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2 February 2018
Lake Wales Man Pleads Guilty to Tax Fraud ChargesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Tedderick Fields (40, Lake Wales) has pleaded guilty to two counts of filing false claims with the Internal Revenue Service. He faces up to five years in federal prison on each count.
Fields was indicted on January 18, 2017, and arrested in the Southern District of Florida on June 13, 2017.
According to court documents, Fields filed false tax returns in his name from 2011 through 2013. In 2012, his false tax return resulted in the issuance of a fraudulent tax refund check in the amount of $400,000.
This case was investigated by Internal Revenue Service – Criminal Investigation, with assistance from the St. Lucie County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Jersey City Police Officer Admits Conspiracy to Commit Fraud and Accept Corrupt PaymentsRead the Press Release
NEWARK, N.J. – A Jersey City police officer today admitted accepting corrupt payments in exchange for helping employers operate at worksites without the required presence of an off-duty police officer, U.S. Attorney Craig Carpenito announced.
Juan Berrios, 41, of Rahway, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments.According to documents filed in this case and statements made in court:
Berrios was a police officer with the Jersey City Police Department from 2004 to 2017. Under Jersey City’s municipal code, police officers performing off-duty work were not permitted to receive cash payments directly from other employers. Rather, the employers were supposed to pay Jersey City, which would then pay the off-duty police officers, minus certain fees, taxes and deductions.
Berrios agreed with numerous off-duty employers to accept payments directly from them and cut Jersey City out of the process. In exchange for the payments, Berrios permitted off-duty employers to operate at worksites without the presence of a police officer when such a presence was required.
On several occasions, Berrios submitted off-duty vouchers seeking and obtaining compensation for working as a traffic director or security guard. Berrios also sought and received overtime compensation for appearing in court at the same time he was purportedly performing off-duty work. As a result, Berrios fraudulently obtained compensation from Jersey City for separate assignments that occurred at the same time.
Berrios faces a maximum statutory penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Berrios will forfeit $50,000. His sentencing is scheduled for April 16, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Danny J. Welsh Esq. Jersey City, New Jersey
Jefferson County man admits to firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Mark Hanshaw, of Jefferson Village, West Virginia has admitted to a firearm charge, United States Attorney Bill Powell announced.
Hanshaw, age 28, pled guilty to one count of “Drug User in Possession of a Firearm – Aiding and Abetting.” Hanshaw admitted to illegally possessing a Taurus 38 Special handgun. The crime occurred in September 2015 in Jefferson County.
Hanshaw faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Israeli National Pleads Guilty to Cocaine Conspiracy and International Money Laundering ChargesRead the Press Release
BOSTON – An Israeli national pleaded guilty today in federal court in Boston to conspiring to transfer $2.5 million worth of cocaine from Colombia to Israel via Boston and to money laundering charges.
Jalal Altarabeen, a/k/a Glal El Tarbin, a/k/a Jalal Salamah, a/k/a Abu Rasheed, 34, pleaded guilty to one count of conspiring to possess with intent to distribute and to distribute more than five kilograms of cocaine and six counts of international money laundering. U.S. District Court Judge Indira Talwani deferred acceptance of the plea until sentencing, which she scheduled for April 13, 2018. In February 2017, Altarabeen was extradited from Poland after being indicted with a co-conspirator. Altarabeen and the co-conspirator were previously charged in a federal criminal complaint in March 2016.
From October 2015 to April 20, 2016, Altarabeen and his co-conspirator conspired in Boston, Colombia, Poland, and elsewhere to distribute 50 kilograms of cocaine and to launder money internationally. They also negotiated to buy 50 kilograms of cocaine from an undercover officer posing as a drug trafficker. The undercover officer’s relationship with the co-conspirator began in 2008 and included a meeting in Nicosia, Cyprus.
Altarabeen and the co-conspirator agreed to pay the undercover officer $50,000 per kilogram to have the cocaine delivered in Israel. The undercover officer told the conspirators that the cocaine would be transported from Colombia to Boston and from Boston to Beersheba, Israel. Altarabeen agreed to make an advance payment of nearly $1 million to cover transportation costs, and he sent six wire transfers from Turkey totaling $999,972 to an undercover bank account in Boston. The undercover officer and Altarabeen agreed that Altarabeen would pay the $1.5 million balance after the receipt and sale of the 50 kilograms of cocaine.
Over several months, the undercover officer spoke with Altarabeen and the co-conspirator by telephone, WhatsApp, video Skype and in person. They contacted the undercover officer using telephone numbers from Cyprus, Jordan, Israel, Palestine and Colombia, and discussed the drug transaction while in Bogota, Colombia, on Oct. 14, 2015, and Feb. 9, 2016.
The drug trafficking statute provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The money laundering statute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $500,000 or twice the value of the property involved in the offense. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration; Joel Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Independence Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man was among four area residents sentenced in federal court for their roles in a conspiracy to distribute methamphetamine.
William D. Whitehurst, 54, of Independence, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, Feb. 1, 2018, to 15 years in federal prison without parole.
Co-defendants John D. Grandon, 47, of Independence, his sister, Regina R. Williamson, 54, of Kansas City, Mo., and James P. Earl, 48, of Blue Springs, Mo., were also sentenced yesterday. Grandon was sentenced to 10 years in federal prison without parole. Williamson was sentenced to two years and six months in federal prison without parole. Earl was sentenced to four years and six months in federal prison without parole.
Whitehurst, Grandon, Williamson and Earl each pleaded guilty to their roles in a drug-trafficking conspiracy that ran from Nov. 1, 2013, to Sept. 24, 2014. Grandon also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Whitehurst and Earl each admitted that he purchased methamphetamine from co-defendant Melanie C. Hamilton, 45, of Independence. They then redistributed that methamphetamine to Grandon, Williamson and others.
Grandon admitted that he is individually responsible for the purchase and redistribution of at least 1.5 kilograms of methamphetamine. A confidential informant told investigators that he had seen Grandon at his residence with half a pound of methamphetamine and a gun. Law enforcement officers executed a search warrant at Grandon’s residence on July 1, 2014, and found approximately 160 grams of methamphetamine, a Smith and Wesson .380-caliber revolver, $2,944 and numerous items of drug paraphernalia. Grandon told investigators that he had purchased approximately half a pound of methamphetamine each week from Whitehurst over the past three months (approximately 2.7 kilograms).
Williamson admitted to selling approximately three to four ounces of methamphetamine per week at $1,000 per ounce for approximately two months (approximately 792 grams of methamphetamine). Williamson sold methamphetamine to her brother Grandon’s customers while he was incarcerated.
Hamilton pleaded guilty to being the source of supply for the drug-trafficking conspiracy and is scheduled to be sentenced on April 12, 2018. Hamilton admitted that she obtained large quantities of methamphetamine, which she broke down into smaller quantities for redistribution. A confidential informant made three separate controlled purchases from Hamilton; on each occasion she weighed out approximately 8.3 grams of methamphetamine from a large zip-lock freezer bag that contained multiple pounds of methamphetamine.
Law enforcement officers executed a search warrant at Hamilton’s residence on Sept. 24, 2014, and seized more than a kilogram of methamphetamine, a DVR containing video surveillance of individuals coming and going from her residence, and drug paraphernalia. Hamilton told investigators that she had received one to two pounds of methamphetamine from her source every other week over the past three months (1.5 pounds per two weeks, or three pounds per month, totals nine pounds, or 4,086 grams). The totality of the investigation indicates that Hamilton was involved in the distribution of at least five kilograms of methamphetamine.
Five additional co-defendants have also pleaded guilty and been sentenced.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Jackson County Drug Task Force and the Independence, Mo., Police Department.
Illinois Man Charged with Operating Unemployment Benefits Fraud and Identity Theft SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging RICHARD M. LACH, 31, of Richton Park, Illinois, with six counts of wire fraud and one count of aggravated identity theft stemming from a scheme to defraud state unemployment insurance programs in Connecticut and several other states.
LACH was arrested this morning in Matteson, Illinois. He appeared today in U.S. District Court for the Northern District of Illinois, in Chicago, and was order detained pending his removal to the District of Connecticut.
According to the indictment, LACH fraudulently filed claims with the Connecticut Department of Labor for unemployment benefits in the names of identity theft victims, using their names, dates of birth and social security numbers. LACH directed that the unemployment benefits be directly deposited to Green Dot debit cards he was using. The Green Dot cards had been fraudulently opened in the names of other victims. In some cases, based on the fraudulent claims, unemployment benefits were deposited to the Green Dot cards. LACH then withdrew the funds or otherwise spent the funds for his own personal use and benefit.
The indictment further alleges that in addition to fraudulently obtaining unemployment benefits from the Connecticut Department of Labor, LACH also fraudulently obtained or attempted to obtain unemployment benefits from agencies in other states, including Idaho, Iowa, Maine, New Jersey, New York, Pennsylvania and Texas.
Each count of wire fraud carries a maximum term of imprisonment of 20 years and aggravated identity theft carries a mandatory consecutive two-year term of imprisonment
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor, New York State Department of Labor, and Matteson (Illinois) Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Husband and Wife Plead Guilty in Scheme to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bin “Ben” Wen, 46, and Peng “Jessica” Zhang, 45, both formerly of Horseheads, NY, pleaded guilty for their roles in a scheme to defraud the United States before U.S. District Judge Elizabeth A. Wolford. Wen pleaded guilty to conspiracy to commit wire fraud which is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. Zhang pleaded guilty to conspiracy to defraud the United States and faces a maximum sentence of five years in prison and a $250,000 fine. As part of the plea, the defendants agreed to forfeit nearly $5,000,000 in assets derived from their criminal activity.
Assistant U.S. Attorneys Tiffany H. Lee Grace M. Carducci, who are handling the case, stated that between June 2010, and December 2015, the defendants participated in a scheme to defraud departments and agencies of the United States of federal research funds that were awarded to companies controlled by the defendants. The government entities defrauded by the defendants included: the National Science Foundation (NSF); the United States Department of Energy (DOE); and the United States Department of Agriculture (USDA).
In December, 2003, Zhang incorporated United Environment & Energy, L.L.C. (UEE) in Horseheads, NY. Meanwhile, Wen incorporated Advanced Technologies and Materials, L.L.C. (ATM), in December, 2007, also in Horseheads. UEE submitted approximately 13 applications to NSF totaling over $2,600,000, 10 applications to the DOE totaling more than $5,000,000 and four applications to the USDA totaling approximately $650,000. The defendant received, through their companies, approximately $8,400,000 in awards from the NSF, the DOE, and the USDA.
Wen and Zhang submitted false and fraudulent information in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) applications by:• fabricating letters of support and investment; • providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.A substantial amount of the fraudulently obtained money went toward the personal use and benefit of the defendants.
“By diverting monies that were intended to promote innovation and technology in small businesses, the defendants, through their frauds, not only swindled taxpayers but stifled economic and scientific development,” stated U.S. Attorney Kennedy. “It is a core responsibility of this Office to ensure that those receiving federal funds are entitled to those funds and that they are spent in accordance with the purposes for which it was given. Wen and Zhang neither deserved nor appropriately dispersed the millions of dollars in grants that they received.”
Allison Lerner, NSF’s Inspector General said, “The defendants conspired to provide false information about their businesses in SBIR/STTR research proposals, correspondence, and reports submitted to the federal government, misrepresenting among other things, their key personnel and investments, and forming multiple sham companies to carry out their fraud schemes. Not only did they divert scarce taxpayer dollars intended for scientific research to personal use, they inflated their budgets with hours for individuals who were not actually employed by or doing research for their business, and doctored their biographies to strengthen their proposals, victimizing legitimate researchers and professionals in the community. I commend the U.S. Attorney’s Office and our investigative partners for their work on this case.”
“The SBIR Program is an essential Department of Energy program that supports scientific excellence and technological innovation,” stated Principal Deputy Inspector General April G. Stephenson. “We appreciate the efforts of our investigative partners and the U.S. Attorney’s Office in pursuing this matter. We will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
“In addition to enforcing the nation’s criminal tax laws, we are also an essential part of the larger law enforcement community,” said James D. Robnett, Special Agent-in- Charge, IRS-Criminal Investigation, New York Field Office. “Our specialized financial expertise is needed in these large and complex investigations, where in this case our Criminal Investigators followed the complex flow of money designed by the defendants to conceal fraudulent grant proceeds they obtained. In addition to today’s guilty plea, this led to the seizure of $5,000,000 in assets that will be forfeited.”“This investigation demonstrates that ensuring taxpayer dollars are protected from fraud and abuse is a top priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Douglas Shoemaker, DOT OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial partners, we will continue our efforts to promote the prevention, detection, and prosecution of contract and grant fraud schemes.”
Today’s plea is the result of a joint investigation by Special Agents with the National Science Foundation, Office of Inspector General, under the direction of Inspector General Allison Lerner; the Department of Energy, Office of Inspector General, under the direction of Principal Deputy Inspector General April G. Stephenson; the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office; and the Department of Transportation, Office of Inspector General, under the direction of Special Agent-in-Charge Douglas Shoemaker.
Heroin Traffickers Plead GuiltyRead the Press Release
Memphis, TN – Jacqueline DeAvila Montoya, 23 and Selene Yanira Castillo-Meraz, 19, pleaded guilty to federal charges of distribution of heroin and conspiracy to distribute heroin. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to the information presented, on October 4, 2017, Montoya and Castillo-Meraz were charged with conspiracy to distribute heroin and distribution of heroin in a 4-count indictment handed down by a federal grand jury in Memphis.
United States Attorney D. Michael Dunavant said: "Our nation and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. This office will use every available resource to prioritize cases involving the distribution of heroin, and to disrupt and dismantle drug trafficking organizations that deliver this deadly poison to citizens in the Western District of Tennessee".
On September 7, 2017, the two women were stopped for speeding on Interstate 40 in Memphis. A subsequent search of their vehicle revealed over 18 pounds of heroin and other illegal narcotics. The defendants were bringing the drugs from California through Tennessee on their way to a delivery in New York City. David Silva Garcia has been identified as another co-conspirator from California, and is currently under indictment in Memphis for his role in the drug trafficking organization.
At the plea hearing, the two women pleaded guilty to Counts 1 and 3 of the indictment for trafficking heroin. They each face a mandatory minimum of 10 years imprisonment.
This case was investigated by the West Tennessee Drug Task Force, an arm of the Shelby County District Attorney’s Office; and the Drug Enforcement Administration in Memphis along with their DEA partners in Riverside, California, New York City and Mexico City.
Assistant U.S. Attorney Joseph F. Griffith is prosecuting this case on the government’s behalf.
Hedge Fund Manager Charged in Manhattan Federal Court with Scheme to Defraud InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging NICHOLAS JOSEPH GENOVESE with securities and wire fraud in connection with a scheme to induce investments in a hedge fund by misrepresenting his qualifications and professional background. From 2015 through January 2018, GENOVESE fraudulently solicited investments in a hedge fund that he had founded, Willow Creek Investments LP (“Willow Creek”), by claiming that he had impressive credentials and a long history serving in significant roles at major Wall Street financial institutions. Victims invested at least $4 million with GENOVESE based on these representations. The claims that GENOVESE made to help secure these investments, however, were false. GENOVESE did not possess the credentials he claimed and had never worked at the financial institutions he referenced. In addition, GENOVESE failed to inform his investors that he had multiple felony convictions for grand larceny, forgery, and related offenses. GENOVESE was arrested today and will be presented in the Southern District of Florida.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against GENOVESE.
U.S. Attorney Berman said: “Nicholas Genovese allegedly touted fictitious credentials when luring victims to invest over $4 million into his hedge fund, Willow Creek, falsely claiming to have an Ivy League MBA and to have held senior roles at Wall Street firms. In reality, as alleged, Genovese had a criminal history and lost millions in stock trades. We thank our law enforcement and regulatory partners for their continued efforts to eliminate fraud from our equity markets.”
Assistant Director-in-Charge Sweeney said: “Through a series of gross misrepresentations, about himself and his supposed credentials, Genovese solicited millions of dollars from victims who invested in the hedge fund he founded. But he was no master of illusion, as proven by the nearly $8 million he lost throughout the course of this smoke-and-mirrors scheme. While this money may have seemingly vanished into thin air, his intentions have been clearly interpreted. Today we hold him accountable for his crime.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
In or about September 2015, GENOVESE began soliciting individuals to invest in the hedge fund that became Willow Creek. In multiple conversations and later in written offering materials, GENOVESE represented, among other things, that he had graduated from the University of Kentucky and Dartmouth College’s Tuck School of Business, and that he had extensive Wall Street experience. In particular, GENOVESE claimed that he had been a Goldman Sachs partner and a Bear Sterns portfolio manager before forming Willow Creek. Based in part on these claims, victims invested at least $4 million with GENOVESE.
These representations were false. Records indicate that GENOVESE did not attend the University of Kentucky or the Tuck School of Business and had never worked for Goldman Sachs or Bear Stearns. GENOVESE also did not tell his investors that he had multiple prior felony convictions.
When investors began to ask for their money back, GENOVESE put them off. He told one investor that he would only return that investor’s funds after “the stars have aligned,” or else there would be a risk that almost all the money would be lost as a result of the purported impracticalities of unwinding unspecified trading positions. Records indicate that GENOVESE lost approximately $8 million trading in TD Ameritrade accounts between January 2015 and December 2017.
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GENOVESE, 52, is a resident of New York, New York. GENOVESE is charged with one count of securities fraud and one count of wire fraud. Each charge carries a maximum term of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Samson Enzer is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Hazleton Man Sentenced to Two Years in Prison for Making Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amaury Guzman-Escobar, age 31, of Hazleton, Luzerne County, was sentenced today by United States District Court Judge Malachy E. Mannion, to serve two years in prison on the charge of conspiracy to make false statements to a federally licensed firearms dealer.
According to United States Attorney David J. Freed, Guzman-Escobar admitted that he and another individual, Crystal Muentes, age 34, of Scranton, provided false information regarding the purchase of two firearms from Dave’s Gun Shop, in Drums, Luzerne County, on June 1, 2016 and June 17, 2016, and the purchase of a firearm from Ed’s Sports Shop in Tamaqua, Schuylkill County, on June 17, 2016. Two of the firearms purchased by Guzman-Escobar and Muentes were later recovered in the mail by Postal Inspectors in Puerto Rico.
In addition to the sentence of imprisonment, Judge Mannion ordered that Guzman-Escobar be supervised by a probation officer for three years after his release from prison.
Crystal Muentes was previously sentenced by Judge Mannion to serve two years of probation.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service. Members of the Scranton Police Department also participated in the investigation. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Hazleton Man Charged with Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Portanova, age 27, of Hazleton, was indicted on January 23, 2018, by a federal grand jury for receiving child pornography. The case was unsealed following Portanova’s initial appearance before United States Magistrate Judge Karoline Mehalchick.
According to United States Attorney David J. Freed, the indictment alleges that Portanova committed the offense between August 2017 and October 30, 2017, in Luzerne County. The indictment also alleges that Portanova used a computer and cell phone to commit the crime.
The indictment further alleges that Portanova committed the offense after having been convicted of dissemination and possession of child pornography in Luzerne County in 2014.
The case was investigated by Homeland Security Investigations and the Luzerne County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Sentenced to 15 Years’ Imprisonment for Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saquan Parker, age 34, of Harrisburg, Pennsylvania, was sentenced on February 1, 2018, by United States District Court Judge Yvette Kane to 180 months’ imprisonment for firearm charges.
According to United States Attorney David J. Freed, on August 18, 2015, Parker and co-defendant Jordan Keys tried to sell four stolen firearms (CBC .22 caliber rifle, Remington 12 gauge shotgun, Winchester 30/30 rifle, and a Marlin .22 caliber rifle) to a pawn broker in Susquehanna Township, Dauphin County. Parker and Keys were arrested at that time by the Susquehanna Township Police Department. Parker was a convicted felon who illegally possessed the four stolen firearms.
Keys was sentenced on November 16, 2017, to 36 months’ imprisonment.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The investigation was conducted by Harrisburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Susquehanna Township and Fairview Township Police Departments. Assistant United States Attorneys William Behe and Michelle Olshefski prosecuted the case.
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Guatemalan Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
YONI LOPEZ-ROJAS, age 25, a citizen Guatemala, pleaded guilty today to a one-count bill of information for illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
YONI LOPEZ-ROJAS faces a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, Mr. LOPEZ –ROJAS is subject to a period of supervised release after imprisonment of up to three years. Sentencing has been scheduled for March 7, 2018.
According to the indictment, on September 6, 2017, YONI LOPEZ-ROJAS used a social security number that did not belong to him to register for a safety training course that his employer required him to take before he could begin working for the company as a pipe insulator.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Guatemalan Man Indicted for Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that MISAEL BERNAL, age 32, a citizen of Guatemala, was charged in a one-count indictment for violations of the Federal Gun Control Act.
According to the indictment, on or about December 26, 2017, BERNAL, an alien present illegally in the United States, was found in possession of a Hi-Point, Model C-9, 9mm semi-automatic pistol, as well as 9mm ammunition.
If convicted of these charges, BERNAL faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Evans praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Gramercy and Laplace Men Indicted on Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that THORNE BROWN, age 30, of Gramercy, and EDWIN WATSON, age 36, of LaPlace, were indicted on January 26, 2018 by a federal grand jury for charges of distributing and conspiring to distribute methamphetamine. The indictment was unsealed on January 31, 2018.
According to the indictment, since October 9, 2017, BROWN and WATSON conspired to distribute and possess with the intent to distribute more than fifty grams of methamphetamine and more than five hundred grams of a mixture containing a detectible amount of methamphetamine. In addition, BROWN and WATSON are charged with more than fifty grams of methamphetamine and more than five hundred grams of a mixture containing a detectible amount of methamphetamine on October 17, 2017. If convicted of these charges, the defendants face a term of imprisonment of at least ten years and up to life.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
Four Individuals Indicted for Conspiracy to Possess and Import over $5 Million in CocaineRead the Press Release
SAN JUAN, Puerto Rico – On February 1, 2018, a federal grand jury in the District of Puerto Rico returned an indictment against four defendants charged with Conspiracy to Possess with the Intent to Distribute Cocaine and Conspiracy to Import a Controlled Substance. Agents from the U.S. Customs and Border Protection (CBP) Air and Marine Operations along with agents from the Federal Bureau of Investigation seized 292 pounds (132 kilos) of cocaine concealed inside two hidden compartments in a vessel, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On January 27, 2018, a CBP St. Thomas Marine Unit intercepted a vessel after it had left Crown Bay Marina in the United States Virgin Islands (USVI). The vessel was headed towards Puerto Rico. Due to the rough sea conditions, the crew escorted the vessel back to the Crown Bay cruise ship dock in the USVI where a CBP K9 inspected the vessel. During a subsequent inspection of the vessel, agents discovered a hidden compartment inside the vessel. Inside this hidden compartment, agents recovered approximately 55 brick shaped objects, which later tested positive for the characteristics of cocaine.
On January 28, 2018, the Federal Bureau of Investigations with the help of the United States Attorney’s Office in the District of the Virgin Islands obtained a search warrant for the vessel. During a thorough search of the vessel, St. Thomas Marine Unit agents found an additional 56 brick shaped objects, which later tested positive for the characteristics of cocaine. The kilograms of cocaine were located in a hidden compartment under the carpet holding a bolted down table in the bow of the vessel.
At the time of the interdiction, there were four individuals on board, all of whom were Indicted in the District of Puerto Rico: Maximiliano Fígaro-Benjamín and Emiliano Fígaro-Benjamín, United States Permanent Resident Card holders from the Dominican Republic; Alexandria Andino-Rodríguez, a United States Citizen; and Katerin Martinez-Alberto, a United States Permanent Resident Card holder from Switzerland.
A total of 111 bricks of cocaine was seized from the defendants, weighing 292 pounds (132 kilos). The estimated wholesale value of the narcotics is over $5 million.
The Federal Bureau of Investigation is in charge of the investigation along with agents from the Caribbean Corridor Strike Force (CCSF), with the collaboration of the United States Coast Guard (USCG), U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO), CBP Air and Marine Operations (CBP AMO), CBP United States Border Patrol (CBP USBP), Homeland Security Investigations (HSI) and PR Joint Forces of Rapid Action (FURA). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF), which investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
Assistant U.S. Attorneys Stuart J. Zander and Laura Montes are in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Fort Wayne Man Sentenced to 120 Months ImprisonmentRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Samuel J. Gemple, age 49, of Fort Wayne, Indiana was sentenced before Chief Judge Theresa Springmann on his guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 kilograms of marijuana.
Gemple was sentenced to 120 months of imprisonment and 8 years of supervised release
According to documents in this case, Gemple was delivering large marijuana shipments for the conspiracy and that he was obtaining heroin from the conspiracy and distributing it to his drug customers.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets and Gang Task Force, whose members include FBI, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The United States Marshals Service also assisted with the apprehension of Gemple. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey Speith.
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Former Virginia Attorney Sentenced to 7 Years in Prison for Laundering and Attempting to Launder over $2 MillionRead the Press Release
A former Vienna, Virginia attorney was sentenced today to 84 months in prison for conspiring to launder over $2 million dollars derived from a business email compromise scheme and for attempting to launder funds he believed to be the proceeds of smuggling illegal aliens into the United States and trafficking firearms in Africa.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., made the announcement after Ho was sentenced by U.S. District Judge Leonie M. Brinkema.
Raymond Juiwen Ho, 48, pleaded guilty on Oct. 19, 2017 to one count of conspiracy to commit money laundering and one count of money laundering. According to court documents, from at least March 2013 to February 2017, Ho engaged in a large-scale money laundering scheme that resulted in millions of dollars being moved through bank accounts (some of which were attorney trust accounts) that Ho or his co-conspirators controlled. Specifically, between July and November 2014, Ho participated in a conspiracy in which co-conspirators sent emails from compromised or imitation accounts that duped victims into transferring money to accounts controlled by Ho and others. Ho then laundered these stolen funds, moving them through and to accounts located in the United States and abroad. Ho, who recruited others to aid his laundering activities, laundered over $2 million in unlawfully obtained funds.
Ho engaged in his money laundering business despite multiple instances of banks closing his accounts due to fraud and inquires by law enforcement. Eventually, in November 2015, HSI initiated an operation in which undercover HSI agents sought Ho’s assistance in moving the proceeds of human smuggling and firearms trafficking between bank accounts located in the United States and overseas. Ho engaged in four such transactions between December 2015 and June 2016, involving over $175,000 that he believed were the proceeds of the illegal smuggling and firearms trafficking activity.
Throughout the criminal conduct described above, Ho was a practicing attorney for an intellectual property law firm based in Washington, D.C. As part of this case, he has surrendered his bar licenses from Georgia and the District of Columbia.
The investigation was conducted by HSI Washington, DC. Senior Counsels Ryan K. Dickey and James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Alexander P. Berrang of the Eastern District of Virginia and Trial Attorney Kendrack D. Lewis and Former Trial Attorney Elizabeth Wright of the Criminal Division’s Money Laundering and Asset Recovery Section investigated and prosecuted the case. Former Assistant U.S. Attorney Alexander Nguyen and former Special Assistant U.S. Attorney Joseph V. Longobardo provided assistance investigating the case.
Former Pacifica Resident Sentenced to Prison for Bank and Tax FraudRead the Press Release
SAN FRANCISCO – Krisinda Messer was sentenced today to 27 months in prison and was ordered to pay $541,617.52 in restitution for bank fraud and making and subscribing a false tax return, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Court Judge, following Messer’s plea of guilty to the charges.
A federal grand jury indicted Messer, 38, of Pope Valley, Calif., and formerly of Pacifica, Calif., on May 12, 2015, charging her with twelve counts of bank fraud, in violation of 18 U.S.C. § 1344(2); four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); and three counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). On May 10, 2017, Messer pleaded guilty to one count of bank fraud and one count of making and subscribing a false tax return.
According to the plea agreement, Messer admitted that from 2007 until 2011, she was employed as a bookkeeper by delicatessens in San Francisco. Beginning in May 2008, and continuing through August 2011, Messer created 130 fraudulent checks totaling $436,396.52, 128 of which were payable by the delicatessens to American Backflow Company, a company owned by Messer’s relative. American Backflow Company was not a creditor of Messer’s employers and there was no business relationship between them. Messer forged the signature of the owner of the delicatessens on most of the checks. In order to conceal these checks from her employer, Messer created a fake company account on QuickBooks and used the fake company to produce checks written to American Backflow Company so that they would not appear in the books.
In addition to the prison term, Judge Breyer also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence on May 1, 2018.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
Former Kentucky River Regional Jail Deputy Jailer Pleads Guilty to Civil Rights Violation for Using Excessive Force Against an InmateRead the Press Release
LEXINGTON, Ky. – A former deputy jailer at an Eastern Kentucky jail has entered a guilty plea to a federal criminal civil rights charge related to his role in an unprovoked assault of a pretrial detainee.
Jarrod Allen Lucas, 28, entered his guilty plea today, before U.S. District Chief Judge Karen K. Caldwell.
In his plea, Lucas admitted that, on October 10, 2011, he assaulted an inmate immediately after his Supervisor - Damon Hickman - punched the inmate on the side of his head. Hickman struck the inmate with such force that he broke his hand and caused the inmate’s ear to bleed. Lucas and another supervisor, Matthew Amburgey, then knocked the inmate to the ground and repeatedly kicked him. Lucas admitted that he kicked the inmate without justification.
The Kentucky River Regional Jail houses pretrial detainees from Perry and Knott Counties. As a deputy jailer, Lucas was responsible for the custody, care, safety and control of the inmates at the jail.
Hickman pleaded guilty last year for his role in a separate assault at the same jail. The victim of that assault died.
Amburgey pleaded guilty last week for his role in the October 10, 2011, assault involving Lucas and Hickman.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The FBI conducted the investigation. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Sentencing for Lucas is scheduled for May 1, 2018, at 2:00 p.m. in Lexington. He faces up to 12 months imprisonment. The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutes before imposing sentence.
Former Dover Resident Sentenced for Stealing Children’s Social Security BenefitsRead the Press Release
CONCORD, N.H. - Arthur Nunes, III, 41, formerly of Dover, New Hampshire, was sentenced to serve 13 months in federal prison for making a false statement to obtain Social Security benefits, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in February of 2012, Nunes submitted an application for Child’s Insurance Benefits to the Social Security Administration (SSA) on behalf of his two children based on the earnings record of their mother, who had passed away in January of 2012. On the application, he indicated that the children resided with him. The application was approved and Nunes, as the children’s representative payee, began receiving monthly benefits in March of 2012. As their representative payee, Nunes was responsible for using the benefits he received on behalf of his children for their current needs, such as food, clothing, housing, and medical care.
In reality, however, after the death of their mother in January 2012, Nunes’s children lived with another relative and Nunes used his children’s benefits for his own use. Nunes’s concealment of his children’s true residency and his failure to use the benefits for their needs caused him to get $36,526 in Child’s Insurance Benefits payments that he was not entitled to receive.
Nunes, who pleaded guilty on October 27, 2017, also was ordered to pay $36,526 in restitution.
“Federal benefit programs provide an important source of support for many deserving families,” said Acting U.S. Attorney Farley. “Unfortunately, there are some individuals who attempt to defraud the system and obtain money that they are not entitled to receive. The U.S. Attorney’s Office works closely with the SSA’s Office of the Inspector General to ensure that those who attempt to defraud the SSA are identified and prosecuted so that government funds are available for those who should be receiving them.”
“As this sentence demonstrates, the SSA OIG is committed to investigating cases of representative payee fraud, which involves the theft of government funds and harm to innocent children who are deserving of Social Security benefits,” said Scott Antolik, Special Agent-in-Charge of the SSA Office of the Inspector General Boston Field Division. “We will continue to work with our law enforcement partners and the U.S. Attorney's Office to investigate and prosecute all forms of Social Security fraud.”
This matter was investigated by the Social Security Administration Office of the Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Postal Inspection Service, and the Berwick, Maine Police Department. The case is being prosecuted by Special Assistant U.S. Attorneys Matthew T. Hunter and Karen B. Burzycki.
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Former Des Moines Dentist Sentenced to Prison for Unlawfully Obtaining Hydrocodone and Firearm OffensesRead the Press Release
DES MOINES, Iowa – On February 2, 2018, Shawn Michael Kerby, 39, formerly of Des Moines, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 20 months in prison for obtaining hydrocodone by misrepresentation and being a user and addict of a controlled substance in possession of a firearm, announced United States Attorney Marc Krickbaum. Kerby was ordered to pay a $15,000 fine.
According to the plea agreement, Kerby practiced dentistry at two dental clinics, Kerby Family Dentistry and Bright Smiles Family Dental. Kerby admitted he was addicted to opiates, including hydrocodone. Through his dental practices, Kerby prescribed hydrocodone to patients, even though there was no medical need. He then arranged for patients to provide the hydrocodone pills back to him after the patient filled the prescription at a local pharmacy.
On December 1, 2015, law enforcement executed search warrants at Kerby’s residence and dental practices. Kerby was found in possession of a Beretta handgun, a Heckler & Koch handgun, a Smith & Wesson snub-nose .38 caliber revolver, a Browning Arms shotgun, two Benelli shotguns, and a Herington/Richardson shotgun. Kerby had been abusing hydrocodone while in possession of the firearms.
This investigation was conducted by the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Dallas County Supervision Officer Sentenced to Federal Prison for Bribery ChargesRead the Press Release
DALLAS — David Delgado, 35, of Dallas, was sentenced yesterday before U.S. District Judge Jane J. Boyle to 37 months in federal prison and ordered to pay $2,900.00 in restitution, following his guilty plea in May 2017 to one count of use of interstate facility to commit travel act. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made today’s announcement.
According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.
During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.
In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.
The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office investigated the case. Assistant U.S. Attorneys John Kull and Kate Rumsey prosecuted.
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Former Brooklyn Assistant District Attorney Sentenced for Illegal Wiretapping SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tara Lenich, a former supervisory Assistant District Attorney with the Kings County District Attorney’s Office (KCDA), was sentenced by United States District Judge William F. Kuntz II to a year and one day in prison on each of the two counts, to be served concurrently, after having pled guilty on April 3, 2017 to two counts of illegally intercepting oral and electronic communications occurring over two cellular telephones.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
According to court filings and facts presented at the sentencing hearing, for nearly 18 months between approximately June 2015 and November 2016, Lenich illegally listened to phone conversations and viewed text messages sent to and from two cellular telephones. As part of her illegal conduct, she created fraudulent judicial orders and forged the signatures of multiple New York State judges onto judicial orders that purportedly authorized the KCDA to intercept communications occurring over the two cellular telephones. Lenich then misappropriated KCDA equipment to intercept, monitor, and record the communications to and from the two cellular telephones. In furtherance of her scheme, Lenich also created fraudulent search warrants, which she then used to obtain unlawfully intercepted text messages sent to and from the two cellular telephones. To conceal her scheme, Lenich lied to her colleagues at the KCDA, telling them that she was conducting a highly sensitive, confidential criminal investigation.
“Former Assistant District Attorney Lenich violated her duty to the public as a prosecutor when she engaged in her long-running illegal scheme,” stated United States Attorney Donoghue. “The victims of her scheme include the individuals whose privacy rights she violated by listening to and reading their private communications, the state court judges whose signatures she forged in order to perpetrate her scheme, the Kings County District Attorney’s Office whose reputation of integrity she damaged, and the public whose trust she betrayed. Today’s sentencing serves as a reminder that no one is above the law.” Mr. Donoghue expressed his appreciation to the KCDA for its cooperation.
“Without the appropriate legal authority to intercept and access communications, Lenich unlawfully listened in on personal conversations between her victims, evading the due process of law all public officials are expected to uphold,” stated FBI Assistant Director-in-Charge Sweeney. “It’s our hope today’s sentencing will send a strong message to anyone who thinks they can get away with this egregious abuse of power.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Maria Cruz Melendez and Robert Polemeni are in charge of the prosecution.
The Defendant:
TARA LENICH
Age: 42
New York, NYE.D.N.Y. Docket No. 17-CR-154 (WFK)
Former Attorney Sentenced to Prison for Money LaunderingRead the Press Release
**Video entered into the public record at sentencing will be available at: https://www.dvidshub.net/ice
ALEXANDRIA, Va. – A former attorney was sentenced today to seven years in prison for conspiring to launder over $2 million dollars derived from a business email compromise scheme and for attempting to launder funds he believed to be the proceeds of smuggling illegal aliens into the United States and trafficking firearms in Africa.
According to court documents, from at least March 2013 to February 2017, Raymond Juiwen Ho, 48, of Vienna, engaged in a large-scale money laundering scheme that resulted in millions of dollars being moved through bank accounts (some of which were attorney trust accounts) that Ho or his co-conspirators controlled. Specifically, between July and November 2014, Ho participated in a conspiracy in which co-conspirators sent emails from compromised or imitation accounts that duped victims into transferring money to accounts controlled by Ho and others. Ho then laundered these stolen funds, moving them through and to accounts located in the United States and abroad. Ho, who recruited others to aid his laundering activities, laundered over $2 million in unlawfully obtained funds.
Ho engaged in his money laundering business despite multiple instances of banks closing his accounts due to fraud and inquiries by law enforcement. Eventually, in November 2015, Homeland Security Investigations (HSI) initiated an operation in which undercover HSI agents sought Ho’s assistance in moving the proceeds of human smuggling and firearms trafficking between bank accounts located in the United States and overseas. Ho engaged in four such transactions between December 2015 and June 2016, involving over $175,000 that he believed were the proceeds of the illegal smuggling and trafficking activity.
Throughout the criminal conduct described above, Ho was a practicing attorney for an intellectual property law firm based in Washington, D.C. As part of this case, he has surrendered his bar licenses from Georgia and the District of Columbia.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) HSI Washington, D.C., made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Alexander P. Berrang, Senior Counsels Ryan K. Dickey and James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Kendrack D. Lewis and Former Trial Attorney Elizabeth Wright of the Justice Department’s Money Laundering and Asset Recovery Section investigated and prosecuted the case. Former Assistant U.S. Attorney Alexander Nguyen and former Special Assistant U.S. Attorney Joseph V. Longobardo provided assistance investigating the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-215.
Federal Jury Returns Guilty Verdict for Convicted Felon in Possession of a FirearmRead the Press Release
CHATTANOOGA, Tenn. – On January 31, 2018, following a trial in U.S. District Court in Chattanooga before the Honorable Travis R. McDonough, U.S. District Judge, a jury convicted Donald Ray Hobgood, 31, of Shelbyville, Tennessee, of three counts of being a felon in possession of a firearm and ammunition.
Evidence presented at trial revealed that, on January 20, 2017, Bedford County Sheriff’s Deputies were dispatched to Cedar Springs Road in Shelbyville, Tennessee. On arrival, they encountered Hobgood, who was brandishing an AK-style semi-automatic rifle. Hobgood evaded arrest on that date, but on February 15, 2017, deputies received information as to his whereabouts and located him. After a short foot pursuit, deputies subdued and arrested Hobgood. They recovered the AK-style rifle nearby, which was fully loaded with a high capacity 30-round magazine, and discovered multiple loose rounds of ammunition in his pocket.
Sentencing is set for June 1, 2018, in U.S. District Court in Chattanooga. Hobgood faces a sentence of up to 10 years in prison for each count of his conviction. If the judge determines that Hobgood qualifies as an armed career criminal, he faces a statutory mandatory minimum sentence of 15 years in prison for each count. There is no parole in the federal system.
Law enforcement agencies participating in this joint investigation included the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bedford County Sheriff’s Office. Assistant U.S. Attorneys Michael Porter and Kyle Wilson represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Federal Jury Finds Greenville Man Guilty in Firearms TrialRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that a jury returned a guilty verdict following a two-day jury trial in federal court in Greenville, South Carolina, finding Harvest Maurice Sloan, age 38, of Greenville, guilty of possession by a firearm and ammunition by a felon. The trial wrapped up yesterday afternoon and was held before United States District Judge Mary Geiger Lewis, of Columbia. Judge Lewis will impose a sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The government presented multiple witnesses during the course of the trial. Witness testimony and the evidence presented by the government at trial established that on April 25, 2017, a Greenville police officer encountered the defendant, Harvest Maurice Sloan, at a car while the officer was investigating a stolen vehicle report. During a search of the car police located a backpack containing a loaded Ruger 9mm pistol, along with additional 9mm ammunition from the front seat area of the car.
A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) retrieved calls made by Harvest Maurice Sloan from the Greenville County jail that contained conversations relating to the pistol recovered by police.
The case was investigated by the Greenville Police Department, the Greenville County Forensic Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Max Cauthen prosecuted the case.
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Fairbanks Couple Sentenced for Producing and Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks couple has been sentenced in federal court for producing and distributing child pornography.
Christopher Duane Davis, 32, of Fairbanks, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve 35 years in prison, followed by a lifetime term of supervised release. Charity Noel Germain, 27, of Fairbanks, was previously sentenced on Dec. 15, 2017, to serve 22 years in prison, followed by a lifetime term of supervised release. Davis previously pleaded guilty on Nov. 3, 2017, to production and distribution of child pornography. Germain previously pleaded guilty on April 27, 2017, to conspiracy to produce child pornography.
According to court documents, beginning in June 2015, Davis and Germain conspired to produce visual depictions of minors engaged in sexually explicit conduct. In furtherance of the conspiracy, Germain and Davis gained the trust of families with small children, whom they would then babysit. While babysitting for the children, Davis and Germain would sexually abuse the children and record the abuse. Davis would then share the images and videos with other pedophiles on the internet.
Davis and Germain became the subject of a federal investigation after an undercover law enforcement agent working with the Australian government identified Davis’s profile on a foreign-based photo-sharing site known to host images of child pornography. From Nov. 23 through Dec. 16, 2016, during email communications with the agent, Davis described having access to children through his girlfriend and to engaging in sexual acts or producing sexual explicit images of these children while his girlfriend was baby-sitting them.
A search warrant on Davis’s email account revealed instances where he distributed images of child pornography to others. Located on Davis’s computer were multiple child pornography images and videos, which Davis and Germain had produced. The images showed Germain was present with the victims during production, posing the child, and assisting Davis with the sexual exploitation of the child.
“We have a responsibility to protect the most vulnerable in our society,” said U.S. Attorney Schroder. “The 35 year sentence issued today by Judge Beistline first and foremost will protect Alaskan children from this predator. Moreover, it sends a strong signal to the community that dedicated law enforcement officers, like the HSI agents in this case, are working countless hours to track down and prosecute child sexual offenders.”
“A cyber monster’s perverse desires often turn into physical victimization and a child’s worst nightmare,” said Brad Bench, special agent in charge of HSI Seattle. “While we are satisfied with this sentence for the horrific crimes committed by this defendant, we must remember the young victims who are often left with permanent psychological, physical and emotional scars. This sentence is a testament to the dedicated HSI agents who aggressively hunt down these abusive pedophiles and bring them out of the shadows to receive the judgement they deserve.”
Homeland Security Investigations (HSI) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched PSC, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, PSC combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about PSC, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Essex County Loan Officer Charged with Mortgage FraudRead the Press Release
NEWARK N.J. – A Nutley, New Jersey, man was charged today with using fraudulent documents to deceive his employer into approving a loan, U.S. Attorney Craig Carpenito announced.
Richard Patino, 42, is charged by complaint with one count of wire fraud. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on bail.
According to the complaint:
Patino was a loan officer with a mortgage company based in New Jersey. On Aug. 15, 2013, a person identified in the complaint as “Individual A” signed a loan application in connection with Individual A’s purchase of a property in Elizabeth, New Jersey. Patino signed the loan application indicating that he had reviewed and approved it.
However, the bank statements that were included in the application were allegedly Patino’s own bank statements that he altered to make them appear as though they belonged to Individual A. Afterwards, the mortgage company approved the application and issued the loan to Individual A.
The loan was later sold to another financial institution, which was provided with both the loan application and supporting documents, including the fraudulent statements Patino created. The Federal Housing Administration (FHA) guaranteed the loan based in part on those phony documents.
As of January 2018, Individual A has ceased paying the loan and the financial institution has begun foreclosure proceedings on the property. Overall, law enforcement is aware of approximately 23 loans that Patino approved that are suspected of fraudulent activity.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.U .S. Attorney Carpenito credited special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Aidan P. O’Connor Esq., Hackensack, New Jersey
El Salvador National admits to illegal re-entryRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adonai Wilfredo Parada, of El Salvador, has admitted to an illegal re-entry charge, United States Attorney Bill Powell announced.
Parada, age 39, pled guilty to one count of “Reentry of Removed Alien.” Parada is in the United States illegally after being removed as an alien in 2015. Parada was found in Ranson, West Virginia on December 7, 2017.
Parada faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Dominican National Sentenced for Trafficking Fentanyl Facing DeportationRead the Press Release
PROVIDENCE, RI – A Dominican national convicted in U.S. District Court in Providence of trafficking nearly 2,000 grams of fentanyl faces deportation proceedings, having been sentenced on Tuesday to time served, 24 months in federal prison.
Jose Cordero, 28, formerly of Boston, was arrested by Rhode Island State Police in March 2015 during a traffic stop during which it was discovered that Cordero was operating the vehicle without license. A search of the vehicle revealed a complex wiring system that, when engaged, revealed a “hide” – an electronically powered compartment designed to conceal contraband – containing 1,993.21 grams of fentanyl under the front passenger seat.
Cordero, first charged in Rhode Island state court, was charged by way of federal criminal complaint in October 2015 and a federal indictment in May 2016 with possession with intent to distribute fentanyl. Cordero pleaded guilty on September 12, 2017, as charged in the indictment.
Cordero is presently in the custody of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removals Operations awaiting deportation proceedings.
Cordero’s sentence is announced by United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 70-87 months. The government recommended the court impose a sentence of 70 months in prison.
The case was prosecuted Assistant U.S. Attorney Ronald R. Gendron.
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District Man Sentenced to 12 Years in Prison for Assaulting Stranger in Her HomeRead the Press Release
WASHINGTON – Iray Turner, 41, of Washington, D.C., was sentenced today to 12 years in prison on one count of assault with intent to commit first-degree sexual abuse and one count of kidnapping for his assault of a stranger in her home, U.S. Attorney Jessie K. Liu announced.
Turner pled guilty in September 2017 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 10 and 12 years. The Honorable Lynn Leibovitz accepted the plea and sentenced Turner accordingly. Following his prison term, Turner will be required to register as a sex offender for the rest of his life. He also will be placed on supervised release for the rest of his life. .
According to the government’s evidence, in the early morning hours of Aug. 24, 2016, the victim arrived at her home in Northeast Washington in an intoxicated state. She does not remember how she got home. The first memory she has is of Turner, a stranger to her, on top of her in her bed, strangling her. She remembers screaming and calling for help. She remembers Turner telling her to be quiet and to calm down. Both of the victim’s neighbors called 911 to report the screams, and the Metropolitan Police Department (MPD) responded to the location.
When MPD officers arrived, they heard a woman screaming for help. They observed house keys hanging from the outdoor lock, and entered the home to locate the victim. Upon entering the home, the officers continued to hear the screams, coming from a bedroom on the second floor. Officers moved upstairs and continued to hear screaming for help. Officers also heard a male voice inside the bedroom, later determined to be the voice of Turner.
Officers pleaded with Turner to open the door, and he refused to do so. Officers urged Turner to allow them to see that the victim was okay. Despite the continued screams, Turner told officers that she was okay. On two occasions, Turner cracked open the bedroom door. However, he refused to allow the victim to exit the bedroom. Officers breached the door and moved in.
When officers entered the bedroom, Turner was sitting on the floor with his back against the door. He was wearing only boxer shorts and socks. The victim was seated on the bed, crying, unclothed from the waist down. She told officers that Turner did not rape her, but that he tried to rape her. Turner was arrested on the scene and has been in custody ever since.
The victim was transported to Washington Hospital Center, where she was examined by a Sexual Assault Nurse Examiner (SANE). The examination identified 49 different injuries on the victim’s body, including multiple abrasions on her face, hemorrhaging to both eyes, bruising all over her body, and red marks to her neck. An expert would have testified at trial that many of those observed injuries were consistent with strangulation, and that the injuries were acute. The expert would also have testified at trial that some of the scratches on the victim’s neck were consistent with defensive injuries that may resulted from the victim scratching her neck while trying to remove Turner’s hands from strangling her on her neck.
In announcing the sentence, U.S. Attorney Liu praised the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case, the officers from the Fifth District of the Metropolitan Police Department who initially responded to the scene, crime scene technicians from the District of Columbia Department of Forensic Sciences, and toxicologists from the District of Columbia Office of the Chief Medical Examiner.
She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key, T.J. McPhail, and Michelle Wicker, Victim/Witness Advocates Tracey Hawkins and Veronica Vaughan, and Litigation Technology Specialist Jeanie Latimore-Brown. Finally, she commended Assistant U.S. Attorneys Elana Suttenberg, Jessica Brooks, and Julianne Johnston, who investigated and prosecuted this case.
Convicted Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Hattiesburg, Miss. – Joe Lamont Gholar, 45, formerly of Jefferson Davis County, Mississippi, pled guilty yesterday before U.S. District Judge Keith Starrett to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst, Special Agent-in-Charge Dana Nichols, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent-in-Charge Stephen G. Azzam, Drug Enforcement Administration (DEA).
On June 9, 2015, in Jefferson Davis County, agents of the Drug Enforcement Administration Hattiesburg High Intensity Drug Trafficking Area (HIDTA) team served a search warrant at the home Gholar shared with two others. One of the two other residents of the home also was a convicted felon; but, was incarcerated at the time. Gholar was present during the search, and 35 rounds of .380 ammunition were found in Gholar’s room. A .380 caliber pistol was found in a vehicle for which Gholar was the only driver, and a shotgun and rifle belonging to Gholar also were found on the premises.
Previously, Gholar had been convicted in the United States District Court for the Western District of Texas, of felony possession with intent to distribute cocaine. Gholar admitted that he knew he was prohibited from possessing a firearm.
Gholar will be sentenced by Judge Starrett on April 17, 2018 at 9:45 a.m., and faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Stan Harris.
Colorado Man Sentenced to 20 Years for Robbing the Same Montgomery Bank TwiceRead the Press Release
Montgomery, Alabama – Richard Allen Evans (50), of Arvada, Colorado, was sentenced yesterday to 240 months in federal prison for bank robbery, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama. In addition to 20 years in prison, Evans is subject to 3 years of supervised release once he completes his sentence. There is no parole in the federal system.
In June of 2017, Evans entered the BBVA Compass Bank near Eastdale Mall in Montgomery, Alabama. He approached a bank teller and repeatedly demanded that she turn over all of the money in her bank drawer. The teller complied out of fear for her life and Evans got away with more than $1,900 in cash. He then fled to Florida where he was arrested the following day.
Court records indicate that this was the second time Evans robbed the bank. Approximately ten years ago, Evans was convicted of robbing the same bank along with six other banks. He was ordered to serve 125 months in prison and was released when his sentence was complete. Evans was still on supervised release for those prior convictions at the time he committed the June 2017 bank robbery.
“A twenty-year sentence is the maximum allowed by statute for this crime,” stated U.S Attorney Franklin. “This case is a statement of the excellent work law enforcement does to protect our communities and my office will continue to prosecute these violent offenders to the fullest extent of the law.”
FBI Acting Special Agent in Charge Bret Kirby stated, “These types of cases are a prime example of the good work that is done every day in this country by our agents as well as our state and local partners. This type of team work will ensure these repeat offenders will remain incarcerated.”
U.S. Attorney Franklin would like to thank the Federal Bureau of Investigation (FBI) and the Montgomery Police Department (MPD) for investigating this case. The Suwanee County Sheriff’s Office (Florida) and the U.S. Marshals Service assisted with this investigation. Assistant United States Attorney Bradley Bodiford prosecuted the case.
Chinese National Pleads Guilty to Conspiracy and Trafficking of Counterfeit Apple Goods into the United StatesRead the Press Release
A Chinese national living in the United States on a student visa pleaded guilty today for his role as a counterfeit distributor in a scheme to traffic and smuggle counterfeit electronics purporting to be Apple iPhones and iPads, from China into the United States.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Deputy Special Agent in Charge Michael S. McCarthy of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Newark and Acting Bergen County Prosecutor Dennis Calo made the announcement.
Jianhua “Jeff” Li, 43, pleaded guilty before U.S. District Court Judge Kevin McNulty of the District of New Jersey to one count of conspiracy to traffic in counterfeit goods and labels and to smuggle goods into the United States, and one count of trafficking in counterfeit goods. Li will be sentenced on May 30.
According to the documents filed in this case and statements made in court, from July 2009 through February 2014, Mr. Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks. Mr. Li also received payments totaling over $1.1 million in sales proceeds from U.S. accounts into his bank accounts. Becerra, Volpe and LaMarca have also pleaded guilty to their roles in the conspiracy. LaMarca was sentenced on July 20, 2017 to 37 months in prison and Becerra and Volpe are awaiting sentencing.
Further, the documents filed in this case and statements made in court showed that Mr. Li shipped devices separately from the labels bearing counterfeit trademarks for later assembly to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the co-conspirators’ accounts in Florida and New Jersey via structured cash deposits and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey are prosecuting the case.
Chinese National Admits Trafficking Counterfeit Apple Goods into the United StatesRead the Press Release
NEWARK, N.J. - A Chinese national living in the United States on a student visa today admitted his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
U.S. Attorney Craig Carpenito of the District of New Jersey; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) in Newark, and Acting Bergen County Prosecutor Dennis Calo made the announcement.
Jianhua “Jeff” Li, 43, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to one count of conspiracy to traffic in counterfeit goods and labels and to smuggle goods into the United States and one count of trafficking in counterfeit goods.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
The conspiracy charge to which Li pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The trafficking charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. His sentencing is scheduled for May 30, 2018.
LaMarca previously pleaded guilty to his role in the scheme and was sentenced July 21, 2017 to 37 months in prison. Becerra and Volpe have also pleaded guilty and await sentencing.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey and Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Defense counsel: Perry Primavera Esq., Hackensack, New Jersey
Carlsbad Woman Arraigned on Federal Wire Fraud Charges Arising Out of $800,000 Embezzlement SchemeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, and Eddy County Sheriff Mark Cage announced the arraignment of Lori V. Whitaker, 54, of Carlsbad, N.M., on wire fraud charges at the federal courthouse in Las Cruces, N.M.
Whitaker was arraigned this morning on a 75-count indictment charging her with perpetrating a scheme to defraud her former employer, the Otis Mutual Domestic Water Consumers and Sewage Works Association (Association), out of approximately $800,000.00 over a two-year period. The indictment charges Whitaker with 75 counts of wire fraud alleging that she fraudulently transmitted funds by means of wire communications between March 27, 2015 and Feb. 3, 2017, as part of a scheme to defraud the Association. The funds involved in the 75 transactions charged range from $416.00 to $15,746.64. During today’s arraignment hearing, Whitaker entered a not guilty plea and was released pending trial, which has not been scheduled, under pretrial supervision and other conditions of release.
“This indictment reflects the Justice Department’s commitment to investigate and prosecute fraudulent conduct that adversely impacts the lives of innocent victims,” said Acting U.S. Attorney Tierney.
“The scope of these charges shows the determination of the FBI to work with our partners to make sure justice is done,” said FBI Special Agent in Charge Wade. “I am proud of the FBI agents and staff who worked with the U.S. Attorney’s Office and Eddy County Sheriff’s Office on this case.”
Eddy County Sheriff Cage said, “This indictment brings us another step closer to bringing closure to the people who rely on the Otis water co-op for potable water and irrigation. The Eddy County Sheriff’s Office is grateful to the FBI for partnering with us and applying their resources and expertise to this complex case, and we look forward to continuing to work with the FBI and the U.S. Attorney’s Office as the prosecution moves forward.”
According to the indictment, Whitaker was employed by the Association, a non-profit special purpose government association that provided potable water and a wastewater system to more than 4300 people in Otis, N.M., in Eddy County, as its office manager from 2003 through April 2017. The indictment alleges that, as the Association’s office manager, Whitaker was responsible for controlling the Association’s finances, had access to the Association’s payroll account, and received a company credit card intended for use for Association-related expenses.
The indictment alleges that from March 2015 through Feb. 2017, Whitaker perpetrated a scheme to defraud the Association through which she embezzled approximately $800,000.00 of the Association’s funds for her personal use. According to the indictment, Whitaker executed the scheme to defraud in two ways. First, Whitaker allegedly defrauded the Association by using its credit card account for personal purposes unrelated to the Association’s business. To this end, the indictment alleges that Whitaker repeatedly used the credit card to obtain cash advances and initiate other charges at casinos, which she allegedly was not authorized to do. Second, Whitaker allegedly defrauded the Association by paying off credit card balances through frequent, but unauthorized, online transfers from the Association’s payroll account.
The indictment includes forfeiture provisions, which seek forfeiture to the United States of any property or proceeds derived from the crimes charged in the indictment. It also seeks the entry of a money judgment against Whitaker in the amount of $800,000.00.
If convicted, Whitaker faces a maximum statutory penalty of 20 years of imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI office in Las Cruces with assistance from the Eddy County Sheriff’s Office. Assistant U.S. Attorneys John A. Balla and Richard C. Williams are prosecuting the case.
Whitaker IndictmentCalifornia Man Sentenced to 50 Years in Prison for Armed Robbery and Home Invasion in Northwest WashingtonRead the Press Release
WASHINGTON – Jomo Dawes, 40, of San Diego, Calif., was sentenced today to 50 years in prison on charges stemming from a home invasion and armed robbery that took place in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Dawes was found guilty by a jury in November 2017 of a total of 27 charges, including multiple counts of kidnapping while armed, armed robbery, assault with a dangerous weapon, felony threats, and related weapons offenses. He was sentenced by the Honorable Marisa Demeo.
According to the government’s evidence, on Sept. 14, 2016, at approximately 10 p.m., Dawes and two accomplices got into a home in the 4800 block of Illinois Avenue NW under the ruse of selling marijuana. They pulled out guns and began robbing all four of the victims, repeatedly threatening to kill them. They even stacked the victims’ bodies on top of one another, suggesting to any frightful or reasonable person that they were about to be executed. At one point, one of the victims’ friends showed up at the front door and tried to enter. Dawes opened the door and proceeded to pistol-whip him in the face. The robbers fled the scene.
An investigation by the Metropolitan Police Department (MPD) led to the arrest of Dawes in July 2017 in Atlanta, Ga. He was extradited to the District of Columbia and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department, including detectives from the Fourth Police District. She also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Veronica Sanchez and Paralegal Specialist Donville Drummond. Finally, she commended the work of Assistant U.S. Attorneys Gregory Rosen and Michael McCarthy, who prosecuted the case.
Brooklyn Man Arrested for Attempting to Induce A Minor to Have SexRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of SHMUEL ZARZAR on a charge of attempted inducement of a minor to engage in sexual activity. ZARZAR was arrested yesterday and will be presented today in Manhattan federal court before the Honorable Kevin N. Fox.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Shmuel Zarzar attempted, through a month-long correspondence, to induce a 12-year-old to have sex with him. He was arrested yesterday when the meeting he allegedly thought he was having with the child victim turned out to be a meeting with the FBI.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The alleged behavior of the subject is nothing short of outrageous, and we simply won’t tolerate this in our community. The FBI New York Crimes Against Children Task Force fights each day to protect the most vulnerable among us, and we will aggressively pursue predators who target our children.”
According to the allegations in the Complaint sworn out today in Manhattan federal court:[1]
Over the course of several weeks in December 2017, ZARZAR exchanged text messages with a 12-year-old whom ZARZAR had met in person in Brooklyn, New York. ZARZAR repeatedly requested to meet with the victim and, when the victim refused to confirm a date and time, ZARZAR indicated that he had gone to an area near where the victim attended school in order to see her. After law enforcement officials were notified of these text message exchanges, a law enforcement officer operating in an undercover capacity (UC-1) assumed the victim’s identity and began to communicate with ZARZAR from the victim’s cellphone with the consent of her parents. During the course of these conversations, throughout January 2018, ZARZAR requested photographs of the victim, including ones in which the victim was nearly naked, and described explicit sexual activity that he intended to engage in with the victim. During the investigation, law enforcement officials observed ZARZAR standing near the victim’s school for several hours. On February 1, 2018, after ZARZAR and UC-1, who was acting as the victim, arranged to meet in Manhattan, law enforcement officials observed ZARZAR at the pre-arranged meeting location and apprehended him shortly thereafter.
* * *
ZARZAR, 30, of Brooklyn, New York, is charged with one count of attempted inducement of a minor under the age of 18 to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI’s Crimes Against Children squad.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Elinor L. Tarlow is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Arizona Man Charged for Selling Armor Piercing Ammunition to Las Vegas Route 91 Festival ShooterRead the Press Release
LAS VEGAS, Nev. – An Arizona man was charged in U.S. District Court in Phoenix today for the manufacture and sale of armor piercing ammunition without a license. He allegedly sold ammunition to Stephen Paddock, who was later identified as the perpetrator of the October 1, 2017 mass shooting in Las Vegas, announced United States Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
Douglas Haig, 55, of Mesa, Ariz., is charged in a criminal complaint with one-count of conspiracy to manufacture and sell armor piercing ammunition. He appeared this afternoon before U.S. District Court Magistrate Judge Michelle H. Burns and was released on a bond with conditions pending a status conference regarding scheduling of a preliminary hearing on Feb. 15 in Phoenix. If convicted, he faces the statutory maximum penalty of five years in prison, a $250,000 fine, or both.
According to the criminal complaint, Haig met with Paddock on more than one occasion. Paddock met Haig at his home in September of 2017 to purchase ammunition. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the U.S., including Nevada, Texas, Virginia, Wyoming, and South Carolina. Haig did not have a license to manufacture armor piercing ammunition.
During an interview, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered in the shooter’s hotel rooms, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
The public is reminded that a criminal complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the FBI’s Las Vegas Division with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Cristina D. Silva, Patrick Burns, and Nicholas D. Dickinson.
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Annapolis Man Sentenced to Four Years in Prison for Real Estate and Credit Card Fraud SchemesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On January 30, 2018, United States District Judge James K. Bredar sentenced Joseph R. Dominici, age 31, of Annapolis, Maryland to four years in prison, followed by three years of supervised release for wire fraud and aggravated identity theft. The wire fraud charges stem from a telemarketing scheme to defraud real estate professionals around the country who paid to advertise on websites owned by Dominici. The aggravated identity theft charges stem from a scheme to use stolen credit card information to create and use fraudulent “cloned” credit cards.
On January 31, 2018, Judge Bredar sentenced Christina O. Price, age 23, of Bowie, Maryland to one year in prison followed by one year of supervised release, for her role in the credit card fraud scheme. Carlos Ledbetter, age 31, formerly of Annapolis, Maryland, was previously sentenced to six months in prison for his role in the credit card fraud, followed by four years of supervised release.
The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Christopher Caruso of the United States Secret Service - Baltimore Field Office; Chief Timothy J. Altomare, Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Wes Adams.
According to court documents, Dominici owned and operated JJ&M Enterprises, LLC, a business based in Annapolis, Maryland, operating to provide leads to real estate professionals seeking to advertise their services to potential homebuyers. Dominici registered two websites which he and JJ&M used to conduct business: BuyerHomeSite.com and FreeHomeFind.com.
The websites purported to contain active listings of homes for sale, and allowed potential homebuyers to browse home listings in a selected geographic area. The websites also represented to realtors or loan officers that they could pay to become a “preferred expert” in each of the geographic regions that they chose. If a prospective home buyer (user) searched the websites for properties in an area where a real estate professional had paid to become the “preferred expert,” the websites displayed an ad that included the real estate professional’s photograph and contact information. For a monthly fee of approximately $299, the websites would grant a real estate professional exclusive access to all leads generated on the websites associated with the real estate professional’s assigned geographic area.
From March 2014 to October 2015, Dominici represented to real estate professionals that such leads included personal information provided by a potential homebuyer, where in fact, the leads sent to the real estate professionals contained fictitious information created by Dominici and individuals employed by JJ&M. Dominici created fictitious identities, including names, email addresses and cell phone numbers. He provided cell phones to a JJ&M employee which had the name and phone number of a fictitious identity taped to the back. Dominici also posted false and duplicative “testimonials” from “satisfied” customers on the websites.
Dominici had employees make unsolicited telephone sales calls to many thousands of real estate professionals located all over the United States. Dominici provided JJ&M employees with scripts and talking points to use in soliciting real estate professionals to pay to become the “preferred expert” for their area on the websites. As a result of these sales calls, more than 1,000 real estate professionals agreed to pay approximately $299 per month to be advertised as preferred experts.
As a result of this telemarketing fraud scheme, Dominici obtained more than $895,568.31 from real estate professionals. As part of Dominici’s sentence, Judge Bredar also ordered forfeiture of Dominici’s funds in thirteen bank accounts.
In addition to the telemarketing fraud scheme, Dominici also engaged in a credit card fraud scheme, using stolen account information he obtained from corrupt restaurant servers and from a black marked “carding” website to create “cloned” credit cards. Christina Price, then a server at a restaurant in Gambrills, Maryland, used electronic devices known as “skimmers” to fraudulently obtain the credit card information of restaurant customers who paid by credit card. Price then provided this stolen customer information to Dominici, who used special equipment to encode the stolen account information onto new “cloned” credit cards. Dominici and Carlos Ledbetter, then an employee of JJ&M, used the “cloned” cards to purchase goods and services, primarily gift cards that can be used like cash. The credit card fraud scheme victimized a number of financial institutions and dozens of individuals, resulting in losses of approximately $29,280.13.
Acting United States Attorney Stephen M. Schenning commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who prosecuted the case.
Alleged Operator of Kelihos Botnet Extradited from SpainRead the Press Release
New Haven, Conn. – A Russian national has been extradited from Spain and will be arraigned later today in Connecticut on charges stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software, the Department of Justice announced today.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 37, also known as Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, has been detained since April 7, 2017, in Spain when he was arrested by Spanish authorities based upon a criminal complaint and arrest warrant issued in the District of Connecticut.
Levashov is scheduled to be arraigned today at approximately 6:00 p.m. before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
“Levashov is alleged to have controlled and operated the Kelihos botnet which was used to distribute hundreds of millions of fraudulent e-mails per year, intercept credentials to online and financial accounts belonging to thousands of Americans, and spread ransomware throughout our networks,” said Acting Assistant Attorney General Cronan. “Today’s action, as well as the disruption of the Kelihos botnet in April 2017, demonstrates the Department’s steadfast commitment to working with our international law enforcement partners to identify cybercriminals and hold them accountable for their conduct.”
“It is alleged that, for years, Mr. Levashov profited handsomely by controlling a botnet that infected computers and affected computer users all over the world,” said U.S. Attorney Durham. “Thanks to the excellent work of the FBI, with the assistance of our law enforcement partners in Spain, he was identified and apprehended, and will now face justice.”
“As a result of a sophisticated and complex computer intrusion investigation, the FBI, working with national and international law enforcement partners, have now brought to justice an individual who, we allege, has been responsible for the theft of personal information and distribution of SPAM and malware through his operation of the Kelihos botnet,” said FBI Special Agent in Charge Ferrick.
As alleged in an eight count-indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in Bridgeport returned an indictment charging Levashov with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section, are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter, and the U.S. Marshals Service coordinated he defendant’s safe transport from Spain to the U.S.
Alleged Operator of Kelihos Botnet Extradited from SpainRead the Press Release
A Russian national has been extradited from Spain and will be arraigned later today in Connecticut on charges stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software, the Department of Justice announced today.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 37, also known as Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, has been detained since April 7, 2017, in Spain when he was arrested by Spanish authorities based upon a criminal complaint and arrest warrant issued in the District of Connecticut.
Levashov is scheduled to be arraigned today at approximately 6:00 p.m. before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, Connecticut.
“Levashov is alleged to have controlled and operated the Kelihos botnet which was used to distribute hundreds of millions of fraudulent e-mails per year, intercept credentials to online and financial accounts belonging to thousands of Americans, and spread ransomware throughout our networks,” said Acting Assistant Attorney General Cronan. “Today’s action, as well as the disruption of the Kelihos botnet in April 2017, demonstrates the Department’s steadfast commitment to working with our international law enforcement partners to identify cybercriminals and hold them accountable for their conduct.”
“It is alleged that, for years, Mr. Levashov profited handsomely by controlling a botnet that infected computers and affected computer users all over the world,” said U.S. Attorney Durham. “Thanks to the excellent work of the FBI, with the assistance of our law enforcement partners in Spain, he was identified and apprehended, and will now face justice.”
“As a result of a sophisticated and complex computer intrusion investigation, the FBI, working with national and international law enforcement partners, have now brought to justice an individual who, we allege, has been responsible for the theft of personal information and distribution of SPAM and malware through his operation of the Kelihos botnet,” said FBI Special Agent in Charge Ferrick.
As alleged in an eight count-indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
On April 20, 2017, a grand jury in Bridgeport returned an indictment charging Levashov with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police and the U.S. Marshals Service. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance from Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs handled the extradition in this matter. The U.S. Marshals Service assisted today’s extradition.
Albuquerque Man Pleads Guilty to Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Miller Eugene Francis, 59, of Albuquerque, N.M., pled guilty yesterday afternoon in federal court to violating the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
The U.S. Marshals Service arrested Francis in Sept. 2016, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. According to the complaint, Francis was convicted in Massachusetts in 1999, of rape and abuse of a child. According to court documents, Francis registered as a sex offender in Bernalillo County, N.M., beginning in July 2003 until he left the United States in Oct. 2003. The complaint further alleged that Francis reentered the United States in Dec. 2015, and failed to update his sex offender registration in Bernalillo County from May 2016 through Aug. 2016, as required.
Francis subsequently was charged by indictment on Oct. 12, 2016, with violating SORNA by failing to update his sex offender registration in Sandoval and Bernalillo Counties, N.M., between April 1, 2016 and Sept. 20, 2016.
During yesterday’s proceedings, Francis pled guilty to the indictment. In entering the guilty plea, Francis admitted that he was convicted in Jan. 1999, of criminal offenses that required him to register under SORNA. Francis further admitted that from Oct. 2003 through Dec. 2015, he resided outside of the United States, and beginning in April 2016, he resided in New Mexico, but failed to update his sex offender registration in New Mexico as required.
At sentencing, Francis faces a maximum penalty of ten years in federal prison followed by a minimum of five years to a lifetime of supervised release. Francis will also be required to register as a sex offender when he completes his prison sentence pursuant to his previous sexual abuse conviction. A sentencing hearing has yet to be scheduled
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Additional Explosives Charges Filed Against Luzerne County ManRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on January 30, 2018, a federal grand jury in Scranton returned a superseding indictment charging Roberto Torner, age 44, a resident of Freeland, Pennsylvania, with additional explosives offenses.
According to United States Attorney David J. Freed, the superseding indictment alleges that Torner possessed stolen C-4 explosives between September 6, 2017 to January 5, 2018. Torner and two other individuals, Liza Robles, age 33, and David Alzugaray-Lugones, age 48, previously were charged with various heroin distribution and firearms offenses on November 7, 2017. Torner was on pretrial release at the time of the alleged explosives offenses, but has since been taken into custody.
Torner, Robles and Alzugaray-Lugones were previously charged with conspiring to distribute heroin from June 2, 2015 to June 8, 2015. All three individuals also were charged with distributing heroin on June 8, 2015.
Torner and Robles were previously charged with conspiring, from May 12, 2012 to August 28, 2017, to provide firearms and ammunition to a convicted felon and to possess firearms and ammunition as a convicted felon. The indictment alleges that Robles purchased six firearms from various federal firearms licensees and other unnamed individuals, including two assault rifles, and provided them to Torner, a convicted felon prohibited from purchasing firearms. The indictment also alleges that Torner purchased a shotgun from an unnamed individual.
Robles also was initially charged with providing firearms and ammunition to Torner, despite knowing of his status as a felon. Torner also was charged with being a felon in possession of firearms and ammunition. Alzugaray-Lugones also was initially charged with being an illegal alien in possession of a firearm and ammunition.
The superseding indictment seeks forfeiture of $4,000, over 1,500 rounds of ammunitions, and various firearms seized during the investigation. The firearms are:
• Magnum Research 1911U .45acp;
• Hi-Point JHP .45acp;
• Stag Arms STAG-15, .223 cal. (a semiautomatic firearm that is capable of accepting a large capacity magazine);
• Mossberg 500 12-gauge shotgun;
• Norinco MAC90 (a semiautomatic firearm that is capable of accepting a large capacity magazine); and a
• Tikka T3, 30.06 rifle.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms. The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious narcotics charges are 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalties under federal law for the most serious firearms and explosives charges are 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant. # # #
1 February 2018
York Woman Charged with Wire FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Wendi E. Detter, age 44, of York, Pennsylvania, was charged in a criminal information on January 31, 2018, with wire fraud.
According to United States Attorney David J. Freed, Detter, who had been President and part owner of YCP, Inc., a construction and excavation business, embezzled more than $100,000 from YCP, Inc. The information alleges from January 2010 through June 2016, Detter used her position and her access to financial accounts to write herself checks for her own personal use and financial gain. The information also alleges that, in order to conceal the embezzlement, Detter made false entries in the company's QuickBooks accounting software she maintained as part of her duties.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph J. Terz is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the federal statute is 20 years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Hartford Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NELSON MARQUEZ, 31, of West Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2014, the Drug Enforcement Administration’s Hartford Task Force received information that David Alvarado, also known as “Flaco,” was distributing heroin to street-level dealers and drug customers in the vicinity of his residence on Wethersfield Avenue in Hartford. Between August 2014 and May 2015, investigators made eight controlled purchases of heroin from Alvarado. A wiretap investigation revealed that Alvarado supplied MARQUEZ both with raw heroin and heroin packaged for distribution, which MARQUEZ distributed to his own customers.
On May 26, 2015, investigators conducted a court-authorized search of Alvarado’s residence and seized raw heroin, bagged heroin, heroin stamps, digital scales, thousands of wax folds, and other items used to process and package heroin. Investigators also seized a 9mm Beretta pistol with a loaded magazine, and numerous rounds of ammunition.
MARQUEZ’s criminal history includes a federal conviction for conspiring to distribute crack cocaine. On May 7, 2010, MARQUEZ was sentenced in New Haven federal court to 42 months of imprisonment and 5 years of supervised release for that offense. He was released from federal prison in June 2012 and was on federal supervised release while he engaged in the heroin trafficking activity described above.
MARQUEZ has been detained since his arrest on November 1, 2016. On May 15, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
Alvarado has pleaded guilty to a related charge and awaits sentencing.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Weare Man Sentenced to 18 Months in Prison for Drug TraffickingRead the Press Release
CONCORD, N.H. - Kenneth Bailey, 53, of Weare, New Hampshire was sentenced in federal court to serve 18 months in prison for drug trafficking, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on five occasions in 2013 and once in 2014, a cooperating individual purchased methamphetamine or a combination of cocaine and methamphetamine from Bailey at his residence.
Bailey pleaded guilty to six counts of distributing controlled substances on October 25, 2017. In addition to his prison sentence, the defendant was fined $1,000 and will be on supervised release for three years.
“The law enforcement community is united in the effort to stop the distribution of dangerous drugs in New Hampshire,” said Acting U.S. Attorney Farley. “We will continue to identify and prosecute drug traffickers in order to protect the safety of our community.”
“Mr. Bailey will now pay the price for distributing dangerous drugs that pose a serious threat to our community,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Together, with our law enforcement partners, the FBI New Hampshire Safe Streets Gang Task Force will continue to do everything we can to crack down on illegal drug distributors and the violence that is associated with them.”
This matter was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Wareham Man Sentenced for Cocaine TraffickingRead the Press Release
BOSTON – A Wareham man was sentenced today in federal court in Boston in connection with trafficking cocaine.
Aaron Mott-Frye, 27, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 18 months in prison and three years of supervised release. In May 2017, Mott-Frye pleaded guilty to conspiracy to distribute cocaine and possession of cocaine with the intent to distribute.
Mott-Frye was a cocaine supplier to Christopher Wilkins and Christian Chapman, members of the Nauti-Block gang that operated on Cape Cod. On June 14-15, 2016, Mott-Frye distributed cocaine to a cooperating witness.
Christian Chapman and Christopher Wilkins pleaded guilty to heroin trafficking charges, among other crimes, and were sentenced to eight years and nine years in prison, respectively. Denzel Chisholm, the alleged leader of the Nauti-Block gang, was convicted by a federal jury and sentenced in September 2017 to 28.5 years in prison.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Lelling’s Criminal Division prosecuted the case.
Veteran Civil Litigator Appointed Civil Division ChiefRead the Press Release
PROVIDENCE, RI – Assistant United States Attorney Zachary A. Cunha, a civil litigator since 2001 and an Assistant United States Attorney since 2005, has been appointed by United States Attorney Stephen G. Dambruch to serve as the Civil Division Chief for the United States Attorney’s Office.
Prior to being named Civil Division Chief, Mr. Cunha served as the Affirmative Civil Enforcement Coordinator in the U.S. Attorney’s Office for the District of Rhode Island. In that capacity, he was responsible for cases in which the United States, as plaintiff, seek to vindicate governmental interests, combat fraud, and recover funds under the Federal False Claims Act.
Prior to joining the Rhode Island office in 2014, Mr. Cunha served as an Assistant U.S. Attorney in the District of Massachusetts for five years. While in the Boston office, he was appointed Chief of that office’s Affirmative Litigation Unit and was responsible for litigating and supervising the investigation of a number of nationally significant health care fraud matters. In 2010, Mr. Cunha was recognized with the Attorney General’s Award for Exceptional Service, the highest honor conferred by the Department of Justice, for his work on the prosecution team in United States v. Pfizer, which resulted in a recovery of $2.3 billion dollars; the largest civil and criminal healthcare fraud recovery made by the United States as of that time.
Mr. Cunha began his career with the Justice Department in the Eastern District of New York, where he served as an Assistant United States Attorney from 2005-2008. Before joining the Department, Mr. Cunha worked as an Assistant Corporation Counsel for the City of New York, representing the City and its officers in federal litigation.
Mr. Cunha received his Bachelor of Arts, with honors, from Brown University in 1998, and his Juris Doctorate, also with honors, from the George Washington University Law School in 2001.
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