 29, U.S. Magistrate Judge Tom Schanzle-Haskins ordered that Williams remain detained in the custody of the U.S. Marshals Service.
The indictment alleges that Williams distributed 50 grams or more of ice methamphetamine on Jan. 24, 2018, and on Jan. 26, that Williams possessed more than 50 grams of methamphetamine with intent to distribute and that he possessed firearms in furtherance of a drug trafficking crime. The indictment alleges Williams possessed six firearms: a .38 caliber revolver; two 12 gauge shotguns; a .40 caliber carbine; .223 rifle; and, a .17 caliber long rifle.
If convicted, the statutory penalty for the charges of distribution and possession with intent to distribute more than 50 grams of methamphetamine is 10 years to life in prison. For possession of a firearm in furtherance of a drug crime, the penalty is a mandatory five years in prison to be served consecutive to any sentence ordered for the underlying drug crime.
The charges are the result of an investigation by DEA and the Central Illinois Enforcement Group (CIEG.) Officers with the Pana Police Department, Christian County Sheriff’s Office and ATF assisted in the execution of a search warrant at Williams’ residence on Jan. 26, 2018. The case is being prosecuted by Assistant U.S. Attorney Crystal Correa.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Oklahoma City Man Sentenced to 172 Months for Involvement in Heroin and Methamphetamine ConspiraciesRead the Press Release
Oklahoma City, Oklahoma – VICTOR QUIROS, a/k/a Jay Lozano, 26, a resident of Oklahoma City, has been sentenced to a prison term of 172 months, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
Quiros has been in federal custody since August 24, 2017, on federal drug charges. While executing a search warrant at his residence, law enforcement located heroin, currency, drug paraphernalia, and a Bushmaster Carbon 15 semi-automatic rifle with light, laser, and scope.
On August 23, 2017, Quiros pleaded guilty to a Superseding Information charging that on June 6, 2016, he distributed five or more grams of methamphetamine, also known as "ice." On August 24, he also pleaded guilty to Count 1 of an Indictment that charged him with conspiring to possess with intent to distribute 100 or more grams of a substance containing heroin from October 2016 to June 2017.
On February 1, 2018, Chief U.S. District Judge Joe Heaton sentenced Quiros to 172 months in prison, to be followed by four years of supervised release. The court also ordered Quiros to forfeit his semi-automatic rifle and $6,111 in currency.
Evidence at sentencing revealed that Quiros had two runners who delivered heroin on his behalf, as well as several heroin customers who purchased heroin for personal use and further distribution. The Court found that Quiros was a leader of a criminal activity that involved five or more participants. The evidence also showed that Quiros maintained a premises for the purpose of manufacturing or distributing heroin.
This case is the result of an investigation by the Federal Bureau of Investigation and the Oklahoma City Police Department. Assistant U.S. Attorneys Nicholas J. Patterson, Virginia L. Hines, and Kerry Blackburn prosecuted the case.
O.C. Man who was Alaska Airlines Pilot Agrees to Plead Guilty to Flying Passenger Aircraft while under the Influence of AlcoholRead the Press Release
SANTA ANA, California – A former captain with Alaska Airlines has agreed to plead guilty to federal charges of piloting a plane carrying passengers while he was under the influence of alcohol.
David Hans Arntson, 62, of Newport Beach, agreed to plead guilty to operating a common carrier while under the influence in a plea agreement filed this morning in United States District Court.
According to court documents, Arntson was the pilot of two Alaska Airlines flights on June 20, 2014. The first flight was from San Diego International Airport to Portland, Oregon. He then flew a plane from Portland, Oregon, to John Wayne Airport in Orange County.
After landing at John Wayne Airport, Arntson was selected for random drug and alcohol testing by Alaska Airlines. A technician for Alaska Airlines performed two breathalyzer tests that showed the pilot had a blood alcohol concentration of 0.134 percent and 0.142 percent. “Those percentages were well above the federal limit of 0.04 percent for pilots,” according to the plea agreement.
After the technician informed Alaska Airlines of the test results showing alcohol in his system, the airline removed Arntson from all safety-sensitive duties. Following the June 20, 2014, incident, Arntson retired from the Alaska Airlines, and the Federal Aviation Administration revoked his ability to pilot a plane.
“This pilot worked for the airline for more than 20 years, and we now know that he was an alcoholic who flew commercial flights while under the influence of alcohol,” said United States Attorney Nicola T. Hanna. “When he was finally caught, the evidence indicates that he had flown with an alcohol level more than three times the legal limit. Thankfully, Mr. Arntson was never involved in an accident, but his conduct could have resulted in tragic consequences. Very few people will ever hold the lives of so many people in their hands at one time.”
In the plea agreement filed today, the parties have agreed that the appropriate sentence in this case is one year and a day in federal prison, to be followed by three years of supervised release.
United States District Judge Cormac J. Carney will schedule a hearing for Arntson to enter his guilty plea.
The investigation into Arntson was conducted by the United States Department of Transportation, Office of Inspector General.
“This guilty plea demonstrates that ensuring the safety of the travelling public within the nation’s air transportation system remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said William Swallow, DOT-OIG Regional Special Agent-in-Charge. “Working with the Federal Aviation Administration and prosecutorial partners, we will continue our efforts to prevent and punish those who seek to compromise the safety of our national airspace system.”
This case is being prosecuted by Assistant United States Attorneys Dennis Mitchell and Mark A. Williams of the Environmental and Community Safety Crimes Section.
North Carolina Return Preparer Pleads Guilty to Filing False Tax Refund ClaimsRead the Press Release
WASHINGTON – A Wilson, North Carolina, tax return preparer pleaded guilty today to filing a false claim for refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina.
According to documents and information provided to the court, in early 2015 Tawanda Denise Pitt, managed Integritax, a tax preparation business in Wilson, North Carolina. Pitt falsified taxpayer client returns by claiming false dependents and education credits and reporting fake businesses in order to seek refunds to which her clients were not entitled. Pitt also admitted that she trained other preparers to file fraudulent returns. She caused a tax loss between $550,000 and $1.5 million; the total tax loss resulting from false education credits alone exceeded $780,000.
U.S. District Court Judge Malcolm J. Howard scheduled sentencing for May 8. Pitt faces a statutory maximum sentence of five years in prison, a period of supervised release and monetary penalties. In addition, Pitt agreed to pay $203,106 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon thanked agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Adam F. Hulbig and Trial Attorney Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
New York Man Sentenced to 87 Months for Multi-State Biodiesel Fraud SchemeRead the Press Release
Andre Bernard, 65, of Mount Kisco, NY was sentenced to 87 months in federal prison for conspiracy to commit wire fraud, making false statements related to the Clean Air Act, and his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits. As part of his sentence, the court also entered a money judgment in the amount of $10.5 million, the amount of proceeds of the charged criminal conduct that the defendant personally received. Two accounts already seized from the defendant worth in excess of $1.5 million will be credited against the money judgment.
Andre Bernard was found guilty on August 2, 2017.According to court documents, Bernard and his co-conspirators operated entities that purported to purchase renewable fuel, on which credits had been claimed and therefore was ineligible for additional credits, produced by their co-conspirators at Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia. They then used a series of false transactions to transform the fuel back into feedstock needed for the production of renewable fuel, and sold it back to Gen-X or SRC, allowing credits to be claimed again. This cycle was repeated multiple times.
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who defraud the federal government and the American taxpayer through unlawful schemes,” said Acting Assistant Attorney General Wood. “We applaud the work of DOJ, EPA, and our other federal law enforcement partners that sought and obtained justice in this case.”
“We will not tolerate environmental fraud in the Renewable Fuels Program, or anywhere else.” said EPA Administrator Scott Pruitt. “This case highlights EPA's resolve in working with partners, nationally, to hold bad actors accountable."
“The successful prosecution of these fraudsters is a testament to our commitment to combat crime at every level,” said U.S. Attorney Chapa Lopez. “We will continue to support our investigative partners in dismantling such criminal schemes.”
“Fraud against the United States and its citizens will continued to be targeted by the Secret Service,” said Resident Agent in Charge Jeff Kelly with the U.S. Secret Service. “These complex investigations are only successfully accomplished with the dedication and partnership of our partner agencies and the U.S. Attorney Office in bringing accountability.”
From March 2013 to March 2014, the co-conspirators, including Bernard, generated at least 60 million credits that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent credits to third parties. In addition, Gen-X received approximately $4.3 million in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency’s Criminal Investigation Division, and the Internal Revenue Service’s Criminal Investigation. It was prosecuted by Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division and Assistant United States Attorneys Sara C. Sweeney and Megan Kistler.
New York Man Sentenced to 18 Years for ISIS-Directed Terrorist Attacks in New York CityRead the Press Release
Munther Omar Saleh, 22, of Queens, New York, was sentenced today to 18 years in prison, to be followed by a term of 10 years’ supervised release, for conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and for assaulting and conspiring to assault federal officers. Saleh pleaded guilty on Feb. 10, 2017, to all counts in the indictment.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. The sentence was issued by U.S. District Judge Margo K. Brodie.
“Inspired by ISIS’s violent and hateful ideology, the defendant conspired with others to use a pressure-cooker bomb in a terrorist attack in New York and attempted to attack members of law enforcement who were conducting surveillance of him,” said Acting Assistant Attorney General O’Callaghan. “Today’s sentence is but one example of our resolve to bring to justice homegrown violent extremists who plot and attempt attacks on innocent people, including law enforcement agents, in the U.S. in the name of foreign terrorist organizations.”
“Munther Omar Saleh and his coconspirators conducted attacks on members of law enforcement who worked tirelessly to keep our city safe,” stated U.S. Attorney Donoghue. “Saleh’s sentence will not only incapacitate the defendant for a significant period of time, but should also serve as a deterrent to those who contemplate waging violent jihad in New York City at the direction of a foreign terrorist organization. This Office, and our partners on the Joint Terrorism Task Force, will never relent in our efforts to hold terrorists accountable for their cowardly acts, including attacks on those who protect us.”
“Saleh attempted to turn our city into a staging ground for violent attacks, including those aimed at both local and federal law enforcement officials. Directed by a known terrorist organization responsible for civilian massacres and other heinous crimes worldwide, he supported and attempted to facilitate the martyrdom of those with similar views,” said Assistant Director in Charge Sweeney. “Today’s sentencing promises he’ll remain behind bars for a significant period of time, upholding our faith in a justice system that has little compassion for those who wish to harm our way of life.”
As alleged in the indictment and in other court filings, Saleh and codefendant Fareed Mumuni conspired to support ISIS by helping their coconspirators attempt to travel to ISIS-controlled territory in order to join ISIS, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIS.
On June 13, 2015, Saleh and another coconspirator were arrested in Queens after they attempted to attack members of law enforcement by charging at a federal officer who was performing physical surveillance of Saleh. Saleh and the coconspirator were armed with knives. Following his arrest, Saleh admitted to agents that he had discussed with Mumuni physically attacking the law-enforcement officers who were surveilling Mumuni. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. The knife did not penetrate the agent’s protective body armor, and he sustained minor injuries.
Mr. O’Callaghan and Mr. Donoghue praised the agents, analysts and prosecutors for their dedication and commitment to this investigation and prosecution.
The government’s case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson, with assistance provided by Trial Attorneys Justin Sher and Bob Sander of the National Security Division’s Counterterrorism Section.
New York Man Sentenced to More Than Seven Years for Multi-State Biodiesel Fraud SchemeRead the Press Release
Fort Myers, FL – U.S. District Judge Sherri Polster Chappell today sentenced Andre Bernard (65, Mount Kisco, NY) to seven years and three months in federal prison for his role in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits. As part of his sentence, the Court also entered a money judgment in the amount of $10,500,497.92, the proceeds Bernard personally received as a result of the charged criminal conduct. Two accounts previously seized accounts worth more than $1.5 million will be credited against the money judgment.
Bernard pleaded guilty on August 2, 2017.
According to court documents, Bernard and his co-conspirators engaged in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
“The successful prosecution of these fraudsters is a testament to our commitment to combat crime at every level,” said U.S. Attorney Chapa Lopez. “We will continue to support our investigative partners in dismantling such criminal schemes.”
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who defraud the federal government and the American taxpayer through unlawful schemes,” said Acting Assistant Attorney General Wood. “We applaud the work of DOJ and EPA’s law enforcement teams that sought and obtained justice in this case.”
“Fraud against the United States and its citizens will continued to be targeted by the Secret Service,” said Resident Agent in Charge Jeff Kelly with the U.S. Secret Service. “These complex investigations are only successfully accomplished with the dedication and partnership of our partner agencies and the U.S. Attorney Office in bringing accountability.”
“We will not tolerate environmental fraud in the Renewable Fuels Program, or anywhere else.” said EPA Administrator Scott Pruitt. “This case highlights EPA's resolve in working with partners, nationally, to hold bad actors accountable."
Six of Bernard’s co-conspirators were previously sentenced for their roles in this biodiesel fraud scheme. Thomas Davanzo and Robert Fedyna were prosecuted in the Middle District of Florida and were sentenced to 10 years and 1 month imprisonment and 11 years and 3 months’ imprisonment, respectively. In the Eastern District of Washington, Scott Johnson was sentenced to 8 years and 1 month in federal prison; Donald Holmes was sentenced to 6 years and 6 months’ imprisonment; Nancy Bush-Estes received a sentence of 6 years and 1 month; and Richard Estes was sentenced to 8 years and 9 months in federal prison.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency – Criminal Investigation Division, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Megan Kistler and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
Navajo Man from Arizona Sentenced for Assaulting Federally Commissioned Tribal Officer in New MexicoRead the Press Release
ALBUQUERQUE – Michael Nakai, 33, an enrolled member of the Navajo Nation who resides in Red Valley, Ariz., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 12 months in prison for assaulting a federal officer. Nakai will be on supervised release for three years after completing his prison sentence.
Nakai was charged by criminal complaint in Oct. 2016, with assaulting a tribal police officer of the Navajo Nation Division of Public Safety who was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Nakai assaulted the officer by kicking the officer in the face during a traffic stop. Nakai subsequently was indicted on Nov. 15, 2016, and was charged with assaulting a federal officer on Oct. 9, 2016, in San Juan County, N.M.
On Nov. 8, 2017, Nakai pled guilty to the indictment. In entering the guilty plea, Nakai admitted that on Oct. 9, 2016, he assaulted a federal officer by kicking and striking the officer in the head while the officer was arresting him for driving under the influence of alcohol.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
Nashua Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
Concord, N.H. - Acting United States Attorney John J. Farley announced that Thomas William Hickey, 34, of Nashua pled guilty today to failing to register as a sex offender.
According to statements made in court, Hickey was convicted in Florida in 2003 of lewd or lascivious molestation, of a 12 year old girl. As a result of that conviction, he was required by law to register as a sex offender. After his release from prison, Hickey later registered as a sex offender in Florida and Massachusetts.
In July of 2017, the Nashua Police Department reported to the United States Marshals Service (USMS) that it has received a tip that Hickey was a sex offender who had been living in Nashua for a period of months without registering. The USMS confirmed with Massachusetts authorities that Hickey was in fact a sex offender who had been living in Massachusetts, but that they were unaware Hickey had moved to New Hampshire.
Hickey later was interviewed by a Deputy U.S. Marshal and a Nashua Police Detective and admitted that he had moved to New Hampshire in 2017 because he did not want people to know he was a sex offender.
Hickey is scheduled to be sentenced on May 30, 2018.
“When those who are required to register as sex offenders fail to comply with their obligation to do so, they will be prosecuted,” said Acting U.S. Attorney Farley. “I commend the work of the United States Marshals Service and the Nashua Police Department for their efforts to protect the community.”
“This investigation was a combined effort between the New Hampshire Joint Fugitive Task Force and the Nashua NH Police Department. Since the inception of the New Hampshire Joint Fugitive Task Force in 2002, these partnerships have resulted in over 7,029 arrests,” said Senior Inspector, Mark Lewis, USMS. “These arrests have ranged in seriousness from murder, assault, unregistered sex offenders, probation and parole violations and numerous other serious offenses. Nationally the USMS fugitive programs are carried out with local law enforcement in 94 district offices, 85 local fugitive task forces, 8 regional task forces, as well as a growing network of offices in foreign countries.”
This case was investigated by the USMS and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Arnold Huftalen.
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Monmouth County, New Jersey, Man Admits Illegally Possessing Firearm During Drive-By ShootingRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted being a felon in possession of a firearm while serving as the driver in a drive-by shooting in Asbury Park, New Jersey, U.S. Attorney Craig Carpenito announced.
Roosevelt Dante Harris, 39, of Asbury Park, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
Harris admitted that despite having one or more prior felony convictions in Monmouth County, he knowingly possessed a Taurus, model PT709 Slim, 9 mm pistol on Nov. 24, 2016, in Asbury Park. Harris admitted that three days earlier he accompanied another individual to a firearms dealer in South Carolina, where the other individual purchased three firearms—including the Taurus pistol that Harris possessed – on Harris’ behalf. Harris transported the three firearms from South Carolina to New Jersey.
Harris admitted that on Nov. 24, 2016, while he was driving a black minivan in Asbury Park, he possessed the Taurus pistol, which was located behind the glove compartment of the black minivan. Harris admitted that another individual shot a firearm out of the black minivan while Harris was driving.
The count of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for May 14, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito in Newark, New Jersey; officers of the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; and officers of the Asbury Park Police Department, under the direction of Deputy Chief David Kelso, with the investigation leading to today’s guilty plea. U.S. Attorney Carpenito also thanked officers of the Lakewood Police Department, under the direction of Chief Gregory Meyer, for their assistance in the case.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
18-051Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
Mexico citizen pleads guilty to reentering the United States illegally for a sixth timeRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that a citizen of Mexico pleaded guilty last week to reentering the country illegally after having previously been removed from the United States on five separate occasions.
Hector Gerardo Luna-Deleon, 28, of Nuevo Leon, Mexico, pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay to one count of reentry of a removed alien. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Lake Charles police encountered Luna-Deleon on November 10, 2017 following a traffic stop. Officers transported Luna-Deleon to the local U.S. Border Patrol station in Lake Charles, where it was discovered that Luna-Deleon had previously been removed from the United States on five separate occasions. Officers also discovered that Luna-Deleon had previously been arrested and found guilty in Texas in 2014 for driving while intoxicated. Luna-Deleon's previous removals occurred on January 12, 2015; April 28, 2016; May 17, 2016; June 23, 2016; and July 18, 2016. The court set sentencing for April 17, 2018.
Customs and Border Protection and Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Metairie Man Charged with Selling Explosive Devices, Manufacturing Anabolic Steroids in Federal CaseRead the Press Release
U.S. Attorney Duane A. Evans announced that BRAD MILLIGAN, age 39, of Metairie, has been charged with manufacturing and distributing explosive materials without a license and possessing anabolic steroids with the intent to distribute. MILLIGAN did not possess a license to distribute either the explosives or anabolic steroids.
According to the bill of information, the Bureau of Alcohol, Tobacco, Firearms and Explosives began investigating the shipment of explosive precursor chemicals which are used to manufacture explosive devices, such as M-type explosive devices. ATF agents learned that MILLIGAN was purchasing large quantities of the precursor materials, all of which were ordered over the internet and delivered to his Metairie residence. A Crimestoppers tipster anonymously provided information to the Jefferson Parish Sheriff’s Office which stated that MILLIGAN was selling explosive devices and anabolic steroids from his residence. Members of the JPSO and the ATF began a joint investigation into the information provided.
If convicted, MILLIGAN faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Duane A. Evans praised the work of Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Memphis Man with Multiple Prior Felonies has been Sentenced to 180 Months in Federal Prison for Possession with Intent to Manufacture and Distribute NarcoticsRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 180 months in federal prison for trafficking narcotics, possession with intent to distribute and manufacture controlled substances and being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, in March 2015, Duane Anthony Rouch, 53, purchased narcotics from underground websites designed to enable users across the world to buy and sell illegal drugs and other illicit goods and services anonymously outside the reach of law enforcement. To purchase narcotics on the "Dark Web" Rouch used "cryptocurrency," a form of payment used to conceal the identity of the buyer and seller using third-party vendors.
In March 2015, Rouch received a package from China containing a pill mold. From 2015 until December 2016, he received packages containing microcrystalline cellulose, a binding agent used to manufacture pharmaceutical pills. The defendant ordered online from China and Canada and had the packages shipped on ten occasions to a warehouse address in Memphis, Tennessee.
U.S. Attorney D. Michael Dunavant said: "In order to stem the rising tide of violence, addiction, and overdoses that are tearing our communities apart, we must focus on the dangerous supply of illegal narcotics flowing into West Tennessee by individuals and organizations who manufacture and distribute illegal drugs in order to unlawfully enrich themselves. This case demonstrates our resolve to hold drug traffickers responsible by the use of mandatory minimum sentencing under federal law, and sends a strong message: If you sow misery, addiction, and violence into our communities by distributing poison to our citizens, you will reap the certain consequences of a long federal prison sentence."
On September 16, 2016, Memphis Homeland Security ("ICE") Agents received information from U.S. Customs and Border Protection ("CBP") about a Canadian company shipping contraband to Memphis, Tennessee. This company transships contraband from China to the United States and supplies pill presses and chemicals for producing counterfeit pills or tablets. Furthermore, CBP Officers provided that at least ten shipments had been forwarded to the warehouse in Memphis, Tennessee.
In December 2016, Officers with the Shelby County Sheriff’s Office obtained a state search warrant for the warehouse to search for illicit narcotics. Law enforcement found an unloaded Lorcin 9 millimeter pistol, iPhone 6, pill press covered in residue, several mixing containers and utensils coated with white powder, drug paraphernalia – methamphetamine pipes, scales, presses, Xanax pills, lab mixing utensils, and materials used to manufacture methamphetamine – and more than 5 grams of methamphetamine in a mail parcel. The search of Rouch’s iPhone 6 revealed multiple photos/videos consistent with drug trafficking. At the time of the search, Rouch was on parole for multiple felony offenses.
On Tuesday, September 5, 2017, a federal jury convicted Rouch of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute alprazolam, one count of conspiracy to commit the trafficking of narcotics and one count of felon in possession of a firearm. He was subject to a mandatory minimum sentence of 10 years on the methamphetamine related offenses.
On Monday, February 5, 2018, U.S. District Court Judge John T. Fowlkes Jr., sentenced Rouch to 15 years imprisonment.
This case was investigated by the Border Enforcement Security Team, which consists of federal agents from the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service and local law enforcement offices. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation.
Special Assistant U.S. Attorney Bryce Phillips prosecuted this case on the government’s behalf.
Memphis Man Indicted for Possession of a Firearm that Resulted in Injuries to a Three-Year-OldRead the Press Release
Memphis, TN – A federal grand jury has indicted a Memphis man with possession of a firearm after being convicted of a misdemeanor crime of domestic violence. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
On Thursday, January 25, 2018, a federal grand jury returned an indictment against Jeremy Shields, 25, for possession of a firearm after being convicted of a misdemeanor crime of domestic violence. This charge is based on the possession of a firearm that resulted in injuries to Shields’ three-year-old son.
On May 7, 2017, officers of the Memphis Police Department responded to Methodist South Hospital, where a three-year-old victim was being treated for a single gunshot wound and in critical condition. The child was later stabilized and sent to LeBonheur Children’s Hospital, where he underwent additional surgeries to save his life.
Investigators discovered that the shooting occurred in Shields’ apartment in the Presidential West Apartments, located on the 5400 block of Hudgins Road. Shields told investigators that he kept a Smith & Wesson .45 caliber pistol in the apartment. The serial number of the pistol was obliterated.
U.S. Attorney D. Michael Dunavant said: "Based upon Attorney General Sessions’ announced priority for violent crime reduction, this office has resolved to be more aggressive and creative in using all of the applicable federal statutes to charge firearms offenses by prohibited persons and this case is a prime example of that commitment. I want to commend our law enforcement partners as we continue to work together to bring to justice those causing havoc throughout the Western District of Tennessee by the illegal use and possession of firearms. As this indictment demonstrates, if you are intent on committing crimes with a firearm in this district, rest assured you will be brought to justice. Gun Crime is Max Time."
If convicted, Shields faces a maximum of 10 years imprisonment; $250,000 fine and a maximum of 3 years supervised release to begin after incarceration.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case on the government’s behalf.
Man Indicted for Obstructing Terrorism InvestigationRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Sterling man with obstructing a terrorism investigation.
According to allegations in the indictment, Sean Andrew Duncan, 21, altered, destroyed, mutilated, concealed, and covered up a thumb drive and memory chip with the intent to impede and obstruct an FBI investigation.
According to the complaint, in February 2016, the FBI received information from one of Duncan’s relatives that Duncan had converted to Islam, may have been radicalized, and voiced his approval of westerners being beheaded in the Middle East. Later in February 2016, Duncan was denied entry into Turkey and returned to the United States. Upon his return, Duncan deleted his Facebook account and changed his phone number.
In June 2017, the FBI learned that Duncan had been in contact with an individual who had been detained in a foreign country for actively planning to travel to join ISIS. In or around February 2015, Duncan told the individual that he wanted to make “hijrah” to Syria and that he wanted her to go with him. Around this same time, the individual told Duncan she was upset at work due to non-Muslim women wearing shorts that exposed their bodies. Duncan replied with a link to a website, and a message saying she could “try this.” The link contained pictures and instructions on how to make weapons and bombs. The link was to an article titled, “How to build a bomb in the kitchen of your Mom” from Inspire magazine. In December 2016, Duncan contacted the individual and told her that he had come back from Turkey, where he and his wife were deported back to the United States. Duncan said he thought the FBI was monitoring him.
In or around October 2017, law enforcement authorities of a foreign government arrested one of their citizens (Recruiter 1) for inciting rebellion. Recruiter 1 is an ISIS recruiter who is suspected of drawing foreign fighters from around the world to Recruiter 1’s home country using social media. Recruiter 1 kept names and telephone numbers of individuals who had requested to join her Telegram, Facebook, or other social media and/or communication application groups. Recruiter 1’s notes included a handwritten name appearing to be “Sean Ibn Gary Duncan,” with Duncan’s known previous phone number and known previous mobile messaging account.
On or about Oct. 6, 2017, the Allegheny County Police Department (ACPD) provided a copy of Duncan’s phone to the FBI. ACPD had obtained this copy during an investigation surrounding the recent death of Duncan’s infant child (the cause of death in the autopsy was inconclusive). The FBI’s review of Duncan’s imaged phone revealed numerous internet searches for ISIS-related material, ISIS attacks, weapons, body armor, surveillance and defense tactics, and paintball venues in the Pennsylvania area from in or around March 2017 to June 2017.
On December 29, 2017, FBI agents executed the search warrant at Duncan’s residence. Upon execution of the warrant, the agents knocked on the door, identified themselves as FBI, and announced that they were there to execute a search warrant. Receiving no response, the agents knocked and announced their presence again, but received no response again. The agents then forcibly opened the door, again identified themselves as FBI, and stated that they were there to execute a search warrant.
Moments before the FBI agents entered the residence through the front door, Duncan ran out the back door, barefoot, and with something clenched in his fist. FBI agents guarding the back door yelled at Duncan to stop. Before stopping, Duncan threw a plastic baggie over the heads of the agents. FBI agents recovered the baggie thrown by Duncan. The baggie was a clear plastic Ziploc bag, containing a memory chip from a thumb drive that had been snapped into pieces, and placed in a liquid substance that produced frothy white bubbles. Upon searching Duncan, agents recovered a broken casing for a thumb drive from Duncan’s pants pocket.
Duncan has been charged with obstruction of justice, and faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting 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 the indictment was returned. Assistant U.S. Attorneys Gordon D. Kromberg and Colleen E. Garcia are prosecuting 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. 1:18-cr-19.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Madison Man Convicted of Social Security FraudRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Anastacio Cruz-Santiago, 37, formerly of Madison, Nebraska, was sentenced today in Lincoln, Nebraska, to 8 months in prison by United States Senior District Judge Richard G. Kopf, for social security fraud. After serving his prison sentence, Cruz-Santiago will then be removed from the United States.
Cruz-Santiago is a citizen of the Mexico and does not have proper permission or authority to reside in or be employed in the United States. On July 28, 2016, Cruz-Santiago fraudulently used the social security number of another person, identified with the initials C.B., to obtain employment at Packer’s Sanitation in Madison, Nebraska. Cruz-Santiago also falsely provided the social security number of C.B. on the I-9 and W-4 forms when he applied for the job. A social security number is required for employment purpose on the respective forms as a means and proof of identification. In addition, Cruz-Santiago falsely represented that he was a United States citizen on the application for employment.
This case was investigated by the Department of Homeland Security.
Louisville Couple Sentenced for Wire FraudRead the Press Release
Embezzled over $550,000.00 from Iceland Sports Complex
LOUISVILLE, Ky. - A Jefferson County, Kentucky, couple was sentenced this week in United States District Court yesterday, by Chief Judge Joseph H. McKinley, Jr. for their individual roles in a scheme to divert over $550,000.00 from the Iceland Sports Complex announced United States Russell M. Coleman.
Glenn Christopher “Chris” Richardson, 56, was sentenced to 24 months in prison, followed by a three year period of supervised release and Karen M. Richardson, 56, was sentenced to eight months of home confinement, and a three year period of supervised release. There is no parole in the federal system.
The couple admitted that beginning no later than January of 2005, and continuing to about September of 2011, while employed at the Iceland Sports Complex, LLC, an ice skating rink located in Eastern Jefferson County, they used a bank account in the name of Karen Richardson, d/b/a Louisville Storm, for the purpose of diverting and concealing daily revenue from Iceland Sports Complex.
According to the plea agreement, the couple would deposit checks made out to Iceland into the Louisville Storm account. The couple concealed the use of these funds by creating and sending revenue statements to Iceland’s owners located in Michigan, which underreported the amount of Iceland Sports Complex’s daily revenue. The couple admitted using the diverted funds for their personal use and for use by their family.
This case was prosecuted by Assistant United States Attorney Marisa J. Ford and was investigated by the United States Secret Service.
Louisiana Man Sentenced to 3 Years in Prison for Fraud Scheme Targeting RealtorsRead the Press Release
PITTSBURGH - A resident of the state of Louisiana has been sentenced in federal court to 38 months imprisonment followed by three years supervised release, and restitution in the amount of $1,628,319.04, on his conviction of mail fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Rex Alan Harris, 41 of Covington, Louisiana.
According to the information presented to the court, since 2008, Harris and his company “Agents by City” defrauded hundreds of realtors nationwide who were promised television advertising to generate home sales leads and referrals for real estate agents. Realtors were induced into contracts for television advertising on major television networks based upon the realtors’ zip codes. Real estate agents in the Pittsburgh area were defrauded as well, and promised television advertising that neither occurred nor produced referrals. Harris and others spent the money on personal items.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the U.S. Postal Inspection Service and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Rex Alan Harris.
Local Man Convicted in Two ConspiraciesRead the Press Release
HOUSTON – A 46 year-old Houston resident has entered a guilty plea to conspiring to steal money from victim bank accounts and conspiring to steal taxpayer money by obtaining fraudulent income tax refunds, announced U.S. Attorney Ryan K. Patrick.
In the first scheme, Joseph Johnson and others would impersonate victims and call their banks during which time they would deceive them into providing selected information. Over time, they would receive enough information to be able to pass the bank’s challenge questions, thereby allowing them to access victim accounts. The conspirators then changed the login credentials, ordered checks, transferred money to fraudulent accounts and withdrew the funds before the fraud could be uncovered. From this scheme, Johnson and others caused an intended loss of at least $447,102.82.
Johnson also pleaded guilty to conspiring to commit tax refund fraud. Johnson and his co-conspirators would file fraudulent tax returns with the IRS that listed false employment, income, tax deductions and tax credits. Often, Johnson and his co-conspirators filed these fraudulent tax returns under the names of victims whose identities they stole. Shortly after the money was deposited, the conspirators withdrew the money and divided it among themselves the funds could be frozen.
U.S. District Judge Lynn Hughes accepted the pleas today and has set sentencing for June 4, 2018. At that time, Johnson faces up to 20 years in prison for the tax fraud conspiracy as well as another five years for the impersonation scam. Both convictions also carry a possible fine of $250,000.
He was permitted to remain on bond pending that hearing.
The FBI and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Liberty, Excelsior Springs Men Sentenced for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that two more defendants were sentenced today for their roles in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Jason Daniel Davis, 44, of Liberty, Mo., and Jackie R. Love, 60, of Excelsior Springs, Mo., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Davis was sentenced to 15 years and eight months in federal prison without parole. Love was sentenced to six years and three months in federal prison without parole.
Both Davis and Love pleaded guilty to participating in a conspiracy to distribute methamphetamine. Davis and Love each admitted that he was responsible for the distribution of more than 500 grams of methamphetamine.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Jose Luis Ruiz-Salazar, 39, his brother, Gabriel Ruiz-Salazar, 35, and Gregory Bullock, 48, all of Kansas City, Mo., have pleaded guilty to being the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Co-conspirators then distributed the methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
Gabriel Ruiz-Salazar was sentenced to 15 years and eight months in federal prison without parole. Jose Ruiz-Salazar and Bullock await sentencing.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Davis and Love are among 16 co-defendants who have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine.
Anthony Ray Stevenson, 46, of Excelsior Springs, was sentenced to 22 years and six months in federal prison without parole. Taylor Lee Syas, 25, of Polo, Mo., was sentenced to eight years and four months in federal prison without parole. Paula Rae Scott, 48, of Excelsior Springs, four years and 11 months in federal prison without parole. Bryan D. Carroll, 29, of Kansas City, Mo., was sentenced to six years and six months in federal prison without parole. Ryan A. Battagler, 39, of Kearney, Mo., was sentenced to 12 years in federal prison without parole. Franklin Charles Carter, also known as “Frankie,” 28, of Grandview, Mo., was sentenced to eight years in federal prison without parole. Marion Eugene Brammer, 53, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole.
Brian Michael Bowers, 35, of Richmond, Mo., was sentenced to 12 years and six months in federal prison without parole. Gary Dewayne Brown, 37, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Ronald Louis Roberts, 54, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole. Brittney James Brehm, 39, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole. Rodney Earl King, 52, of Excelsior Springs, was sentenced to five years and two months in federal prison without parole. Darin Gene Berry, 52, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Ten co-defendants have pleaded guilty and await sentencing. In addition to Jose Ruiz-Salazar and Bullock, co-defendants Steven Lee Schreier, Jr., 33, Jason Lee Kirtley, 45, and William Dean Campbell, 37, all of Excelsior Springs; Joshua Keith Bowers, 34, of Polo; Sabrena Lynn Morgan, 40, and Elgin Eugene Dothage, also known as “Butch,” 41, both of Kearney; and Caleb Dean Hayes, 36, of Kansas City, Mo., are among 26 defendants indicted in this case who have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Lawrenceville, Illinois Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Robert T. Turner, 47, of Lawrenceville, IL, was recently sentenced to federal prison on methamphetamine related charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On February 6, 2018, Turner was sentenced to 264 months of imprisonment and ten years of supervised release following his imprisonment. Turner had previously pleaded guilty to three counts in a federal indictment. Count 1 charged that on March 17, 2017, in Lawrence County, Turner knowingly and intentionally distributed methamphetamine. Count 2 charged that on April 5, 2017, in Lawrence County, Turner knowingly and intentionally distributed methamphetamine. Count 3 charged that on April 6, 2017, in Lawrence County, Turner knowingly and intentionally possessed with the intent to distribute methamphetamine. The total amount of mixture and substance containing methamphetamine involved was 50 grams or more of methamphetamine (Ice), or five hundred 500 grams or more of a mixture and substance containing methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, the Illinois State Police Southeastern Illinois Drug Task Force, the Lawrence County Sheriff’s Office, and the Lawrenceville Police Department.
Latvian National Pleads Guilty to “Scareware” Hacking Scheme That Targeted Minneapolis Star Tribune WebsiteRead the Press Release
A Latvian man pleaded guilty today in Minneapolis for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
Peteris Sahurovs aka Piotrek and Sagade, 28, pleaded guilty to one count of conspiracy to commit wire fraud before District Judge Ann D. Montgomery of the District of Minnesota. Sahurovs was arrested on a District of Minnesota indictment in Latvia in June of 2011, but was released by a Latvian court and later fled. In November of 2016, Sahurovs was located in Poland and apprehended by Polish law enforcement and extradited to the United States in June 2017. Sahurovs was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He will be sentenced on June 6.
According to admissions made in connection with his plea, from at least May 2009 to June 2011, Sahurovs operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant admitted that he knew his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from Internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, Sahurovs admitted he took steps to protect the criminal schemes from being discovered or disrupted, and hosted them on his servers for financial gain.
Sahurovs admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On Feb. 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.
Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” would receive a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product and did not perform legitimate computer security functions, and merely caused malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between $150,000 and $250,000 U.S. dollars.
This case was investigated by the FBI’s Minneapolis Field Office. The Criminal Division’s Office of International Affairs, as well as the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Department’s Office of International Affairs also provided substantial assistance in this matter.
Lake County man indicted for importing fentanyl analogues from ChinaRead the Press Release
A Lake County man was indicted for importing 35 grams of a fentanyl analogue from China, said U.S. Attorney Justin E. Herdman.
Karl F. Brewster, 58, of Perry Township, imported approximately 35 grams of methoxyacetyl fentanyl from the People’s Republic of China between March 10 and April 25, 2017, according to the indictment.
"This defendant illegally imported drugs that are killing thousands of our neighbors and relatives," Herdman said. "We will continue to work to reduce the supply of these deadly drugs while partnering with others focused on reducing the demand."
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould following an investigation by U.S. Department of Homeland Security.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kyle Man Sentenced for Assaulting a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Kyle man convicted of Felony Child Abuse and Neglect was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Matthew Harold Iron Sr., age 33, was sentenced on February 5, 2018, to 13 months of imprisonment and 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Iron was charged on December 20, 2016. The charge relates to Iron holding a large knife to the neck and stomach area of an infant while threatening to kill him at Kyle in November 2016.
This case was investigated by Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Kentucky Otolaryngologist Pays $2.79 Million to Resolve False Claims AllegationsRead the Press Release
Allegedly submitted fraudulent medical claims for reimbursement
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman and the United States Department of Labor announced a $2,791,758 settlement with ear, nose and throat doctor Phillip B. Klapper, M.D., Patricia Klapper, and Phillip B. Klapper, P.S.C. (collectively, “Klapper”) to resolve claims that Klapper, who practiced in Murray, Kentucky, improperly billed a federal healthcare program for audiological services and hearing aids.
“Pursuing healthcare fraud is a priority of this Office and of the Department of Justice. We will continue to work with the Department of Labor and with other governmental agencies to ensure that fraudulent claims are investigated and those responsible are required to pay,” stated United States Attorney Russell M. Coleman. “Medical providers who overbill federal healthcare programs defraud the taxpayers and drive up the cost of healthcare for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public healthcare programs so many people depend on,” said Coleman.
Specifically, the United States contended that Klapper knowingly submitted false or fraudulent claims seeking reimbursement under the Federal Employees’ Compensation Act when the reimbursement claims falsely indicated that audiological tests were performed by licensed and certified personnel although, in fact, the tests were performed by personnel lacking such credentials, and/or the testing results were altered to enable some claimants to appear to have hearing losses. The Federal Employees’ Compensation Act is the workers’ compensation program for federal employees and is administered by the Department of Labor’s Office of Workers’ Compensation Programs.
According to the settlement agreement between Klapper and the United States, Klapper paid $2.79 million to settle the claims arising from the alleged misconduct. In addition, Klapper agreed to be permanently excluded from future participation in the Federal Employees’ Compensation Act program. In agreeing to the settlement, Klapper made no admission of liability.
This matter arose as a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. The relator, Kimberly Cummings, a former employee of Klapper’s, filed a qui tam action on December 8, 2013, in the United States District Court for the Western District of Kentucky (United States, ex rel. Kimberly Cummings v. Phillip B. Klapper, P.S.C., Phillip B. Klapper, M.D., and Patricia Klapper, Civil Action No. 5:13CV-216-TBR). Cummings received $474,598.86 as part of this settlement.
The matter was handled by Assistant United States Attorney L. Jay Gilbert, of the U.S. Attorney’s Office for the Western District of Kentucky, and the U.S. Department of Labor. The investigation was conducted by the U.S. Attorney’s Office and the Offices of the Inspectors General of the U.S. Department of Labor, the U.S. Department of Justice, and the Tennessee Valley Authority.
settlement_agreement_final_signed_1.pdfKansas Man Charged with Sex TraffickingRead the Press Release
WICHITA, KAN. – A Morton County man is facing federal sex trafficking charges, U.S. Attorney Stephen McAllister said today.
Timothy Joe Rogers, 31, Elkhart, Kan., is charged with two counts of the sex trafficking of a minor. The indictment alleges he solicited a victim under 18 years old to engage in commercial sex acts.
If convicted he faces a penalty of not less than 10 years and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.