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1 February 2018
Two-Time Convicted Sex Offender Sentenced to 28 Years for Child Sex CrimesRead the Press Release
Tampa, Florida –U.S. District Judge James S. Moody, Jr. has sentenced Clayton Junior Thornburg (55, Iuka, Mississippi) to 28 years in federal prison for attempting to entice a minor to engage in sexual activity, attempting to transfer obscene material to a minor, transporting child pornography, and being a registered sex offender who committed another sex offense involving a minor.
Judge Moody found him guilty on November 7, 2017, following a bench trial.
According to evidence presented during the trial, between August and November 2015, Thornburg communicated online with an undercover agent who he believed was a 13-year-old girl. He repeatedly expressed explicit interest in having sex with the “child,” and he sent multiple pornographic images and videos to illustrate what “it’s like for a young girl to have sex.” Thornburg is a two-time convicted sex offender and was on probation in Illinois for possession of child pornography at the time of the offenses in this case.
“This case should reassure the public that HSI is paying close attention to the safety of our children,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI special agents will continue to take child predators off our streets.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Men Indicted for Scheme to Export Firearms to Kurds in IraqRead the Press Release
Two men were indicted by a federal grand jury in Seattle late yesterday for three federal felonies in connection with their scheme to smuggle dozens of firearms to Turkey and Iraq in violation of the Arms Export Control Act, announced U.S. Attorney Annette L. Hayes. PAUL STUART BRUNT, 51, of Bellevue, Washington, and RAWND KHALEEL ALDALAWI, 29, of Seattle, were arrested on a criminal complaint January 24, 2018. They will be arraigned on the indictment on February 8, 2018.
According to records filed in the case, between October 2016 and November 2017, BRUNT and ALDALAWI engaged in a scheme to smuggle firearms from the U.S. to people associated with the Peshmerga military in Kurdistan, a part of Iraq. BRUNT purchased the firearms at gun stores and gun shows around the Puget Sound region. The men then attempted to ship the guns from the Port of Seattle through Turkey and on to Iraq, hidden in the side panels of vehicles. In the first shipment in February 2017, some 30 guns were hidden in three cars. In the second shipment in November 2017, 47 firearms were concealed in two vehicles. That second shipment was discovered by authorities in Turkey, and the shipment was traced back to BRUNT and ALDALAWI. The men had not obtained any export licenses for the firearms and smuggled them in violation of the Arms Export Control Act.
The conspiracy is punishable by up to five years in prison and a $250,000 fine. Violating the Arms Export Control Act is punishable by twenty years of imprisonment.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Thomas Woods. The U.S. Department of Justice National Security Division is assisting with the prosecution.
brunt_and_aldalawi_indictment.pdfTwo Men Illegally Residing in Lexington Convicted of Drug Trafficking, Firearms, and Immigration OffensesRead the Press Release
LEXINGTON, Ky. – Two Mexican nationals, illegally residing in Lexington, were convicted by a federal jury yesterday, following a two-day trial in U.S. District Court. Fernando Rafael Lara Salas, who had previously used the alias of Jesus Ruiz Vega, age 40, and Jorge Macias Pedroza, age 30, were each convicted of conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute multiple controlled substances, including fentanyl, methamphetamine, and tramadol, as well as being an alien in possession of a firearm. In addition, Lara Salas was also convicted of possession with intent to distribute more than five kilograms of cocaine, possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and unlawfully entering the United States after previously being deported for a felony drug possession offense.
The joint investigation by federal and state law enforcement into the drug trafficking activities of both defendants began in August 2016 and culminated with the execution of search warrants, at the homes of both defendants and a cargo trailer used by both men. The searches resulted in the seizure of 6 kilograms of cocaine, 4 kilograms of tramadol, residual amounts of fentanyl, more than 50 grams of methamphetamine, and two 9 mm firearms. Lara Salas also had approximately $110,000 in U.S. currency seized from his residence. Lara Salas was illegally present in the United States at the time of his arrest, due to his prior deportation resulting from a previous conviction on a federal drug possession charge. Macias Pedroza was also illegally present in the United States at the time of his arrest. The investigation was a cooperative effort led by investigators with the Drug Enforcement Administration (DEA); the Department of Homeland Security, Immigration and Customs Enforcement (ICE); and the Lexington Police Department.
“The defendants in this case were dealing in massive quantities of dangerous drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The number of overdose deaths in our community continues to rise, and the quantities of illegal drugs involved in this criminal conspiracy were placing many lives in danger. Without the outstanding work of our law enforcements partners, this prosecution would not have been possible. Their efforts removed these drugs from our streets, made our community safer, and saved lives. Prosecuting those who deal in this scourge to our community will continue to be a core priority of our Office.”
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Shawn Byers, Assistant Field Office Director, ICE; and Ron Compton, Acting Chief of Police, Lexington-Fayette County Division of Police, jointly announced the jury’s verdict.
The sentencing hearings for both defendants are currently scheduled for May 4, 2018, at the federal courthouse in Lexington. Lara Salas faces 25 years to life in prison and Pedroza faces 10 years to life. The U.S. District Court will consider the U.S. Sentencing Guidelines and the federal statutes before imposing sentence.
Two Honduran Citizens Plead Guilty to Scheme to Facilitate Employment of Undocumented Aliens in Construction Industry, Evasion of Payroll TaxesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Anyi (“Angie”) Artica-Romero (32) and Milton Noel Romero (35), both of Orlando, have pleaded guilty to conspiracy to commit wire fraud. Both are Honduran citizens who do not have legal status in the United States, and each faces up to 20 years in federal prison. As part of their guilty pleas, both have agreed to forfeit $812,149, the amount of proceeds obtained as a result of the offenses, and $127,624 that was seized in cash and from bank accounts.
According to the plea agreements, Artica-Romero and Noel Romero facilitated the employment in the construction industry of undocumented aliens living and working illegally in the United States. Construction contractors and subcontractors entered into an agreement with shell companies controlled by the defendants to provide workers, most of whom were undocumented aliens, for the contractors and subcontractors.
By obtaining and paying the workers through the shell companies, the contractors and subcontractors could disclaim responsibility for ensuring that (1) the workers were legally authorized to work in the United States, (2) required state and federal payroll taxes were paid, and (3) adequate workers’ compensation insurance was provided.
After creating the shell companies, Artica-Romero and Noel Romero applied for workers’ compensation insurance policies covering the period from September 2, 2015, through July 27, 2017. In the applications, they represented that the policies would cover 6 to 19 employees, and estimated annual payrolls of $100,000 to $410,800. The insurance companies issued policies with annual premiums of $20,002 to $38,860, based on the payroll information in the applications. They then “rented” the insurance policies to numerous construction contractors and subcontractors who employed hundreds of workers, causing the insurance companies to send certificates of insurance to the contractors and subcontractors as purported proof of sufficient workers’ compensation insurance.
The contractors and subcontractors wrote payroll checks to the shell companies for work performed by the workers. Artica-Romero and Noel Romero cashed the checks and distributed the cash to construction crew leaders, who then paid the workers in cash. No state or federal payroll taxes, such as for Medicare and Social Security, were deducted from the workers’ pay, in violation of Florida and federal law.
Artica-Romero and Noel Romero kept approximately 4% of the amount of each payroll check as a “rental” fee. During the scheme, they cashed payroll checks totaling $20,303,737, with the 4% fee totaling $812,149. The annual premium for a workers’ compensation insurance policy covering a payroll of $20,303,737 would have been more than $2,800,000.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Financial Services, Division of Insurance Fraud. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Defendants Charged with 1997 Double Murder for Hire in the BronxRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a federal indictment charging ROBERT ACOSTA and JOSE DIAZ, a/k/a “Cano,” with the December 22, 1997, murders of Alex Ventura, 25, and Aneudis Almonte, 20.
U.S. Attorney Geoffrey S. Berman said: “Today’s indictment alleges that more than two decades ago, Robert Acosta orchestrated, and Jose Diaz carried out, the murders of Alex Ventura and Aneudis Almonte. Now, thanks to the outstanding work of the NYPD and FBI, the long arm of the law has reached back over two decades to charge Acosta and Diaz with those terrible crimes.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “This case proves why there is no time limit on holding someone responsible for murder; taking a human life is the worst crime a person can commit. Our agents and law enforcement partners work daily, pursuing suspects in crimes that seem unsolvable. The time and dedication make it worth the effort.”
NYPD Commissioner James P. O’Neill said: “After more than twenty years on-the-run, NYPD detectives and FBI agents have arrested two defendants for a double homicide in the Bronx. The focus and precision this case embodies is what has enabled this city to become the safest city in America. We will continue rooting out crime and violence wherever we find it, until every neighborhood and block of this city is safe.”
According to the Indictment unsealed in Manhattan federal court:[1]
In late 1997, ACOSTA agreed with DIAZ and others to pay DIAZ and others to kill persons who had stolen drug money from ACOSTA. As a result of this agreement, Alex Ventura and Aneudis Almonte were murdered by DIAZ and others on December 22, 1997, in the vicinity of 2769 University Avenue in the Bronx, New York.
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ACOSTA, 46, of Yonkers, New York, and DIAZ, 52, of the Bronx, New York, were arrested this morning by the NYPD and the FBI. The defendants will be presented later today before United States Magistrate Judge Kevin Nathaniel Fox. The case has been assigned to United States District Judge P. Kevin Castel.
The Indictment charges each of the defendants in six counts: murder while engaged in a conspiracy to distribute five and more kilograms of cocaine and aiding and abetting the same (Counts One and Two); murder-for-hire conspiracy (Count Three); murder-for-hire and aiding and abetting the same (Counts Four and Five); and use of a firearm to commit murder in furtherance of a drug trafficking crime and aiding and abetting the same (Count Six). ACOSTA and DIAZ each face a maximum sentence of life in prison or death. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Laurie A. Korenbaum, Michael Kim Krouse, and Nicholas Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Two Additional Defendants Charged in Monroe County-Based Drug and Sex Trafficking ConspiraciesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton returned a second superseding indictment on January 30, 2018, charging two additional defendants, Arthur Taylor, age 35, of Tobyhanna, PA and Jordan Capone, age 23, of Mt. Pocono, PA, with participating in Monroe County-based drug and sex trafficking conspiracies.
According to United States Attorney David J. Freed, the second superseding indictment charges Taylor, Capone, and Jamiell Sims, age 29, of East Stroudsburg, PA, with conspiring with each other and others, to distribute and possess with intent to distribute cocaine base (“crack”), percocet, molly (MDMA), and heroin in an operation that allegedly stretched from New York to Stroudsburg, Pennsylvania to the state of Maine. The second superseding indictment alleges that the drug trafficking conspiracy began in 2010, and continued until the present.
The case was unsealed today following the arrest of Taylor and Capone. Sims had been charged in a previous indictment in October 2016. All three defendants are in custody.
It is alleged that the defendants were involved in trafficking more than 100 grams of heroin, which is approximately equivalent to more than 4,000 retail bags. Sims is also charged with four counts of distributing heroin in September-October 2016, and Capone is charged with possession with intent to distribute “molly” (MDMA) during 2012-2014.
The second superseding indictment further alleges that Taylor, Capone, and Sims conspired with each other and others to commit sex trafficking by force, fraud and coercion. All three defendants are also charged with four counts of sex trafficking by force, fraud and coercion taking place between 2011 and 2014.
The second superseding indictment alleges that the defendants were part of a street gang known as the “Black P-Stones,” whose members allegedly were “beaten-in” or “sexed-in” to the gang.
According to the second superseding indictment, the defendants and/or their co-conspirators obtained heroin and other drugs from suppliers in New York and elsewhere, and distributed the drug to others in Monroe County, Pennsylvania, and Maine.
It is further alleged that the defendants used intimidation and drugs to coerce females to engage in prostitution at hotels and motels in the Monroe County area, and posted advertisements on the adult entertainment section of a website to solicit customers for prostitution.
Sims is also charged with attempting to tamper with a witness connected to the case. Taylor is charged with conspiracy to interfere with commerce (drugs and money) by robbery.
The charges against the defendants resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
If convicted of the drug conspiracy charge, the defendants face a mandatory minimum sentence of five years’ imprisonment and a potential maximum sentence of 40 years’ imprisonment. The drug distribution counts against Sims and Capone each carry a potential maximum sentence of 20 years’ imprisonment. The sex trafficking offenses carry a mandatory minimum sentence of 15 years’ imprisonment and a potential maximum sentence of life imprisonment. Sims’ witness tampering charge carries a potential maximum sentence of 20 years’ imprisonment. Taylor’s charge of interference with commerce by robbery carries a potential maximum sentence of 20 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Stockton Man Charged with Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jason Solomon, 42, of Stockton, charging him with distribution of child pornography and possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in July 2016, Solomon distributed images of children engaged in sexually explicit conduct. On January 9, 2018, Solomon also possessed a video depicting a child engaged in sexually explicit conduct. Solomon has been in custody since his arrest on January 9, 2018.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted of distribution of child pornography, Solomon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The possession of child pornography count carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
St. Louis Man Indicted on Child Pornography ChargesRead the Press Release
St. Louis, MO – William T. Hopmeier, 47, St. Louis, was indicted on February 1, 2018.
The indictment alleges that Hopmeier produced child pornography. Specifically, it alleges that during the time of July 2017, to January 31, 2018, Hopmeier video recorded minors engaged in sexually explicit conduct.
If Hopmeier is convicted, this charge carries a maximum penalty of not more than 30 years, and not less than fifteen years, and a fine of up to $250,000, along with a supervised release of not less than 5 years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines.
This case is being investigated by the St. Louis County Police Department, Des Peres Police Department and the Federal Bureau of Investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Francis Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Omalewin Neck, age 24, was indicted on January 17, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 1, 2017, Neck unlawfully killed another human being, while operating a motor vehicle, in a grossly negligent manner.
The charge is merely an accusation and Neck is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Neck was released on bond pending trial. A trial date has not been set.
St. Charles Man Indicted on Charges of Firearms ViolationsRead the Press Release
St. Louis, MO – Taylor Wilson, 26, St. Louis, was indicted on February 1, 2018.
The indictment alleges various firearms offenses. Specifically, it alleges that during the time of September 2015, through December 23, 2017, Wilson possessed a fully automatic machinegun and a rifle, neither of which were registered to him in the National Firearms Registration and Transfer Record. It also alleges that the machine gun had a defaced and obliterated serial number.
If Wilson is convicted, counts one, three and four of the indictment carry a maximum penalty of 10 years in prison and a $250,000 fine. Count two of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Springfield Sex Offender Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a registered sex offender in Springfield, Mo., pleaded guilty in federal court today to receiving and distributing thousands of images of child pornography over the Internet.
Anthony Richard Salois, 51, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a July 22, 2014, federal indictment. Salois, who has a prior state conviction for sexual abuse involving a minor, has remained in federal custody since his arrest in July 2014.
By pleading guilty today, Salois admitted that he received and distributed child pornography over the Internet between Sept. 16 and 20, 2013. Salois utilized a peer-to-peer file-sharing network to download child pornography.
Law enforcement officers executed a search warrant at Salois’s residence on Oct. 13, 2013, and seized two desktop computers. Investigators found 3,973 images of child pornography, 50 multimedia files of child pornography, 641 images of child erotica and 39 multimedia files of child erotica on those computers.
Under federal statutes, Salois is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Carolina Man Sentenced for Fraud and Money LaunderingRead the Press Release
St. Louis, MO – Daniel Stimmel, 52, of Goose Creek, South Carolina, was sentenced to 46 months imprisonment and ordered to pay more than $4,000,000 in restitution for running a car theft scheme while employed as a fleet manager of Emerson Network Power (ENP) of Columbus, Ohio, from 2003 to 2016. ENP, now known as Vertiv, was formerly an operating subsidiary of Emerson Electric Company and became an independent entity after Stimmel’s scheme concluded.
Stimmel admitted in his 2017 plea agreement that he diverted hundreds of cars from the fleet management contract between ENP and two different fleet management companies through the use of fraudulent paperwork and straw parties until a car could be sold and titled in the name of a third-party buyer. The proceeds of these sales, which were hidden from ENP, were usually returned to Stimmel in cash.
Stimmel used the proceeds of his scheme to acquire real estate and pursue his interest in motor sports. As a part of the investigation, the St. Louis Division of the FBI, the St. Louis Office of the U.S. Postal Inspection Service and the U.S. Marshals Service for the Southern District of Ohio, forfeited numerous automobiles, motorcycles, a boat and a luxury automotive storage facility in Plain City, Ohio.
Tom Albus handled the case for the U.S. Attorney’s Office.
South Carolina Man Arraigned on Charge of Mailing Firearms to St. ThomasRead the Press Release
St. Thomas, USVI – Steven Baxter, 31, of South Carolina, was arraigned Wednesday in District Court on the charge of sending firearms through the mail, United States Attorney Gretchen C.F. Shappert announced. Baxter, who was indicted by a federal grand jury on June 7, 2017, was extradited from South Carolina based on an arrest warrant issued by the District Court the same day. U.S. Magistrate Judge Ruth Miller ordered Baxter detained pending further proceedings.
According to the indictment, on or about March 29, 2017, Baxter caused two firearms to be shipped from South Carolina to a third person in St. Thomas, knowing that the third person was not a licensed firearms dealer. If convicted, Baxter faces a maximum sentence of five years in prison and a $250,000 fine.
This case is being investigated by Homeland Security Investigations and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Shappert emphasized that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Six Southern Ohio Individuals Charged with Running Heroin Trafficking RingRead the Press Release
CINCINNATI – Five Southern Ohio men and one woman have been charged by criminal complaint with conspiracy to possess and distribute more than 1,000 grams of heroin.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges, which were unsealed today.
Those charged include:
Name
Age
City of Residence
Miguel Monroy-Cuadros
29
Fairfield, Ohio
Annel Reyes-Valdes
28
Fairfield, Ohio
Armando Gonzalez-Rosas
25
Fairfield, Ohio
Felix Garcia-Rosas*
30
Liberty Township, Ohio
Omar Santos
37
Oxford, Ohio
Armando Reyes
36
Oxford, Ohio
*Defendant is currently a fugitive
Gonzalez-Rosas and Garcia-Rosas are also charged with distribution of heroin. Monroy-Cuadros, Santos and Reyes are each also charged with possession with intent to distribute more than 100 grams of heroin. In addition, Santos and Reyes were each also charged with unlawful possession of firearms by an illegal alien and unlawfully possessing firearms in furtherance of a drug trafficking crime.
According to the affidavit filed in support of the criminal complaint, the six men were conspiring to operate a heroin-trafficking ring in the Cincinnati area from at least October 2017 until this week.
After DEA agents conducted a controlled purchase of heroin from Gonzalez-Rosas in September 2017, U.S. District Judge Michael R. Barrett authorized the interceptions of wire communications on cell phones used by the defendants. Communications led agents to believe Monroy-Cuadros was likely the source of supply for the group and Reyes-Valdes wired the group’s drug proceeds to Mexico. The farm on which Santos and Reyes lived in Oxford, Ohio was allegedly used as a stash location for the drug and drug proceeds.
Investigators intercepted calls and observed drug buys on numerous occasions between October 2017 and January 2018.
On January 9, troopers with Ohio State Highway Patrol discovered more than $132,446 in three separate locations in a vehicle. One of the locations included a plastic bag with more than $50,000 that is believed to have been delivered to the vehicle by Monroy-Cuadros.
On January 25, the Butler County Sheriff’s Office K9 unit conducted a traffic stop of Monroy-Cuadros. Following a positive indication by the K9, the vehicle was searched and $10,000 was discovered in a white plastic bag. Monroy-Cuadros was given a ticket for a moving violation.
Agents learned on Monday that Monroy-Cuadros and Reyes-Valdes were in Chicago. Agents from DEA Chicago observed Monroy-Cuadros board a bus, which was traveling to Mexico.
Search warrants obtained on Tuesday were executed at the farm in Oxford and a residence in Fairfield, Ohio. Several firearms – strategically located as-if for defense against home invasion – were found in the home in Oxford, as well as 300 grams of heroin. Agents discovered several money transfer receipts at the home in Fairfield.
Five of the defendants were arrested yesterday, including Monroy-Cuadros, who was arrested in Dallas when officers with the Dallas Police Department interdicted the bus. Garcia-Rosas remains at large.
U.S. Attorney Glassman commended the investigation of this case by the DEA and the assistance of DEA Chicago and Dallas, Immigration and Customs Enforcement (ICE), Ohio State Highway Patrol, Butler County Sheriff’s Office, Oxford, Fairfield, Springdale and Dallas Police Departments, as well as Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Six Sentenced in Connection with Organized Criminal Ring Profiting from Prostitution EnterpriseRead the Press Release
Six people have now been sentenced in U.S. District Court in Seattle for their roles in an organized crime ring involved with prostitution, announced U.S. Attorney Annette L. Hayes. The leader of the ring, FANG WANG, 29, of Queens, New York, was sentenced last month to 30 months in prison. At her sentencing hearing, U.S. District Judge Thomas S. Zilly said the “nature of the offense is very troubling to the court.”
YONGGUANG WU, 28, of Seattle and STEVEN THOMPSON, 59, of Renton, Washington, were each sentenced to 8 months in prison. YUNZHONG CHEN, 45, and YAOAN HE, 33, of Seattle, were each sentenced to one year in prison. ZHAOFENG ZHANG, 23, of Seattle, was sentenced today to 21 months in prison. ZHANG continued to post advertisements, rent apartments, and connect customers with ringleader WANG even after being contacted by law enforcement.
According to records in the case, federal and local law enforcement partners worked jointly to investigate a criminal ring making hundreds of thousands of dollars through the prostitution of Asian sex workers. In partnership with the FBI, the King County Sheriff’s Office (KCSO), and police departments in Bellevue, Redmond, Renton, Seattle, and Tukwila identified numerous brothel locations through their analysis of Backpage.com, cell phone, and other business records. The joint team of local and federal investigators then conducted surveillance of the ring’s activities. Law enforcement determined that multiple locations were linked to the organization via ads placed with websites such as Backpage.com. The investigation revealed that the same internet protocol (IP) addresses were used for placing many of the ads, and phone numbers associated with the ads were linked as well – in some instances to call centers located in New York and Washington, D.C. In other cases, the law enforcement agencies followed up on citizen complaints about apartments being operated as prostitution locations and confirmed that the organization was in fact conducting prostitution in those locations.
The investigation revealed that FANG WANG – the apparent leader of the operation – spent approximately $100,000 to increase the traffic to her ads on the Backpage.com site. Other defendants played different roles – renting apartments, transporting sex workers to various locations, purchasing supplies, collecting money from the sex workers, and placing ads. Prostitution activities associated with the ring occurred in apartments or hotels located in Bellevue, Kent, Kirkland, Lynnwood, Olympia, Lacey, Puyallup, Renton, Tukwila, Seattle, and Federal Way. Other locations where the ring operated include eastern Washington cities such as Richland, Kennewick, Wenatchee, and Spokane. The sex workers were frequently moved throughout the area.
The case was jointly investigated by the FBI, the Bellevue Police Department, the King County Sheriff’s Office, the Redmond Police Department, the Renton Police Department, the Seattle Police Department, the Tukwila Police Department, and Homeland Security Investigation (HSI).
The case was prosecuted by Assistant United States Attorney Kate Crisham.
Sioux Falls Man Found Guilty of Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that Orlando Dones-Vargas, a/k/a “Landy,” age 32, of Sioux Falls, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine as a result of a federal jury trial in Sioux Falls, South Dakota. The jury returned the verdict on January 30, 2018.
The conspiracy charge, involving over 500 grams of a mixture containing methamphetamine, carries a mandatory minimum penalty of 10 years and a maximum of life in custody and/or a $10 million fine, mandatory minimum of 5 years and a maximum of life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The possession with intent charge, involving more than 5 grams of pure methamphetamine, carries a mandatory minimum penalty of 5 years and a maximum of 40 years in custody and/or a $5 million fine, mandatory minimum of 4 years and a maximum of life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dones-Vargas was indicted by a federal grand jury on September 6, 2017, and a Superseding Indictment was filed January 9, 2018.
Dones-Vargas was arrested on August 20, 2017, for driving with a suspended license. During the booking process at the Minnehaha County Jail, it was discovered that he was concealing more than 13 grams of methamphetamine (96% pure) in his groin area. Further investigation revealed Dones-Vargas’ extensive involvement in the distribution of methamphetamine in the Sioux Falls area.
This case was investigated by the Sioux Falls Area Drug Task Force, the South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for April 23, 2018. The defendant was remanded to the custody of the U.S. Marshals Service.
Seven Arrested on Marijuana Trafficking ChargesRead the Press Release
SYRACUSE, NEW YORK – Seven upstate men were arrested today on federal drug conspiracy charges alleging that they arranged to transport, store, and distribute hundreds of pounds of marijuana between Franklin County in Northern New York and Onondaga and Oswego Counties, announced United States Attorney Grant C. Jaquith, Oswego County District Attorney Gregory S. Oakes, and U.S. Homeland Security Investigations (HSI)-Buffalo Field Office, Special Agent in Charge Kevin Kelly.
All seven defendants appeared today in United States District Court for the Northern District of New York in Syracuse. They are charged in two criminal complaints.
Charged in a criminal complaint alleging a conspiracy to possess with intent to distribute one hundred kilograms (approximately 220 pounds) or more of marijuana in Onondaga County from January 2017, through November 2017 are:
William Sullivan, 38, of Jamesville, New York
Jamie Phillips, 35, of Syracuse, New York
Alexander Elliott, a/k/a Alexander Camacho, 46, of Syracuse, New York
Alexander Steeprock, 21, of Syracuse, New York
Chadwick Swamp, 48, of Hogansburg, New York
Winston Francis, 26, of Hogansburg, New York
The complaint also charges Jamie Phillips with possessing a firearm after a previous conviction for a felony offense.
The drug conspiracy charge carries a minimum sentence of 5 years and a maximum sentence of up to 40 years imprisonment, a fine of up to $5 million and period of supervised release of at least four years and up to life. The charge of possessing a firearm after previously having been convicted of a felony offense against Jamie Phillips carries a maximum sentence of up to 10 years imprisonment, a fine of up to $250,000.00, and a term of supervised release of up to 3 years.
Jason Altpeter, 35, of Fulton, New York, is charged in a separate criminal complaint alleging a conspiracy to possess with intent to distribute fifty kilograms (approximately 110 pounds) or more of marijuana in Oswego County from July 2017, through November 2017. This charge carries carries a maximum sentence of up to 20 years imprisonment, a fine of up to one million dollars and period of supervised release of at least three years and up to life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This investigation was initiated by the Oswego County Drug Task Force, comprised of Special Agents of U.S. Homeland Security Investigations (HSI), members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol. Additional agencies involved in the investigation include the U.S. Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the City of Syracuse Police Department, the New York State Police-CNET Central, the St. Regis Mohawk Tribal Police Department (USA), the Akwasasne Mohawk Police Service (Canada), and the Oneida Indian Nation Police Department. This case is being prosecuted by Assistant U.S. Attorneys Carla Freedman and Robert Levine, in coordination with the Oswego County District Attorney's Office.
Sanford Man Sentenced to More Than 30 Years for Child Sexual Exploitation OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andrew Goldberg (35, Sanford) to 30 years and 5 months in federal prison for attempting to entice minors to engage in sexual activity and distributing child pornography. As part of the sentence, the Court also ordered him to serve a life term of supervision following his release from prison.
Goldberg pleaded guilty on October 30, 2017.
According to court documents, Goldberg was the administrator of two online social networking groups that he created to distribute child pornography. The groups had over 120 members. An FBI agent acting in an undercover capacity infiltrated the groups and met Goldberg online. During their communications, Goldberg arranged to have sex with the undercover agent’s fictitious daughters, ages 9 and 11, for his birthday. Goldberg planned to meet the undercover agent and the fictional children at a restaurant. When he arrived at the restaurant, agents arrested him. Goldberg was carrying condoms and a jar of vasoline. Subsequently, the agents located 84 videos of child pornography in Goldberg’s e-mail account and 405 images of child pornography on his smartphone.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Internet safety education, please visit www.justice.gov/psc.
Reeds Spring Man Pleads Guilty to Child Pornography, Faces at Least 25 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a convicted sex offender in Reeds Spring, Mo., who pretended to be a woman online in order to solicit sexually explicit photos from a teenage boy, pleaded guilty in federal court today to the sexual exploitation of a minor.
Jeffrey Raymond Everett, Jr., 22, of Reeds Spring, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Sept. 20, 2017, federal indictment. Everett has a prior state conviction for possession of child pornography.
According to today’s plea agreement, another student turned in the 16-year-old child victim’s cell phone at school because he found nude photos of the victim on the phone. Investigators found Facebook Messenger conversations between the victim and “Alecia Valentine,” who was later determined to be Everett.
In those messages, Everett – pretending to be Alecia Valentine – asks for sexually explicit images and videos of the victim, who sent numerous sexually explicit images and videos to Everett. The victim told law enforcement officers that he had engaged in several chat sessions with Alecia Valentine. Everett sent him pictures of a nude female, purportedly of Alecia Valentine, and requested that he send sexual pictures and videos of himself in return, which he did.
Under federal statutes, Everett is subject to a mandatory minimum sentence of 25 years in federal prison without parole, up to 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Monett, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rapid City Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register was sentenced on January 31, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Titus Leading Cloud, age 28, was sentenced to 12 months of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Leading Cloud was charged on March 21, 2017, and pleaded guilty on October 31, 2017. The conviction stems from Leading Cloud failing to register under the Sex Offender Registration and Notification Act as required.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Leading Cloud was immediately turned over to the custody of the U.S. Marshals Service.
Ragley woman collects more than $75,000 of deceased mother-in-law’s VA benefitsRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that a Ragley woman pleaded guilty last week to taking more than $75,000 of her deceased mother-in-law’s benefits.
Vanneta Hudspeth, 57, of Ragley, La., pleaded guilty January 25 before U.S. Magistrate Judge Kathleen Kay to one count of theft of government funds. According to the guilty plea, Hudspeth continued to receive her deceased mother-in-law’s Veterans Affairs benefits from March 2010 to June 2015 that she was not entitled to. Hudspeth made false statements on the mail-in questionnaire in 2014, stating that her mother-in-law was still living and entitled to receive benefits. Hudspeth collected $75,477.90 in VA benefits after her mother-in-law’s death in March 2010.
Hudspeth faces 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for April 17, 2018.
Veterans Affairs-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Prentiss Man Pleads Guilty to Methamphetamine PossessionRead the Press Release
Hattiesburg, Miss. – Scott Allen Hill, 47, of Prentiss, pled guilty today before United States District Judge Keith Starrett to possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Stephen G. Azzam.
On September 15, 2017, agents with the Mississippi Bureau of Narcotics executed a search warrant on Hill’s home, just one day after Hill had sold methamphetamine to a confidential source. During the search, agents found $12,380 in a safe in Hill’s bedroom, as well as a plastic bag containing approximately 75 grams of a crystal-like substance in the kitchen cabinet of Hill’s home. The DEA Crime Lab later determined that this substance was methamphetamine. Agents also found a digital scale underneath the plastic bag. Hill was arrested and charged with conspiracy and possession with intent to distribute methamphetamine.
Hill will be sentenced on April 17, 2018, at 10:00 a.m. by Judge Starrett, and faces a maximum penalty of 40 years in prison and a $5 million fine.
The case was investigated by the Drug Enforcement Administration with assistance from the Mississippi Bureau of Narcotics and the Jefferson Davis Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Shundral H. Cole.
Portland Man Pleads Guilty to Making False Threats of Terrorism at Two AirportsRead the Press Release
PORTLAND, Ore. – On Thursday, February 1, 2018, Sonny Donnie Smith, 38, of Clackamas, Oregon, pleaded guilty in U.S. District Court to making anonymous harassing telephone calls to two airports, in violation of 47 U.S.C. § 223(a)(1)(C). Smith waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office.
According to court documents, Smith admitted to making two anonymous telephone calls to security offices at McCarran International Airport in Las Vegas, Nevada and Midland International Air and Space Port in Midland, Texas. In both calls, Smith falsely reported that a family member traveling through the airport was a terrorist. An investigation revealed no real terrorist threat and that Smith made the calls because of a family feud.
“The safety and security of our nation’s airports and travelers are of paramount importance to law enforcement, and we will continue to swiftly and thoroughly investigate all threats of terrorism,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “False reports intended to harass others waste law enforcement time and resources and will be prosecuted accordingly.”
“Today’s technology makes some believe they can anonymously create chaos to resolve personal grievances. Thanks to the FBI agents and partner agencies who worked this case, Mr. Smith quickly found his harassment was far from anonymous. Whether someone makes a false claim to harass a particular person or more generally to disrupt air travel, they should know the FBI will respond. That requires the use of limited resources, potentially delaying response to other serious incidents and real victims. For this reason, you can expect to be held accountable for your threat - hoax or not,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
Smith faces a maximum sentence of two years in prison, a $250,000 fine and one year of supervised release. His sentencing hearing is scheduled for May 10, 2018 before United States District Court Judge Anna J. Brown.
This case was investigated by the FBI and prosecuted by Hannah Horsley, Assistant United States Attorney for the District of Oregon.
Port Byron Man Sentenced to 20 Years in Prison for Possessing, Receiving, Distributing Child PornograhyRead the Press Release
ROCK ISLAND, Ill. – Scott Brian Griffith, 54, of Port Byron, Ill., has been sentenced to 20 years (240 months) in prison for possessing, receiving and distributing child pornography. U.S. District Judge Sara L. Darrow sentenced Griffith on Jan. 31, 2018. Judge Darrow also ordered that Griffith remain on supervised release for 15 years following his release from incarceration. Griffith will be required to register as a sex offender. Griffith has remained in the custody of the U.S. Marshals Service since he was arrested on Mar. 31, 2016.
On Jan. 19, 2017, Griffith pled guilty to one count each of possessing, receiving and distributing child pornography. According to court documents, Griffith was first identified by law enforcement after he used multiple Twitter accounts to receive and distribute child pornography. Based on this information, the U.S. Secret Service obtained and executed a search warrant for his residence on Dec. 15, 2015. At the conclusion of that search, the Secret Service seized Griffith’s computer. A forensic examination of Griffith’s computer revealed the presence of images and videos of minors engaged in sexually explicit conduct.
The charges were the result of an investigation by the U.S. Secret Service; Moline Police Department; and the Illinois Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Donald B. Allegro and Kevin C. Knight prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pleasantville Guidance Counselor Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A guidance counselor with the Pleasantville public school district today admitted defrauding New Jersey state health benefits programs and other insurers out of over $3 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced.
Michael Pilate, 39, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
“Pilate was part of a network of recruiters, doctors, and state and local government employees who abused their access to state benefits plans to rack up millions in reimbursements for medically unnecessary prescriptions, all while profiting off the backs of New Jersey tax payers,” U.S. Attorney Carpenito said. “His guilty plea, which marks the 13th conviction in the ongoing investigation, is a testament to the combined success of our federal law enforcement partners and the New Jersey Attorney General’s office to find those responsible for this brazen scheme and bring them to justice.”
“The health care fraud committed by this individual and his co-defendants costs us all, and cannot be tolerated,” said New Jersey Attorney General Grewal. “We appreciate the vigorous pursuit of this conspiracy by our partners at the U.S. Attorney’s Office, and we're glad to collaborate in the effort. As Attorney General, I am committed to investigating health care fraud on behalf of New Jersey taxpayers, and to holding those engaged in such conduct accountable.”
“Today’s plea is a direct result of the commitment by federal, state and local law enforcement to aggressively pursue and charge those who willingly defraud our citizens," stated Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “Health Care fraud costs our country billions each year, which is not just absorbed, it is passed down to the consumer. We will remain vigilant to assure that unscrupulous individuals are brought to justice."
“In today's plea, the thirteenth in this case, Michael Pilate admitted to conspiring to cause the submission of fraudulent insurance claims for medically unnecessary compounded prescription medications. We will continue to work with our law enforcement partners to aggressively investigate illegal prescription drug schemes, particularly when they impact patients of programs administered by the Department," said Peter Nozka, Acting Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General New York Region.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Pilate and others recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.”
Certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators knew that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications.
An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Pilate agreed to personally receive compounded prescription creams that he did not need without being examined by a doctor and helped recruit other public employees and individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain medically unnecessary medications from the Compounding Pharmacy. Pilate secured insurance information from the individuals and passed it along to another conspirator, who had a doctor sign the prescriptions without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of Pilate’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Pilate and other members of the conspiracy. Pilate paid individuals with the insurance coverage $500 to reward them for obtaining the prescriptions.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of the plea agreement, Pilate must forfeit $392,684.20 in criminal proceeds he received for his role in the scheme and pay restitution of at least $3,493,170.18.
Pilate faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 11, 2018.
Twelve other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, Andrew Gerstel, and Timothy Frazier – have pleaded guilty to their roles in the scheme and await sentencing.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to the guilty plea. He also thanked the Pensions and Financial Transactions Section of the Division of Law, within the Attorney General’s Office, under the direction of Attorney General Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Teri Lodge Esq., Marlton, New Jersey
Pineville man sentenced to 30 months in prison for cashing counterfeit checksRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a Pineville man was sentenced Wednesday to 30 months in prison for counterfeiting and cashing checks.
Deshan Spivey, 31, of Pineville, La., who is originally from Ruston, La., was sentenced by U.S. District Judge Dee D. Drell to one count of making and possessing counterfeit securities of political subdivisions of the State of Louisiana. He was also sentenced to two years of supervised release and was ordered to pay $28,410 restitution. According to the October 30, 2017 guilty plea, Spivey used counterfeit checks that he manufactured to draw funds from the Rapides Parish School Board and Natchitoches Parish School Board in November 2015 and January 2017. Spivey cashed the checks at various retail outlets in the central Louisiana area.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Pierre Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on January 22, 2018, by U.S. District Judge Roberto A. Lange.
Adele Tahsequah, age 35, was sentenced to 21 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a special assessment of $100 to the Federal Crime Victims Fund.
Tahsequah was indicted by a federal grand jury on July 6, 2017, for Possession with Intent to Distribute a Controlled Substance. Tahsequah pled guilty on November 3, 2017.
On June 21, 2017, Tahsequah received a package delivered to her residence in Pierre by the U.S. Postal Service that contained 27.87 grams of methamphetamine. The package was addressed to Tahsequah, and Tahsequah indicated that she had been expecting it. Tahsequah admitted that she knew the package contained methamphetamine, and that she was intending to further distribute it within South Dakota. That same day, law enforcement executed a search warrant at Tahsequah’s residence and located multiple scales and small plastic baggies within the residence. Tahsequah admitted that the scales and baggies were utilized for the distribution of methamphetamine.
This case was investigated by the U.S. Postal Inspection Service, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Tahsequah was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Man Sentenced to 10 Years for Heroin ConspiracyRead the Press Release
SYRACUSE, NEW YORK - Lamont Butcher, age 42, of Philadelphia, Pennsylvania, was sentenced today to 120 months in prison for his participation in a conspiracy to possess with intent to distribute heroin, announced United States Attorney Grant C. Jaquith and United States Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division.
Butcher pled guilty on September 21, 2017, to conspiracy to possess with intent to distribute heroin in connection with his involvement in a heroin trafficking organization operating in Philadelphia and Oswego, New York. Butcher admitted in his plea to selling heroin to Samuel Alexander, Jr., whom he knew was further distributing the heroin in Oswego, New York, in an amount exceeding 1 kilogram. Alexander, of Brewerton, New York, was previously sentenced to 63 months for his role in the conspiracy.
Butcher was also sentenced to serve a 5-year term of supervised release following his release from prison and pay a forfeiture money judgement in the amount of $3,900.
This case was investigated by the DEA, U.S. Internal Revenue Service-Criminal Investigation (IRS-CI) and the Oswego County Drug Task Force, comprised of Special Agents of U.S. Homeland Security Investigations (HSI), members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department and Agents of the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorneys Carla Freedman and Geoffrey J.L. Brown.
Pennsylvania Business Owner Admits Defrauding Veterans’ GI BillRead the Press Release
Agrees to 60-Month Prison Term
NEWARK, N.J. – A Harrisburg, Pennsylvania, man today admitted his role in a conspiracy that fraudulently obtained more than $24 million from the Post 9/11 GI Bill, a federal education benefits program designed to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001, U.S. Attorney Craig Carpenito announced.
David Alvey, 51, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.
“Alvey and his codefendants stole money that was intended to provide educational opportunities to the armed services members who served following the attacks on 9/11,” U.S. Attorney Carpenito said. “Their scam targeted unwitting veterans, enrolling them in unapproved online courses without their knowledge. Our office will always work together with our law enforcement partners to find and stop this kind of government fraud, especially when it seeks to victimize those who serve our country with such courage.”
“The VA’s Post-9/11 GI Bill is a comprehensive educational program meant to help our nation’s veterans advance their education and careers as they move from military service to civilian life. Defrauding this important VA program costs our nation’s taxpayers and VA and does a tremendous disservice to our veterans,” Sean Smith, Special Agent in Charge, Northeast Field Office, U.S. Department of Veterans, Office of Inspector General, said. “VA OIG is committed to working closely with our fellow law enforcement partners and thanks the U.S. Attorney’s Office, District of New Jersey, for its dedication to this time-intensive, complex case.”
According to documents filed in this case and statements made in court:
The Post-9/11 GI Bill provides educational assistance to eligible veterans of the U.S. Armed Forces by paying for veterans’ tuition, housing costs, and other educational expenses as long as their courses meet certain criteria. Because these tuition benefits are paid by the United States directly to the school, all entities involved in developing and administering the courses must be fully disclosed to the United States in order to assess the courses for approval.
From 2009 through August 2013, Alvey – founder and president of Ed4Mil – Lisa DiBisceglie and Helen Sechrist, both of whom previously pleaded guilty to a similar wire fraud conspiracy count, and others, conspired to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits under the Post-9/11 GI Bill.
DiBisceglie, then an associate dean at Caldwell University, helped Alvey get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application with the Veterans Administration stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. The courses were subsequently approved, and Alvey, Sechrist, and others aggressively marketed the courses to veterans who were eligible to receive the benefits.
However, Caldwell did not participate in developing or teaching the online courses. The veterans were instead enrolled in online correspondence courses developed and administered by a sub-contractor of Ed4Mil. Neither Ed4Mil nor its sub-contractor were disclosed to the government, and neither were eligible to receive Post-9/11 GI Bill benefits.
Alvey and others concealed the true nature of the courses from the government and the veterans who enrolled in the courses. Thousands of veterans enrolled in the online courses believing they were taking courses from Caldwell. The scheme caused the United States to pay more than $24 million in tuition benefits under the Post-9/11 GI Bill.
“David Alvey knowingly and willfully abused his position for personal gain and did so at the expense of those who truly deserve better – our veterans who were looking to make their dreams of a higher education a reality,” Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Eastern Regional Office, said. “I’m proud of the work of OIG Special Agents and our law enforcement partners for holding Mr. Alvey accountable for his criminal actions. America’s veterans and students deserve nothing less.”
“The guilty plea by David Alvey sends a clear and unequivocal message that the FBI and our law enforcement partners will relentlessly pursue those who defraud the government. This is the third conspirator who pleaded guilty in this fraud scheme. These crimes are especially egregious since they target our veterans and the educational system,” Timothy Gallagher, Special Agent in Charge of the Newark FBI Field Office, said.
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of his plea agreement, Alvey has agreed to a prison term of five years and to forfeit proceeds of the crime, including $702,073 in cash proceeds, as well as artwork, and stock. Sentencing is scheduled for May 15, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast field office, under the direction of Special Agent in Charge Smith in Newark; the FBI, under the direction of Special Agent in Charge Gallagher in Newark; and the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Mayer, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys David M. Eskew and David Malagold of the U.S. Attorney’s Office Criminal Division in Newark, Assistant U.S. Attorney Nicole Mastropieri of the Healthcare and Government Fraud Unit, and Assistant U.S. Attorney Jafer Aftab of the Asset Recovery and Money Laundering Unit.
Paducah, Kentucky Office Manager Sentenced to 65 Months in Prison for Embezzling from Her EmployerRead the Press Release
Ordered to pay $747,455.30 in restitution
PADUCAH, Ky. – The office manager for Utilities Dynamics, Inc. was sentenced to 65 months in prison and ordered to pay restitution, by Senior Judge Thomas B. Russell, in United States District Court today, for wire fraud and identity theft as part of a scheme to defraud the company of $747,455.30 announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Insider theft from private employers happens all too often – with losses that affect hiring, pay, and often solvency of the entire company,” stated United States Attorney Russell Coleman. “Anyone who believes this will go unnoticed, should look at the fate of Ms. Roberts who will spend more than five years in prison and must return every stolen dime.”
Kristen Renee Roberts, 39, of Calvert City, Kentucky, was charged in a criminal Information with one count of wire fraud and one count of aggravated identity theft as part of a scheme to defraud her employer of over $700,000 during an eight year period.
Roberts pleaded guilty and acknowledged that beginning in June of 2009 and continuing until October of 2017, while office manager for Utilities Dynamics, Inc., she was responsible for all of the Company’s accounts payable, accounts receivable, employee payroll, QuickBooks functions, and banking requirements. She also had access to the Company’s company credit cards and banking account information.
Roberts admitted to using the company credit cards for unauthorized purchases for the benefit of herself and her family. Further, Roberts admitted to making unauthorized purchases with company credit cards that were in her own name and to using the company credit card of K.B., without K.B.’s knowledge or authorization. Roberts knew she did not have authority to use K.B.’s credit card but did so with the intent to defraud both K.B. and the Company.
Roberts also admitted to electronically debiting the bank account of the Company in order to make payments on her own personal credit cards and the personal credit cards of her family.
Finally, because Roberts controlled the Company’s payroll, she also was able to overpay herself using direct deposits from the Company’s bank account into her personal bank account. Roberts would conceal these overpayments to herself by creating fake payroll payments to other employees within the Company and then deposit that money into her own account. She would also conceal these overpayments by creating fake invoices within the Company’s QuickBooks accounting software to various vendors used by the Company where the payments to these vendors were actually payments into her personal bank account.
This case was prosecuted by Assistant United States Attorney Nute Bonner and was investigated by the McCracken County Sheriff’s Office.
Owner, Gire Roofing, Inc., Guilty of Visa Fraud, Harboring Illegal AliensRead the Press Release
SPRINGFIELD, Ill. – In a court filing late yesterday, U.S. District Judge Sue E. Myerscough found Edwin J. Gire, owner of Gire Roofing, Inc., and its corporate parent, Grayson Enterprises, Inc., of Champaign, Ill., guilty on all counts of visa fraud and harboring illegal aliens. In addition, Judge Myerscough’s verdict includes the finding that the business property, located at 309 West Hensley Road, in Champaign, was used to facilitate harboring of illegal aliens and is therefore subject to forfeiture. Sentencing has been scheduled on June 4, 2018.
During six days of trial, in November 2017, the court found that evidence presented by the government established that from 2011 to 2014, Gire, 46, through an immigration attorney, submitted four I-129 petitions to the Department of Homeland Security seeking to hire H-2B visa workers. Attached to each of the four petitions were multiple fraudulent roofing contracts to justify the number of H-2B visa workers requested. Testimony from numerous witnesses at trial established that the contracts detailed roofing jobs that customers never agreed to and contained forged signatures of the alleged customers or their representatives.
Further, the court found that undisputed evidence at trial proved that Gire knew or recklessly disregarded the fact that the three aliens listed in the indictment were not lawfully in the United States. Gire allowed the three aliens to live in a building owned by his company. Gire did this to make the aliens’ employment as roofers for Grayson Enterprises attractive despite the fact that Grayson Enterprises was paying them less than the applicable prevailing wage. By giving the aliens a place to live, the court found that Gire safeguarded the aliens from the authorities by making it more difficult for authorities to locate them.
On Oct. 20, 2017, Gire entered pleas of guilty to three misdemeanor counts of unlawful employment of aliens.
At sentencing, the statutory penalty for each count of visa fraud and harboring illegal aliens is up to ten years in prison and a $250,000 fine. The unlawful employment of aliens charges carry a penalty of up to six months in prison and a maximum fine of $3,000 for each unauthorized alien employed.
The charges were investigated by the U.S. Department of State, Diplomatic Security Service; the U.S. Department of Labor, Office of Inspector General; and U.S. Immigration and Customs Enforcement Homeland Security Investigations. Assistant U.S. Attorney Eugene L. Miller and Matthew Weir are prosecuting the case.
Owner of Northern Arizona Commercial Guiding Company Convicted of Crimes, Banned from the Grand CanyonRead the Press Release
FLAGSTAFF, Ariz. – Deborah Hendricks, 44, of Scottsdale, Ariz., and owner of “Just Roughin’ It”, a commercial guiding company, was sentenced by U.S. Magistrate Judge Charles R. Pyle to three years of probation. The probation terms include a three-year ban for Hendricks and “Just Roughin It” from conducting business or commercial activity in the Grand Canyon National Park. Hendricks had previously pleaded guilty to false report and violation of the terms and conditions of a permit.
The case involved a commercial rim-to-rim guided hike across the Grand Canyon. The permit used to take a group of clients on a guided hike by “Just Roughin It” was falsified. The permit actually issued to the company was for a different location in the Grand Canyon. The permit used by “Just Roughin It” was illegally modified to look like a valid permit for a commercial rim-to-rim hike.
The investigation in this case was conducted by Grand Canyon National Park Service Rangers. The prosecution was handled by Camille Bibles, Assistant U.S. Attorney, District of Arizona, Flagstaff.
CASE NUMBER: 17-04339MJ-001-PCT-DMF
RELEASE NUMBER: 2018-010_Hendricks
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
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Owner of Information Technology Companies Admits Visa Fraud and Tax CrimesRead the Press Release
NEWARK, N.J. – An owner of two IT staffing and consulting companies today admitted using phony documents to fraudulently obtain H1-B visas for foreign workers and submitting false tax returns, U.S. Attorney Craig Carpenito announced.
Sowrabh Sharma, 33, of New York, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with conspiracy to commit visa fraud and subscribing to false tax returns.
“For years, Sharma and others working at SCM Data and MMC systems lied about hiring full-time foreign workers in order to secure H1-B visas,” U.S. Attorney Carpenito said. “In reality and contrary to immigration laws, these workers were often ‘benched’ without pay while the companies created false documents to cover-up the scheme. This investigation, which has resulted in the conviction of an owner and several employees, including an immigration attorney, shows that businesses that use the H1-B visa program better do so with the utmost adherence to this nation's immigration and labor laws.”
“This conviction shows that even those with powerful business interests are not immune from HSI’s long and expert investigative reach when it comes to visa fraud and worker exploitation,” said Michael McCarthy, Acting Special Agent in charge of HSI Newark. “Such activities not only have a negative impact on the U.S. economy, but are harmful to the overall work environment of companies and individuals.”
“Sowrabh Sharma misused the H-1B program in order to enrich himself at the expense of the foreign workers he sponsored for H-1B visas. His company submitted false documents to the Departments of Labor and Homeland Security in order to perpetrate this fraud. The U.S. Department of Labor Office of Inspector General will continue to work with Homeland Security Investigations and our other law enforcement partners to vigorously pursue those who commit fraud involving the foreign labor certification programs which are jointly administered by the Departments of Labor, Homeland Security and State,” stated Peter Nozka, Acting Special Agent-in-Charge, U.S. Department of Labor Office of Inspector General New York Region.
According to the documents filed in this case and statements made in court:
SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals with purported IT expertise, often student visa holders or recent college graduates, and sponsored them for H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States.
Sharma admitted today that from 2010 through April 2015, he and others falsely represented to U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS) that dozens of foreign workers had full-time “in-house” positions, and would be paid an annual salary, as required to secure the visas. However, Sharma and his companies only paid the foreign workers when they were placed at a third-party client, or a company that entered into a contract for services with SCM Data and MMC Systems.
Sharma also admitted that in some instances, foreign workers who were “benched” between projects and not working were told that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems to generate phony payroll checks.
In addition, Sharma also admitted that he intentionally overstated and claimed false expenses pertaining to SCM Data and MMC Systems on his individual tax returns for 2011, 2012, 2013, and 2014, resulting in a tax loss to the United States of approximately $1,114,824.Sharma faces a maximum potential penalty of five years in prison on the visa fraud conspiracy count and three years in prison on the tax fraud count. Both charges carry a maximum $250,000 fine. His sentencing is scheduled for May 30, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy, the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, and IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Joyce M. Malliet and Francisco J. Navarro of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense Counsel: John P. Lacey Esq., and Leo J. Hurley Esq.
Orleans Woman Pleads Guilty to Stealing Deceased Spouse's Social Security BenefitsRead the Press Release
BOSTON – An Orleans woman pleaded guilty today in federal court in Boston to stealing her deceased husband’s Social Security benefits.
Susan Condon, 65, pleaded guilty to one count of theft of public funds and one count of making false statements. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for May 7, 2018.
Condon served as the representative payee for her husband in his receipt of Social Security benefits. Her husband passed away in April 2004, but she continued to receive his Social Security benefits each month. In January 2015, Condon falsely reported to the Social Security Administration (SSA) that she used all of the funds she received as her husband’s representative payee for her husband’s benefit. She did not inform the SSA that her husband had died more than 10 years earlier. From the time of her husband’s death in April 2004 through February 2017, Condon received approximately $186,804 in Social Security benefits.
The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making false statements provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
New Orleans Man Charged in Heroin Conspiracy, Including Distributing Heroin which Caused the Death of a 33 Year Old ManRead the Press Release
U.S. Attorney Duane A. Evans announced that JARON BIAS, age 25, of New Orleans, has been charged in a multiple count indictment which charges him in a heroin conspiracy for distributing heroin in the Black Pearl neighborhood in New Orleans and in Jefferson Parish.
According to court documents, the Federal Bureau of Investigation began investigating BIAS in August 2017 when the agency received information from an informant that BIAS was selling large quantities of heroin. The government has charged BIAS with distributing a kilogram of heroin over the span of the conspiracy. The government also charged BIAS with distributing heroin that caused the death of a 33 year old man in 2015. If convicted of this charge, BIAS faces a maximum sentence of life imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Navajo Man from Farmington Sentenced to Twelve Years for Federal Voluntary Manslaughter and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Sage Andrew Yazzie, 21, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced today in federal court in Santa Fe, N.M., to 144 months in prison for his conviction on voluntary manslaughter and firearms charges. Yazzie will be on supervised release for three years after completing his prison sentence.
Yazzie was arrested on March 10, 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Feb. 23, 2016. According to the criminal complaint, Yazzie entered a residence and shot the victim in the head with a firearm.
Yazzie was indicted on March 23, 2016, and was charged with first-degree murder and with using and carrying a firearm in relation to a crime of violence. According to the indictment, Yazzie committed the offenses on Feb. 23, 2016, in San Juan County.
On June 14, 2017, Yazzie pled guilty to a felony information charging him with voluntary manslaughter and discharging a firearm during a crime of violence. In entering the guilty plea, Yazzie admitted that on Feb. 23, 2016, he entered a residence in Huerfano, N.M., and killed the victim during a sudden quarrel by shooting the victim with a handgun.
This case was investigated by the Farmington office of the FBI, the Navajo Nation Division of Public Safety and the Farmington Police Department and was prosecuted by Assistant U.S. Attorneys Raquel Ruiz-Velez and Elaine Y. Ramirez.
Nampa Man Sentenced to Prison on Federal Gun ChargeRead the Press Release
BOISE – Joseph Barry Foy, 27, of Nampa, Idaho, was sentenced yesterday to 65 months in prison followed by three years of supervised release for possession of an unregistered firearm, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Foy on September 12, 2017. Foy pleaded guilty on November 8, 2017.
According to court records, in July of 2017, police officers contacted Foy while investigating an unrelated case in Canyon County. During the contact, officers found Foy in possession of a sawed-off shotgun, with the barrel modified to a length of around 12 inches. Foy is a member of the Norteño gang with an extensive criminal history including a conviction for aggravated assault.
Possession of an unregistered firearm is punishable by up to ten years imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force.
The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of
Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian
Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and
Parole.This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure
Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, a part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launches in 2001.
Mission Resident Sentenced to Prison for Cocaine PossessionRead the Press Release
McALLEN, Texas – A lawful permanent resident who was residing in Mission has been ordered to prison for possessing with the intent to distribute approximately 50 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. A McAllen federal jury convicted Leonel Luis Nordhausen-Cuevas, 59, on July 21, 2017, following a two-day trial and less than an hour of deliberation.
Today, U.S. District Judge Ricardo Hinojosa handed Nordhausen-Cuevas a 10-year sentence. Nordhausen-Cuevas is expected to face loss of his legal status in the U.S. and deportation proceedings following his release from prison.
During trial, the jury heard that a Border Patrol (BP) agent was conducting surveillance at the StarrCo farms south of La Grulla on March 11, 2016, and observed Nordhausen-Cuevas drive down to a ramp near the Rio Grande River, enter the brush and return to his truck carrying something heavy. He then drove to a building on the farm and carried something inside.
Soon after, another agent arrived and observed Nordhausen-Cuevas standing outside the truck. He claimed the truck was not his and that someone else had just exited the truck and ran south. The agent searched the truck and found a fertilizer bag containing approximately 25 kilograms of cocaine wrapped in small brown bundles with distinctive markings.
Nordhausen-Cuevas had the truck’s keys on him, but still claimed it was someone else who was driving it.
The first agent arrived at the scene and identified Nordhausen-Cuevas as the person he saw pickup something from the river area based on his clothing and stature. That agent then investigated the first building that Nordhausen-Cuevas entered and found another fertilizer bag full of cocaine bundles, just like the one in the truck.
Nordhausen-Cuevas later claimed that a “Martin” had been the driver, but gave no more information about “Martin,” upon questioning. The jury heard that there were no employees named “Martin” working on the farm at that time.
Nordhausen-Cuevas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Joseph T. Leonard and Roberto Lopez Jr. are prosecuting the case.
Midlands Area Man Found Liable for $51 Million in Health Care FraudRead the Press Release
Columbia, South Carolina – The United States Attorney’s Office announced today that a federal jury found Floyd Calhoun “Cal” Dent, III, of Lexington, South Carolina, and his two co-conspirators liable for defrauding the federal healthcare programs Medicare and Tricare of over $51 million. The unanimous verdict was handed down on January 31, 2018, by a federal jury in Charleston, South Carolina.
The United States alleged that Mr. Dent, along with his co-conspirators, paid illegal kickbacks to physicians across the country in order to get them to order medically unnecessary blood tests from Health Diagnostics Laboratory, Inc. (“HDL”) of Richmond, Virginia, and laboratory Singulex, Inc. of Alameda, California, in violation of the Anti-Kickback Statute and the False Claims Act.
“This jury verdict sends a strong message of accountability to those who would seek to take advantage of federal health care programs,” said First Assistant U.S. Attorney Lance Crick. “The District of South Carolina will continue to battle against Medicare and Tricare fraud.”
Over the course of the two week trial, the United States presented evidence that the defendants Cal Dent, Robert Bradford “Brad” Johnson of Hanceville, Alabama, and LaTonya “Tonya” Mallory of Richmond, Virginia, conspired to pay kickbacks to induce physicians to refer patients to HDL and Singulex. The defendants arranged for “process and handling fees” of $17 to be paid to the physicians per referral and for the routine waiving of patient co-pays and deductibles. As a result of those kickbacks, physicians referred patients’ blood samples to HDL and Singulex for medically unnecessary blood tests. HDL and Singulex then submitted fraudulent claims to federal health care programs Medicare and Tricare for payment for the medically unnecessary tests.
The verdict illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential health care fraud, waste, and abuse can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
This case was investigated by Assistant U.S. Attorney James Leventis of the U.S. Attorney’s Office for the District of South Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Office for the District of Columbia; Health and Human Services, Office of the Inspector General; the FBI; the U.S. Office of Personnel Management Office of Inspector General; and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The civil lawsuit was filed in the District of South Carolina and is captioned United States of America et al v. BlueWave Healthcare Consultants Inc., 9:14-cv-00230-RMG.
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Mexican Man Sentenced for Unlawfully Reentering the United StatesRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Francisco Robles-Guerra, 41, a citizen of Mexico, was convicted and sentenced today in United States District Court in Rutland for reentering the United States after having previously been removed from the country subsequent to a felony conviction. Chief United States District Judge Geoffrey W. Crawford sentenced Robles-Guerra to time served. Robles-Guerra has been held without bail since his arrest last November. Custody of Robles-Guerra will be transferred from the United States Marshal’s Service to the Department of Homeland Security for removal proceedings.
According to court records, Robles-Guerra is a citizen of Mexico who first moved to the United States in 1994. In 1996, he was convicted of conspiracy to defraud the United States by possessing counterfeit resident alien cards and social security cards and was deported to Mexico. Robles-Guerra was then found in the United States and removed to Mexico two times in March 2004, and again in August 2017.
On November 26, 2017, Canadian authorities notified U.S. Border Patrol Agents that they had observed a man walking around the Canaan, Vermont Port of Entry in the woods toward the United States border. A Border Patrol Agent from the Beecher Falls Station found Robles-Guerra in a field on the United States side of the border. After a brief chase, Robles-Guerra was apprehended and arrested.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Robles-Guerra is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Nicole Cate.
Manhattan United States Attorney Announces Superseding Indictment Charging Members of Newburgh Street Gang with Additional Racketeering and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, David M. Hoovler, the Orange County District Attorney, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Ashan M. Benedict, the New York Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Aaron Weaver, the Acting Chief of the City of Newburgh Police Department, today announced additional charges against 10 alleged members of a street gang known as “Southside,” in Newburgh, New York. All 10 defendants are charged with racketeering conspiracy. Three of the defendants are charged with conspiracy to distribute heroin and crack cocaine, and two of the defendants are charged with conspiracy to distribute heroin. In connection with the racketeering conspiracy, SKYLAR DAVIS and DAVONTE HAWKINS are charged with the August 2015 murder of Sammy Stubbs, who was shot in Newburgh. WILLIAM FENNELL and TROY YOUNG are charged with the February 2017 murder of Gevontay Owens-Grant, also shot in Newburgh. DAVIS, YOUNG, MICHAEL SIMMONS, DEMETRICE MCLEAN, and CALVIN LEMBHARD are charged with the use and discharge of a firearm in connection with and in furtherance of the racketeering conspiracy. HAWKINS, FENNELL, ARDAE HINES, and DONTE NUGENT are charged with the use and discharge of a firearm in connection with and in furtherance of the racketeering conspiracy and narcotics conspiracy. DAVANTE NUGENT is charged with being a felon in possession of ammunition.
Nine of the defendants were already in custody in connection with charges contained in a previous indictment related to this prosecution, which led to the arrests of 21 individuals in June 2017. YOUNG was arrested and presented in White Plains federal court before United States Magistrate Judge Judith C. McCarthy yesterday. All of the defendants were arraigned this morning in White Plains federal court before United States District Judge Cathy Seibel.
As alleged in the Superseding Indictment filed today in White Plains federal court[1]:
From at least 2014 through June 2017, the Southside Gang was a criminal enterprise centered in and around the intersection of South Street and Chambers Street in an area of Newburgh known as the “Southside.” In order to gain funds for the gang, protect the gang’s territory, and promote the gang’s standing, members of Southside engaged in, among other things, narcotics trafficking, robbery, and acts involving murder. To that end, Southside members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites such as Facebook, possessed firearms, and engaged in shootings as part of their gang membership.
As alleged in the Superseding Indictment, the violence perpetrated by the Southside gang turned deadly on two occasions in 2015 and 2017. On or about August 13, 20015, SKYLAR DAVIS and DAVONTE HAWKINS, aided and abetted by others, murdered Sammy Stubbs during a botched robbery of a card game in Newburgh. On or about February 12, 2017, TROY YOUNG and WILLIAM FENNELL, aided and abetted by others, murdered a rival from the other side of Newburgh, Gevontay Owens-Grant, after an altercation broke out at a Valentine’s Day-themed party in Newburgh. YOUNG and others were also injured during the shooting.
Several members of the Southside gang also participated in conspiracies to distribute narcotics in and around Newburgh. In particular, FENNELL, DONTE NUGENT, and DAVANTE NUGENT participated in a conspiracy with other individuals to distribute more than one kilogram of heroin and/or more than 280 grams of crack cocaine from at least in or about 2014 up to and including in or about June 2017. HAWKINS and HINES participated in the same narcotics conspiracy to distribute more than one kilogram of heroin. HINES also participated in separate a conspiracy to distribute more than 280 grams of crack cocaine from at least in or about 2014 up to and including in or about June 2017.
Between in or about 2015 and in or about May 2017, DAVIS, HAWKINS, FENNELL, YOUNG, HINES, MCLEAN, SIMMONS, LEMBHARD, and DONTE NUGENT also possessed, used, brandished, and discharged firearms in furtherance of the Southside racketeering conspiracy in which they all participated, the narcotics conspiracy in which HAWKINS, FENNELL, HINES, and DONTE NUGENT participated, and the separate narcotics conspiracy in which HINES participated. On or about June 14, 2017, after being convicted of a crime punishable by more than one year, DAVANTE NUGENT was found in possession of ammunition.
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Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman praised the outstanding investigative work of the FBI, ATF, and the City of Newburgh Police Department. Mr. Berman thanked the Orange County District Attorney’s Office for its invaluable ongoing assistance in the case. Mr. Berman also thanked the Town of Newburgh Police Department, the New York State Police, the Orange County Sheriff’s Department, the Town of New Windsor Police Department, and the New York Department of Corrections and Community Supervision for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Allison Nichols are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
United States v. Skylar Davis, et al., S1 17 Cr. 364
DEFENDANT
AGE
CHARGES
MAXIMUM PENALTIES
SKYLAR DAVIS
20
Racketeering Conspiracy; Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering; Murder in Aid of Racketeering; Use of a Firearm Resulting in Death; Discharge of a Firearm in Furtherance of Racketeering
Mandatory life in prison or the death penalty
DAVONTE HAWKINS
29
Racketeering Conspiracy; Murder in Aid of Racketeering; Narcotics Conspiracy; Use of a Firearm Resulting in Death; Discharge of a Firearm in Furtherance of Racketeering and Narcotics Conspiracy
Mandatory life in prison or the death penalty
WILLIAM FENNELL
26
Racketeering Conspiracy; Narcotics Conspiracy; Use of a Firearm Resulting in Death; Discharge of a Firearm in Furtherance of Racketeering and Narcotics Conspiracy
Life in prison or the death penalty
TROY YOUNG
23
Racketeering Conspiracy; Use of a Firearm Resulting in Death; Discharge of a Firearm in Furtherance of Racketeering
Life in prison or the death penalty
ARDAE HINES
29
Racketeering Conspiracy; Narcotics Conspiracy (2); Discharge of a Firearm in Furtherance of Racketeering and Narcotics Conspiracy
Life in prison; mandatory minimum 20 years in prison (10 years to run consecutive to any other sentence)
MICHAEL SIMMONS
26
Racketeering Conspiracy; Discharge of a Firearm in Furtherance of Racketeering
Life in prison; mandatory minimum 10 years in prison to run consecutive to any other sentence
DEMETRICE MCLEAN
23
Racketeering Conspiracy; Discharge of a Firearm in Furtherance of Racketeering
Life in prison; mandatory minimum 10 years in prison to run consecutive to any other sentence
CALVIN LEMBHARD
25
Racketeering Conspiracy; Discharge of a Firearm in Furtherance of Racketeering
Life in prison; mandatory minimum 10 years in prison to run consecutive to any other sentence
DONTE NUGENT
24
Racketeering Conspiracy; Narcotics Conspiracy; Discharge of a Firearm in Furtherance of Racketeering and Narcotics Conspiracy
Life in prison; mandatory minimum 20 years in prison (10 years to run consecutive to any other sentence)
DAVANTE NUGENT
25
Racketeering Conspiracy; Narcotics Conspiracy; Felon in Possession of Ammunition
Life in prison; mandatory minimum 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the descriptions of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced on Charges of Child PornographyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Terry White, age 22, of Pine Hill, Alabama was sentenced today after earlier pleading guilty to a violation of 18 USC Section 2252A(a)(2), Receipt of Child Pornography. White was sentenced to serve 84 months imprisonment followed by a life time term of supervised release.
This case arose when the Alabama Law Enforcement Agency received a CyberTip from the National Center for Missing and Exploited Children that files containing child pornography were uploaded from the Facebook account of a juvenile from North Carolina to the Facebook account of Terry White.
The investigation revealed that White made a “friend request” to the victim and they began communicating via Facebook Messenger. The conversation turned sexual and White requested that the juvenile send him images of child pornography.
Further investigation revealed that White had previously requested another child to send him obscene images. That child’s mother had contacted law enforcement which resulted in the defendant being prosecuted for Electronic Solicitation of a Child in Clarke County, Alabama.
This case was investigated by the Clarke County, Alabama, Sheriff’s Office, the Alabama Law Enforcement Agency, the Federal Bureau of Investigation and the North Carolina Bureau of Investigation. This case was prosecuted by AUSA Maria E. Murphy.
Leader of Drug Trafficking Organization Sentenced in Brooklyn Federal Court to 20 Years’ ImprisonmentRead the Press Release
Earlier today, in federal court in Brooklyn, Luis Bello was sentenced by United States District Judge Nicholas G. Garaufis to 20 years’ imprisonment to be followed by five years of supervised release after his conviction for conspiring to distribute more than five kilograms of cocaine, conspiring to launder money and trafficking in firearms. The defendant ran a cocaine distribution operation in the Bronx from 2011 until his arrest in September 2013.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) New York, announced the sentence.
“Luis Bello oversaw a drug trafficking organization in the Bronx that brought large quantities of cocaine from Puerto Rico to the streets of New York City,” stated United States Attorney Donoghue. “Today he was held accountable, and his drug organization has been dismantled. We will continue to work with our law enforcement partners to stem the flow of drugs into our neighborhoods and prosecute traffickers like the defendant.” Mr. Donoghue also expressed his appreciation to the U.S. Drug Enforcement Administration, New York Field Office; Organized Crime Drug Enforcement Task Force, New York/New Jersey; U.S. Postal Service, Office of Inspector General; U.S. Marshals Service, Investigative Operations Division; Port Authority of New York & New Jersey Police Department; New York City Police Department and the Queens County District Attorney’s Office for their assistance during the investigation.
“Today’s 20 year sentencing of Bello effectively rids our community of the convicted leader of a dangerous drug trafficking and money laundering organization with ties to the Caribbean, that flooded the streets of New York with large quantities of cocaine,”
stated HSI Special Agent-in-Charge Melendez. “Bello will now have a lot of time to sit in his cell and think of how his actions have negatively affected the lives of so many individuals.”
According to court filings, the defendant was the head of a Bronx-based drug trafficking organization that brought more than 1,000 kilograms of cocaine from Puerto Rico to New York through drug couriers and through the United States Postal Service, distributed the drugs throughout the New York area, and laundered the proceeds from the sale of those drugs.
Members of Bello’s organization obtained drugs from the Dominican Republic to distribute in the New York area. Co-conspirators based in Puerto Rico shipped the drugs to Bello in New York through the U.S. mails, using the assistance of a mail carrier stationed at the Highbridge Postal Station in the Bronx, as well as through Post Office boxes rented by other members of the drug trafficking organization in New York and New Jersey. The postal carrier’s mail route included areas where Bello’s organization was based. The mail carrier regularly intercepted drug-laden packages that were addressed to other addresses on his route, but which he segregated based on tracking numbers and addresses, and delivered to Bello or other members of his organization.
After selling the drugs, Bello and other members his organization laundered the proceeds from the sale of these drugs through the banking system by exchanging small dollar denominations for large dollar denominations, typically $100 bills, that could be more easily transported by members of the drug organization when they traveled to Puerto Rico and the Dominican Republic to purchase more drugs. At least $620,000 in cash exchanges were made in accounts controlled by Bello’s organization. In one month alone in 2011, cash exchanges totaling approximately $58,000 were made in an account held in Bello’s name.
Members of the drug organization then bulk-cash smuggled the drug proceeds from New York to Puerto Rico and the Dominican Republic, hiding money in the pockets of jeans packed in luggage and in soap bottles.
Nine other defendants have pleaded guilty to conspiring to distribute cocaine or launder money as part of Bello’s drug trafficking organization. On February 13, 2017, Joel Aguilar was sentenced to 72 months’ imprisonment for his involvement in distributing at least 150 kilograms of cocaine. On November 2, 2017, U.S. postal carrier Jermaine Sandifer was sentenced to 60 months’ imprisonment for his involvement in distributing at least 150 kilograms of cocaine. On August 8, 2017, Bello’s cousin Carlos Bello Tirado was sentenced to 48 months’ imprisonment. On November 20, 2017, Ernest Pena was sentenced to time served for his involvement in distributing 85 kilograms of cocaine.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Douglas M. Pravda and Julia Nestor are in charge of the prosecution.
Defendant Sentenced Today: LUIS BELLO
Age: 34
Residence: Bronx, New YorkDefendants Previously Sentenced:
JOEL AGUILAR
Age: 39
Residence: New York, New YorkCARLOS BELLO TIRADO
Age: 39
Residence: Leesburg, FloridaERNEST PENA
Age: 34
Residence: Bronx, New YorkJERMAINE SANDIFER
Age: 41
Residence: Perth Amboy, New JerseyDefendants Awaiting Sentencing:
EMIL SANCHEZ
Age: 27
Residence: Bronx, New YorkANA ABREU
Age: 34
Residence: Bronx, New YorkMARY ESTRELLA
Age: 27
Residence: Bronx, New YorkKELVIN CISNERO SANTOS
Age: 42
Residence: Bronx, New YorkSAUL OVALLES CORNIEL
Age: 36
Residence: Newark, New JerseyE.D.N.Y. Docket Nos. 13-CR-559 (NGG) & 16-CR-309 (NGG)
Kanawha County man sentenced to nearly six years in federal prison for receiving child pornographyRead the Press Release
CHARLESTON, W.Va. - A Kanawha County man was sentenced today to five years and 10 months in federal prison for a child pornography crime, announced United States Attorney Mike Stuart. Jeffrey Scott Beard, 37, of Clendenin, previously pleaded guilty to receiving child pornography. Beard was also ordered to serve the remainder of his life on federal supervised release after completion of his prison term, and will additionally be required to register as a sex offender.
Beard admitted that he received images on his computer of minors engaged in sexually explicit conduct. The Federal Bureau of Investigation discovered that Beard was using a peer-to-peer file sharing program to download, receive, and distribute child pornography images and videos. FBI Special Agents executed a federal search warrant at Beard’s Clendenin residence in March 2017, and seized computers and other digital media storage devices containing child pornography.
“This case should send a strong message that online child sexual exploitation investigations and prosecutions are a priority for this office,” stated U.S. Attorney Stuart. “Beard’s sentence reflects the seriousness of these crimes and the need to deter others inclined to engage in similar activity. I greatly appreciate the excellent and hard work of the FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department.”
Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Justice Department and Federal Trade Commission Officials Meet with Chinese Anti-Monopoly Agencies in BeijingRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division and Acting Chairman Maureen Ohlhausen of the Federal Trade Commission participated in high-level bilateral meetings with officials responsible for China’s three anti-monopoly agencies: Vice Chairman Hu Zucai and Director General Zhang Handong of the National Development and Reform Commission (NDRC), Assistant Minister Li Chenggang and Director General Wu Zhenguo of the Ministry of Commerce (MOFCOM), and Vice Minister Wang Jiangping and Director General Yang Hongcan of the State Administration for Industry and Commerce (SAIC). NDRC Chairman He Lifeng welcomed Assistant Attorney General Delrahim and Acting Chairman Ohlhausen to NDRC before the meetings.
The meetings took place this week in Beijing, China, where participating agencies discussed their ongoing work to ensure fair and effective antitrust enforcement and increased cooperation between the agencies. The meetings covered a wide range of topics, including enforcement and policy developments and priorities, the treatment of intellectual property, and future opportunities for cooperation. In addition, the agencies exchanged views on the role of sound and effective procedures in competition enforcement and the importance of competition advocacy in promoting innovation. The meetings will continue today and tomorrow, with separate meetings between U.S. antitrust enforcers and each of the three Chinese agencies.
Following the high-level bilateral meetings, Assistant Attorney General Delrahim spoke on competition, intellectual property and economic prosperity at an event co-hosted by the China Intellectual Property Law Society, the Peking University Intellectual Property Alumni Association, and the U.S. Embassy in Beijing. Assistant Attorney General Delrahim discussed the importance of strong IP protections to a successful and vibrant economy, and shared his views regarding how competition enforcement should be calibrated to maximize innovation for the benefit of consumers. He also addressed the role of international engagement in enhancing innovation and competition, and discussed his hopes for continued engagement between the United States and China on these issues.
The U.S. delegation’s visit to China is the fourth occasion for joint, high-level meetings between the agencies since the Justice Department and the FTC signed an antitrust memorandum of understanding (MOU) with the Chinese antitrust agencies on July 27, 2011. The MOU is designed to promote communication and cooperation between the U.S. and Chinese antitrust enforcement agencies, and provides for periodic high-level consultations.
Justice Department Settles Discrimination Lawsuit Against Owners and Operators of Houston-Based Sports BarRead the Press Release
HOUSTON - The Justice Department announced today it has reached a settlement to resolve a lawsuit alleging discrimination on the basis of race, color and national origin by Ayman Jarrah and Land Guardian Inc., the owners and operators of 360 Midtown, a sports bar and lounge located in Houston.
Today’s settlement resolves a lawsuit filed by the Department on Sept. 28, 2016, alleging that 360 Midtown, which previously operated as Gaslamp, engaged in a pattern or practice of illegal conduct by implementing discriminatory practices to discourage or deny admission to African-American, Hispanic and Asian-American patrons. The United States alleged that these practices included selectively imposing cover charges against minority patrons and selectively enforcing a dress code against them.
“This settlement resolves serious allegations of racial discrimination,” said U.S. Attorney Ryan K. Patrick. “The announcement today should make clear that any such illegal bias in these types of establishments will not be tolerated in this district and reflects my office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
“No individuals should be denied admission to any place of public accommodation because of the color of their skin,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the rights of all persons to be free from discrimination on the basis of their race or national origin at bars, restaurants and other places of public accommodation”
Under the settlement agreement, defendants are required to comply with federal law by not discriminating against patrons on the basis of race, color or national origin; to adopt and implement non-discriminatory admissions criteria; to implement a system for receiving and investigating complaints of discrimination; and to conduct monitoring to ensure that 360 Midtown’s employees are acting in a non-discriminatory manner consistent with federal law.
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the Division to obtain monetary damages for individual customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Justice Department Settles Discrimination Lawsuit Against Owners and Operators of Houston, Texas-Based Sports BarRead the Press Release
The Justice Department today announced it has reached a settlement to resolve a lawsuit alleging discrimination on the basis of race, color and national origin by Ayman Jarrah and Land Guardian Inc., the owners and operators of 360 Midtown, a sports bar and lounge located in Houston, Texas.
Today’s settlement resolves a lawsuit filed by the Department on Sept. 28, 2016, alleging that 360 Midtown, which previously operated as Gaslamp, engaged in a pattern or practice of illegal conduct by implementing discriminatory practices to discourage or deny admission to African-American, Hispanic and Asian-American patrons. The United States alleged that these practices included selectively imposing cover charges against minority patrons and selectively enforcing a dress code against them.
“No individuals should be denied admission to any place of public accommodation because of the color of their skin,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the rights of all persons to be free from discrimination on the basis of their race or national origin at bars, restaurants and other places of public accommodation”
“This settlement resolves serious allegations of racial discrimination,” said U.S. Attorney Ryan K. Patrick. “The announcement today should make clear that any such illegal bias in these types of establishments will not be tolerated in this district and reflects my office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
Under the settlement agreement, defendants are required to comply with federal law by not discriminating against patrons on the basis of race, color or national origin; to adopt and implement non-discriminatory admissions criteria; to implement a system for receiving and investigating complaints of discrimination; and to conduct monitoring to ensure that 360 Midtown’s employees are acting in a non-discriminatory manner consistent with federal law.
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the Division to obtain monetary damages for individual customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Jury Finds Butte County Man Guilty of National Guard Recruiting FraudRead the Press Release
SACRAMENTO, Calif. — After an eight-day trial, a federal jury found Steel A. Davis, 45, of Chico, guilty today of all eight counts of wire fraud in a scheme to obtain bonuses for referring individuals to enlist in the California National Guard, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive a $1,000 payment when a person enlisted and a second $1,000 payment when the recruit left for boot camp.
According to court documents and evidence presented at trial, Davis was a recruiter with the California National Guard and was ineligible to participate in the G-RAP program. Davis, however, realizing the potential to make money through G-RAP, gave recruits’ information to his co‑conspirators who had signed up to be Recruiting Assistants. The RAs would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis split the proceeds of the fraud with the Recruiting Assistants.
This case is the product of an investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Katherine T. Lydon prosecuting the case.
Davis is scheduled to be sentenced on May 10, 2018, before U.S. District Judge Troy L. Nunley. Davis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Other National Guard members and recruiters have been charged in similar schemes in the Eastern District of California. The following defendants have been convicted:
- 2:14-cr-153 TLN — Brian Kaps, 44, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. He is scheduled to be sentenced on February 22, 2018.
- 2:14-cr-152 TLN — Sarah Nattress, 30, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. She is scheduled to be sentenced on February 22, 2018.
- 1:14-cr-107 DAD — Leonardo Pesta, 49, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud and was sentenced to two years of probation.
- 1:14-cr-108-LJO — Nicholas Huerta, 36, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud and was sentenced to four years of probation.
- 2:14-cr-151 JAM — Richard C. Sihner, 55, of Elk Grove, was convicted on January 22, 2016, of 18 counts of wire fraud and one count of making false statements following a seven-day jury trial and was sentenced to 30 months in prison.
- 1:14-cr-106 DAD — Joaquin Cuenca, 40, of San Diego, was convicted on February 1, 2016, of three counts of wire fraud and one count of making false statements following a seven-day jury trial. He was sentenced to six months in prison.
- 1:14-cr-109-LJO — Jimmy D. Maldonado, 37, and Mayra L. Maldonado, 31, both of Fresno, were each convicted by a jury on January 29, 2018, of three counts of wire fraud after a four-day trial. They are scheduled to be sentenced on April 23, 2018.
- 2:18-cr-12 TLN — Jason M. Hair, of Paradise, pleaded guilty on January 18, 2018, to one count of wire fraud and one count of making false statements. He is scheduled to be sentenced on April 12, 2018.
Jury Convicts Former Insurance Agent of Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Ashburn woman today on charges of engaging in a fraud scheme that resulted in an attempted loss of approximately $182,000.
According to court records and evidence presented at trial, Semyya Cunningham, 40, was an agent and licensed representative of the Western Reserve Life Assurance Co. of Ohio, a company that issued life and other forms of insurance. In April 2014, Cunningham sold a life insurance policy to her close friend (identified in court records as Victim A). The policy included an accelerated death benefit option that permitted the holder, in the event he or she were ever diagnosed with a terminal illness, of claiming the proceeds before death. In July 2014, Victim A was diagnosed with a terminal illness. Shortly thereafter, Cunningham engaged in a scheme to fraudulently obtain the proceeds of the insurance policy for herself. Cunningham changed all of the contact information on the policy to her information, changed the beneficiaries on the policy from Victim A’s family members to friends of hers, and submitted a claim for the accelerated death benefit without Victim A’s knowledge or consent. Western Reserve paid the claim, and because the contact info had been changed to Cunningham’s information, the check was mailed to Cunningham’s residence. Cunningham then deposited the money into her own account, and then transferred the bulk of the money through several accounts in an apparent attempt to prevent the transaction from being reversed.
Cunningham faces a maximum penalty of 20 years in prison when sentenced on May 18th. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorneys Matthew Burke and Grace L. Hill are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-177.
Jennings man sentenced to 18 months in prison for posting nude photos online of female victimRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Jennings man was sentenced Tuesday to 18 months in prison for posting nude photos online and threatening to post more photos of a female victim.
Christopher Redeaux, 21, of Jennings, La., was sentenced by U.S. District Judge Jay C. Zainey for one count of interstate transmission of an extortionate communication. He was also sentenced to one year of supervised release. According to the October 11, 2018 guilty plea, Redeaux obtained nude pictures of a woman and threatened to publish them on the internet if the woman did not provide more photos. Redeaux posted some of the photos to Facebook using a fictitious account and sent a friend request to the victim and her friends. Redeaux harassed the victim through an online account and telephone calls. The victim filed a complaint with McNeese State University Police on December 2, 2015, and Redeaux was arrested on several state charges including cyberstalking, sexual battery and cyberbullying. Redeaux’s cell phone was searched and a folder containing the nude photos of the victim were found.
The FBI, McNeese State University Police and the Greater Houston Regional Computer Forensics Laboratory conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and T. Forrest Phillips prosecuted the case.