Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 13 December 2017
Jury convicts operator of National Vocation Group job-staffing company of wire fraudRead the Press Release
ATLANTA – A federal jury in Atlanta has convicted Erick Powell, a former operator and co-owner of the National Vocation Group job-staffing company, of wire fraud. A second defendant and co-owner, Ahmad McCormick, pleaded guilty to wire fraud on August 31, 2017.
“Powell and his co-defendant used their company to dupe hundreds of job-seekers into paying high fees for unnecessary training with the expectation of placement in jobs that did not exist,” said U.S. Attorney Byung J. “BJay” Pak. “The jury’s verdict is a strong message to other criminals that law enforcement will find and prosecute any person or company seeking to take advantage of the hard-working citizens of this district.”
“Erick Powell deceived victims into believing they were applying for legitimate jobs that required certain Occupational Safety and Health Administration certifications when, in fact, they were not. Powell and his co-conspirators used phony online job postings to lure unsuspecting applicants into fraudulently paying their company for unnecessary OSHA training certifications. We will continue to work with OSHA and our law enforcement partners to investigate those who prey on legitimate job seekers,” stated Rafiq Ahmad, Special Agent in Charge, Atlanta Regional Office, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Pak, the charges, and other information presented in court: Powell and Ahmad McCormick operated a fraudulent job-staffing company in Atlanta called National Vocation Group (NVG) from August 2015 through October 2015. Powell and McCormick used Indeed.com and ZipRecruiter.com to advertise open and available jobs in the housekeeping and maintenance industries that paid above-average wages. These advertisements falsely represented that NVG had existing contracts with commercial cleaning companies throughout the Atlanta area; that the jobs paid above-average wages of up to $17/hour; and that NVG could place its clients in these high-paying jobs.
When NVG’s job applicant clients were interviewed by Powell, McCormick, and other employees of NVG, the applicants were told that, to be hired for the advertised jobs, they would have to pay $349 for certain OSHA (Occupational Safety and Health Administration) training. The applicants were falsely told that federal law required housecleaning and maintenance workers to take the OSHA General Industries Course before starting work in the advertised jobs. Hundreds of applicants paid the $349 fee based on NVG’s false representations, and took the OSHA course as required, but none of those applicants received the high-paying jobs they were promised.
Several victims complained to law enforcement, and some notified local media outlets. NVG relocated its offices from downtown Atlanta to East Point, Georgia, where the company continued its fraudulent activities. The company eventually disbanded in mid-October 2015, although both McCormick and Powell continued operating other similar, fraudulent job-staffing companies after NVG ceased operating.
On October 25, 2016, a federal grand jury returned an indictment charging McCormick and Powell for wire fraud conspiracy and ten substantive wire fraud counts. On August 31, 2017, McCormick pled guilty to wire fraud conspiracy pursuant to a guilty plea agreement. On September 14, 2017, a federal grand jury returned a superseding indictment charging Powell with wire fraud conspiracy and three substantive counts of wire fraud. On December 11, 2017, after a four-day trial, a federal jury returned a verdict convicting Powell on one count of substantive wire fraud. The jury acquitted Powell on the other counts.
Erick Powell, 29, of New Windsor, New York, and Ahmad McCormick, 31, of Brooklyn, New York, will be sentenced in early 2018. Both defendants face a statutory maximum penalty of 20 years of imprisonment.
This case is being investigated by the U.S Department of Labor, Office of the Inspector General. The East Point Police Department also provided assistance.
Assistant U.S. Attorneys John S. Ghose and Lynsey M. Barron are prosecuting the case.
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.
Jury Convicts Businessman of Defrauding the City of San Antonio with Respect to an Alamodome Janitorial Services ContractRead the Press Release
In San Antonio this afternoon, a jury convicted 54-year-old Geoffrey Comstock, owner and operator of the Frio Nevado Corporation (Frio Nevado), for overbilling the City of San Antonio by more than $500,000 for janitorial services at the Alamodome announced United States Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
The jury convicted Comstock of one count of conspiracy to commit wire fraud and six substantive counts of wire fraud. Testimony during trial revealed that from 2002 to 2016, Frio Nevado had a contract to provide janitorial services to the City of San Antonio at the Alamodome on a daily basis and for special events. Between June 2014 and January 2016, Comstock implemented a scheme to submit fraudulent invoices to the City of San Antonio that inflated the number of man hours of janitorial work performed at the Alamodome. A contract review in 2016 by the City of San Antonio Financial Department revealed that in July 2015, Comstock began preparing, or directed other employees to prepare and submit, timesheets that did not accurately reflect the names of employees, number of employees, or number of man hours expended, to justify the previously submitted false invoices. Based upon those fraudulent invoices, the City of San Antonio overpaid Frio Nevado by more than $500,000. The jury acquitted Comstocks’s former billing coordinator, 58-year-old Anna Becerra, of all charges.
“Comstock took advantage of the level of good faith and fair dealing in our financial system for his own personal gain,” said Special Agent in Charge Shane Folden, HSI San Antonio. “This case clearly demonstrated the company was defrauding the city by overbilling hundreds of thousands of dollars in fake hours at the expense of tax payers.”
Comstock faces up to 20 years in federal prison on each charge. Sentencing has yet to be scheduled.
Homeland Security Investigations (HSI) investigated this case with the cooperation of the City of San Antonio. Assistant United States Attorneys Gregory Surovic and Bud Paulissen are prosecuting this case on behalf of the Government.
Julian Robles Sentenced to Federal Prison for Drug Trafficking CrimeRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JULIAN ROBLES, age 40, from Agat, was sentenced in District Court to a term of 20 years imprisonment for Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846; Conspiracy to Launder the Proceeds of the Unlawful Distribution of Controlled Substances, in violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i); and Felon in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g). The Court also ordered ten years of supervised release following defendant’s term of imprisonment and payment of a mandatory $300 assessment fee. Robles was subject to federal sentencing enhancements due to prior convictions for Robbery in Hawaii and Possession of a Scheduled II Controlled Substance in Guam. Additionally, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
Acting U.S. Attorney Anderson stated, “The primary goal of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program has been to identify, investigate, and prosecute the transnational, national, and regional criminal organizations most responsible for the illegal drug supply in the United States, the diversion of pharmaceutical drugs, and the violence associated with the drug trade. As this complex drug investigation revealed, Guam is not immune from this type of organized activity. Armed drug traffickers pose an exceptionally grave danger to our communities. The possession of one round of ammunition can expose a prohibited person to substantial federal penalties. The public can expect our federal and local law enforcement partnership to continue to focus its resources and expertise to combat this criminal activity.”
This OCDETF case involved federal agents and local law enforcement officers of the Drug Enforcement Administration, U.S. Postal Inspection Service , Internal Revenue Service-Criminal Investigations, U.S. Department of Homeland Security, Homeland Security Investigations, Guam Police Department, Guam Customs and Quarantine Agency, Bureau of Alcohol, Tobacco, Firearms & Explosives, U.S. Coast Guard Criminal Investigative Service, U.S. Marshals Service, and the Judiciary of Guam Probation Division. The case was prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero and former Assistant U.S. Attorney Clyde Lemons Jr.
Indictment: Two Topeka Men Robbed Health ClubRead the Press Release
TOPEKA, KAN. – Two Topeka men were indicted Wednesday on charges of robbing a health club where one of them used to work, U.S. Attorney Tom Beall said.
Lesley Jamar Terrell, Jr., 33, Topeka, Kan., and George Bernard Phelps, III, 31, Topeka, Kan., are charged with one count of robbery. The indictment alleges that on Nov. 24, 2017, the two defendants robbed the Genesis Health Club at 2909 Southwest 37th Street in Topeka.
A criminal complaint in the case alleges that a Genesis employee came upon the two defendants in the lobby of the business while they attempted to pry open a box used for money deposits by members of the club. One of the defendants told the employee the robbers did not want trouble and instructed him to wait in an adjacent room. The defendant stood in the doorway of the room with his hand in the waistband of his pants. The defendants removed cash and checks from the box and then fled.
When police arrived, the employee told them one of the robbers resembled a former employee of the business. Investigators identified Terrell as a prior employee of the business who worked as an overnight maintenance worker.
If convicted, the defendants face up to 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Xavier Leron Sims, 30, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 21, 2017
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
INTERPOL Washington Employee Joins FEMA Relief EffortsRead the Press Release
This year’s Atlantic hurricane season devastated vast swaths of the southern United States and nations of the Caribbean. Of the 17 named storms of the season, three—Harvey, Irma, and Maria—combined to make 2017 one of the most dangerous and costly ever. In response to a government–wide call for volunteers, INTERPOL Washington Information Technology (IT) Specialist Chris Gorham answered.
The sheer number and ferocity of the storms and their trails of devastation led the Federal Emergency Management Agency (FEMA) to open its Surge Capacity Force to Federal employees outside of the Department of Homeland Security, including the Department of Justice. The surge force supplements FEMA’s first responders, by providing extra personnel when disasters overwhelm FEMA resources. The volunteers work in tours of duty not to exceed 45 days. In 2017, surge force volunteers deployed to Texas, Florida, and the Caribbean, including Puerto Rico and the U.S. Virgin Islands.
On Friday, September 29th, Gorham received his notice to activate as a volunteer. By Sunday, he was in Anniston, Alabama, at FEMA’s training facility known as the Center for Domestic Preparedness. This state-of-the-art facility provides training to state, local, and tribal emergency response providers. Gorham spent the next three weeks in training with, and ultimately providing training to, other U.S. Government volunteers.
Hurricane Maria had devastated Puerto Rico on September 20th. As an IT specialist, Gorham was assigned to the IT team to support the stand-up of FEMA Disaster Recovery Centers (DRCs). DRCs serve homeowners, renters and business owners who sustained damage as a result of Hurricane Maria. The team left Alabama for a mission to setup DRCs around the island.
The team arrived in a country still reeling. By mid-October, internet connectivity and electrical power remained scarce. Accommodations for the volunteers were also sparse as was air conditioning, food, and clean drinking water. According to Gorham, “For the first few weeks, we slept on cots in the back of the San Juan Convention Center, before moving to one of the U.S. military ships docked in San Juan, and ultimately to a small hotel. The days were long—10-12 hours per day, 7 days per week was normal. Our conditions were difficult but nothing like the conditions for the local people. We knew our hardship would end in 45 days.”
From their base in San Juan, Gorham and his team traveled across the devastated island, using washed-out roads littered with fallen power lines, shredded traffic signs, and debris torn from lost homes and businesses. Without internet connectivity, GPS mapping systems didn’t work consistently making travel to remote areas difficult and tedious. For example, Humacao, a city located on the eastern coast of the island, is normally about a one-hour drive from San Juan. During the time that Gorham was there, the trip took more than three hours. Visiting up to three locations per day in each town, the team used stadiums, gymnasiums, and other large buildings to provide IT support for the newly established DRCs. At times they found themselves helping to distribute basics such as food and water to people waiting in 95-degree heat for sustenance.
During Gorham’s time in Puerto Rico, he participated in the opening of more than 70 DRCs. “The opportunity to volunteer to help fellow Americans was truly a privilege. I had a chance to get out of my usual routine and expand my perspective. Working in small teams under adverse conditions was challenging but rewarding. I know my work helped people who have lost everything begin the recovery process,“ Gorham reflected.
Photo by Andrea Booher / FEMA Santa Maria, Puerto Rico, October 8, 2017 -- Damaged properties in the Santa Maria neighborhood near Humacao, Puerto Rico. After Hurricane Maria, many homes, businesses, roads, bridges and government buildings suffered major damage due to strong winds and heavy rain.Houston Man Taken into Custody on Charges of TerrorismRead the Press Release
UPDATE - 12/13/17:
Today, A federal grand jury returned a five-count indictment against Kaan Sercan Damlarkaya.
He is charged with one count of providing and attempting to provide material support to terrorists which carries a possible sentence of up to 15 years in federal prison. He is also charged with two counts of attempting to provide material support to ISIS and two counts of unlawfully distributing explosives information, all of which carry a possible 20-year maximum term of imprisonment. Each of the charges also carries a potential $250,000 maximum fine.
He remains set for a detention hearing tomorrow at 10:00 a.m.
An indictment complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
HOUSTON – An 18-year-old U.S. citizen from Houston has been charged with unlawfully distributing explosive making instructions and attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Authorities arrested Kaan Sercan Damlarkaya late Friday, Dec. 8, 2017, upon the filing of a sealed criminal complaint. It was unsealed this morning as he made his initial appearance before U.S. Magistrate Judge Dena H. Palermo, at which time he was temporarily ordered into custody pending a detention hearing set for Dec. 14.
According to the charges, beginning in or about early August 2017, Damlarkaya engaged in online communications with undercover FBI agents and other sources. During those conversations, he allegedly shared his intentions to travel overseas to fight for ISIS or, if unable, to commit an attack in the United States. The charges also indicate Damlarkaya asked if he could provide a farewell video to be published should he follow through with an attack resulting in his death in order to inspire others. Damlarkaya further provided instructions on how to build an AK-47 or AR-15 assault rifle from readily available parts in order to avoid detection from authorities, according to the criminal complaint.
Additionally, Damlarkaya provided a formula to alleged ISIS supporters for the explosive, Triacetone Triperoxide (TATP), and instructions on how to use TATP in a pressure cooker device that contained shrapnel, according to the allegations. He also discussed the use of a machete or Samurai sword as an alternative to a gun or explosive. The criminal complaint further indicates he claimed to carry a knife in the event he was stopped by law enforcement and that he slept with a machete under his pillow in case his house was ever raided.
In early November 2017, according to court documents, Damlarkaya explained “if I buy a gun or supplies for a bomb, they [presumably law enforcement] will heat up pressure [j]ust like a few months ago when I was trying an operation but they found out.” The criminal complaint further alleges that Damlarkaya claims to have attempted to get to Syria on two other occasions, but failed.
If convicted of unlawfully distributing explosives information or attempting to provide material support to a designated foreign terrorist organization, Damlarkaya faces a possible 20-year-maximum term of imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Rob Jones of the Southern District of Texas are prosecuting the case along with Trial Attorneys Gregory Gonzalez and Kevin Nunnally of the Counterterrorism Section of the Justice Department’s National Security Division.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Area Man Sentenced for Role in Cocaine DistributionRead the Press Release
BROWNSVILLE, Texas – A 28-year-old resident of Pasedena has been ordered to prison for his participation in a cocaine distribution scheme involving multiple seizures of cocaine, announced Acting U.S. Attorney Abe Martinez. Victor Hugo Hernandez pleaded guilty May 24, 2017.
Today, U.S. District Judge Andrew S. Hanen ordered Hernandez to serve a total of 120 months in federal prison. The sentence will be immediately followed by five years of supervised release.
Beginning in April 2015, Hernandez participated in a series of meetings to negotiate the transportation of approximately 30 kilograms of cocaine to Kansas City, Missouri. Law enforcement observed and recorded these meetings. On May 1, 2015, Hernandez went to a fast food restaurant in Brownsville and finalized the delivery of the cocaine. Co-conspirator Mario Marroquin arrived and delivered the narcotics in the parking lot. The drugs were then transported to Kansas City where they ultimately tested positive for cocaine and weighed approximately 29 kilograms.
In October 2015, Hernandez engaged in another transaction involving the transportation of cocaine to North Carolina. He assisted the cocaine distribution scheme as Jaime Pena and Jose Adan Lopez delivered two separate loads of cocaine to an undercover officer. Pena delivered approximately 25 kilograms of cocaine at an Olmito convenience store, while Lopez provided 20 kilograms of cocaine to the office at a Home Improvement store in Brownsville.
The court found the total amount of cocaine for which Hernandez was responsible in these three transactions was 74 kilograms.
Each of the co-conspirators had also pleaded guilty. Lopez, 43, Marroquin, 25, and Pena, 53, all of Brownsville, received 102, 70 and 54 months in prison, respectively.
Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and police departments in Brownsville and Pasadena conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt prosecuted the case.
Honduran Charged with Illegally Reentering U.S. After DeportationRead the Press Release
PITTSBURGH – An individual found by the U.S. Department of Homeland Security/Immigration and Customs Enforcement has been indicted by a federal grand jury in Pittsburgh on charges of illegal re-entry into the United States after deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on December 12, named Fredy Abel Lainus-Vasquez, 30, formerly of Honduras, as the sole defendant.
According to the indictment, Lainus-Vasquez, an alien, was removed from the United States by U.S. Immigration and Customs Enforcement on August 9, 2011 and September 26, 2012, and was again found in the United States, in Pittsburgh on August 2, 2017, by ICE Officers.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
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.
Hart County, Kentucky, Resident Charged with Possession with Intent to Distribute Methamphetamine and Being A Convicted Felon in Possession of Multiple Firearms and AmmunitionRead the Press Release
BOWLING GREEN, – A Hart County, Kentucky, resident was charged today by grand jury indictment with intentionally possessing methamphetamine for the purpose of distribution, being a convicted felon in possession of multiple firearms and ammunition, and carrying a firearm during a drug trafficking crime announced United States Attorney Russell M. Coleman.
Tonya Nickson, 42, of Cave City, was arrested at her home on July 27, 2017, by the Metcalf County Kentucky Sheriff’s Department and is currently out of custody on bond.
According to the three-count federal Indictment, Nickson is a convicted felon having been convicted of a felony on April 4, 2006, in Hart County Circuit Court, for possession of a controlled substance.
At the time of her arrest, Nickson was in possession of 19 firearms including: a Kimber, model Micro 9, 9 millimeter semiautomatic pistol; Fratelli Tanfoglio, model Witness PS, 9 millimeter semiautomatic pistol; Fratelli Tanfoglio, model Witness P, 9 millimeter semiautomatic pistol; Smith and Wesson, model 15, .38 caliber revolver; Iver Johnson, model 55, .22 caliber revolver; Maadi Company model Helwan, 9 millimeter semiautomatic pistol; CZ, model C252, 7.62 Tokarev caliber semiautomatic pistol; American Tactical Imports, model Omni Hybrid, multi caliber lower receiver; Marlin, model 70PSS, .22 semiautomatic rifle; Norinco, model SKS, 7.62x39 caliber semiautomatic rifle; Norinco, model SKS, 7.62x39 caliber semiautomatic rifle; Mossberg, model 500C, 20 gauge pump shotgun; Marlin, model 60, .22 caliber semiautomatic rifle; Savage, model 10, .22-250 caliber bolt action rifle; Oregon Arms Inc., model Chipmunk, .22 caliber bolt action rifle; Marlin, model 81, .22 caliber rifle, no serial number; Browning, model Auto 5, 12 gauge semiautomatic shotgun; Winchester, model 1200, 12 gauge pump shotgun; Winchester, model 62A, .22 caliber rifle; and ammunition.
If convicted of the charges, Nickson could be sentenced to no more than 20 years for count one, no more than ten years for count two, and no less than five years for count three. Further, Nickson could be fined and ordered to serve a period of supervised release.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
nickson_indictment_12-13-17.docx
Guatemalan Man Sentenced to 15 Years for Conspiracy to Distribute HeroinRead the Press Release
The United States Attorney for the District of Vermont announced that Diego Walther Anibal Mejia Paredes, 35, of Guatemala, was sentenced December 10, 2017, in United States District Court in Burlington to 180 months of imprisonment following his guilty plea to conspiracy to distribute more than a kilogram of heroin. United States District Judge William K. Sessions III also ordered that Mejia Paredes serve five years of supervised release following the completion of his prison sentence. Mejia Paredes has been in the custody of the United States Marshals Service since his October 2015 arrest.
Court records indicate that during the summer and fall of 2015 Mejia Paredes conspired with Marco Antonio Lam Peralta, of South Londonderry, Vermont, and others, to ship large quantities of heroin from Guatemala, hidden in Guatemalan food supplement packaging, to various addresses in Southeastern, Vermont. In early October 2015 customs officials discovered more than 41 kilograms of heroin in one such shipment, addressed to a restaurant in Manchester Center, Vermont. Agents from the Department of Homeland Security, working with the Drug Enforcement Administration and the Vermont State Police, conducted a controlled delivery of that shipment. Shortly before arresting him, agents observed Mejia Paredes wait for the shipment to arrive, take delivery of the shipment, and drive off with the contraband. Additional investigation led agents to conclude that this was the conspiracy's eighth shipment into Vermont in 2015.
Mejia Paredes' co-defendant, Lam Peralta, pleaded guilty in August 2017, but has since filed a motion seeking to withdraw from his plea. That motion is pending.
This case was investigated by the Department of Homeland Security, the Drug Enforcement Administration, the Vermont State Police, and the Bureau of Alcohol, Tobacco and Firearms, with assistance from the Manchester, Vermont, Police Department.
Mejia Paredes is represented by Steven Barth. The prosecutor is Assistant U.S. Attorney Michael Drescher.
German national is the latest cyber-criminal sentenced for conspiring to launder proceeds from fraudulent affiliate marketing websitesRead the Press Release
ATLANTA - Sven Franssen, a German national residing in the Netherlands, has been sentenced to two years and six months in federal prison for his role in conspiring to launder the proceeds of fraudulent affiliate marketing websites. The fraudulent sites received increased internet traffic due to a massive computer hacking and illegal spam campaign brought on by a pair of Vietnamese nationals.
“Franssen’s sentencing concludes the methodical takedown of a cyber-criminal syndicate,” said U. S. Attorney Byung J. “BJay” Pak. “As cyber-criminals continue to look for ways to commit theft and fraud, law enforcement agencies are continuing their work to neutralize their efforts, and bring them to prosecution.”
“The takedown of this criminal organization is an example of how determined and persistent FBI investigators and our federal partners are, no matter where in the world the investigation leads,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We will vigorously continue to investigate, prosecute and impose stiff penalties on any criminal who believes they can hide in cyber space and prey on the American people with impunity.”
“Sven Franssen’s sentencing should be a warning to all operating illegally in the cyber world. Consumers have an expectation of trust when purchasing good and services through the internet,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to work with our law enforcement partners to investigate and prosecute those laundering ill-gotten gains at the expense of consumer trust.”
According to U.S. Attorney Pak, the charges and other information presented in court: In March 2015, a 29-count indictment from the Northern District of Georgia was unsealed against Vietnamese nationals Viet Quoc Nguyen and Giang Hoang Vu, both of whom lived for a period of time in the Netherlands. The indictment was in connection with their alleged computer hacks of at least eight E-mail Service Providers (“ESPs”) all over the United States, including two ESPs based in the Northern District of Georgia.
Email Service Providers are companies that generally offer legitimate email marketing or bulk email services to their clients. Clients hire ESPs to assist with sending bulk emails to customers or potential customers who have opted to receive such emails. “Spam,” by contrast, is a commonly-used term for unsolicited email. ESPs generally take affirmative steps to ensure that their email campaigns are not blocked or classified as “spam” by the recipients’ email programs.
Nguyen and Vu allegedly stole confidential information from the ESPs, including proprietary marketing data containing over one billion email addresses. Nguyen and Vu then allegedly used their unauthorized access to launch spam attacks on tens of millions of email recipients, which helped drive internet traffic to affiliate marketing websites associated with Marketbay.com, which included Nguyen’s own website.
Affiliate marketing is a type of business in which persons or companies, known as “affiliates,” enter into formal or informal marketing agreements with companies to generate sales of the companies’ products. In the internet context, affiliates earn commissions on sales to customers who purchase the companies’ products from websites associated with the affiliate.
Giang Hoang Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On February 5, 2015, Vu pled guilty to conspiracy to commit computer fraud, and on July 27, 2015, he was sentenced to two years in prison. Nguyen is not in custody and remains a fugitive.
David-Manuel Santos Da Silva, a Canadian national and a co-owner of the affiliate marketing website Marketbay.com, was also previously charged and convicted in connection with his role in the offense. As the owner and operator of Marketbay.com, Da Silva entered into an affiliate marketing arrangement with Nguyen, which allowed Nguyen to receive commissions on sales generated from internet traffic that he directed to websites promoting specific products. Da Silva knew that Nguyen was spamming to stolen email addresses in order to direct high volumes of internet traffic to his affiliate marketing websites with Marketbay.com. Da Silva conspired with Nguyen and others to promote Nguyen’s hacking and spamming activities by providing him with a platform, through Marketbay.com, to generate sales commissions from his computer hacks.
On March 4, 2015, Da Silva was indicted by a federal grand jury in the Northern District of Georgia for conspiracy to commit money laundering with Nguyen and others. Da Silva was arrested while traveling in Ft. Lauderdale, Florida in 2015. He pleaded guilty on November 2, 2015, and on June 14, 2017, he was sentenced to four years, three months in prison.
On December 11, 2017, Sven Franssen was sentenced in connection with his role in the offense. Franssen owned and operated Certo Business Solutions B.V. (“Certo”), also known as Multibill, which processed payments for products purchased through affiliate marketing websites associated with Marketbay.com. Franssen knew that affiliates working through Marketbay.com were promoting and selling products through false and fraudulent means. Franssen knew that certain software products sold by affiliates could be publicly downloaded elsewhere for free, and that certain products being promoted for sale were not actually available to sell, or were being sold in violation of a copyright or trademark. For example, Nguyen promoted a product for sale on his website called “Adobe Reader 10” that prominently featured the Adobe logo. In fact, the product that was for sale on Nguyen’s affiliate marketing website with Marketbay.com was not an Adobe-branded product, and was not authorized for sale by Adobe.
The products promoted by Marketbay.com affiliates through false and fraudulent means were sold to customers in the Northern District of Georgia and to customers around the world. Franssen received warnings that his company was processing payments from the sale of fraudulent products. Despite these warnings, and on occasion directly in response to them, Franssen advised and encouraged Da Silva and his business partner to conceal and disguise the false and fraudulent nature of the product sales generated by affiliates working through Marketbay.com.
During the period of the conspiracy, Franssen’s company processed over $1.5 million in revenue generated from the sale of products that were falsely and fraudulently promoted through Marketbay.com.
Sven Franssen, 53, was sentenced by U.S. District Court Judge Timothy C. Batten Sr. to two years, six months in prison, following his guilty plea to conspiracy to commit money laundering. He was also ordered to forfeit real property in Cape Coral, Florida, and a 24-foot watercraft vessel.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Steven D. Grimberg and Kelly K. Connors prosecuted the case.
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.
Frenchtown Man Sentenced to Nine Years in Prison for Drug OffenseRead the Press Release
BILLINGS – John Thomas Giblin, III, a 45-year-old resident of Frenchtown, was sentenced today to 108 months in prison followed by 3 years supervised release after pleading guilty to conspiracy to possess with intent to distribute controlled substances. U.S. District Judge Susan Watters handed down the sentence.
During three different occasions, Giblin sold a total of 215 Oxycodone pills, 40 Morphine pills, 35 Methadone pills, 29 Demerol pills, and 10 Valium pills valued at more than $9,000 dollars to an undercover agent from the Drug Enforcement Administration. On May 27, 2015, Giblin then made arrangements with the undercover agent to buy 1 kilogram of cocaine and ½ pound of methamphetamine in exchange for money, marijuana, and more prescription pills. Giblin agreed to meet the undercover agent in the parking lot of the Cracker Barrel restaurant in Missoula. Law enforcement surveilled the drug purchase and after the package containing the cocaine and methamphetamine was delivered to Giblin, he was arrested. Giblin had brought approximately $12,000 in cash to the drug deal. He was interviewed after the arrest and admitted that he was planning to re-sell the methamphetamine in order to make money.
The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Drug Enforcement Administration.
Former Tampa Police Sergeant Sentenced to Prison for Receipt of Stolen Government PropertyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced LaJoyce Caldwell Houston (51, Riverview) to two years and nine months in federal prison for receiving stolen tax refunds. The Court also ordered her to pay $61,660.52 in restitution to the Internal Revenue Service. Houston pleaded guilty on August 23, 2017.
According to court documents, in 2011 and 2012, while working at the Tampa Police Department, Houston received goods, services, money orders, and cash that were obtained with debit cards tied to accounts that had been loaded with fraudulently obtained tax refunds. The fraudulent refunds deposited in these accounts were the result of fraudulent federal income tax returns that had been filed by co-conspirator Rita Girven. Items received as a result of the fraud included a pool pump system for Houston’s home, computers, appliances, purses, jewelry, money orders, and cash, among other things. The Court also found that fraudulent tax returns were filed from Houston’s home and that online purchases were made from her residence with debit cards that had been loaded with fraudulent tax refunds.
In addition, in January 2012, Houston used her position at the Tampa Police Department to obtain the personally identifiable information (PII) of five individuals that Houston then provided to Girven to file fraudulent tax returns and/or obtain and access reloadable debit cards.
The Court ruled that the fraudulently obtained tax refunds deposited into the accounts from which LaJoyce Houston benefited totaled $284,490.41 and that Houston received more than $150,000 in goods, services, and cash from these accounts.
LaJoyce Houston’s co-defendant and husband, Eric Houston, pleaded guilty on March 31, 2017, to receiving stolen government property. He was sentenced on October 25, 2017, to six months in federal prison. In a related case (8:15-cr-58-T-17EAJ), Rita Girven pleaded guilty on March 16, 2015, to conspiracy to commit wire fraud and aggravated identity theft. She was sentenced on November 20, 2015, to 12 years in federal prison.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Ramapo Town Supervisor Christopher St. Lawrence Sentenced to 30 Months in Prison in Municipal Bond Securities Fraud CaseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that CHRISTOPHER ST. LAWRENCE, the former Ramapo Town Supervisor, was sentenced to 30 months in prison today in connection with his scheme to defraud investors in municipal bonds issued by the Town of Ramapo (the “Town”) and the Ramapo Local Development Corporation (the “RLDC”). ST. LAWRENCE was found guilty of 20 counts of fraud and conspiracy following a four-week trial last May before United States District Judge Cathy Seibel in federal court in White Plains. It was the first conviction for securities fraud in connection with municipal bonds.
Acting U.S. Attorney Joon H. Kim said: “For years, Christopher St. Lawrence, as Ramapo Town Supervisor, misled municipal bond investors about the state of Ramapo’s finances. At a trial earlier this year, the jury quickly saw through his years lies, and today, he was sentenced to time in federal prison. The integrity of the $3.7 trillion municipal bond market must be protected, and prosecutions like this one should put on all on notice that misleading investors in that market through fraud and deception will lead to prosecution and jail.”
According to the allegations contained in the Indictment and the evidence presented in court during the trial:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo.
While the fraud predated the construction of the stadium, the Town’s financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town’s guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and ST. LAWRENCE’s public statements that no public money would be used to pay for the stadium.
The Indictment charged that ST. LAWRENCE lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its own money. ST. LAWRENCE lied to investors primarily by making up false assets in the Town’s General Fund.
The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the fund’s balance. The fund balance is a cushion that can be spent during difficult financial times. The size of the fund balance relative to the amount of the fund’s revenue and trends in the Town’s General Fund balance over time are the primary indicators of the Town’s financial health.
According to the Indictment and the evidence, ST. LAWRENCE lied to the RLDC’s bond rating service in January 2013 when he told them in a telephone call that the 2012 fund balance would remain unchanged from the 2011 balance. Immediately after that call ended, ST. LAWRENCE told Town employees “to do [an upcoming] refinancing of the short term debt as fast as possible because . . . we’re going to have to all be magicians to get to some of those numbers.”
When the RLDC issued $25 million in bonds to build the stadium building itself in 2011, ST. LAWRENCE inflated the size of the Town’s General Fund by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have been negative in that year.
In addition, ST. LAWRENCE inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. It first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land turned out to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books – and reduce the size of the General Fund balance by $3.08 million, thereby pushing it into negative territory – ST. LAWRENCE claimed the receivable had to do with the RLDC’s purchase of another property from the Town that had already taken place. To keep it on the books, ST. LAWRENCE then caused the Town Attorney to tell the Town’s auditors over a period of years that the receivable would be paid back within a year, which was required if the receivable were going to stay in the General Fund. Without this fake receivable alone, the Town’s General Fund balance would have been negative for years.
In May 2013, the FBI searched Town Hall in connection with this investigation. Less than 10 days later, ST. LAWRENCE inflated another receivable in the General Fund – this one for money from FEMA to reimburse the Town for expenses from Hurricanes Irene and Sandy. ST. LAWRENCE claimed that the Town was going to receive $3.145 million from FEMA when the Town hadn’t even submitted those claims to FEMA yet. Without ST. LAWRENCE’s inflation of this receivable alone, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
Finally, the Indictment alleged and the evidence showed that ST. LAWRENCE told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue, meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments from money it borrowed from the bank or money it got from the Town.
* * *
In addition to the prison term, ST. LAWRENCE, 67, of Wesley Hills, New York, was sentenced to three years of supervised release and a $2,000 special assessment. Restitution, if any, will be determined at a future date.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the Rockland County District Attorney’s Office. Mr. Kim also thanked the Securities & Exchange Commission for its substantial assistance in the investigation and trial.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon, Stephen Ritchin, and Daniel Loss are in charge of the prosecution.
Former Pulaski County Illinois Resident Sentenced for Receipt of Child Pornography and Mail FraudRead the Press Release
Clint Wade Green, 43, of Paducah, Kentucky, was sentenced on Tuesday, December 12, 2017, on four counts of receipt of child pornography in one indictment and one count of mail fraud in a separate information involving theft of Pulaski County Development Association (PCDA) funds, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Green was sentenced to 108 months in prison and five years of supervised release on each of the receipt of child pornography counts and 24 months in prison and three years supervised release on the mail fraud count. All sentences will run concurrently. Additionally, Green was ordered to pay $51,881.60 in restitution to the PCDA in the mail fraud case.
The prosecution was the result of an investigation by the Federal Bureau of Investigation-Marion. The Department of Agriculture-Office of Inspector General, the Illinois State Police, and the Paducah Kentucky Police Department also participated in this investigation. The case was prosecuted by Assistant United States Attorney James G. Piper, Jr.
Former Office Manager to Serve 3 1/2 Years in Prison for Defrauding Bloomington Employer of More Than $1 MillionRead the Press Release
PEORIA, Ill. – U.S. District Judge Michael M. Mihm has sentenced a woman who defrauded her former employer, a Bloomington, Ill., landscaping business, of more than $1,000,000. Yesterday afternoon, Dec. 12, Judge Mihm ordered that Tina Cozart, 55, formerly of Carlock, Ill., serve 42 months in federal prison. In addition, Cozart, currently of Fremont, Calif., was ordered to pay restitution in the amount of $1,145,428 to her former employer, $346,299 to the IRS, and $25,000 to an insurance company. Cozart was ordered to report to the federal Bureau of Prisons on Feb. 20, 2018.
On June 16, 2017, Cozart pleaded guilty to one count each of wire fraud and filing a false income tax return. Cozart admitted that she used her position as office manager for F & W Lawn Care and Landscaping, Inc., to access and use the business’s credit cards and bank accounts to make unauthorized purchases for herself, her family, and others. According to statements presented at the sentencing hearing, in at least 13 months, Cozart charged more to the business’s credit cards than she earned for the year. Some of the money was spent on trips to Cancun, Las Vegas, Florida, and Phoenix, or to buy tickets to sporting events.
Cozart also used a dormant business bank account to deposit customer payments. Cozart then used the funds to pay the unauthorized personal purchases she had made using the business’s credit card. In addition, Cozart admitted she filed a false federal income tax return for tax year 2013 in that she did not report that she had obtained $333,378 in additional funds as a result of her fraud scheme.
The case was prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss. The charges were investigated by the FBI and IRS, Criminal Investigation.
Former Fort Wainwright Soldier Convicted of Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced that, yesterday, a federal jury in Fairbanks convicted a former Fort Wainwright soldier of distribution and transportation of child pornography.
Kaleb Basey, 27, was found guilty after a two-day trial before U.S. District Judge Ralph R. Beistline. Sentencing is scheduled for Feb. 23, 2018, in Fairbanks. The maximum penalty for each of the two counts upon which Basey was convicted is not less than five years and up to 20 years in prison, a fine of $250,000, and a term of supervised release of five years to life.
According to evidence presented at trial, in January 2014, Basey posted an advertisement within the “Casual Encounters” section of the Fairbanks Craigslist website that read: “any dads or moms want to share a daughter with me for the night?” Alaska State Troopers received a report about the ad and began an investigation, concerned that an actual minor might be in danger. Troopers identified Basey as the person who posted the ad in less than 24 hours. He was also identified as being an active duty solider on Fort Wainwright.
Troopers contacted Army Criminal Investigation Division (CID) agents and executed a search of the defendant’s barracks room. Law enforcement agents eventually contacted the FBI for assistance. FBI agents were able to identify additional sexually-explicit Craigslist postings by Basey in which he sought access to minor children, as well as email communications in which individuals had responded to these sexually-explicit posts. In one set of emails, the defendant included a picture of child pornography, and told the person with whom he was emailing that he enjoyed watching movies that showed “young girls 5-15yo” engaged in sexual acts with adults. To this email string, the defendant also attached a fully-nude selfie. In a second email, the defendant sent a picture of child pornography to himself.
This case was investigated by the Federal Bureau of Investigation, Alaska State Troopers, and Army Criminal Investigation Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Federal Official and Accountant Indicted in Bribery and Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – A former official for the U.S. Bureau of Reclamation and an accountant for a private accounting firm were indicted today for their roles in a bribery scheme involving a government contract, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Fredrick J. Leavitt, 46, and Dustin M. Lewis, 43, both of Henderson, Nevada, were each indicted with one count of honest services fraud conspiracy. In addition, Leavitt was charged with one count of solicitation and receipt of a bribe by a public official and Lewis was charged with solicitation and bribery of a public official. Leavitt was employed by the U.S. Bureau of Reclamation as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. Lewis was employed by LL Bradford & Company (LL Bradford), an accounting and tax firm. Leavitt and Lewis are scheduled to have their initial appearance before U.S. Magistrate Judge Nancy J. Koppe on Dec. 21, 2017.
According to the allegations contained in the indictment, from February 2015 to February 2016, Lewis bribed and provided kickbacks to Leavitt in exchange for Leavitt, in his official position, steering a Southern California Public Power Authority (SCPPA) audit contract to LL Bradford. It is alleged that Leavitt and Lewis colluded over the preparation of LL Bradford’s bid submission, and Leavitt provided Lewis with inside information about the selection process. Leavitt used his position on the audit selection committee to score LL Bradford’s bid proposal as a “1,” the top rating. The indictment further alleges that after LL Bradford was selected as the winning bidder for the contract, Lewis transferred more than $200,000 to Leavitt. In January 2016, Leavitt went to work as a tax partner with LL Bradford. Finally, the indictment alleges criminal forfeiture against Leavitt in the amount of $201,250, including a 2016 Mercedes Benz CLS 63 AMG S-Model sports car, and criminal forfeiture in the amount of $704,002 as to Lewis.
The case is a joint investigation by the Federal Bureau of Investigation, IRS-Criminal Investigation, and the U.S. Department of Interior-Office of Inspector General. Acting U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Patrick Burns 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.
###
Former Chicago Police Officer Sentenced to Five Years in Prison for Passing Law Enforcement Information to Target of Federal Drug ProbeRead the Press Release
CHICAGO — A federal judge today sentenced a former Chicago Police officer to five years in prison for notifying a high school friend that he was the target of a federal drug investigation.
In June 2014, RONALD COLEMAN was a Chicago Police officer assigned to work with the U.S. Drug Enforcement Administration on an undercover investigation dubbed “Operation Five Leaf Clover,” which targeted drug trafficking by a street gang on Chicago’s West Side. As a trusted member of the investigative team, Coleman participated in all of facets of the probe, including court-authorized wiretaps of suspects’ phones, physical and electronic surveillance, and seizures of drugs and guns. Coleman knew that a high school friend was involved in the sale of heroin supplied to the gang by RODNEY BEDENFIELD. Coleman obstructed justice when he notified his friend's cousin that authorities were planning to search the friend’s home and a dozen other locations as part of the investigation. After receiving word of Coleman’s tip, the friend passed it along to Bedenfield, who quickly moved contraband to an alternative location to avoid law enforcement.
A jury in August convicted Coleman, 47, of Chicago, on one count of obstruction of justice. U.S. District Judge Charles Norgle imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance.
Evidence at Coleman’s trial revealed that law enforcement agents surveilling Bedenfield observed him, after receiving word of Coleman’s tip, transporting several large bags from a residence in the North Lawndale neighborhood to an alternative location around the corner. On June 12, 2014, agents and officers executed a search warrant on the alternative location and discovered five handguns, a rifle, multiple handgun magazines, ammunition, approximately 400 grams of heroin, two containers of lactose, three digital scales, plastic baggies and a bill counter.
“Bedenfield chose to move his contraband in an attempt to hide it from law enforcement,” Assistant U.S. Attorney Shoba Pillay argued in the government’s sentencing memorandum. “But he could also have chosen to protect his heroin trafficking operation, and used that significant amount of firepower on the police when they arrived to execute the arrest and search warrants. Defendant’s actions could have gotten his fellow police officers killed.”
Bedenfield was indicted separately on multiple drug trafficking and firearms charges. He pleaded guilty to the narcotics-related counts and was convicted of the firearms-related counts at a bench trial in federal court in Chicago. Bedenfield was sentenced to 18 years in prison.
Florida Felon Sentenced to More Than Seven Years in Prison for Possessing FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Joseph James Belmont (28, Tampa) to seven years and eight months in federal prison for possessing firearms as a convicted felon. The Court also ordered him to forfeit the guns and ammunition used in the offense.
Belmont pleaded guilty on August 22, 2017.
According to court documents, in November 2016, officers from the Tampa Police Department (TPD) stopped Belmont for a traffic violation that led to the discovery of a loaded handgun. Approximately three months later, TPD officers found Belmont passed out behind the wheel of a car, parked on the wrong side of the street, with the engine running. They knocked on the car door, and when Belmont opened it, officers saw another loaded handgun.
Belmont’s prior convictions include robbery with a weapon and delivery of a controlled substance. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Fifteen Convicted or Charged in Amherst County Methamphetamine ConspiracyRead the Press Release
Lynchburg, VIRGINIA – An investigation into the distribution of methamphetamine in and around Amherst County, Virginia has resulted in more than a dozen arrests and convictions, United States Attorney Rick A. Mountcastle announced.
The investigation led to multiple kilo-level seizures of methamphetamine, as well as the seizure of numerous firearms, and tens of thousands of dollars in drug proceeds. To date, more than a dozen individuals have been arrested, charged and/or convicted in federal court on charges resulting from this investigation.
Those individuals charged/convicted in federal court are:
- George Christopher Mays, 43, of Wingina, Virginia.
- David Campos-Luebano, 26, of Chatham, Virginia.
- Graciano Ochoa-Bermudez, 40, a citizen of Mexico
- Isabel Gonzalez, 56, of Concord, North Carolina.
- Irineo Perez-Aguirre, 42, a citizen of Mexico.
- Jeffrey Dean-Dickinson, 51, of Fredericksburg, Virginia.
- Lance Dereck Hicks, 28, of Lynchburg, Virginia.
- Jonathan Wayne Angus, 29, of Gladstone, Virginia.
- Timothy Edgar Bryant, 36, of Gladstone, Virginia.
- Edgar Estrada Ruiz, 33, of Burke, Virginia.
- Cynthia D. Baird, 33, of Earlysville, Virginia.
- John Bernard Goolsby, 45, of Shipman, Virginia.
- Wayne Thomas Burnley, 43, of Wingina, Virginia.
- Stephanie Hurst, 32, of Lewisburg, North Carolina
- Kenneth Cordova, 32, of North Carolina
This investigation originated with the Amherst County Sheriff’s Office Narcotics Unit. Due to the quantity of drugs, operational costs, and the expansiveness of drug activity across multiple jurisdictions, the Drug Enforcement Administration was contacted for assistance. Investigative efforts uncovered a vast trafficking network and lead to the designation of an Organized Crime Drug Enforcement Task Force (OCEDTF) case.
The investigation, which remains ongoing, is being conducted by the Amherst County Sheriff’s Office and the Drug Enforcement Administration with substantial assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Virginia State Police, the Lynchburg Police Department, the Waynesboro Police Department, the Pittsylvania County Sheriff’s Office, the Appomattox County Sherriff’s Office, the Nelson County Sheriff’s Office, the Buckingham County Sheriff’s Office, the Bedford County Sheriff’s Office, the Stafford County Sheriff’s Office, the Rockbridge County Sheriff’s Office, the Jefferson Area Drug Task Force, the Campbell County Sheriff’s Office, the Guilford County Sheriff’s Office, the South Carolina Law Enforcement Division [SLED] and the South Boston Police Department.
Assistant United States Attorney Andrew Bassford is prosecuting the cases for the United States. A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Felon Charged with Possessing Handgun, Ammunition and Multiple Illegal DrugsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal firearms and drug laws, Acting United States Attorney Soo C. Song announced today.
The three-count superseding indictment, returned on December 12, named James Taric Byrd, 41, of Pittsburgh, Pennsylvania.
According to the superseding indictment, on or about February 23, 2015, Byrd, an individual with multiple prior felony convictions did knowingly and unlawfully possess a .40 caliber Sig Sauer handgun and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. Byrd also was charged with possessing with the intent to distribute cocaine, cocaine base, heroin and marijuana, and carrying and possessing a firearm in furtherance of that drug trafficking crime.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of not more than $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the superseding indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Virginia Man for Cyberstalking and Communicating Interstate ThreatsRead the Press Release
RALEIGH – Robert J. Higdon, Jr. United States Attorney for the Eastern District of North Carolina, announces that on December 13, 2017 in Federal court, WILLIAM SCOTT DAVIS, JR., a 57-year-old resident of Hampton, Virginia, was convicted following a three-day trial before Senior United States District Judge W. Earl Britt. The jury found DAVIS guilty of cyberstalking and communicating interstate threats.
The evidence at trial showed that DAVIS’ parental rights to his daughter were conclusively terminated in 2009, following protacted litigation with authorities in Wake County, where DAVIS was residing at the time. During the same time period, DAVIS was charged with multiple fraud offenses in Wake County relating to the forgery of his daughter’s birth certificate and convicted by a jury of his peers. Following the termination of his parental rights and his state fraud conviction in 2009, DAVIS initiated a relentless campaign of harassment and intimidation directed towards a female detective with Cary Police Department, a female prosecutor with the Wake County District Attorney’s Office, and a female attorney in Raleigh for their roles in different aspects of the process. The evidence at trial established that in the summer of 2014, DAVIS sharply escalated his campaign to include email communications sent from Virginia to all three women in North Carolina which contained detailed threats of violence and rape. In addition, DAVIS stalked the Raleigh attorney by threatening her life and the lives of her family, as well as impersonating an FBI agent.
Mr. Higdon said: “The proper functioning of our social services and judicial systems requires that all its participants - prosecutors, law enforcement officers, and attorneys - be free from threats and harm. Our systems cannot function where those participants face threats, intimidation or the real risk of harm. This case is an example of the steps the United States Department of Justice and the United States Attorney’s Office will take when these public servants face these risks. Make no mistake, we will stand firmly behind our fellow prosecutors and our law enforcement and social services partners!”
The case was investigated by the Raleigh Police Department and the Federal Burean of Investigation. Assistant United States Attorneys Ethan A. Ontjes and Adam F. Hulbig represented the government in this case.
Federal Jury Convicts Birmingham Man for Sexually Exploiting Five-Year-Old BoyRead the Press Release
BIRMINGHAM – A federal jury on Monday convicted a Birmingham man of sexually exploiting a five-year-old boy by forcing the child to perform sexual acts on him in 2016 and videotaping the conduct, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
LARRY DEAN GARRETT Jr., 37, faces 25 to 50 years in prison because of a previous conviction of a sexual offense against a child in Michigan in 2000. In that case, Garrett confessed to criminal sexual conduct involving a boy younger than 13, according to evidence at trial.
The north Alabama jury convicted Garrett on one count of sexual exploitation of a child following four days of testimony before U.S. District Judge Madeline H. Haikala. Garrett chose to represent himself at trial. A sentencing date has not been set.
“Sexual exploitation of a child by a previously convicted sex offender is one of the most serious and emotionally difficult offenses we prosecute within the federal system,” said Assistant U.S. Attorney Erica Williamson Barnes, who prosecuted the case. “I commend the family and friends of the victim for their willingness to come forward and assist law enforcement, the FBI for its tireless devotion to vindicating a particularly vulnerable victim, and the jurors who rendered a just verdict,” she said.
“The FBI and the U.S. Attorney’s trial team did an excellent job of bringing the perverse, abhorrent acts of Garrett before the jury that rightfully convicted him,” Town said. “We are very much looking forward to the sentencing hearing.”
“These types of cases are always particularly disturbing,” Sharp said. “The FBI and our partners, however, will not rest in bringing predators like Garrett to justice and holding them accountable for their heinous actions.”
Garrett, who performs magic tricks and uses the name, “Magic,” lived in the same Birmingham apartment complex as his five-year-old victim and the child’s mother in 2016 and was known to have spent time with the child, according to evidence.
A friend of the child’s family who also lived in the same apartment complex testified that he knew Garrett downloaded movies and requested one from him. When the man, identified in court records as, “A.J,” opened the files on the computer memory card that Garrett gave him, he discovered the sexually explicit video involving the child, he testified. He showed the video to members of the child’s family, and they provided the video to police, the man testified.
The FBI investigated the case, which Barnes prosecuted.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Spartanburg Man Indicted on Federal Gun Charge. Jhaquan M. Brown, age 28, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Brown could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Rosean Cerome Kelly, age 26, of Spartanburg, South Carolina, was charged in a two-count superseding indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Kelly could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Easley Resident Indicted on Possession and Distribution of Child Pornography. William F. Haynes, age 60, of Easley, South Carolina was charged in a 2-count indictment. William F. Haynes was charged with Possession of Child Pornography, a violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2), and Distribution of Child Pornography, a violation of Title 18, United States Code, Section 2252(a)(2). The maximum penalty Haynes could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
Elkview man sentenced to 10 years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – An Elkview man who transported methamphetamine from Georgia to West Virginia was sentenced to 10 years in federal prison today, announced United States Attorney Carol Casto. Randy George Vance, 59, previously pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
On January 13, 2016, officers with the Metropolitan Drug Enforcement Network Team conducted a traffic stop of Vance as he was returning to West Virginia from Atlanta. During a search of Vance’s vehicle, officers recovered approximately 156 grams of methamphetamine. The methamphetamine was lab-tested and confirmed to be over 80% pure. Vance admitted that he got the drugs in Atlanta and that he intended to distribute the methamphetamine.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Gabriele Wohl is responsible for the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
This case is 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, including methamphetamine. 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.
- Follow us on Twitter: SDWVNews
El Dorado Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Pradis Lee Benton, aka Benton, age 42, of El Dorado, was sentenced today to 180 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, on April 14, 2016, investigators with the United States Marshal Service (“USMS”) and 13th Drug Task Force (“DTF”) received information that a fugitive was inside of a mobile home on Nick Springs Road in El Dorado, Arkansas, which is located in the Western District of Arkansas.
Investigators went to that residence and knocked on the front door. A female opened the door and stated that the fugitive the investigators were seeking was not at the residence. She told investigators that they were free to go inside the home and look around. Investigators took her up on that offer and once inside the residence, encountered Benton in the restroom. The officers asked Benton to go into the living room while they completed a search of the residence.
While attempting to ascertain and confirm Benton’s identity, an officer with the DTF noticed a large bulge at Benton’s ankle that he thought, in his training and experience, resembled an ankle holster containing a firearm. The officer asked Benton what was at his ankle and Benton immediately reached for the item. The officer stepped towards Benton and stopped Benton from grabbing the item. Benton pushed the officer away and went for the item at his ankle again. During the struggle, the officer’s foot caused the item to fall from Benton’s pants. The item turned out to be three bags of suspected methamphetamine.
Benton then began to struggle with officers over the bags. Benton ripped open one of the bags and threw the suspected methamphetamine in the officers’ faces. After the struggle, Benton was taken into custody for the possession of the methamphetamine.
Benton was named in a federal indictment in August of 2016 and pled guilty to the charge in October of 2016.
The United States Marshal Service and the 13th Judicial Drug Task Force investigated the case. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
Dallas Man Sentenced to 114 Months in Federal Prison for Bank RobberiesRead the Press Release
DALLAS — A Dallas man, Stephen Christopher Plunkett, 42, was sentenced this week by U.S. District Judge Sam A. Lindsay to 114 months in federal prison and ordered to pay $10,220 in restitution for committing three bank robberies, in the Dallas-Fort Worth metroplex in March 2014, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Plunkett pleaded guilty in January 2016 to two counts of bank robbery. He has been in custody since his arrest in June 2015.
According to documents filed in the case and information presented at his sentencing hearing, Plunkett admitted to robbing the following three banks:
March 24, 2014 Chase Bank, 10729 Preston Road, Dallas
March 25, 2014 Wells Fargo, 14999 Preston Road, Dallas
March 28, 2014 Wells Fargo, 2611 Cedar Springs Road, Dallas
Judge Lindsay ordered Plunkett to serve the 114-month sentence in this case consecutively to a 10 year sentence Plunkett received for the April 9, 2014 robbery of a Chase Bank branch located in Forsyth County, Georgia.
The Federal Bureau of Investigation investigated. Deputy Criminal Chief Assistant U.S. Attorney Lisa Dunn prosecuted.
# # #
Citizen of Mexico Pleads Guilty to Trafficking Heroin and Fentanyl, Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JESUS GOMEZ-VALDIVIA, 38, a citizen of Mexico, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to drug trafficking and immigration offenses.
According to court documents and statements made in court, on October 12, 2017, the Drug Enforcement Administration received information that GOMEZ was couriering narcotics on a flight that had departed Los Angeles International Airport and would be arriving at Tweed New Haven Airport later that day. DEA Agents traveled to Tweed New Haven Airport and, after the flight landed, identified two pieces of luggage that GOMEZ had checked. Agents then met GOMEZ in the baggage claim area after he retrieved his luggage. GOMEZ was arrested after investigators discovered that nearly two kilograms of heroin and approximately 500 grams of fentanyl had been sewed into one of the suitcases.
The investigation also revealed that GOMEZ was deported from the U.S. to Mexico in November 2001, and subsequently reentered the U.S. illegally.
GOMEZ pleaded guilty to one count of possession with intent to distribute controlled substances, which carries a maximum term of imprisonment of 20 years, and one count of reentry of a removed alien, which carries a maximum term of imprisonment of two years. Judge Meyer scheduled sentencing for March 7, 2018.
GOMEZ has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Charlotte Man Found Guilty of Credit Card Fraud and Weapons PossessionRead the Press Release
Columbia, South Carolina - United States Attorney Beth Drake stated today that Lonnie Eugene Hames, age 28, of Charlotte, North Carolina, was found guilty after jury trial of conspiracy to commit credit card fraud in violation of Title 18, United States Code, Section 1029(b)(2) and of being a felon in possession of a firearm in violation of Title 18, United States Code Section 922(g)(1). According to testimony presented during the trial, Hames and his co-defendant were responsible for the theft of a federal officer’s service weapon and credit cards from a vehicle in Rock Hill, South Carolina. Agents tracked the pair by following their use of the stolen credit cards to businesses in Charlotte, North Carolina. When apprehended, Hames and his co-defendant were found with the stolen firearm and other fraudulent credit cards.
Sentencing in the case has not yet been scheduled, but Hames faces a maximum penalty of ten years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Department of Homeland Security, Federal Protective Service. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
#####
California Man Sentenced to 46 Months in Prison for Laundering Proceeds from Heroin Trafficking OrganizationRead the Press Release
TRENTON, N.J. – An Anaheim, California, man was sentenced today to 46 months in prison for laundering money on behalf of an international drug trafficking organization, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Madrid, 26, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count Two of an indictment charging him with conspiracy to launder money. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From June 2014 through November 2014, Madrid conspired with other members of an international drug trafficking organization, which included cells operating in New Jersey, to launder more than $150,000 in United States currency related to the distribution of heroin.
Several of Madrid’s co-defendants have also pleaded guilty before Judge Sheridan and await sentencing. Madrid’s brother, Wilson Madrid, pleaded guilty to conspiracy to launder money. Henry Zamora pleaded guilty to conspiring to distribute four kilograms of heroin that were recovered from a hidden compartment in his vehicle. Dany Francisco-Valerio pleaded guilty to conspiring to distribute 15 kilograms of heroin that were recovered from a hidden compartment in his vehicle when it was stopped in Warren County, New Jersey.
In addition to the prison term, Judge Sheridan sentenced Madrid to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Valerie Nickerson, officers of the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, and officers from the DeKalb, Illinois, police department, under the direction of Chief Gene Lowrey, with the investigation.The government is represented by Assistant U.S. Attorney Thomas S. Kearney and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel: John Holliday Esq., Hamilton, New Jersey
Brevard, N.C. Man Sentenced to 10 Years on Internet Enticement ChargesRead the Press Release
ASHEVILLE, N.C. – William Robert Garberding, 62, of Brevard, N.C. was sentenced late yesterday to 120 months in prison for enticing a minor using the Internet, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Martin Reidinger ordered Garberding to serve a lifetime of supervised release and to register as a sex offender.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief John Phillip Harris, Jr. of the Brevard Police Department.
According to filed court documents and the sentencing hearing, on November 17, 2015, an individual identified as “BA” reported to law enforcement that she had located some material of concern posted on Garberding’s social media account, who at the time was staying at BA’s residence. According to court records, over the course of the investigation, law enforcement discovered that Garberding was using social media to exchange messages and images of a sexual nature with a 13-year-old girl living in Kentucky. According to court records, Garberding knew the victim was underage, and he had falsely told the minor victim that he was 16-years-old.
Court records show that a forensic analysis of Garberding cellular phone revealed that he had downloaded 55 images of child pornography. In addition, over the course of the investigation, law enforcement discovered multiple messages between Garberding and the minor, in which Garberding solicited the minor to engage in sexually explicit conduct.
Garberding pleaded to one count of enticing a minor via the Internet and is currently in federal custody. In making today’s announcement, U.S. Attorney Murray thanked the Minneapolis Division of the FBI for their assistance with the investigation.
In a separate case, Judge Reidinger also sentenced yesterday James Eugene Patty, Jr., 49, of Maryville, Tennessee, to 108 months in prison on transportation of child pornography charges. Patty was also ordered to serve a lifetime of supervised release and to register as a sex offender.
According to filed court documents and court proceedings, in September 2016, law enforcement located an online advertisement soliciting a partner to engage in sexual conduct and advertising “the younger the better.” Posing as a 14-year-old female, a law enforcement officer responded to the ad, and proceeded to engage in multiple exchanges with Patty, which were sexual in nature. Court records show that, over the course of the online exchanges, Patty told the “minor” that he was interested in bondage, and sent the “minor” sexual images that depicted bondage.
According to court records, after exchanging multiple online and text messages, Patty was arrested by law enforcement on October 5, 2016, after he drove from Tennessee to Asheville to meet the minor female. At the time of his arrest, Patty was a sheriff deputy with the Blount County Sheriff’s Office in Tennessee. During the course of the investigation, law enforcement found child pornography images in Patty’s cellular phone, including the images he had transmitted to the “minor.”
Patty pleaded guilty to one count of transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked the North Carolina State Bureau of Investigation, the Boone Police Department and the Asheville Police Department for their investigation.
The U.S. Attorney’s Office in Asheville prosecuted both cases.
Bossier City car dealer pleads guilty to stealing $177,000 from credit unionRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Benton man pleaded guilty Tuesday to taking out loans totaling $177,000 for three cars that didn’t exist.
Larry Wayne Toms Jr., 41, of Benton, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of bank fraud. According to the guilty plea, Toms, who is a car dealer in Bossier City, La., submitted fraudulent loan applications for the purchase of three cars from June 1, 2015 to July 23, 2015 to the Post Office Employees Federal Credit Union in Shreveport, and the credit union disbursed $177,000 to Toms. The three vehicles listed in loan applications did not exist.
Toms faces up to 30 years in prison, five years of supervised release and a $1 million fine. The court set a sentencing date of March 23, 2018.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Bloods Gang Member Sentenced for Federal Racketeering and Drug OffensesRead the Press Release
A Raleigh, North Carolina Bloods gang member was sentenced today to 120 months in prison for racketeering and drug charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina made the announcement.
Chief U.S. District Judge James C. Dever III sentenced Christopher Darnell Evans, 28, to 120 months in prison, followed by five years of supervised released following his prison sentenced. Evans was named in an Indictment filed on Jan. 20, charging him with conspiracy to participate in a pattern of racketeering, and conspiracy to distribute and possess with the intent to distribute, 500 grams or more of cocaine. On Sept. 11, Evans pleaded guilty to those charges.
According to the indictment, the Black Mob Gangstas and Donald Gee Family (BMG/DGF) Bloods is a violent street gang with members operating in Raleigh, including the Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings, collected dues from members and assaulted members who failed to pay or follow orders.
Evans attended gang meetings, received instructions from higher-ranking gang members regarding the gang’s rank structure and the payment of gang dues. Additionally, Evans frequently sold narcotics on behalf of the gang, specifically cocaine.
The case was investigated by the Raleigh Police Department, FBI and the North Carolina Department of Public Safety. The case was prosecuted by Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina, and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section.
Bloods Gang Member Sentenced for Federal Racketeering and Drug OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced CHRISTOPHER DARNELL EVANS, 28, of Raleigh, North Carolina to 120 months imprisonment, followed by 5 years of supervised release.
EVANS was named in an Indictment filed on January 20, 2017 charging him with conspiracy to participate in a pattern of racketeering and conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. On September 11, 2017, EVANS pled guilty to those charges.
According to the indictment, the Black Mob Gangstas and Donald Gee Family (“BMG/DGF”) Bloods is a violent street gang with members operating in Raleigh, including the Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings, collected dues from members, and assaulted members who failed to pay or follow orders.
EVANS attended gang meetings, received instructions from higher ranking gang members regarding the gang’s rank structure and the payment of gang dues. Additionally, EVANS frequently sold narcotics on behalf of the gang, specifically cocaine.
Investigation of this case was conducted by the Raleigh Police Department, Federal Bureau of Investigation, and the North Carolina Department of Public Safety. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section represented the government.
Beverly Hills Doctor Convicted of Fraud, Corruption in Massive Workers’ Comp SchemeRead the Press Release
NEWS RELEASE SUMMARY – December 13, 2017
SAN DIEGO – Beverly Hills Radiologist Ronald Grusd and two of his corporations, California Imaging Network Medical Group and Willows Consulting Company, were convicted by a federal jury late yesterday of fraud and bribery charges in connection with a massive health care-fraud scheme involving the State of California’s Workers’ Compensation program.
After a seven-day trial, the jury found Dr. Grusd and his companies guilty on all charges facing them, including Conspiracy, Honest Services Mail and Wire Fraud, Health Care Fraud, and Travel Act violations, based on their years-long bribery and fraud scheme.
According to evidence presented at trial, Dr. Grusd and his companies paid kickbacks for patient referrals from multiple clinics in San Diego and Imperial counties in order to fraudulently bill insurance companies over $25 million for medical services. Dr. Grusd negotiated with various individuals, including a primary treating physician, the payment of kickbacks for the referral of workers’ compensation patients for various medical services, including MRIs, ultrasounds, Shockwave treatments, toxicology testing and prescription pain medications.
After the patients were referred for the treatment or service, one of Dr. Grusd’s companies, California Imaging Network Medical Group, would fraudulently bill insurance companies for the procedures, concealing from both the patients and the insurers that substantial kickbacks had been paid in violation of California law. Another of Dr. Grusd’s companies, Willows Consulting Company, funneled the kickback payments to those directing the referral of the patients from the various clinics. Records presented at trial showed that Dr. Grusd paid over one hundred thousand dollars in bribes to secure the billings for hundreds of patients, with bribes paid on a per-patient or per-body-part formula.
Dr. Grusd was ordered to return to federal court on March 12, 2018, for a sentencing hearing for himself as well as both corporations. Since 2009, Dr. Grusd and his various companies have filed tens of thousands of liens in the California Workers Compensation System, seeking reimbursement for hundreds of millions of dollars from multiple insurers. To date, any outstanding liens have been stayed and will be sent to lien consolidation for dismissal proceedings as a result of the convictions. The jury could not reach a unanimous verdict as to Dr. Grusd’s administrator, Gonzalo Paredes, who was ordered back to court on January 4, 2018, for a hearing regarding a retrial.
Dr. Grusd, Paredes, and the corporations were originally indicted by a federal grand jury in November 2015, when the U.S. Attorney’s Office and the San Diego District Attorney’s Office, working in conjunction with the Federal Bureau of Investigation and the California Department of Insurance, announced multiple arrests arising from “Operation Back Lash” – a long-term, proactive health care fraud investigation targeting corruption and fraud in the California Workers’ Compensation system that is continuing.
Since then, nearly 40 individuals and corporations have been charged with federal and/or state crimes, including doctors, attorneys, marketers and providers of medical services and devices. The four other defendants charged with Dr. Grusd and Paredes – who were alleged to have received bribes in exchange for patient referrals – have pleaded guilty and are cooperating with the continuing investigation while awaiting sentencing. The charges on which Dr. Grusd went to trial were brought in July 2017, when a grand jury returned a Superseding Indictment against him and his companies.
Grusd’s practice, California Imaging Network Medical Group, operated clinics throughout California in San Diego, Los Angeles, Beverly Hills, Fresno, Rialto, Santa Ana, Studio City, Bakersfield, Calexico, East Los Angeles, Lancaster, Victorville and Visalia.
“A patient entrusts his life to his physician,” said U.S. Attorney Adam Braverman. “A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder. The jury has found that Dr. Grusd perverted that sacred relationship by buying and selling patients – oftentimes on a per-body-part basis – for his own personal enrichment.”
U.S. Attorney Braverman commended the tireless efforts of the Federal Bureau of Investigation and the California Department of Insurance to investigate these offenses, and thanked San Diego District Attorney Summer Stephan and her office for collaborating with the United States Attorney’s Office on the Operation Back Lash prosecutions.
“These convictions show that the paying of illegal bribes and treating patients as commodities for the purpose of lining conspirator's pockets will not be tolerated,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI will continue to use our investigative expertise to dismantle sophisticated criminal conspiracies at the highest levels. This case exemplifies that the FBI and our law enforcement partners are committed to rooting out corruption in our health care system.”
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
DEFENDANTS Case Number: 15cr2821-BAS
Ronald Grusd Los Angeles, CA
Gonzalo Ernesto Paredes LaVerne, CA
California Imaging Network Medical Group Incorporated in 2007
Willows Consulting Company Incorporated in 2011
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Mail Fraud, Mail Fraud, Wire Fraud, and Health Care Fraud, in violation 18 U.S.C. 1349
Maximum Penalty: 20 years in custody; $250,000 fine, or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Honest Services Mail and Wire Fraud, in violation of 18 U.S.C. Secs. 1341, 1343 and 1346 (18 Counts)
Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Health Care Fraud, in violation of 18 U.S.C. 1347, (14 Counts)
Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Travel Act, in violation of U.S.C. 1952 (6 Counts)
Maximum Penalty: Five years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Auburn Man Convicted for Possession of a Firearm after a Conviction for a Misdemeanor Crime of Domestic ViolenceRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Willie Richard Minor, 58, of Auburn, Maine, was convicted today following a two-day jury trial in U.S. District Court of possession of a firearm after having been convicted of a misdemeanor crime of domestic violence.
Court records and trial evidence revealed that on June 14, 2010, Minor was convicted in Maine Superior Court of Assault. The victim of the assault was his wife at the time. As a result of that conviction, the defendant was prohibited from possessing firearms. On November 27, 2016, in an interview with the Auburn Police Department, the defendant admitted to having a gun and told the police he kept the gun in his apartment. The police subsequently searched his apartment pursuant to a warrant and found the gun Minor had described.
Minor faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Auburn and Mechanic Falls Police Departments, the Maine State Police Crime Lab, and the Federal Bureau of Investigation.
Atlanta man convicted of assaulting Federal Marshals with a motor vehicleRead the Press Release
ATLANTA – Shusta Traverse Gumbs has been convicted of two counts of using a motor vehicle to assault members of the U.S. Marshals Services’ Southeast Regional Fugitive Task Force (SERTF) after he attempted to flee arrest in his vehicle, pinning a Deputy U.S. Marshal with his car in the process.
“Gumbs used his vehicle to pin one of the Deputy Marshals between two cars, resulting in serious injury to the officer,” said U.S. Attorney Byung J. “BJay” Pak. “He also jeopardized the lives of the remaining arresting officers who were near the defendant’s car during the assault. We are committed to backing our men and women in law enforcement, and will use all of our resources to prosecute to the fullest extent of the law those who seek to injure our law enforcement partners who work hard to protect us.”
“Assaulting a federal officer shows a disregard for law and order. We appreciate the hard work of the U.S. Attorney’s Office to bring Gumbs to justice. He was held accountable for this assault by a jury of his peers,” said Keith D. Booker, Chief Inspector, Southeast Regional Fugitive Task Force, U.S. Marshals Service.
According to U.S. Attorney Pak, the charges, and evidence presented at trial: On October 21, 2016, the SERFTF sought Gumbs for an active warrant issued by Douglas County, Georgia, Superior Court for failure to appear for the offenses of theft by receiving stolen property, felon in possession of a firearm, and possession of marijuana. SERFTF members saw Gumbs stopped in a black car in a parking lot of a store in the West End neighborhood of Atlanta.
A deputy entered the parking lot in a car, with another deputy as his passenger. A third deputy arrived in a van, with two more deputies as his passengers. Two separate deputies each arrived in separate vehicles. All the officers then converged on Gumbs’ vehicle with the sirens and blue lights of their vehicles engaged and firearms drawn. Gumbs was ordered to turn off and exit his vehicle. Gumbs suddenly placed his vehicle in reverse and backed up approximately 10 to 15 feet.
One of the deputies then ran to his vehicle to retrieve an expandable baton should it become necessary to break any of the windows of Gumbs’ vehicle. As that deputy approached Gumbs’ vehicle a second time, Gumbs accelerated his vehicle to force his way past one of the officers’ parked vehicles. As Gumbs did so, he pinned the deputy between the two vehicles, crushing his left thigh, knee, foot, and ankle. Gumbs then fled the West End area at a high rate of speed during heavy traffic, striking a motorist’s vehicle, and running a stop sign and a red traffic light. He eventually abandoned the vehicle and eluded capture until four days later, on October 25, 2016.
Shusta Traverse Gumbs, 39, of the U.S. Virgin Islands, was convicted of two counts of forcibly assaulting, impeding, opposing, resisting, or interfering with four federal officers during the performance of their official duties.
This case was investigated by the U.S. Marshals Services’ Southeast Regional Fugitive Task Force, with assistance from the Atlanta Police Department.
Assistant U.S. Attorney Richard S. Moultrie, Jr. prosecuted the case.
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.
Anderson Felon Sentenced for Drug, Gun, and Counterfeit Money ChargesRead the Press Release
Anderson, South Carolina---- United States Attorney Beth Drake stated today that Michael Donyell Robinson, age 35, of Anderson, South Carolina was sentenced in federal court for “Conspiracy to Sell Counterfeit Federal Reserve Notes,” in violation of 18 U.S.C. § 371, and “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” in violation of 18 U.S.C. § 924(c). United States District Judge Timothy M. Cain of Anderson sentenced Robinson to 78 months imprisonment.
Evidence presented at the change of plea and sentencing hearings established that on November 17, 2015, a deputy from the Abbeville County Sheriff’s Office pulled over a car driven by Tempest Campbell for a traffic violation. The officer found that Campbell’s license was expired and the passenger, Michael Robinson, was wanted on warrants out of North Carolina. When asked why Robinson appeared nervous, Robinson handed the deputy a bag containing $9,760 in counterfeit currency and two plastic bags containing MDMA and methamphetamine. Inside Campbell’s purse, officers located a G.P.C. model 10, .22 caliber pistol with one round in the chamber. Campbell stated that Robinson had shoved the gun in her purse when they saw the Abbeville patrol car’s blue lights. Robinson had two matching .22 caliber bullets on him and additional cocaine, crack, and a digital scale around his seat. Robinson has prior felony convictions, which prohibited him from possessing a firearm. Further investigation revealed that Campbell and Robinson had previously sold counterfeit to a third party. Robinson has remained in custody since his arrest. Campbell previously pled guilty to the counterfeiting conspiracy.
The case was investigated by agents of the United States Secret Service, ATF, and the Abbeville Sheriff’s Office. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
#####
44 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On December 8, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against 44 defendants charged with conspiracy to distribute controlled substances in the municipalities of Caguas, Cidra, and Aguas Buenas, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD), Caguas Strike Force Unit, are in charge of the investigation, with the collaboration of DEA and the US Marshals.
The indictment alleges that beginning in or about the year 2013, the organization distributed heroin, crack, cocaine, marihuana, Oxycodone (commonly known as Percocet), and Alprazolam (commonly known as Xanax) all within 1,000 feet of the real property comprising the Turabo Heights, Brisas del Turabo, Juan Jiménez-García, Práxedes Santiago, Jardines de Cidra, and Vistas de Jagüeyes Public Housing Projects and other areas nearby the municipalities of Caguas, Cidra and Aguas Buenas, PR, all for significant financial gain and profit.
The 44 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, drug processors, enforcers, runners, sellers, and facilitators. According to the indictment, defendants and their co-conspirators would deposit money in accounts belonging to incarcerated members of the organization to keep them from cooperating with law enforcement.
The defendants are: Nelson Torres-Delgado, a.k.a. “Nelsito/El Burro”; Wilfredo Maldonado-Ríos, a.k.a “Yuyo/La Flaca”; Juan Blanco-Meléndez, a.k.a. “Puchu”; Pedro José Pomales, a.k.a. “Pedro El Tetón”; Gerardo Rodríguez-Guzmán, a.k.a. “Figurita”; Luis Cataño-Landan, a.k.a. “Beba”; Pedro J. Carrasquillo-Marcano, a.k.a. “Potin”; Carlos J. Reyes-Rosario, a.k.a. “Carlitos Mea”; José Luis González-De Jesús, a.k.a. “Rambo”; Christopher Rivera-Gómez, a.k.a. “Cagao”; Joshuan Casanova-López, a.k.a. “Torito”; Javier J. Suárez-Álvarez, a.k.a. “Javi El Goldo”; Pedro Xavier Montañez-Fernández, a.k.a. “Vito Fernández”; Alexis Pérez-Mléndez, a.k.a. “Lechón/Sexi Carolina”; Jesús Torres-Coss, a.k.a. “Popo”; Jonathan Torres-Coss, a.k.a. “Jonatito”; Carlos Rodríguez-Zayas, a.k.a. “Carlitos Zayas”; Juan G. Díaz-Colón, a.k.a. “Gabi Diente”; Gregorio Angulo-Rosa, a.k.a. “Monkey”; Ángel Betancourt-Flores, a.k.a. “Betan”; Luis M. Hernández-Ramos, a.k.a. “Ardilla”; Kenneth Cedeño-Rodríguez, a.k.a. “La Barbie”; Edwin Padilla-López, a.k.a. “Bebo/Play”; Ángel M. Ruiz-Robles, a.k.a. “Angie”; Félix A. Rosario-Garced, a.k.a. “Chandel”; Emmanuel Figueroa-Centeno, a.k.a. “Emma”; Luis Joel Marrero-Ortiz, a.k.a. “La J”; Reynaldo Ríos-Rodríguez, a.k.a. “Garra”; Jeseiken Rodríguez-Vázquez, a.k.a. “Jeiki”; Juan C. Claudio-Cervera, a.k.a. “Clau”; Onix Rosario-Delgado; José Padilla-Santiago, a.k.a. “Gurabo”; Christian Centeno-Rosado, a.k.a. “Espigao”; Christian Roldán-Colón, a.k.a. “Roldán”; Kesia González-Claudio; Jean Pierre Benítez-Reyes, a.k.a. “Jampi”; Jorge L. Nieves-Colón, a.k.a. “Coli”; Carlos Pedraza-Vázquez, a.k.a. “Carli/Lechón”; Jonathan Hernández-Flores; Ricardo Abel Rivera-Santos, a.k.a. “Abel”; Jorge L. Roque-Cruz, a.k.a. “Chapa”; Emmanuel Díaz-Martínez, a.k.a. “Emanuel Trenzas”; Victor Reyes-Santiago, a.k.a. “Vitito”; and Ernesto Aroche-Rivera, a.k.a. “Flow/Hector”.
Twenty-five of the defendants are facing one charge of possession of firearms in furtherance of drug trafficking crime. All of the defendants are facing a narcotics forfeiture allegation of ten million dollars.
“One of our top priorities continues to be the disruption and dismantling of drug trafficking organizations, at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this joint operation, with the collaboration of our state counterparts, shows our commitment to keep drugs and firearms out of our neighborhoods.”
“This indictment sends a clear message that ATF and its Federal and local partners will tirelessly combat armed drug trafficking and violent crime in Puerto Rico. The criminality that affects the most vulnerable members of the community will never be tolerated,” said Ari Shapira, Assistant Special Agent in Charge, Miami Field Division.
Assistant U.S. Attorney Teresa S. Zapata-Valladares is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). This multi-agency task force investigates and dismantles major drug trafficking organizations responsible for the movement of multi kilogram quantities of narcotics as well as the gang violence that is generated by drug trafficking.
# # #
16 People Linked to San Fernando Valley-Based Narcotics-Delivery Service Indicted by Federal Grand JuryRead the Press Release
LOS ANGELES – Federal and local law enforcement authorities today took into custody seven defendants linked to a drug-distribution ring that operated out of Van Nuys and used a fleet of cars and a staff of drivers to make rapid deliveries – primarily of heroin – in response to phone orders.
Today’s arrests follow the filing of three indictments returned yesterday afternoon by a federal grand jury. The main indictment, which charges 14 defendants, outlines the operations of “Manny’s Delivery Service,” a telephone order narcotics-delivery service that allegedly sold heroin and cocaine, often supplying to customers who were directed to meet delivery drivers at locations across the San Fernando Valley.
While the delivery service sold small user-quantities to customers who phoned in orders, the conspiracy allegedly sold larger quantities as part of its sophisticated, high-volume narcotics business. The indictment discusses managers who obtained narcotics, delivery vehicles with hidden compartments and the movement of bulk cash collected from narcotics transactions.
In relation to the alleged conspiracy to distribute controlled substances, the indictment outlines activities over a two-month period that began in late August. During this period, members of the drug ring obtained multi-kilogram quantities of heroin and moved hundreds of thousands of dollars in cash, according to wiretapped conversations outlined in the indictment. Bulk narcotics were stored in a “stash house,” and smaller quantities of drugs were packaged and dispatched to customers from a facility maintained by the ring in Van Nuys.
During today’s enforcement operations, law enforcement authorities seized approximately 14 pounds of heroin, more than one pound of cocaine and a significant amount of cash.
The main indictment charges 14 defendants who played various roles in the Manny’s Delivery Service. The defendants, many of whom have aliases, are:
-
Sigifredo Gurrola Barrientos, 40, of Sylmar, the alleged manager of the drug trafficking operation who oversaw the movement of narcotics and the operation’s fleet of delivery vehicles (arrested today);
-
Adrian Munoz-Garcia, 24, of Buena Park, who is described in the indictment as Barrientos’ right-hand man (arrested today);
-
Juan Carlos Bonilla, 21, of Phoenix, Arizona, who allegedly took customers’ orders and helped coordinate deliveries (currently a fugitive);
-
Eduardo Daniel Ramirez-Hernandez, 26, of Van Nuys, who also allegedly took customers’ orders and arranged for deliveries (arrested today);
-
Joel Cortes-Solano, 26, of Anaheim, who allegedly was a dispatcher, delivered drugs and collected proceeds from other delivery drivers (currently a fugitive);
-
A currently unidentified man known only as “Gangster,” who allegedly also worked as a dispatcher;
-
Jacqueline De La Rosa, 24, of Pacoima, who allegedly purchased wholesale quantities of narcotics and stored them at her residence, as well as transported large sums of narcotics proceeds (arrested today);
-
A man charged in the indictment under the moniker “Lineas” who was taken into custody today and identified as Gerardo Aguilar-Castillo, 27, of Orange;
-
Alexander Abraham Talamantes Garcia, 40, of Anaheim, who allegedly provided narcotics to and collected funds from delivery drivers (currently a fugitive);
-
Manuel Ruelas, 21, of Phoenix, Arizona, who allegedly provided narcotics to and collected funds from delivery drivers (who is currently in state custody and is expected to be turned over to federal authorities soon);
-
Alan Pineda, 23, of Santa Ana, who allegedly was a delivery driver (currently a fugitive);
-
Arnold Pineda, 20, of Santa Ana, who allegedly was a delivery driver (currently a fugitive);
-
Christian Elias, 21, of Santa Ana, another alleged delivery driver (currently a fugitive); and
-
Anthony Salvador Magallon, 19, of Santa Ana, who allegedly was a delivery driver (currently a fugitive).
Two additional indictments returned yesterday by the grand jury name individual defendants who allegedly purchased larger quantities of drugs from Manny’s Delivery Service. These defendants are charged with various narcotics distribution offenses that allegedly took place in Ventura County. They are:
-
Douglas Von Brunner, 33, of Ventura, who is charged with possession with the intent to distribute nearly one pound of heroin and possession with the intent to distribute fentanyl (who was in state custody and was turned over to federal officials today); and
-
Christopher Daniel Rumsey, 31, of Newbury Park, who allegedly distributed heroin (arrested today).
The seven defendants taken into custody today are expected to be arraigned tomorrow morning in United States District Court in downtown Los Angeles. Authorities are continuing to search for the eight fugitives.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The main indictment charges the 14 defendants in a conspiracy to distribute, and to possess with intent to distribute, controlled substances. If they were to be convicted of that offense, each defendant would face a mandatory minimum sentence of 10 years in federal prison and a potential sentence of life without parole.
The investigation into “Manny’s Delivery Service” was conducted by the Drug Enforcement Administration and the Ventura County Narcotics Task Force. The Los Angeles Police Department and the Glendale Police Department provided substantial assistance during today’s operations.
These cases are being prosecuted by Assistant United States Attorneys Christopher C. Kendall and A. Carley Palmer of the Organized Crime Drug Enforcement Task Force.
-
Tuesday 12 December 2017
York Gang Member Sentenced to Life in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a member of a gang that has operated for a decade or more in the City of York was sentenced to life in prison for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, U.S. District Court Judge Yvette Kane imposed a sentence of life in prison on Douglas Kelly, a/k/a “Killer,” age 39, who was identified as a member of the “Southside” street gang as well as a member of the Bloods. When imposing sentence, Judge Kane noted Kelly’s role as one of the originators of this gang that ravaged the community in York for over a decade, causing numerous deaths and many other victims. Judge Kane indicated that Kelly’s gang activity placed him at the core of the organization.
At the sentencing, the government asked for a life sentence by highlighting Kelly’s significant prior criminal history. The government noted that at the age of 15, Kelly was convicted of attempted murder in New York for shooting an eight-year-old in the head with a shotgun. His criminal conduct did not dissipate, the government argued. Rather, in the early 2000’s, he was one of the original sources of guns and drugs to the gang. Judge Kane agreed and noted that Kelly was comparable to the two other leaders of the group Rolando Cruz, Jr., and Mark Hernandez, both of whom she recently sentenced to life in prison.
In November 2015, a jury convicted Kelly of racketeering and drug trafficking conspiracies after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury convicted the other 11 men who went to trial with Kelly.
The gang, labeled by the government as a criminal enterprise, is known as Southside. It operated in southern York, centered in the area of Maple and Duke Streets. There was no formal structure but the participants included senior leaders, drug traffickers engaged in distribution and sales of narcotics, particularly crack cocaine, and “shooters,” individuals who committed acts of violence, including use of firearms on behalf of the gang and to protect its members from other gangs in York. Order was maintained through intimidation and threats and, in some cases, murder. The Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang.
Violence against a rival York gang, called “Parkway,” allegedly resulted in death or shootings of members of both gangs and innocent bystanders.
ATF, together with the York City Police Department and the York County District Attorney’s Office, began an intensive two-year investigation of Southside in 2012. It culminated in a September 2014 grand jury indictment of 21 individuals.
Eight of the indicted persons, including James Abney, a senior Southside leader, pleaded guilty to the racketeering conspiracy charge prior to the trial, as did seven other individuals included in the September 2014 indictment.
Many individual Southside gang members were investigated and previously prosecuted by York County law enforcement agencies on state charges. The federal prosecution aimed at dismantling the organization by exposing and attacking its continuity and leadership. The federal investigation of gang violence and drug dealing in York is continuing in full cooperation with local police and the York County District Attorney’s Office.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges.
The individual defendants and the charges on which they were awaiting sentencing or were sentenced:
Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life in prison.
Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life in prison.
Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 25 years in prison.
Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 200 months in jail,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
James Abney, a/k/a “Doocs,” age 31.
Malik Sturdivant, a/k/a “Base,” age 25.
Jahkeem Abney, a/k/a “Foo,” age 27.
Ronald Payton, a/k/a “Ron Ron,” age 25.
Cordaress Rogers, a/k/a “Tank,” age 31.
Marquis Williams, a/k/a “Quis,” age 29.
Jerrod Brown, a/k/a “Boogie,” age 28.
Quintez Hall, a/k/a “Q,” age 25.
Richard Nolden, a/k/a “Rich,” age 27.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz 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.
# # #
Waterloo Man Sentenced to a Decade in Federal Prison for Unlawfully Possessing GunRead the Press Release
A man who fired shots at a campus church was sentenced today to the statutory maximum of 10 years in federal prison.
Darius Devon Nickelous, age 23, from Waterloo, Iowa, received the prison term after a June 1, 2017, jury verdict finding him guilty of being a prohibited person in possession of a firearm.
Evidence at trial showed that Nickelous fired a revolver multiple times at the Wesley Foundation Church on January 17, 2017, during a party hosted by a fraternity. The Wesley Foundation Church is located on the University of Northern Iowa’s campus in Cedar Falls. Nickelous fled the scene, but was quickly located by the Cedar Falls Police Department. Nickelous attempted to hide the revolver by a vehicle parked on the street. Officers recovered the gun, which had five spent casings inside, and detained Nickelous. Nickelous, who was extremely intoxicated, had an injury to his arm that was consistent with being grazed by a gunshot. Nickelous was unable to tell officers how he received the injury. No one else was injured. Nickelous was prohibited from possessing the gun because he was an unlawful drug user, had prior felony convictions and had prior misdemeanor domestic abuse convictions.
Nickelous was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Nickelous was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
Nickelous is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Emily K. Nydle and Ravi T. Narayan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cedar Falls Police Department, the Waterloo Police Department, and the Iowa Department of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02016
Follow us on Twitter @USAO_NDIA.
Washington Man Sentenced to 10 Years for Defrauding Alaskans Out of Approximately $2.7 MillionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Washington man was sentenced to serve 10 years in prison for defrauding Alaskans with an advance fee scheme where he promised investors a significant return on an investment that did not actually exist. His wife was previously convicted on one count of social security fraud in Washington.
Floyd Jay Mann, Jr., 56, of Puyallup, Washington, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 10 years in prison, followed by a term of supervised release. He was also ordered to pay full restitution to the victims. Mann pleaded guilty in July 2017 to 11 counts of wire fraud and eight counts of money laundering in Alaska.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Mann defrauded individuals in Dillingham and elsewhere of approximately $2.7 million by falsely leading the victims to believe that he was the recipient of a multimillion-dollar settlement from a class-action lawsuit against a pharmaceutical company. Mann told victims that if they helped to pay his medical bills and other lawsuit-related expenses, the victims would be paid back plus a substantial return on their money, but only after Mann’s multimillion-dollar settlement was released by the court. In fact, Mann did not use the victim’s money to pay medical bills. There was no lawsuit settlement, and Mann used the money he obtained from the victims to gamble at a casino, collecting over $1 million in jackpots while receiving need-based social security benefits.
The scheme started when Mann first convinced an elderly neighbor who had cancer, and was formerly from Dillingham, that he too had cancer. Once Mann gained the neighbor’s sympathy and trust, Mann convinced the neighbor of the legitimacy of his fraudulent lawsuit. The neighbor gave so much money to Mann’s scheme he lost his house and then succumbed to his cancer. Meanwhile, Mann moved on to the elderly neighbor’s friends and relatives in Dillingham. Mann carried out his scheme over six years. Mann created fraudulent court documents and had co-conspirators assisting him with pretending to be judges and federal agents to corroborate his fraudulent stories to the victims.
According to Special Assistant U.S. Attorney Benjamin Diggs, who prosecuted the case against Floyd Mann’s wife, Cheryl Mann, in the Western District of Washington, during the course of Floyd Mann’s scheme, he and his wife Cheryl Mann and their son collected approximately $81,000 in need-based Supplemental Security Income benefits. Cheryl Mann was the designated payee for Floyd Mann and their son and responsible for reporting any changes in the household income or assets. During this time, Cheryl Mann won approximately $125,000 by gambling at a casino. That income, as well as the funds obtained by her husband, disqualified the Manns from the public assistance they received. At her sentencing on July 7, 2017, Cheryl Mann was ordered to pay $81,000 in restitution and serve three years of probation.
“Floyd Mann preyed upon the sick and elderly. He ruined the lives of those who sadly placed their trust in him,” said First Assistant U.S. Attorney Bryan Wilson. “I commend the members of this office and our law enforcement partners in their efforts to obtain this conviction and sentence.”
“Unfortunately, this isn’t the first time well-wishers have gotten robbed helping others in fake battles against cancer,” said Acting Special Agent in Charge Joshua Bottjer. “IRS-CI Special Agents work diligently to stop criminals like Mann and others who commit crimes out of greed.”
In imposing the sentence, Judge Burgess noted that Mann was a “dogged, determined, charlatan” who caused “permanent financial and emotional damage to dozens of people.” Judge Burgess also commented that Mann was “sophisticated, devious, and calculating.”
The IRS-Criminal Investigation (IRS-CI), Federal Bureau of Investigation (FBI), and Social Security Administration-Office of Inspector General (SSA-OIG), conducted the investigation leading to the convictions in these cases.
Wanblee Man Sentenced to 174 Months in CustodyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wanblee, South Dakota, man convicted of three counts of Abusive Sexual Contact was sentenced on December 4, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jason Poor Bear, age 42, was sentenced on three counts of Abusive Sexual Contact to a total of 174 months in custody, followed by 5 years of supervised release, and ordered to pay $300 in special assessments to the Federal Crime Victims Fund. Poor Bear received 120 months’ custody on Count I, 30 months on Count II, and 24 months on Count III, to be served consecutively. The five-year supervised release terms for each count were ordered to be served concurrently.
Poor Bear was indicted by a federal grand jury on December 17, 2013. He pleaded guilty to the charges on June 23, 2017.
The conviction stems from Poor Bear using force to engage in sexual activity on May 29, 2013, at Wanblee, with the victim while she was incapable of declining participation.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Poor Bear was immediately turned over to the custody of the U.S. Marshals Service.
Vallejo Woman Sentenced to A Year in Prison for Fraudulently Collecting Almost $300,000 in Social Security Benefits over 23 YearsRead the Press Release
SACRAMENTO, Calif. — Emma Carter-Alexander, 66, of Vallejo, was sentenced today by United States District Judge John A. Mendez to one year in prison and ordered to pay $298,168.20 in restitution for converting public money to her own use, United States Attorney Phillip A. Talbert announced.
According to court documents, since the death of Carter-Alexander’s mother in 1993, Carter-Alexander has been collecting her mother’s Social Security disability benefits for her own use. To facilitate this fraud, Carter-Alexander filed yearly representative payee statements falsely indicating that she was using the funds for her mother’s well-being, even though her mother was deceased. Over the course of 23 years, Carter-Alexander converted $298,168.20 in public money to her own use.
This case was the product of an investigation by the Social Security Administration, Office of the Inspector General. Assistant United States Attorney Jeremy J. Kelley prosecuted the case.
Uncasville Man Sentenced to 8 Years in Prison for Child Sex Trafficking and Heroin Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAMON GOMEZ, also known as “B.I.,” 41, of Uncasville, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor and heroin distribution offenses.
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, which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that GOMEZ, who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution, where the victim stayed with Adele Bouthillier, who also was engaged in prostitution. On the morning of May 28, 2016, GOMEZ sold a quantity of heroin to Bouthillier who then gave it to the victim.
GOMEZ has been detained since his arrest on June 1, 2016. On November 17, 2016, he pleaded guilty to one count of sex trafficking of a minor, and one count of possession with intent to distribute heroin.
Bouthillier pleaded guilty to the same charges and, on October 17, 2017, was sentenced to 43 months of imprisonment.
On September 20, 2017, Nestor Santana, also known as “Beans,” of New London, pleaded guilty to a heroin distribution offense stemming from this investigation. Santana supplied GOMEZ with the heroin that subsequently caused the death of the victim. He is scheduled to be sentenced tomorrow at 10 a.m.
The matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
This investigation has been conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Twenty-One Defendants Plead Guilty to Drug and Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Rick A. Mountcastle announced today that Operation Rolling Thunder, an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and local law enforcement, has resulted in twenty-one defendants entering guilty pleas related to the distribution of methamphetamine and firearms possession in Southwest Virginia and North Carolina.
According to evidence presented at numerous hearings by Assistant United States Attorney Zachary T. Lee, the individuals involved in this drug trafficking organization were responsible for the transportation of large quantities of methamphetamine from the Greensboro, North Carolina area to be distributed in Galax, Virginia, Grayson County, Virginia, Carroll County, Virginia, and Surry County, North Carolina. Additionally, many of the members of the organization possessed and used firearms to further their drug trafficking activities. The following defendants entered guilty pleas to the following offenses:
- Amy Hoyt, 46, of Mt. Airy, North Carolina: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment; Possess a firearm in furtherance of a drug trafficking offense – maximum sentence of life imprisonment and a fine of $250,000.00, with a mandatory minimum sentence of five years imprisonment.
- Grandy Nester, 33, of Pilot Mt., North Carolina: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment; Possess a firearm in furtherance of a drug trafficking offense – maximum sentence of life imprisonment and a fine of $250,000.00, with a mandatory minimum sentence of five years imprisonment.
- Amber Bilyeu, a.k.a. “Rose”, 32, of Mt. Airy, North Carolina: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00 fine with a mandatory minimum term of ten years imprisonment.
- Karen Hawks, 45, of Low Gap, North Carolina: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Walter “Butch” Sexton, 64, of Galax, Virginia: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Brittany Cochran, 28, of Fries, Virginia: Conspiracy to distribute methamphetamine – maximum sentence of twenty years imprisonment and a fine of $1,000,000.00.
- Timothy Bowman, 46, of Cana, Virginia: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment; Possess a firearm in furtherance of a drug trafficking offense – maximum sentence of life imprisonment and a fine of $250,000.00, with a mandatory minimum sentence of five years imprisonment.
- Annette Freeman, 32, of Cana, Virginia: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Brad Hunley, 29, of Galax, Virginia: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Shawanna Phipps, 37, of Independence, Virginia: Conspiracy to distribute 50 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $8,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Brian Graff, 33, of Independence, Virginia: Conspiracy to distribute 50 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $8,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Riley Alley, 26, of Cana, Virginia: Conspiracy to distribute methamphetamine – maximum sentence of twenty years imprisonment and a fine of $1,000,000.00
- Calvin Jermaine Maxwell, 34, of Galax, Virginia: Conspiracy to distribute methamphetamine – maximum sentence of twenty years imprisonment and a fine of $1,000,000.00.
- David Norman, 29, of Galax, Virginia: Conspiracy to distribute methamphetamine – maximum sentence of twenty years imprisonment and a fine of $1,000,000.00.
- Jonathan Choate, 34, of Independence, Virginia: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of twenty years imprisonment.
- Kevin Humphries, 38, of Cana, Virginia: Conspiracy to distribute 50 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $8,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Jackie Christopher Parsons, 39, of Mouth of Wilson, Virginia: Conspiracy to distribute 50 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $8,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
- Jessilyn Jones, 26, of Independence, Virginia: Conspiracy to distribute methamphetamine – maximum sentence of twenty years imprisonment and a fine of $1,000,000.00.
- Vickie Grose, 48, of Galax, Virginia: Conspiracy to distribute methamphetamine - twenty years imprisonment and a fine of $1,000,000.00.
- Stacey Jerome Sawyers, 30, of Galax, Virginia: Conspiracy to distribute methamphetamine – maximum sentence of twenty years imprisonment and a fine of $1,000,000.00.
- Travis Brian Anders, 35, of Sugar Grove, Virginia: Conspiracy to distribute 500 grams or more of methamphetamine – maximum sentence of life imprisonment and a fine of $10,000,000.00, with a mandatory minimum sentence of ten years imprisonment.
The investigation of the case was conducted by the Grayson County Sheriff’s Office, Carroll County Sheriff’s Office, Surry County Sheriff’s Office, Virginia State Police, North Carolina State Bureau of Investigation, Galax Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Marshals Service, United States Secret Service. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Tucker County residents admit to illegal firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – A Parsons, West Virginia man and woman have admitted to firearms charges, United States Attorney Bill Powell announced.
Jamie Huffman, age 35, pled guilty to two counts of “Theft of Firearm from Federal Firearm Licensee.” Huffman admitted to stealing several firearms from B.F. Long & Co, a Federal Firearm Licensee, including a .38 caliber revolver, and a 40 caliber Glock pistol, and a 9mm pistol. The crimes occurred in July and August 2016 in Tucker County.
Christopher C. Earnest, age 35, pled guilty to one count of “Possession of Stolen Firearm - Aiding and Abetting” and two counts of “Unlawful Possession of a Firearm.” Earnest admitted to possessing three stolen firearms. Earnest, having previously been convicted of distributing methamphetamine in United States District Court in the Northern District of West Virginia, admitted to possessing a 12-gauge shotgun, a .38-caliber pistol, and .40 caliber Glock pistol. The crimes occurred in June and August 2016 in Randolph and Tucker Counties.
Huffman faces up to 10 years incarceration and a fine of up to $250,000 for each count. Earnest faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Traci M. Cook is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Magistrate Judge Michael John Aloi presided.
Tennessee Woman Sentenced to Sixty Months for Aiding and Abetting an Attempt to Kidnap Judge and SheriffRead the Press Release
Memphis, TN – Patricia Parsons, 50, of Brighton, Tennessee, was sentenced to sixty months in federal prison for aiding and abetting solicitation to commit kidnapping. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to the facts revealed during the plea hearing in September 2017, from February 2017 through May 2017, Parsons conspired with Suzanne Holland, a self-appointed Chief Justice of the Universal Supreme Court of the Tsilhquot’ in Nation in Canada, to kidnap a Tipton County judge and a Nebraska sheriff.
United States Attorney D. Michael Dunavant said: "The U.S. Attorney’s Office takes any threats against law enforcement, the courts and public officials very seriously. The defendant’s disturbing conduct in this potentially violent case strikes at the very heart of our justice system, and we are pleased that she has been held accountable for her role in this unusual kidnapping attempt."
On January 10, 2017, Michael Parsons (the defendant’s husband) was scheduled to appear in state court in Tipton County, Tennessee on two counts of being a felon in possession of a firearm. Mr. Parsons did not show up for court, removed the ankle monitor and fled the jurisdiction. Two days later, he was located and arrested in a small airport in Arapahoe, Nebraska after flying himself there in a plane.
On February 16, 2017, FBI New Orleans received information that Suzanne Holland, self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’ in Nation in Canada, was attempting to hire a bounty hunter to kidnap Sheriff Kurt Kapperman of Furnas County, Nebraska and Judge Joseph Walker of Tipton County, Tennessee and to break Mr. Parsons out of jail. Ms. Holland contacted an FBI Confidential Source in New Orleans, Louisiana and solicited the source to execute what were purported to be duly-
issued "arrest warrants" for the sheriff and judge issued by the Tsilhqot’ in Nation. Holland emailed "arrest warrants" to the source along with an "order to release Michael Parsons from jail." Further investigation revealed that the Tsilhqot’ in Nation was a Sovereign Citizen Group located on the Indian reservation in British Columbia, Canada.
On February 17, 2017, Ms. Holland provided a telephone number for the source to facilitate further discussions. FBI Memphis determined this number to be that of Mr. Parson’s wife, defendant Patricia Parsons.
Based on initial telephone conversations, Ms. Holland and the source agreed to draft a contract, signed by both parties, describing duties and payments. A final negotiated price of $250,000 was agreed upon for the arrest of the sheriff and judge and the facilitating release of Mike Parsons from jail. Mike Parsons was described as an Associate Justice of the Tshilhqot’ in Nation.
On February 23, 2017, the source and Ms. Holland agreed on an initial payment of $5,000 to begin arranging all travel and other details related to the operation. Holland told the source that Patricia Parsons would have the money and be available to meet in Memphis. On March 6, 2017, the source advised Holland that a business associate would meet Patricia Parsons to coordinate the payment. An amended contract was drawn up and signed by both parties. The source then contacted Patricia Parsons to discuss the transaction.
On March 3, 2017, Ms. Holland requested the source to accept a Corvette in lieu of the $5,000 payment. The Corvette was owned by the Parsons and located on Patricia Parsons’ property in Brighton, Tennessee. In telephone conversations, Patricia Parsons advised that the Corvette had some problems but was worth approximately $7,000. Three days later, during a series of phone calls, the source advised the defendant that an associate was traveling to the Parsons’ property to complete the payment transaction.
Further the source explained to Parsons what the overall operation would entail, including: selling the vehicle to help fund the operation; breaking Mr. Parsons out of jail; kidnapping the Tennessee judge (who was scheduled to preside over her husband’s impending trial) and the Nebraska sheriff; using the plane to transport the abducted individuals to Holland in Canada; and using 30 operatives divided into two teams to accomplish these objectives.
During these calls, defendant Parsons advised that her phone was tapped by the FBI and agreed to call the source on another phone. The defendant called on a different line and indicated that she was ok with the source taking the vehicle and using the plane in Nebraska "as long as the FBI don’t come knockin at my door again." The source explained that the operatives would need to go to Canada because "once we kidnap a judge and a sheriff, our heads are gonna be on the choppin block… and once we do what we gotta do we can never come back." After these discussions, the defendant agreed to meet one of the operatives to complete the transaction.
On March 6, 2017, an undercover FBI employee posing as an associate of the source exchanged phone calls with the defendant and subsequently met at her residence in Brighton, Tennessee to obtain the Corvette. Due to the fact that the Corvette was inaccessible at the residence, the defendant agreed to provide the associate a 1991 Ford Ranger truck as the down payment for the operation. Parsons could not find the title but signed a note transferring ownership of the vehicle and gave the associate keys to the truck.
Between March 11 and March 15, 2017, the associate made three separate telephone calls to Parsons in order to gain further information on Tipton County Judge Joseph Walker. The associate asked about an address and photo of the judge’s house. The defendant responded that she did not know the specific address but that the judge’s name was "Joseph Walker III" and advised that he was located in Ripley, Tennessee in Lauderdale County. She also agreed to find out more information on the judge. On another call, the defendant advised the associate about a Ripley P.O. Box for the judge and stated he presided over courts in Tipton, Lauderdale, Hardeman, Fayette and one other county. At no time did Parsons attempt to notify any authorities of the impending plot to kidnap a sheriff and judge and free Mr. Parsons from jail.
On December 12, 2017, U.S. District Judge Sheryl H. Lipman sentenced Parsons to 60 months imprisonment and two years’ supervised release to begin after her term of incarceration.
This case was investigated by the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.