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Wednesday 13 December 2017
West Virginia business owner pleads guilty to failing to pay employment taxesRead the Press Release
WASHINGTON – A Fayette County, West Virginia, business owner pleaded guilty today to failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District of West Virginia.
According to documents and information provided to the court, from 2008 through 2012, Steve Lopez, 68, owned and operated Ready Transport Services (RTS), a transportation business that mainly provided taxi services. From 2009 through 2012 he also owned RTS Ice Cream, Coffee and Candy Shop. Both businesses were located in Montgomery, West Virginia. Lopez was responsible for collecting and paying over to the Internal Revenue Service (IRS) social security, Medicare, and income taxes withheld from his employees’ wages. He also was responsible for paying the employer’s share of his employees’ social security and Medicare taxes. Lopez admitted that he did not pay approximately $393,851 in employment taxes due to the IRS, including funds he withheld from his employees’ paychecks as well as money he owed as their employer.
Chief U.S. District Court Judge Thomas E. Johnston scheduled sentencing for March 14, 2018. Lopez faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Casto commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
West Virginia Business Owner Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
A Fayette County, West Virginia, business owner pleaded guilty today to failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District of West Virginia.
According to documents and information provided to the court, from 2008 through 2012, Steve Lopez, 68, owned and operated Ready Transport Services (RTS), a transportation business that mainly provided taxi services. From 2009 through 2012 he also owned RTS Ice Cream, Coffee and Candy Shop. Both businesses were located in Montgomery, West Virginia. Lopez was responsible for collecting and paying over to the Internal Revenue Service (IRS) social security, Medicare, and income taxes withheld from his employees’ wages. He also was responsible for paying the employer’s share of his employees’ social security and Medicare taxes. Lopez admitted that he did not pay approximately $393,851 in employment taxes due to the IRS, including funds he withheld from his employees’ paychecks as well as money he owed as their employer.
Chief U.S. District Court Judge Thomas E. Johnston scheduled sentencing for March 14, 2018. Lopez faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Casto commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
West Haven Man Pleads Guilty to Heroin Distribution Charge Related to Bridgeport Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOHN RODRIGUEZ, 37, of West Haven, waived his right to be indicted and pleaded guilty yesterday in Bridgeport federal court to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, shortly after midnight on November 7, 2015, Bridgeport Police and emergency medical personnel responded to a residence in Bridgeport after a 29-year-old male had been found unresponsive by his roommate. The victim was transported by ambulance to the hospital where, after several attempts to revive him, he was pronounced dead.
The investigation, which included witness interviews and analysis of text message communication, revealed that RODRIGUEZ supplied heroin to the victim the day before he died.
A post-mortem toxicology report found fentanyl, marijuana and several anti-depressant drugs in the victim’s system, and the Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim died from acute fentanyl intoxication.
RODRIGUEZ was arrested on a federal criminal complaint on September 22, 2016.
RODRIGUEZ is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on March 5, 2018, at which time he faces a maximum term of imprisonment of 20 years.
At the conclusion of yesterday’s guilty plea proceeding, U.S. Magistrate Judge William I. Garfinkel ordered RODRIGUEZ, who had been released on bond, to be remanded to the custody of the U.S. Marshals Service.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the West Haven and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
West Haven Man Guilty of Meriden CarjackingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found DON MEEKER, 30, of West Haven, guilty of carjacking. The trial before U.S. District Judge Vanessa L. Bryant began on December 8 and the jury returned its verdict late yesterday afternoon.
According to the evidence at trial, on January 1, 2016, two men from out of state who were driving a rented 2015 Volkswagen Passat were victims of an armed carjacking in the vicinity of Hobart Street and Myrtle Street in Meriden. The victims reported that they had asked an individual, later identified as Kyle Valentine, for directions at a gas station. Valentine told the victims to follow a car in which Valentine was a passenger. After traveling a few minutes, the car stopped. Valentine and Elbert Llorrens then exited the car and approached the Passat. Llorens pointed a handgun at one of the victims who was sitting in the passenger seat of the car, opened the door and stated “I want everything.” The victims exited the car and Llorens and Valentine stole their wallets and cell phones and then drove away in the Passat.
The investigation revealed that MEEKER drove the car that the carjacking victims followed, and that MEEKER provided the handgun to Llorens. After the robbery, MEEKER, Llorens and Valentine spilt the money stolen from the victims.
MEEKER was arrested on March 9, 2017.
MEEKER was convicted of one count of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years. Judge Bryant scheduled sentencing for March 14, 2018. Judge Bryant also ordered MEEKER, who has been released on a $200,000 bond since June 2016, to be remanded to the custody of the U.S. Marshals Service pending sentencing.
Elbert Llorens and Kyle Valentine, both of New Haven, previously pleaded guilty to charges related to their roles in this carjacking. On March 20, 2017, Llorens was sentenced to 60 months of imprisonment. Valentine awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford, New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Patrick F. Caruso.
Warren man sentenced to more than 27 years in prison for having heroin and firearmsRead the Press Release
A Warren man was sentenced to more than 27 years in prison for having a kilogram of heroin and firearms, said U.S. Attorney Justin E. Herdman and Warren Police Chief Eric Merkel.
Ricardo B. McKinney, 32, was sentenced to 327 months after being convicted following a jury trial earlier this year.
“Between the kilo of heroin he had, and the two firearms he possessed despite being a felon, this defendant was a clear danger to the people of Warren,” Herdman said. “Law enforcement worked collaboratively in this case to make Trumbull County a safer place.”
Merkel said: “I would like to thank the Warren Street Crimes Unit for all of the hard work that was put into this case and their dedication to removing from our streets a drug that has killed so many in our city. I would also like to thank the U.S. Attorney's Office for prosecuting this case. This partnership is an essential element in our mission to eliminate drug traffickers from our community.”
A jury convicted McKinney in March on two counts of distribution of heroin, one count of possession with the intent to distribute one kilogram or more of heroin and one count of being a felon in possession of firearms following a weeklong trial.
McKinney sold heroin on two occasions in early 2015. Warren police arrested McKinney on Feb. 25, 2015, with approximately 1657.2 grams of heroin and two handguns. McKinney was prohibited from having a firearm because of prior felony convictions, according to court documents and trial testimony.
Prosecutors are forfeited nearly $30,000 and the two firearms seized as part of the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Daniel J. Riedl. The investigation was conducted by the Drug Enforcement Administration and the Warren Police Department.
United States Citizens and Illegal Aliens Charged in Marriage Fraud RingRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the filing of an indictment charging William Matthew Tex Price (31, Cocoa), April Coleen Moore (24, Satellite Beach), Khagan Mushfig Oglu Nabili (24, Azerbaijan), Zafar Bakhramovich Yadigarov (26, Uzbekistan), Valriy Tsoy (33, Kazakhstan), Maria Rogacheva (28, Russia), and Svetlana Vladimirovna Shakhramanyan (28, Azerbaijan) for their involvement in a marriage fraud ring operating out of Brevard County from 2015 to 2016. Each faces up to five years in federal prison. Price has also been charged in a separate indictment with possessing a firearm as a convicted felon and faces up to 10 years in federal prison for that offense. Denis Yakovlev (40, Russia) and Meghan Toole (28, Cocoa) were previously charged and pleaded guilty for their involvement in this conspiracy.
According to court documents, in October 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations worked with the Brevard County Clerk of the Court to investigate a significant surge in the number of aliens from Uzbekistan, Kazakhstan, Kyrgyzstan, and other former Soviet countries marrying U.S. citizens in Brevard County. This led to the arrest of Yakovlev and Toole on July 13, 2016. After his arrest, Yakovlev admitted to introducing approximately 100 individuals to each other over an 18-month period for the purpose of them entering into sham marriages for immigration benefits. Yakovlev claimed that his payment typically ranged from $1,000 to $2,000 per sham marriage, and that the American citizens were paid between $10,000 and $20,000 each.
“These criminals conspired to circumvent and exploit our nation's immigration laws for personal financial gain,” said HSI Special Agent in Charge James C. Spero. “This undermines the very objectives of our immigration laws and services, which are based on the honesty of the people who apply for immigration benefits.”
Last month, Nabili and Rogacheva each pleaded guilty to one count of marriage fraud. Price pleaded guilty to two counts of marriage fraud and one count of being a felon in possession of a firearm. Yadigarov, Tsoy, and Shakhramanyan were arrested on December 7, 2017, in the Eastern District of New York. Moore was arrested on October 15, 2016, and her trial date has been set for January 2, 2018.
In November 2016, Yakovlev was sentenced to 15 months’ imprisonment for encouraging or inducing an alien to reside in the United States, and Toole was sentenced to 4 months’ imprisonment for marriage fraud.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services - Fraud Detection and National Security Directorate, the Brevard County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Brevard County Clerk of the Court. It is being prosecuted by Special Assistant U.S. Attorney Christina R. Downes on assignment from the Office of the Principal Legal Advisor, ICE.
Two Los Angeles-Area Managers of Foreclosure Rescue Companies Convicted for Roles in Mortgage Fraud SchemeRead the Press Release
A federal jury found two Los Angeles, California-area managers of foreclosure rescue companies guilty today for their roles in a foreclosure rescue scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Jamie Matsuba, 33, and her father, Thomas Matsuba, 67, both of Chatsworth, California, were convicted after a one-week trial of one count of conspiracy to commit wire fraud, making false statements to federally insured banks and committing identity theft. In addition, both defendants were convicted of one count of making false statements to federally insured banks. Sentencing has been scheduled for May 14, 2018 at 10 a.m., before U.S. District Judge R. Gary Klausner of the Central District of California, who presided over the trial.
According to evidence presented at trial, from January 2005 to August 2014, Jamie Matsuba, Thomas Matsuba and others engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. The evidence further established that the conspirators obtained mortgages in the names of stolen identities. In addition, the defendants used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties, the evidence showed.
Three other defendants have been charged in this matter. Defendant Dorothy Matsuba, 66, of Chatsworth, who is the mother of Jamie Matsuba and wife of Thomas Matsuba, and her daughter, Jane Matsuba-Garcia, 41, of Camarillo, California, previously pleaded guilty and are awaiting sentencing. Defendant Young Park of Los Angeles, California, is a fugitive. In addition, in related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 47, of Canoga Park, California, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the FBI, IRS-CI, FHFA-OIG and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Twenty Illegal Aliens Indicted on Federal Document Fraud ChargesRead the Press Release
Memphis, TN – D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced today that 20 individuals have been indicted for working under false identities.
On November 28, 2017, law enforcement arrested 20 illegal aliens working under false identities. A Memphis employment agency, Provide Staffing, assigned multiple employees to Expeditors International, a freight forwarder based in Memphis.
In the course of their regular duties, Transportation Security Administration inspectors in Memphis noticed anomalies in Security Threat Assessment paperwork submitted on behalf of Provide Staffing workers on contract to Expeditors International, and referred their findings to Immigration and Customs Enforcement and the Tennessee Department of Safety and Homeland Security.
Tennessee Highway Patrol’s (THP) Criminal Investigative Division investigated and arrested these 20 individuals on state charges. ICE Homeland Security Investigations conducted a parallel investigation in coordination with TSA and other law enforcement agencies.
As a result of that investigation, the defendants are alleged to have presented fraudulent documents, between March 2016 and January 2017, to certify their identity and eligibility to work in the United States.
The Immigration and Reform Act of 1986, amended, and the Immigration and Nationality Act together require employers to verify the identity and employment eligibility of their employees using a prescribed form, Form I-9, and require that employees present documents to verify their identity and eligibility to work in the United States. Each defendant is charged with knowingly using a false identification document as evidence of
his or her employment eligibility, in violation of Title 18, United States Code, Section 1546 (a) or Section 1546(b) (2).
United States Attorney D. Michael Dunavant said: "In April, the Attorney General announced a renewed commitment by the Department of Justice to consistently and vigorously pursue criminal immigration enforcement, in order to disrupt organizations and deter unlawful conduct. This priority includes the aggressive prosecution of aggravated identity theft, document fraud, and misuse of visas and permits in the immigration context. These indictments fulfill that priority, protect critical infrastructure sites, and promote lawfulness in our immigration system."
"Individuals that utilize fraudulent identification to obtain restricted access to our nation’s transportation network, whether air, sea, or rail, create a vulnerability to our national supply chain," said Assistant Special Agent in Charge Robert Hammer, who oversees HSI’s efforts in Tennessee. "HSI will continue to partner with our federal and state law enforcement partners to protect our critical infrastructure from exploitation."
The 20 defendants indicted on federal charges include:
Jamie Ramundo Martinez, a/k/a/ Angel Martinez, 36, Guatemala
Pedro Garcia-Guaneros, a/k/a/ Pedro Garcia, 34, Mexico
Oscar Tepole-Sanchez, a/k/a/ Oscar Tepole, 36, Mexico
Hilda Hernandez-Garduno, a/k/a/ Hilda Hernandez, 37, Mexico
Angel Calmo-Aguilar, a/k/a/ Angel Calmo, 24, Guatemala
Edgar Lopez-Marin, a/k/a/ Edgar Lopez, 37, Mexico
Fernando Ramos-Jacobo, a/k/a/ Fernando Ramos, 27, Mexico
Willivaldo Arenales-Soriano, a/k/a/ Wilibaldo Arenales, 35, Mexico
Fernando Alexi Duran-Reyes, a/k/a/ Eduardo Duran, 43, Honduras
Ramon Paz-Peredes, a/k/a/ Ramon Paz, 47, Honduras
Josue Vaca-Alvarodo, a/k/a/Pedro Cordero, 41, Honduras
Arturo Robles-Larios, 36, Mexico
Sixto Landaverde-Rodriguez, a/k/a/ Sixto Rodruguez, 42, Mexico
Rodolfo Hernandez-Sanchez, a/k/a/ Leonel Sanchez, 37, Mexico
Henry Calmo-Aguilar, a/k/a/ Henry Calmo, 22, Guatemala
Eligio Lopez-Acevedo, 34, Mexico
Artemio Moreno-Gordillo, a/k/a/ Artemio Moreno, 44, Mexico
Jose Moreno-Martinez, 25, Mexico
Marlon Martinez-Martinez, a/k/a/ Marlon Martinez, 36, Honduras
Raquel Delin-Ramos, a/k/a/ Raquel Delin, 32, MexicoIf convicted, the defendants face a maximum five years imprisonment; $250,000 fine and 3 years supervised release to begin after incarceration.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
These cases were investigated by the Homeland Security Investigations, Transportation Security Administration and Tennessee Highway Patrol. Assistant U.S. Attorney Lauren Delery is prosecuting this case on the government’s behalf.
Two Los Angeles-Area Managers of Foreclosure Rescue Companies Convicted for Roles in Mortgage Fraud SchemeRead the Press Release
WASHINGTON – A federal jury found two Los Angeles-area managers of foreclosure rescue companies guilty today for their roles in a foreclosure rescue scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office, Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Jamie Matsuba, 33, and her father, Thomas Matsuba, 67, both of Chatsworth, were convicted after a one-week trial of one count of conspiracy to commit wire fraud, making false statements to federally insured banks and committing identity theft. In addition, both defendants were convicted of one count of making false statements to federally insured banks. Sentencing has been scheduled for May 14, 2018 at 10 a.m., before U.S. District Judge R. Gary Klausner, who presided over the trial.
According to evidence presented at trial, from January 2005 to August 2014, Jamie Matsuba, Thomas Matsuba and others engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. The evidence further established that the conspirators obtained mortgages in the names of stolen identities. In addition, the defendants used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties, the evidence showed.
Three other defendants have been charged in this matter. Defendant Dorothy Matsuba, 66, of Chatsworth, who is the mother of Jamie Matsuba and wife of Thomas Matsuba, and her daughter, Jane Matsuba-Garcia, 41, of Camarillo, previously pleaded guilty and are awaiting sentencing. Defendant Young Park, of Los Angeles, is a fugitive. In addition, in related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 47, of Canoga Park, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the FBI, IRS-CI, FHFA-OIG and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Stuart Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Farris Dwayne Griffin, age 42, of Stuart, Oklahoma pled guilty to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from on or about September 3, 2017 to on or about September 5, 2017, within the Eastern District of Oklahoma, the defendant, Farris Dwayne Griffin, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Statement of the U.S. Attorney’s Office concerning Proposed Injection SitesRead the Press Release
In studying safe injection facilities (SIFs), the Chittenden County State’s Attorney (CCSA) and the Commission members were motivated by their desire to save lives and combat the scourge of opiate addiction in Vermont. Everyone in the law enforcement community shares these goals. The U.S. Attorney’s Office, however, disagrees with the recommendation of the Commission that SIFs be established in Vermont. SIFs are counterproductive and dangerous as a matter of policy, and they would violate federal law.
As to policy, the proposed government-sanctioned sites would encourage and normalize heroin use, thereby increasing demand for opiates and, by extension, risk of overdose and overdose deaths. Opiate users, moreover, all-to-often believe they are purchasing heroin when, in fact, they are purchasing its common substitute, fentanyl, ingestion of which gives rise to greatly enhanced dangers of overdose and fatality. Introduction of fentanyl to SIFs would create additional public health risks, not only for the users, but for SIF staff members who might come in contact with that highly potent substance. Further, heroin and other opiates are not Vermont products, but rather, introduced to Vermont from out-of-state. End users – no matter the location they use – fuel the national and international market. When users purchase heroin (or fentanyl) for injection at an SIF, those transactions will stimulate the heroin market and put money into the hands of out-of-state profit-driven dealers and drug trafficking organizations, while doing nothing to ensure that consumers stop purchasing and injecting heroin. SIFs would, thus, frustrate and undermine years of hard work by those in Vermont law enforcement and the treatment community to decrease opiate use and trafficking. Such facilities would also threaten to undercut existing and future prevention initiatives by sending exactly the wrong message to children in Vermont: the government will help you use heroin. Indeed, by encouraging and normalizing heroin injection, SIFs may even encourage individuals to use opiates for the first time, or to switch their method of ingestion from snorting to injection, the latter carrying greatly increased risk of fatality and overdose. In short, opiate addicts need treatment, not a place to continue using. Rather than encourage and normalize heroin injection, by affording a purportedly legal setting for use, the government must help addicts stop using. We can achieve that goal. Time and again in federal court, we have seen defendants recover from heroin addiction with the help of law enforcement intervention, Judges (including those who oversee our drug courts), the United States Probation Office, and our partners in the drug treatment community. We continue to believe in statewide collaborative approaches to the addiction crisis that involve enforcement, treatment, and prevention.
Of equal importance, the proposed SIFs would violate several federal criminal laws, including those prohibiting use of narcotics and maintaining a premises for the purpose of narcotics use. It is a crime, not only to use illicit narcotics, but to manage and maintain sites on which such drugs are used and distributed. Thus, exposure to criminal charges would arise for users and SIF workers and overseers. The properties that host SIFs would also be subject to federal forfeiture.
The United States Attorney emphasizes that this statement is not intended to cast aspersions on the motives of anyone involved in the Commission recommendation, but rather, to express the perspective of the U.S. Attorney’s Office, and outline the ramifications under federal law. The U.S. Attorney’s Office appreciates the work of the CCSA and the members of her office. They are public servants dedicated to helping Vermonters. We have a strong relationship with the CCSA, and we look forward to working closely with all of Vermont’s State’s Attorneys to combat threats to the safety and security of Vermonters.
St. Bernard Resident Charged with Preparing False Tax ReturnsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that EMELDA MATTHEWS, age 36, of Violet, was charged today in a Bill of Information with Aiding and Assisting in the Preparation of False Tax Returns.
According to documents filed in federal court, MATTHEWS operated a small tax preparer business from her home in Violet. From 2013 through 2015, MATTHEWS, aided and assisted numerous federal income tax filers in preparing and filing false tax returns with the Internal Revenue Service.
The maximum penalty for aiding and assisting in the preparation of false tax returns is three years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Six Individuals Indicted in December 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the December 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
KELLY RAY POTTER JR., age 41, of McAlester, Oklahoma
Possessing Contraband In Prison (2 Counts)
The Indictment alleges that on or about October 24, 2017, in the Eastern District of Oklahoma, the Defendant, KELLY RAY POTTER JR., an inmate of a prison as defined in Title 18, United States Code, Section 1791(d)(4), did knowingly possess a prohibited object, to-wit: a knife-like object approximately ten (10) inches in length made from plexiglass material wrapped with a blue cloth as a handle, designed and intended to be used as a weapon, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(3) and 1791(d)(1)(B), punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about September 28, 2017, in the Eastern District of Oklahoma, the Defendant, KELLY RAY POTTER JR., an inmate of a prison as defined in Title 18, United States Code, Section 1791(d)(4), did knowingly possess a prohibited object, to-wit: a cellular telephone, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(4) and 1791(d)(1)(F), punishable by not more than 1 year imprisonment, a fine up to $100,000.00 or both.
The charges arose from an investigation by the Muskogee County Sheriff’s Office, the Okmulgee County Sherriff’s Office, and the U.S. Marshals Service.
Assistant United States Attorney Timothy Hammer
MICHAEL AARON CAMPBELL, age 21, of Muldrow, Oklahoma
Enticement Of A Minor Using A Facility Of Interstate Commerce (2 Counts)
The Indictment alleges that from on or about June 6, 2017, until on or about July 26, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, MICHAEL AARON CAMPBELL, 21 years old, did use and attempt to use, a facility and means of interstate commerce, the Internet, to knowingly persuade, induce, and entice an individual, Child #1, whom he believed to be under 16 years of age, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Rape, Second Degree, Title 21, Oklahoma Statute, Sections 1111 and 1114(B), and Lewd or Indecent Proposals or Acts with a Child under 16, Title 21, Oklahoma Statute, Section 1123, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that from in or about June 2017, the exact date being unknown to the Grand Jury, until on or about July 26, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, MICHAEL AARON CAMPBELL, 21 years old, did use and attempt to use, a facility and means of interstate commerce, by means of cellular communication, to knowingly persuade, induce, and entice an individual, Child #2, whom he believed to be under 14 years of age, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Rape, First Degree, Title 21 Oklahoma Statute, Sections 1111, and 1114(A)(1), Rape by Instrumentation, First Degree, Title 21, Oklahoma Statute Sections 1111.1(A) and 1114(A)(1), and Lewd or Indecent Proposals or Acts with a Child under 16, Title 21, Oklahoma Statute, Section 1123, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Muldrow Police Department and Homeland Security Investigations.
Assistant United States Attorney John David Luton
HENRI MICHELLE PIETTE, age 63, of Wagoner, Oklahoma
Kidnapping
Travel With Intent To Engage In Sexual Act With A JuvenileThe Indictment alleges that in or about January 1997, the exact date being unknown to the Grand Jury, in the Eastern District of Oklahoma, and elsewhere, the defendant, HENRI MICHELLE PIETTE, a/k/a Henri Michel Piette, a/k/a Henri Billy, a/k/a Dan Reed, a/k/a Billy Ira Sloop Jr., a/k/a Michael Wayne Mansfield, a/k/a Christopher Allen McAnear, an adult over 18 years of age, did unlawfully and willfully seize, confine, inveigle, decoy, kidnap, abduct, carry away, and hold for some benefit a female who had not attained the age of 18 years, who is known to the Grand Jury and, in committing, and in furtherance of the commission of the offense, transported the female in Interstate and Foreign commerce from the State of Oklahoma to States outside of Oklahoma and Foreign countries, in violation of Title 18, United States Code, Sections 1201(a)(1) and 1201(g). punishable by up to life imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that from in or about January 1997, the exact date being unknown to the Grand Jury, to July 28, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, HENRI MICHELLE PIETTE, a/k/a Henri Michel Piette, a/k/a Henri Billy, a/k/a Dan Reed, a/k/a Billy Ira Sloop Jr., a/k/a Michael Wayne Mansfield, a/k/a Christopher Allen McAnear, did travel in interstate commerce for the purpose of engaging in any sexual act, as defined in Title 18, United States Code, Section 2246, with another person under 18 years of age, said sexual act being a violation of Chapter 109A of the United States Code, in violation of Title 18, United States Code, Section 2423(b), punishable by up to 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Edward Snow
BRANDON EVERETT BARKER, age 36, of Port Aransas, Texas
MICHELLE DENISE CARSON, age 39, of Indianapolis, IndianaPossession Of An Electronic Image Of An Obligation Of The United States
Possession Of Counterfeit Obligations Of The United States
Possession Of An Identification Document Making Implement
Felon In Possession Of Firearm And AmmunitionThe Indictment alleges that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, BRANDON EVERETT BARKER and MICHELLE DENISE CARSON, did unlawfully and with intent to defraud, have in their control, custody, and possession, a digital and electronic image of an obligation or other security of the United States, to wit: a one hundred dollar bill, in violation of Title 18 United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, BRANDON EVERETT BARKER and MICHELLE DENISE CARSON, did knowingly have in their possession and custody, with intent to sell or otherwise use, six (6) counterfeited one-hundred-dollar Federal Reserve Notes, Series of 2006, Serial No. HB87632694B, made after the similitude of obligations issued under the authority of the United States, in violation of Title 18, United States Code, Sections 474(a) and 2, punishable by not more than 25 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants, BRANDON EVERETT BARKER and MICHELLE DENISE CARSON, did knowingly possess document making implements, to wit, applications and software used to create identification documents, located on two laptop computers, with the intent such document making implement would be used in the production of false identification documents, and the possession of the document making implement was in or affected interstate commerce, in violation of Title 18, United States Code, Sections 1028(a)(5), 1028(b)(1)(C) and 2, punishable by not more than 15 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that from on or about September 16, 2017, to on or about September 17, 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, BRANDON EVERETT BARKER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Atoka Police Department and the United States Secret Service.
Assistant United States Attorney Rob Wallace
AICHU SAESEE, age 29, of Visalia, California
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about July 14, 2017, within the Eastern District of Oklahoma, the Defendant, AICHU SAESEE, a/k/a Chava Seechan, a/k/a Aichu Johnnie Saesee, a/k/a Aicho Johnnie Saesee, a/k/a Aichu Chava Seechan, a/k/a Aichu Chava Saesee, a/k/a Johnny Aichu Saesee, a/k/a Johnny Alcho Saesee, and a/k/a Alchu Saesee, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The charge arose from an investigation by the Latimer County Sheriff’s Office and the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
Six Detroit Police Department Officers Charged with ExtortionRead the Press Release
Two current Detroit Police Department Officers and four retired Detroit Police Department Officers have been charged with extortion for accepting bribes from owners of automobile collision shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to their shops, acting United States Attorney aniel L. Lemisch announced today.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department.
Two current Detroit Police Department Officers were indicted yesterday by a federal grand jury and four retired Detroit Police Officers have pleaded guilty to committing extortion while they were Officers with the Detroit Police Department. All six officers were actively employed with the Detroit Police Department at the time of the alleged offenses.
The six officers charged are:
Deonne Dotson, age 45
Indicted today on 6 counts of Extortion
Currently Employed as a DPD Officer
Charles Wills, age 52
Indicted today on 4 counts of Extortion
Currently Employed as a DPD Officer
James Robertson, age 45
Pleaded guilty to an Information charging 2 counts of Extortion
Retired DPD Officer
Jamil Martin, 46
Pleaded Guilty to an Information charging 1 count of Extortion
Retired DPD Officer
Martin Tutt, age 29
Pleaded guilty to an Information charging 2 counts of Extortion
Retired DPD Officer
Anthony Careathers, age 52
Pleaded Guilty to an Information charging 1 count of Extortion
Retired DPD Officer
All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
“The vast majority of Detroit Police Officers are courageous, dedicated, superb public servants,” said Lemisch. “The charged defendants should have put the people of Detroit first, rather than lining their own pockets.”
“The actions of these six officers illustrate a pattern of misconduct and an abuse of authority, which is in contrast to the vast majority of law enforcement professionals at the Detroit Police Department who serve each day with distinction and integrity,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
“These defendants have allegedly engaged in criminal acts of public corruption that can erode the confidence that people have in government. The trust placed on these individuals required them to obey laws and conduct themselves in an ethical manner,” said Patricia Armstrong, U.S. Postal Inspector in Charge, Detroit Division.
"Certainly, we appreciate the relationship between the Detroit Police Department and the Federal Bureau of Investigation. While these allegations are troubling, we are relieved that this is bringing closure to a long standing issue that has plagued this department," said Chief Craig.
Officer Dotson will be arraigned in in federal court on December 19, 2017 at 1p.m. The arraignment date for Officer Wills is to be determined.
Each of the extortion charges carry a maximum sentence of 20 years imprisonment and a fine of $250,000.
Regarding Officers Dotson and Wills: an indictment is only a charging document and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Regarding retired Officers Robertson, Martin, Tutt, and Carethers, sentencing dates for these retired Officers, who have already pleaded guilty, will be in 2018, before the Honorable Robert H. Cleland.
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
Shreveport man pleads guilty to firearms chargesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Shreveport felon pleaded guilty to possessing a revolver.
Christopher Deshun Owens, 28, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of possession of a firearm by a convicted felon. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Shreveport 911 operators received a call on August 10, 2017 from Owens’ ex-girlfriend. They heard the ex-girlfriend and Owens arguing about a firearm. Owens had entered the ex-girlfriend’s home with a firearm. Police later arrived and detained Owens. A Charter 2000, Shelton, Conn., Model: Undercover, Caliber .38 SPL revolver was recovered from a child’s dresser drawer in the house. Owens initially denied carrying the gun but later admitted to it. Owens was previously convicted in Bossier Parish for possession of marijuana, second offense.
Owens faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of March 27, 2018.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Amilcar Menjivar Umana, 38, was sentenced by U.S. District Court Judge Allison D. Burroughs to six months in prison - to be served consecutive to an 18 month state sentence he is currently serving for violating the terms of his probation stemming from an OUI conviction - and one year of supervised release. Umana will also face deportation proceedings upon completion of his sentence. In October 2017, Umana pleaded guilty to one count of unlawful reentry of a deported alien.
Umana was previously deported on Oct. 25, 2013; Jan. 7, 2014; and March 20, 2014. On May 12, 2017, law enforcement encountered Umana and determined him to be illegally present in the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Salvadoran Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Juan David Monzon Tejada, age 29, and a citizen of El Salvador, pled guilty today to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Monzon Tejada was removed from the United States to El Salvador on September 22, 2015. On November 19, 2017, ICE Officers arrested him in Glenville, New York. Monzon Tejada admitted that he illegally returned to the United States following the 2015 removal.
Monzon Tejada faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on April 11, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Rockwall Man Indicted by Federal Grand Jury for Production of Child PornographyRead the Press Release
FORT WORTH, Texas — Jon Anthony Terry, 28, of Rockwall, Texas, was charged in a federal indictment, returned today by a grand jury in Fort Worth, Texas, with four counts of production of child pornography and one count of possession of prepubescent child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Terry is currently in custody on a related criminal complaint. A date has not yet been set for him to make his initial appearance.
The indictment alleges that, on one occasion in 2013 and three separate occasions in 2017, Terry induced three different prepubescent minors to engage in sexually explicit conduct while he recorded the conduct. The indictment also charges Terry with possessing images of child pornography in November 2017.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the possession count, not more than 10 years in prison. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Prisoner pleads guilty for role in federal drug conspiracyRead the Press Release
BLUEFIELD, W.Va. – A Charleston man pleaded guilty today for his role in a drug trafficking conspiracy, announced United States Attorney Carol Casto. Velarian S. Carter, 38, entered his guilty plea to conspiracy to distribute and to possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of crack, and more than 100 grams of heroin. Carter is one of 23 defendants indicted in June 2017 after a comprehensive investigation of drug trafficking in Southern West Virginia.
Carter admitted that between October 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants while he was incarcerated. The drug trafficking organization was responsible for distributing cocaine, crack, and heroin in and around Raleigh County. During the course of the conspiracy, Carter admitted to directing other participants outside of the jail to cook cocaine into crack and to distribute controlled substances in and around the Southern West Virginia. He also admitted that in some instances, he directed what prices should be charged for the drugs and how the money collected through the distribution of controlled substances should be distributed.
Carter faces at least 20 years and up to life in federal prison when he is sentenced on April 17, 2018. In a separate prosecution, Carter was sentenced in February 2017 to 20 years in federal prison for his role in a California-to-West Virginia drug conspiracy.
Other individuals implicated as a result of this drug investigation have entered guilty pleas and are awaiting sentencing. Cheyenne Fragale and Macon Fragale, two brothers from Boomer in Fayette County, previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, a quantity of oxycodone, and a quantity of heroin. They both face a mandatory minimum of 10 years and up to life in federal prison when they are sentenced on March 14, 2018. Dominic Copney, of Beckley, previously entered a guilty plea to conspiracy to distribute and possess with the intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018.
This prosecution was made possible through the cooperative efforts of several investigating agencies. The investigation was led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service provided assistance throughout the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The plea hearing was held before Senior United States District Judge David A. Faber.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Point Arena Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — Tion Makeise Foster, 22, of Point Arena, pleaded guilty today to sex trafficking of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Foster and co-defendant Monica Merlin Morales, 26, also of Point Arena, transported a 16‑year-old female victim to various places in the Eastern District of California and the San Francisco Bay Area in August 2016 so that she could engage in commercial sex acts for their financial benefit. They allegedly conspired to traffic her again in November and December that same year.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
Foster is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 18, 2018. Foster faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against Morales. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Pitcairn Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on December 12, 2017, named Lamar Rice, age 40, as the sole defendant.
According to the indictment, on or about November 14, 2017, Rice maintained a drug-involved premises, where he was found to be in possession of 100 or more marijuana plants, with the intent to distribute them. Rice, a convicted felon, is also charged with possessing ammunition. As a convicted felon, Rice is prohibited by federal law from possessing a firearm and/or ammunition.
The law provides for a total maximum sentence of not less than five years in prison and up to 40 years in prison, and a fine of up to $5,000,000 for the drug charges. Rice also faces a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both, on the possession of ammunition charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Paralegal Who Claimed to be Partner Attorney, President of Law Firm on Credit Card Applications Sentenced for Bank FraudRead the Press Release
CINCINNATI – Grady Calhoun, 35, of Hamilton, Ohio, was sentenced in U.S. District Court to 15 months in prison and two years of supervised release for three counts of bank fraud related to making representations as part of his application to obtain credit cards.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason Hayden, Acting Special Agent in Charge, United States Secret Service, announced the sentence handed down by U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, on three separate occasions, Calhoun made false claims about his occupation and income. During one application process with Chase Bank, he claimed he was a partner and president of a law firm called Serdekor LLC. Serdekor LLC is an Ohio limited liability company that was created and registered by Calhoun; however, Serdekor LLC is not a law firm and the defendant is not a licensed attorney. Rather, Calhoun was employed as a paralegal at a law firm in the Southern District of Ohio.
Calhoun manipulated the payment process to Chase Bank to keep the credit card accounts open as long as possible, and owes nearly $408,000 as a result of this scheme.
He also fraudulently obtained credit card accounts at Barclay’s Bank and applied for other lines of credit with another individual’s social security number. Calhoun owes Barclay’s more than $28,000.
Calhoun pleaded guilty in June, and as part of the plea agreement, Calhoun has agreed to pay the loss amounts to both banks in restitution.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
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Owner of New York Wholesale Food Distributor Indicted for Obstructing the IRS, Filing False Tax Returns, and StructuringRead the Press Release
A federal grand jury sitting in the Eastern District of New York returned an indictment yesterday, which was unsealed today, charging the owner of a wholesale food distributor with obstructing the internal revenue laws, aiding and assisting in the filing of false tax returns, and structuring currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Jose Cerritos resided in Brentwood, New York, and owned La Centro American Corp. (La Centro), a wholesale food distributor in Bayshore that sold to retail customers in the New York metropolitan area. The indictment alleges that Cerritos caused the filing of false individual and corporate income tax returns for 2011 and 2012 that did not report all of his income or all of La Centro’s gross receipts. Cerritos allegedly did not deposit all of La Centro’s receipts into its business bank accounts and did not inform his tax return preparer of the cash receipts that were not deposited into the business bank accounts. The indictment further alleges that Cerritos attempted to structure La Centro’s cash receipts in amounts less than $10,000 on the same or consecutive days, to evade bank-reporting requirements, and that he did so in a pattern of illegal activity involving more than $100,000 within a 12-month period.
The indictment also charges that in 2012 the Internal Revenue Service (IRS) seized funds from La Centro’s bank accounts due to the alleged structuring activity. According to the indictment, the United States then filed a civil action to forfeit the funds. Cerritos appeared as a claimant in the lawsuit. During the discovery phase of the litigation, he and the other claimants allegedly provided documents to the United States purporting to be sales reports for La Centro for 2011 and 2012, but which allegedly omitted millions of dollars of La Centro’s gross receipts.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Cerritos faces a statutory maximum sentence of three years in prison for each count of obstructing the internal revenue laws and aiding and assisting in the filing of false tax returns and ten years in prison for structuring. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah Ranney and Mark Kotila of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Durable Medical Equipment Company Sentenced to Two Years in Prison for Health Care FraudRead the Press Release
WASHINGTON – Emeka H. Chijioke, 41, formerly of Atlanta, Ga., and Nigeria, was sentenced today to two years in prison on a federal charge stemming from a scheme in which he defrauded the District of Columbia’s Medicaid program out of more than $500,000.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Chijioke pled guilty in September 2017, in the U.S. District Court for the District of Columbia, to a charge of health care fraud. He was sentenced by the Honorable Senior Judge Paul L. Friedman. The judge ordered Chijioke to pay $552,343 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment. Following his prison term, Chijioke will be placed on three years of supervised release.
Chijioke was arrested in December 2016 in Germany and extradited to the United States in April 2017 to face charges in an indictment returned in the District of Columbia.
According to a statement of offense submitted at the time of the plea, Chijioke was the majority owner, registered agent, and chief executive officer of Mead Medical Group, LLC, a durable medical equipment company organized in Maryland. Mead Medical provided medical equipment supplies, including incontinence supplies and garments, to District of Columbia Medicaid recipients.
Beginning in or about 2007 and continuing through 2012, Chijioke engaged in a scheme to defraud D.C. Medicaid by billing for incontinence supplies that were not provided, as detailed in the statement of offense. Chijioke instructed his office staff to complete doctor prescriptions calling for beneficiaries to receive the maximum amount of incontinence supplies allowed by D.C. Medicaid. At the same time, he had his office staff contact the Medicaid recipients to determine from them the actual amount of incontinence supplies they needed, and to provide them with those supplies. Chijioke hired a billing company to submit claims to the Medicaid contractor as if the maximum amount of supplies were provided to the recipients rather than the actual amount supplied. By arranging for the maximum amount of incontinence supplies to be billed, rather than the amount actually provided, Chijioke obtained approximately $580,000 that he was not entitled to receive from Medicaid.
During the investigation, $28,600 in funds generated through the scheme was administratively forfeited.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Special Agent in Charge DiGiulio expressed appreciation for the work performed by Special Agents from the FBI and HHS OIG. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section; former Assistant U.S. Attorney Lionel André; Paralegal Specialist Jessica Mundi; former Paralegal Specialists Corinne Kleinman, Kaitlyn Kruger, and Christopher Toms, and Litigation Technology Specialist Claudia Gutierrez. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and Kondi Kleinman, of the Fraud and Public Corruption Section, who prosecuted the case.
Orlando Pair Sentenced for Copyright Infringement of Microsoft Products and Conspiracy to Commit Wire FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Robert F. Stout (51) and Kasey N. Riley, a/k/a Kasey Stout (33), to 18 months’ imprisonment and 12 months of home detention, respectively, for conspiracy to commit wire fraud and copyright infringement relating to the sale of illegal activation keys for Microsoft products. As a part of their sentences, the Court also ordered them to pay $1,480,227, the proceeds of the charged criminal conduct.
Stout and Riley pleaded guilty on August 8, 2017.
According to court documents, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. They purchased unauthorized activation keys from various websites and then provided them, in exchange for PayPal payments, to at least 13,000 customers throughout the United States. They received at least $1.4 million from customers in exchange for the unauthorized, and often invalid, activation keys. Even after receiving customer complaints that specific activation keys were not functioning properly, Stout and Riley continued to sell them. For example, between September 2013 and June 2014, they sold one specific activation key approximately 880 times.
“This investigation involved years of hard work by HSI special agents and our partners at the Federal Bureau of Investigation,” said HSI Tampa Special Agent in Charge James C. Spero. “We have stopped these criminals from using intellectual property for their own illegal profit.”
The Better Business Bureau received at least 140 complaints from customers who had purchased the unauthorized software from the sham businesses. Over the course of two years, Stout and Riley also received - and ignored - at least four warnings from Microsoft to cease in their practices.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Albany Field Office of the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor (ICE) in the Middle District of Florida, and Assistant United States Attorney Wayne A. Myers from the Northern District of New York.
Oklahoma Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
An Oklahoma man was arrested yesterday after being charged by indictment with receipt and possession of child pornography, announced U.S. Attorney R. Trent Shores.
Thaddus Caves, 40, of Tulsa, Oklahoma, was indicted by a federal grand jury on December 5th, with one count each of receipt of child pornography and possession of child pornography. According to the indictment, in 2016, Caves knowingly received and possessed visual depictions of minors engaging in sexually explicit conduct.
The charges are the result of an investigation by the FBI’s Internet Crimes Against Children Task Force. The matter is being prosecuted by Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeffrey A. Gallant of the Northern District of Oklahoma.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims of exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Norcross business owners sentenced for defrauding the CDCRead the Press Release
ATLANTA - Cesar Arbelaez Tabares and Juan Carlos Bazantes, who owned and operated IWES Contractors, Inc., a drywall labor supply company in Norcross, Georgia, have been sentenced to each serve eight years in prison and pay a $75,000 fine following their trial and convictions for submitting false certified payroll forms to the Centers for Disease Control and Prevention (CDC) in connection with a construction project at the federal facility.
“Federal contractors and subcontractors are not immune from rules and laws that apply to any company with employees,” said U.S. Attorney Byung J. “BJay” Pak. “The jury’s verdict and the court’s sentence in this case reinforce that if you want to compete and obtain a federal contract work, you must abide by the law and truthfully report your payroll and employment tax withholdings.”
“Cesar Arbelaez Tabares and Juan Carlos Bazantes, as owners and operators of IWES Contractors Inc., had a known legal duty to withhold employment taxes from their employee wages” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “Tabares and Bazantes’ willful failure to withhold employment taxes was a deliberate attempt to undermine the tax system. IRS Criminal Investigation will remain committed to investigating and prosecuting employment tax fraud.”
“Cesar Arbelaez-Tabares and Juan Carlos Bazantes, principals of IWES Contractors, Inc., a drywall contracting company, submitted fraudulent certified payrolls in violation of the Davis-Bacon and Related Acts. We will continue to investigate those who undermine the U.S. Department of Labor’s ability to ensure that American workers are paid proper wages and that employers make the required payroll deductions and benefit contributions,” stated Rafiq Ahmad, Special Agent-in-Charge of the Atlanta Regional Office, Office of Inspector General, U.S. Department of Labor.
“By not withholding employment taxes from their wages, Cesar Arbelaez-Tabares and Juan Carlos of IWES Contractors willfully attempted to defraud the federal government,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This verdict and sentence demonstrates OIG’s commitment to hold accountable those who commit fraud against HHS agencies and departmental programs.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Cesar Arbelaez Tabares was the Chief Executive Officer and Juan Carlos Bazantes was the Chief Financial Officer of IWES, a Norcross-based business that supplied drywall laborers to contractors and subcontractors for construction projects. Beginning in 2012, IWES supplied drywall laborers for a construction project with the CDC.
Under the direction of Tabares and Bazantes, IWES maintained a double payroll system for its workers on the CDC project, which internally classified those workers as either “W2.REAL” or “W2.F.2CHK”. Those workers who were classified as “W2.REAL” received one paycheck each pay period with employment taxes withheld, received an IRS Form W-2 at the end of the calendar year, and were reported on quarterly employment taxes filed by IWES with the IRS.
Those workers who were classified as “W2.F.2CHK” received two paychecks simultaneously each pay period. The first paycheck totaled the worker’s net pay (gross wages minus employment taxes withheld), while the second paycheck received by the worker totaled the employment taxes withheld from the first paycheck so that the worker, in reality, was receiving his or her gross wages with no tax withholdings. Workers classified as “W2.F.2CHK” performed many of the same job duties as those who were classified as “W2.REAL,” but they did not receive an IRS Form W-2 at the end of the calendar year and were not reported on quarterly employment taxes filed by IWES with the IRS.
In connection with its subcontracting work on the CDC project, Tabares and Bazantes caused IWES to submit fraudulent certified payroll forms to the CDC, signed under penalty of perjury, which falsely represented that employment taxes had been withheld for all of the IWES workers on the CDC project, including those whom IWES had internally classified as “W2.F.2CHK” and whose employment tax withholdings were being returned to the employee in the form of a simultaneous second paycheck.
Cesar Arbelaez Tabares, 37, of Pembroke Pines, Florida, and Juan Carlos Bazantes, 45, of Miami, Florida, were sentenced by U.S. District Court Judge Steve C. Jones to eight years in federal prison. Tabares and Bazantes were each ordered to pay a $75,000 fine, and also serve three years of supervised release following completion of their prison sentence.
Tabares and Bazantes were found guilty by a jury following a one-week trial in August and September 2017, on one count of conspiracy and six counts of submitting false certified payroll forms to the CDC. They were acquitted of related tax charges.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U.S. Department of Labor-Office of Inspector General and the U.S. Department of Health and Human Services-Office of Inspector General.
Assistant U.S. Attorneys Steven D. Grimberg and Ryan J. Huschka prosecuted the case. The U.S. Department of Justice Tax Division provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Non-Indian Man from Albuquerque Pleads Guilty to Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Daniel A. Mendoza, 20, a non-Indian man from Albuquerque, N.M., pled guilty today in federal court to assaulting a federal officer.
Mendoza was arrested on Nov. 22, 2016, and was charged by criminal complaint with assaulting an officer of the Pueblo of Isleta Tribal Police Department, who is commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Mendoza assaulted the officer by running his vehicle into the officer’s vehicle while attempting to evade arrest. Mendoza committed the offense on Sept. 22, 2016, on the Isleta Pueblo in Bernalillo County, N.M.
Mendoza was subsequently indicted on Dec. 20, 2016, and charged with assault on a federal officer with a deadly and dangerous weapon, a vehicle, on Sept. 22, 2016, in Bernalillo County.
During today’s proceedings, Mendoza pled guilty to the indictment and admitted that on Sept. 22, 2016, in order to avoid arrest, he backed his truck into an Isleta Pueblo Police patrol vehicle that was being operated by an Isleta Pueblo Police Sergeant who was commissioned as a Special Law Enforcement Officer by the BIA. Mendoza further admitted that he then intentionally drove his truck forward and reversed a second time at a high rate of speed into the Isleta Pueblo Police Sergeant’s patrol vehicle.
At sentencing, Mendoza faces a maximum penalty of 20 years in federal prison. Mendoza remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Pueblo of Isleta Tribal Police Department and the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Nicaraguan Sentenced for 18-year-old RICO IndictmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ERWIN J. MIERISCH, JR., age 49, of Nicaragua, was sentenced today after previously pleading guilty to a one-count Indictment charging him with violating the Racketeer Influenced and Corrupt Organizations Act.
U.S. District Judge Sarah S. Vance sentenced MIERISCH to 4 years imprisonment to be followed by 3 years supervised release.
According to court documents, MIERISCH, along with co-defendants ROBERTO GAMBINI and JOSE ESTEBAN MCEWAN, conspired to launder drug proceeds and to assault the plaintiff in a Texas civil case to prevent her from testifying. The Indictment was handed down on July 9, 1999. GAMBINI pleaded guilty in 2000 and was eventually deported to his native Italy. The third defendant, MCEWAN, died in Nicaragua several years ago.
MIERISCH was a fugitive since the Indictment was returned. He was detained in Mexico City in December of 2016, and brought to this country to face the charge.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
New Orleans Man Pleads Guilty to Conspiracy to Alter U.S. Postal Money OrdersRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JARVIS WHEELER, age 29, of New Orleans, pleaded guilty today to conspiracy to alter U.S. Postal money orders.
According to the court records, WHEELER conspired with others in the New Orleans area to buy U.S. Postal money orders in small amounts (typically $1.00) and then the money orders were sent out of state where they were altered to much higher amounts. WHEELER, working with other conspirators, then enlisted individuals to deposit the altered U.S. Postal money orders into local bank accounts. Once the money orders cleared, the funds were withdrawn and split by WHEELER and the conspirators.
WHEELER faces up to five years imprisonment, a fine of up to $250,000, up to three year of supervised release following any term of imprisonment, and $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for April 18, 2018.
Acting U. S. Attorney Evans praised the investigative work of the United States Postal Inspector Office for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
New London Man Sentenced to 62 Months in Prison for Distributing Heroin Involved in 2 OverdosesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NESTOR SANTANA, also known as “Beans,” 30, of New London, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 62 months of imprisonment, followed by four years of supervised release, for distributing heroin that contributed to two overdose deaths in May 2016.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, Gomez sold a quantity of heroin to Adele Bouthillier, who then distributed the heroin to the victim. SANTANA supplied Gomez with the heroin that caused the death of the victim.
On May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old female lying face down on the bathroom floor.
The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the 34-year-old female’s death to be “Acute Ethanol and Fentanyl Intoxication.”
The investigation revealed that the victim was supplied with heroin/fentanyl by James Butler. Butler had been supplied with the drugs by Gomez, who in turn was supplied by SANTANA.
In August and September 2016, investigators made controlled purchases of heroin from SANTANA.
SANTANA was arrested on state charges on September 29, 2016. A search of his residence at the time of his arrest revealed an additional quantity of heroin and items used to process and package narcotics. He was arrested on a federal criminal complaint on January 31, 2017.
On September 20, SANTANA pleaded guilty in federal court to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
Gomez and Bouthillier each pleaded guilty to sex trafficking of a minor and heroin distribution offenses. On October 17, Bouthillier was sentenced to 43 months of imprisonment and, on December 12, Gomez was sentenced to 96 months of imprisonment.
Butler has pleaded guilty to a heroin distribution offense and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This matter stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
New Haven Man Sentenced to 40 Months in Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTRUM COSTON, 35, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on January 11, 2016, New Haven Police stopped a vehicle COSTON was driving. A search of the vehicle revealed a loaded Jimenez Arms 9 millimeter pistol, and a search of COSTON’s person revealed 13 baggies of cocaine and a quantity of crack cocaine. The firearm had been previously reported stolen.
Prior to January 2016, COSTON had sustained multiple felony convictions, including a federal conviction in 2004 for possession of a firearm by a felon. COSTON was sentenced to 37 months of imprisonment on that prior federal conviction and, in June 2007, an additional 18 months of imprisonment for violating the conditions of his supervised release.
On May 18, 2017, COSTON pleaded guilty to one count of possession of a firearm by a felon and one count of possession with intent to distribute cocaine and cocaine base (“crack”).
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael E. Runowicz.
Nevada Cardiologist Arrested for Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
An Elko, Nevada, cardiologist was arrested yesterday on 39-charges of unlawful distribution of prescription opioids and Medicare and Medicaid fraud, announced Attorney General Jeff Sessions, Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office, Special Agent in Charge David J. Downing for the DEA’s Los Angeles field office, and Special Agent in Charge Christian Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 58, of Elko, is charged with 36-counts of distribution of controlled substances such as oxycodone and hydrocodone, and three-counts of health care fraud. Patel is a cardiologist at his medical practice Northeastern Nevada Cardiology. The statutory maximum penalty for distribution of a controlled substance is 10 years in prison and the maximum penalty for health care fraud is 10 years in prison. He is scheduled to appear in federal court on Wednesday in Reno.
According to the 39-count indictment that was unsealed today, it is alleged that, from May 2014 to September 2017, Patel routinely prescribed fentanyl, hydrocodone, and oxycodone for his patients without a legitimate medical purpose and that he fraudulently billed Medicare and Medicaid for medical tests that he did not perform. The indictment alleges that Patel performed EKGs on his patients, so he could then order nuclear stress tests which he did not administer. He allegedly used a poorly calibrated machine and presented his patients with fraudulent X-Rays, in order to deceive his patients into thinking they had coronary issues that needed to be treated by him.
"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," said Attorney General Sessions. "This summer, I ordered the creation of the Opioid Fraud and Abuse Detection Unit, which brings together data analysts and Assistant United States Attorneys from throughout the country to prosecute doctors engaged in opioid-related health care fraud. Additionally, I assigned a dozen of our top federal prosecutors to focus solely on this problem where the epidemic is at its worst. Prosecuting these cases help cut off the supply of drugs and stop addiction from spreading. These prosecutors are already delivering results, filing charges against doctors in Western Pennsylvania and Nevada. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."
“Dr. Patel is the first person to be charged in Nevada since the formation of the Justice Department’s Opioid Fraud and Abuse Detection Unit,” said Acting U.S. Attorney Myhre.” The U.S. Attorney’s Office is committed to turning the tide of the prescription opioid epidemic that is plaguing our communities. We will continue to work with our law enforcement partners to investigate and prosecute individuals who contribute to this scourge.”
"Despite his physician's oath to do no harm, Dr. Patel recklessly prescribed opioids, for no legitimate medical purpose," stated FBI Special Agent in Charge Rouse. "The FBI is confident that today's arrest will send a message to other physicians that are prescribing opioids outside the scope of legitimate medical care. We are committed to using every tool in our arsenal to battle the opioid crisis in the state of Nevada."
“Our Country is in the midst of a devastating opioid crisis and DEA is using every resource available to identify the traffickers and facilitators fueling addiction in our communities,” said DEA Special Agent in Charge Downing. “Healthcare professionals who abuse the public’s trust and prescribe or dispense drugs purely for profit are drug dealers, and they’re going to be held accountable.”
“To combat this opioid epidemic, OIG will never hesitate to investigate health professionals more concerned with profits than patients,” said HHS-OIG Special Agent in Charge Schrank. “Inappropriately diagnosing patients and then prescribing medications is only compounded by the greed of sticking taxpayers with the bill.”
The case is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, Elko Combined Narcotics Unit, Nevada Department of Public Safety, and the Elko County Sheriff’s Office. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Over 64,000 Americans died from drug overdoses in 2016. The majority of these deaths can be attributed to opioids, including illicit fentanyl. For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens, and www.GetSmartAboutDrugs.com for parents, educators and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
Multiple federal inmates sentenced on weapons chargesRead the Press Release
BLUEFIELD, W.Va. – Five federal inmates were sentenced today for possessing weapons at the Federal Correctional Institution at McDowell, announced United States Attorney Carol Casto. As part of separate prosecutions, Scott Finnell, 29, was sentenced to a year and three months in prison; Misael Santana-Rivera, 32, was sentenced to a year and three months in prison; Antonio R. Azpeitia, 40, was sentenced to a year and three months in prison; Ernest Shields, 42, was sentenced to two years in prison; and Diego Ninos, 30, was sentenced to two years in prison. All of the defendants had previously pleaded guilty to possession of a weapon by an inmate of the institution.
Each inmate admitted to possessing a handcrafted weapon, commonly referred to as a “shank.” This year, from March until June, the weapons were either observed or discovered through searches by staff members of the Federal Correctional Institution at McDowell. The objects were made out of a variety of materials, including plastic, metal, and wood, and were sharpened to a point at one end. The inmates all admitted that the shanks were designed and intended to be used as weapons.
These cases were investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File handled these prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
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Monroe County Man Sentenced to Five Years’ Imprisonment for Firearms OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on December 12, 2017, United States District Court Judge James M. Munley sentenced Kyle Heller, age 29, of Monroe County, Pennsylvania, to five years’ imprisonment for a felony firearms offense.
According to United States Attorney David J. Freed, Heller possessed a Smith & Wesson 9mm handgun during and in relation to a drug trafficking crime in East Stroudsburg, Pennsylvania. In August 2016, Heller stole the firearm from an unlocked pickup truck in Monroe County, and used it to trade for cocaine and cash, with which he then purchased heroin.
The case was investigated by the U.S. Federal Bureau of Investigation, the Stroud Regional Area Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni 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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Missouri Man Indicted for Making Threats Against Augusta MosqueRead the Press Release
Savannah, GA – Preston Q. Howard, 49, of Wright City, Missouri, was indicted last week by a federal grand jury in Savannah for transmitting threats in interstate commerce to members of the Islamic Society of Augusta, Georgia. Today, Howard was arrested on those charges, the indictment against him was unsealed, and he will make an initial appearance before a federal magistrate judge in Missouri.
The indictment alleges that, between June 22, 2017 and August 8, 2017, Howard made numerous telephone calls to the mosque during which he threatened to “kill,” “shoot,” “behead,” “slaughter,” “execute,” “light on fire,” and “murder” members of the mosque, to “hunt down” and “zone in” on Muslims, and to “blow up the mosque.”
United States Attorney Bobby L. Christine said, “Those who make detestable and hateful threats against members of our community in violation of federal law will be held accountable, as we continue to work with our law enforcement partners to identify and bring to justice those who terrorize our citizens.”
“No one has the right to rob citizens of their sense of safety in their communities and where they practice their faith,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Threats intended to instill fear in religious communities are an attack on the very fabric of our society and will not be tolerated. The FBI will continue to vigorously investigate anyone who engages in such violent acts.”
The indictment against Howard charges ten counts of interstate communication with intent to threaten to injure. If convicted, Howard faces up to five years’ imprisonment on each count.
Mr. Christine emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The indictment of Howard arises out of an investigation led by the Federal Bureau of Investigation. Assistant United States Attorney Nancy Greenwood is prosecuting the case on behalf of the United States. For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
Middleman in Fraudulent Money Order Cashing Scheme Pleads GuiltyRead the Press Release
CAMDEN, N.J. – A Knoxville, Tennessee, resident today admitted recruiting individuals to cash fraudulent money orders that he received from a former South Jersey U.S. Postal Service (USPS) employee, Acting U.S. Attorney William E. Fitzpatrick announced.
Eugene Bowen, 35, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States.
According to the documents filed in this case and statements made in court:
Bowen admitted that Marc Saunders, 39, of Sicklerville, New Jersey, a former employee at the USPS branch in New Lisbon, New Jersey, provided him with stolen money orders and told him to recruit others to cash them. Bowen admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money for Saunders and himself.
The charge for transmitting and presenting unlawfully issued USPS money orders carries a maximum penalty of five years in prison and $250,000 fine. Bowen’s sentencing is scheduled for March 21, 2018.
On Dec. 12, 2017, Saunders pleaded guilty to his role in the scheme, including producing the money orders with a stolen imprinting machine and giving them to others to cash. His sentencing is set for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: John Brennan Esq., Marlton, New Jersey
Mexican National Sentenced to 17 Years for Drug Trafficking, Possessing a Machine GunRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court in two separate cases for drug trafficking and for illegally possessing a machine gun and a rifle.
Jonathan Villegas-Escobar, 26, a citizen of Mexico residing in Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to 17 years and seven months in federal prison without parole.
On March 6, 2017, Villegas-Escobar pleaded guilty to possessing a machine gun. Villegas-Escobar also pleaded guilty, in a separate federal indictment, to participating in a conspiracy to distribute methamphetamine and to using a firearm during a drug-trafficking crime.
Villegas-Escobar admitted that the amount of drugs foreseeable to him during the methamphetamine distribution conspiracy is 692.39 grams of pure methamphetamine. As relevant conduct, Villegas-Escobar also admitted responsibility for 5.29 kilograms of cocaine distributed with co-defendant Demond Robins, 36, of Kansas City, Mo.
During the course of the cocaine-trafficking conspiracy, Villegas-Escobar and Robins distributed approximately 1.9 kilograms of cocaine to a law enforcement confidential informant. Law enforcement officers seized approximately $152,675, which equates to approximately 3.392 kilograms of cocaine (based on approximately $45/gram). Additionally, Robins received approximately three kilograms of cocaine from co-defendant Jose Aguayo-Rodriguez, 25, a citizen of Mexico residing in Kansas City, Mo. (To avoid double-counting, only one additional kilogram of cocaine is attributed to Robins.) This results in a total of approximately 6.292 kilograms of cocaine.
Villegas-Escobar also admitted that he carried and used a .40-caliber Hi-Point rifle in relation to a drug-trafficking crime. Villegas-Escobar sold the firearm to another individual during a drug transaction in which he also sold methamphetamine to the same individual.
In the second federal case, Villegas-Escobar admitted that he possessed a machine gun on March 24, 2015. Villegas-Escobar sold another individual a Glock 9mm handgun, which had been converted into a fully-automatic machine gun.
Robins pleaded guilty and was sentenced to 12 years in federal prison without parole for his role in the drug-trafficking conspiracy and for participating in a money-laundering conspiracy. Aguayo-Rodriguez pleaded guilty and was sentenced to three years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Mexican Human Smugglers Head to Federal PrisonRead the Press Release
LAREDO, Texas – Two Mexican human smugglers have been ordered to prison following their convictions for bringing in 17 undocumented aliens, including five unaccompanied minors, into the United States, announced Acting U.S. Attorney Abe Martinez. Jesus Enrique Duran-Morales, 34, and Amilcar Rodolfo Molina-Ordinez, 35, both citizens and nationals of Mexico, pleaded guilty Oct. 2, 2017.
Today, U.S. District Judge Diana Saldaña sentenced both men to 51 months in federal prison. In handing down the sentences, the court noted their extensive immigration and criminal histories. Not U.S. citizens, they are expected to face deportation proceedings following their release.
Duran-Morales and Molina-Ordinez guided at least 17 undocumented aliens across the Rio Grande River and through ranch land near Laredo on Aug. 12, 2017. Agents from U.S. Border Patrol apprehended the group with the support of the Laredo Sector Horse Patrol Unit and Helicopter Support.
Among the 17 apprehended undocumented aliens were five unaccompanied minors, ranging in age from 14 to 17.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Border Patrol conducted the investigation. Special Assistant U.S. Attorney Lisa Ezra prosecuted the case.
Mexican Citizen Sentenced for Illegal Re-entry to United StatesRead the Press Release
ALBANY, NEW YORK – Jaime Marquez-Venancio, age 50, and a citizen of Mexico, was sentenced today to time served (76 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Marquez-Venancio admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on May 4, 2017. Marquez-Venancio was also previously removed to Mexico on April 28, 2017.
On September 28, 2017, Marquez-Venancio was arrested by Border Patrol Agents in Mooers, New York, as he was walking south away from the Canadian border after he illegally walked across the border at a remote location in Clinton County.
Following his sentencing, Marquez-Venancio was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Mexican Citizen Charged with Illegal Reentry After DeportationRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on December 12, named Uriel Reyes Espinoza, age 26, of Mexico, as the sole defendant.
According to the indictment presented to the court, Uriel Reyes Espinoza, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on August 26, 2008, May 1, 2012, February 2, 2014, and February 19, 2015. Uriel Reyes Espinoza was found to be illegally present in Butler, Pennsylvania, on November 28, 2017.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Merrillville Woman Convicted During 2-Day Jury TrialRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Anastacia Vann Maclin, age 46, of Merrillville, Indiana was convicted of embezzlement and theft from the Indiana Medicaid program, after a two-day jury trial before District Court Judge Philip P. Simon.
According to evidence presented in this case, Maclin was hired in January 2015 by a local physician in East Chicago, Indiana to function as the physician’s office manager and biller.
Beginning in April 2015 and continuing through July 2016 Maclin diverted more than $30,000 of Indiana Medicaid payments designated for her employer to a bank account that only she knew about and controlled. Maclin also applied for, received and diverted a 2015 bonus payment of more than $20,000 Indiana Medicaid was paying physicians for using electronic medical records by falsely representing the claim was being submitted by and for her employer.
This case was the result of an investigation by the Federal Bureau of Investigation and the Indiana Attorney General’s Medicaid Fraud Control Unit. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz and Jacky Jacobs.
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Member of Eastern European Organized Crime Syndicate Sentenced to 46 Months’ Imprisonment for RacketeeringRead the Press Release
Earlier today, in federal court in Brooklyn, Igor Krugly was sentenced by United States District Judge Brian M. Cogan to 46 months’ imprisonment following his conviction for racketeering, including illegal gambling and extortion conspiracy as predicate acts. Krugly was a prominent member of a violent, Brooklyn-based, Eastern European criminal syndicate linked to high-ranking members of the Eastern European mafia. Krugly also agreed to pay criminal forfeiture in the amount of $25,000. Krugly pleaded guilty to the charge in June 2017.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Angel M. Melendez, Special Agent-in-Charge, Immigration and Customs Enforcement, Homeland Security Investigations New York (ICE-HSI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George Beach, Superintendent, New York State Police (NYSP), announced the sentence.
“As a member of an Eastern European organized crime syndicate, Krugly engaged in traditional and pernicious rackets, operating illegal high stakes poker games and perpetuating a related, international extortion conspiracy,” stated Acting United States Attorney Rohde. “Krugly’s conviction and sentence demonstrate the resolve of this Office and our law enforcement partners to use all available tools to root out the destructive influence of organized crime groups wherever they operate.”
“Krugly was a leader of a criminal enterprise operating in New York that profited from illegal gambling, drug trafficking and other criminal acts,” stated DEA Special Agent-in-Charge Hunt. “Throughout the investigation, our Strike Force identified Krugly’s role in violent crimes committed in other countries including Russia and Israel. This conviction is a true testament to law enforcement’s tenacity and successful collaboration between federal, state, local and international law enforcement.”
“This criminal organization has been connected to arson, assault, illegal gambling and extortion, including using threats for repayment of a gambling debt,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing is the result of the hard work of the men and women from multiple agencies on the DEA’s Strike Force, and we are committed to working with our law enforcement partners and bringing these criminals to justice.”
“When defendants take extreme measures to continue their criminal activity, IRS-CI will add our financial expertise to strengthen these multi-agency investigations,” said IRS-CI Special Agent-in-Charge Robnett. “Today’s sentence is a direct result of the contributions from our law enforcement partners and prosecutors of the Eastern District of New York, who are committed to combating violations of federal law.”
“Today’s sentencing is a direct result of the hard work and cooperation among law enforcement at all levels, and I applaud all of our partners for their dedication to fighting organized crime,” stated NYSP Superintendent Beach. “The disruption of this illegal operation serves as a strong reminder that activities such as racketeering, illegal gambling and the violence that is perpetuated by such crimes will not be tolerated.”
According to court filings, members of the syndicate engaged in a wide range of organized criminal activities, including arson, assault, drug trafficking, extortion, illegal gambling and loansharking. Krugly co-owned and operated some of the syndicate’s high-stakes poker games in Brooklyn, and he used threats of violence to collect debts. In mid-2016, after a poker player who owed Krugly tens of thousands of dollars fled the country, Krugly and his co-defendants devised a plan to extort the player with the help of high-ranking members of Eastern European organized crime, known as “Thieves-in-Law” or “Thieves.” Court-authorized wiretaps captured Krugly planning to track down the player’s family in Russia to find out where he had fled: “This [expletive] is not [expletive] calling me. Right now, we need to find him or his father, that’s it . . . . they will approach the father, the wife of the father or his people there in Moscow.” Krugly and his co-defendants ultimately located the player in Israel and enlisted the help of the Thieves to confront him there. Less than an hour after being approached in Israel, the player contacted Krugly to arrange repayment of his debt.
Krugly was also the co-owner of a high-stakes poker game located inside a storefront at 2663 Coney Island Avenue in Brooklyn, which displayed a large poster bearing the name of the defendant’s private security business, “Pitbull Security,” in the window. Inside, however, was a professional poker room where Krugly was involved in every aspect of the business including recruiting players, paying out money to winners and collecting debts from losers, and hiring dealers and “massage girls.”
Eleven other members of the syndicate have been charged with racketeering crimes in this case. One defendant remains a fugitive, and seven have pled guilty to racketeering and related crimes. On November 13, 2017, co-defendant Isok Aronov was sentenced to a year and a day of imprisonment for unlawful debt collection. Defendants Leonid Gershman, Aleksey Tsvetkov and Artiom Pocinoc are awaiting trial. The remaining defendants are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Matthew Jacobs and Andrey Spektor are in charge of the prosecution.
Defendant Sentenced Today:
IGOR KRUGLY
Age: 38
Residence: Brooklyn, New YorkDefendant Previously Sentenced:
ISOK ARONOV
Age: 32
Residence: Brooklyn, New YorkDefendants Awaiting Trial:
LEONID GERSHMAN
Age: 34
Residence: Brooklyn, New York
ARTIOM POCINOC
Age: 28
Residence: Brooklyn, New York
ALEKSEY TSVETKOV
Age: 39
Residence: Brooklyn, New York
Defendants Awaiting Sentencing:
ERIC BOBRITSKY
Age: 32
Residence: BrooklynVYACHESLAV MALKEYEV
Age: 33
Residence: Manhattan, New York
YUSIF PARDILOV
Age: 52
Residence: Brooklyn, New YorkLIBRADO RIVERA
Age: 36
Residence: Brooklyn, New York
RENAT YUSUFOV
Age: 38
Residence: Brooklyn, New YorkFugitive:
VIKTOR ZELINGER
Age: 38
Residence: Brooklyn, New York
E.D.N.Y. Docket No. 16-CR-553 (S-2) (BMC)
Media NotificatonRead the Press Release
WHAT: D. Michael Dunavant, United States Attorney Western District of Tennessee, and Robert Hammer, Assistant Special Agent in Charge, Homeland Security Investigations, will make an announcement regarding the Department of Justice’s investigation into Criminal Immigration Enforcement. DATE: Wednesday, December 13, 2017 TIME: 3:30 p.m. WHERE: United States Attorney’s Office – Main Conference Room
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 2:30 p.m. Everything must be pre-set by 3:00p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Louisiana Return Preparer Sentenced to Seven Years in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Louisiana tax return preparer was sentenced to seven years in prison today for filing fraudulent returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
According to documents filed with the court, Shawanda Nevers, aka Shawanda Hawkins, Shawanda Bryant, and Shawanda Johnson, 49, operated a series of businesses in the LaPlace area, including 3LJ’s Café Services & Sports Bar LLC and 3LJ’s Industrial Service Solutions LLC. Between 2011 and 2016, Nevers filed fraudulent income tax returns that included fake business losses, deductions and tax credits and sought refunds to which her clients were not entitled. Despite a federal judge permanently enjoining her from preparing federal tax returns in 2014, Nevers continued to file fraudulent returns.
In addition to the term of prison imposed, U.S. District Court Judge Susie Morgan ordered Nevers to serve one year of supervised release and to pay restitution to the IRS for $6,934,764 in losses that she caused. She also was ordered to pay $128,900 to the Deepwater Horizon Oil Spill Trust and $964 to the Social Security Administration. Nevers pleaded guilty to filing fraudulent tax returns in August.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Evans commended special agents of IRS Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and Loan “Mimi” Nguyen, and Trial Attorney Grace Albinson of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Laplace Woman Sentenced for Embezzling over $940,000 from EmployerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGIE CAMBRE, age 43, of Laplace, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with wire fraud.
U.S. District Judge Sarah S. Vance sentenced CAMBRE to 33 months imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, CAMBRE was ordered to pay restitution in the amount of $940,336.24.
According to court documents, CAMBRE was hired in August 2011 to be the accountant and bookkeeper for a commercial printing company headquartered in New Orleans that specializes in printing materials, such as flyers and manuals, geared toward the automotive industry (“Company A”). Between November 2011 and June 2016, CAMBRE embezzled approximately $940,336.24 from Company A in a series of approximately 3,300 individual transactions, without Company A’s knowledge or authorization. CAMBRE did so by causing payments to be sent from one of Company A’s bank accounts to accounts under her control and to repay debts due and owing related to her personal use. To disguise her behavior and to make the fraudulent, unauthorized withdrawals appear legitimate, CAMBRE recorded the transactions in Company’s A’s ledger as having been legitimate expenditures made payable to various corporate entities with whom Company A had business relationships.
Acting U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Jordan Ginsberg was in charge of the prosecution.
Kayenta Man Sentenced to 37 Months in Federal Prison for Involuntary Manslaughter Related to Drunk DrivingRead the Press Release
PHOENIX – On Dec. 12, 2017, Morris Singer, 54, of Kayenta, Ariz., and a member of the Navajo Nation, was sentenced by U.S. Senior District Judge Stephen M. McNamee to 37 months in prison, followed by 3 years of supervised release. Singer had previously pleaded guilty to involuntary manslaughter.
The case involved Singer driving his vehicle while intoxicated. The victim, also a member of the Navajo Nation, was the passenger in Singer’s vehicle. Singer lost control of the vehicle and it rolled several times, ejecting the victim. The victim died from injuries sustained from the crash, which occurred within the Navajo reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Sharon Sexton and Alex Samuels, Assistant United State Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8049-PCT-SMM
RELEASE NUMBER: 2017-121_Singer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant DDoS AttacksRead the Press Release
The Justice Department announced today the guilty pleas in three cybercrime cases. In the District of Alaska, defendants pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices, and in the District of New Jersey, one of the defendants also pleaded guilty to launching a cyber attack on the Rutgers University computer network.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Bryan D. Schroder of the District of Alaska, Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Assistant Director Scott Smith of the FBI's Cyber Division made the announcement.
On Dec. 8, Paras Jha, 21, of Fanwood, New Jersey; Josiah White, 20, of Washington, Pennsylvania; and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal Informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet targeted IoT devices – non-traditional computing devices that were connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain control over the victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful distributed denial-of-service, or “DDOS” attacks, which occur when multiple computers, acting in unison, flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
On Dec. 8, Paras Jha and Dalton Norman also pleaded guilty to criminal Informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected over 100,000 primarily U.S.-based computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that makes it appear that a real user has “clicked” on an advertisement for the purpose of artificially generating revenue.
On Dec. 13, Paras Jha pleaded guilty in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 to September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multi-day periods, harming Rutgers University, its faculty, and its students.
“The Mirai and Clickfraud botnet schemes are powerful reminders that as we continue on a path of a more interconnected world, we must guard against the threats posed by cybercriminals that can quickly weaponize technological developments to cause vast and varied types of harm,” said Acting Assistant Attorney General Cronan. “The Criminal Division will remain constantly vigilant in combating these sophisticated schemes, prosecuting cybercriminals, and protecting the American people.”
“Our world has become increasingly digital, and increasingly complex,” said U.S. Attorney Schroder. “Cybercriminals are not concerned with borders between states or nations, but should be on notice that they will be held accountable in Alaska when they victimize Alaskans in order to perpetrate criminal schemes. The U.S. Attorney’s Office, along with our partners at the FBI and Department of Justice‘s Computer Crime and Intellectual Property Section (CCIPS), are committed to finding these criminals, interrupting their networks, and holding them accountable.”
“Paras Jha has admitted his responsibility for multiple hacks of the Rutgers University computer system,” said Acting U.S. Attorney Fitzpatrick. “These computer attacks shut down the server used for all communications among faculty, staff and students, including assignment of course work to students, and students’ submission of their work to professors to be graded. The defendant’s actions effectively paralyzed the system for days at a time and maliciously disrupted the educational process for tens of thousands of Rutgers’ students. Today, the defendant has admitted his role in this criminal offense and will face the legal consequences for it.”
“These cases illustrate how the FBI works tirelessly against the actions of criminals who use malicious code to cause widespread damage and disruptions to the general population,” said FBI Assistant Director Smith. “The FBI is dedicated to working with its domestic and international partners to aggressively pursue these individuals and bring justice to the victims.”
For additional information on cybersecurity best practices for IoT devices, please visit: /media/906536/dl?inline.
All three cases were investigated by the FBI’s Anchorage, Alaska and Newark, New Jersey Field Offices; and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Atlanta - Greenville South Carolina Office. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. Additional assistance was provided by the FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai. Former Department of Justice prosecutors Ethan Arenson, Harold Chun, and Yvonne Lamoureux provided invaluable support during their previous tenure at DOJ.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant DDOS AttacksRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the guilty pleas in three cybercrime cases. In the District of Alaska, defendants pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices, and in the District of New Jersey, one of the defendants also pleaded guilty to launching a cyber attack on the Rutgers University computer network.
On Dec. 8, Paras Jha, 21, of Fanwood, New Jersey; Josiah White, 20, of Washington, Pennsylvania; and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal Informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet targeted IoT devices – non-traditional computing devices that were connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain control over the victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful distributed denial-of-service, or “DDOS” attacks, which occur when multiple computers, acting in unison, flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
On Dec. 8, Paras Jha and Dalton Norman also pleaded guilty to criminal Informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected over 100,000 primarily U.S.-based computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that makes it appear that a real user has “clicked” on an advertisement for the purpose of artificially generating revenue.
On Dec. 13, Paras Jha pleaded guilty in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 to September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multi-day periods, harming Rutgers University, its faculty, and its students.
“Our world has become increasingly digital, and increasingly complex,” said U.S. Attorney Schroder. “Cybercriminals are not concerned with borders between states or nations, but should be on notice that they will be held accountable in Alaska when they victimize Alaskans in order to perpetrate criminal schemes. The U.S. Attorney’s Office, along with our partners at the FBI and Department of Justice’s Computer Crime and Intellectual Property Section (CCIPS), are committed to finding these criminals, interrupting their networks, and holding them accountable.”
“The FBI Anchorage Office investigated this case because many rural Alaska communities and businesses are uniquely vulnerable to cyber-crimes due to our reliance on the integrity of Internet access,” said Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage Division.
For additional information on cybersecurity best practices for IoT devices, please visit: https://www.justice.gov/criminal-ccips/page/file/984001/download.
All three cases were investigated by the FBI’s Anchorage, Alaska and Newark, New Jersey Field Offices. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. Additional assistance was provided by the FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai. Former Department of Justice prosecutors Ethan Arenson, Harold Chun, and Yvonne Lamoureux provided invaluable support during their previous tenure at DOJ.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant Cyber AttacksRead the Press Release
Defendants Responsible for Rutgers University Hack, Creating Mirai and clickfraud Botnets, Infecting Hundreds of Thousands of Devices with Malicious Software
TRENTON, N.J. – The Justice Department announced today guilty pleas in three cybercrime cases. In the District of New Jersey, one defendant also pleaded guilty to launching a cyber attack on the Rutgers University computer network, and in the District of Alaska, that defendant and two others pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division; U.S. Attorney Bryan D. Schroder of the District of Alaska; and Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage Division and made the announcement.
Paras Jha, 21, of Fanwood, New Jersey, pleaded guilty today before U.S. District Judge Michael Shipp in Trenton federal court in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 and September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multiple consecutive periods, causing damage to Rutgers University, its faculty, and its students. The count to which Jha pleaded guilty is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 13, 2018.
On Dec. 8, 2017, Jha, Josiah White, 20, of Washington, Pennsylvania, and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet, targeted IoT devices – non-traditional computing devices that have been connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain administrative or high-level access to victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful “distributed denial of service” (DDOS) attacks, which occur when multiple computers acting in unison flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
Jha and Norman also pleaded guilty to criminal informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected more than 100,000 primarily U.S.-based Internet-connected computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The defendants then used the compromised devices as a network of proxies through which they routed Internet traffic. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that utilizes “clicks,” or the accessing of URLs and similar web content, for the purpose of artificially generating revenue.
“Paras Jha has admitted his responsibility for multiple hacks of the Rutgers University computer system,” Acting U.S. Attorney Fitzpatrick said. “These computer attacks shut down the server used for all communications among faculty, staff and students, including assignment of course work to students, and students’ submission of their work to professors to be graded. The defendant’s actions effectively paralyzed the system for days at a time and maliciously disrupted the educational process for tens of thousands of Rutgers’ students. Today, the defendant has admitted his role in this criminal offense and will face the legal consequences for it.”
“Today's guilty plea is a testament to the countless hours of hard work and dedication by law enforcement in the fight against cyber criminals,” FBI Newark Special Agent in Charge Timothy Gallagher said. “Cybercrime knows no boundaries. Dismantling these operations is possible only by working closely with our partners.”
“The Mirai and Clickfraud botnet schemes are powerful reminders that as we continue on a path of a more interconnected world, we must guard against the threats posed by cybercriminals that can quickly weaponize technological developments to cause vast and varied types of harm,” Acting Assistant Attorney General Cronan said. “The Criminal Division will remain constantly vigilant in combating these sophisticated schemes, prosecuting cybercriminals, and protecting the American people.”
For additional information on cybersecurity best practices for IoT devices, please visit: https://www.justice.gov/criminal-ccips/page/file/984001/download .
All three cases were investigated by the FBI. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. Additional assistance was provided by the FBI Newark Cyber Task Force, Rutgers University Police Department, N.J. State Police, the Federal Protective Service, FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai.
Defense counsel: Robert Stahl Esq., Westfield, New Jersey