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1 February 2018
Jacksonville Man Sentenced on Gun Charges Following Shooting DeathRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge W. Earl Britt sentenced DELMAN DEWAYNE DIXON, 24, of Jacksonville, NC to 135 months of imprisonment followed by 3 years of supervised release.
On October 30, 2017, DIXON pled guilty to a three-count criminal information, charging three counts of Possession of a Firearm or Ammunition by a Felon, each arising from a separate date.
The evidence established that on November 30, 2015, deputies from the Onslow County Sheriff’s Office responded to a shooting at a residence in Jacksonville, North Carolina. There they discovered that DIXON had exchanged gunfire with a man named Quinn Everette over a disputed drug deal. Everette was killed, and DIXON received a gunshot wound to his shoulder. Law enforcement did not recover the firearm, but found DIXON in possession of ammunition.
The evidence further established that on May 5, 2016, officers of the Jacksonville Police Department conducted a traffic stop and found DIXON in possession of a Hi-Point .40 caliber pistol. Then, on December 2, 2016, members of the Onslow County Sheriff’s Office executed a search warrant and an arrest warrant at DIXON’s Jacksonville residence. DIXON fled but was soon apprehended. Law enforcement recovered a stolen Springfield XD 9mm pistol and also a Davis Industries .380 caliber pistol that DIXON had directed his girlfriend to hide
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The Onslow County Sheriff’s Office, Jacksonville Police Department, and Bureau of Alcohol Tobacco Firearms and Explosives (ATF)conducted the investigation of this case. Assistant United States Attorney Jake D. Pugh is prosecuting this case on behalf of the government.
Jacksonville Man Pleads Guilty to International Parental KidnappingRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Dennis Lee Henning (42, Jacksonville) today pleaded guilty to international parental kidnapping. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to court documents, as a result of divorce proceedings that concluded on May 25, 2017, Henning was ordered to share custody of a child with his ex-wife, the child’s mother, who was named as the majority timeshare parent. Before that divorce was final, however, Henning made Facebook posts that were critical of his ex-wife, the court system, and the United States – expressing his willingness to give up his citizenship and leave the country with his child. He also confided in a friend that, to avoid losing custody, he might run away with the child to Costa Rica or Canada.
On May 31, 2017, without telling the child’s mother, Henning drove to Mexico with his child. Unable to locate Henning or her son, Henning’s ex-wife repeatedly called and sent him text messages, which he ignored. After Mexican authorities arrested Henning on unrelated firearms charges, his ex-wife was able to travel to Mexico, recover her child, and return to Jacksonville.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sherriff’s Office, and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Jacksonville Man Arrested and Charged with Transportation and Possession of Child PornographyRead the Press Release
Jacksonville, Florida – U.S. Attorney Maria Chapa Lopez announced today that Craig Harry Lipinski (49, Jacksonville) has been arrested and charged by criminal complaint with transporting and possessing child pornography. He faces a minimum mandatory penalty of 5 years, up to 30 years, in federal prison and a potential lifetime of supervision.
According to the complaint, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted an undercover child exploitation investigation and determined that a host computer connected to Lipinski’s residence was sharing videos of child pornography using an online file-sharing program. On January 30, 2018, HSI agents and other law enforcement officers executed a search warrant at Lipinski’s residence and made contact with him. At that time, agents observed that a computer at the home was actively downloading files using the same file sharing program, including some with the terms “teen” and “young” in their titles. During an interview, Lipinski stated that he lived alone, that he had downloaded movies from the file sharing program, and that he had “probably downloaded some miscellaneous, some inappropriate stuff.” An onsite forensic examination of Lipinski’s computer revealed at least 10 files depicting child pornography, including two copies of one of the videos that had been shared on October 17, 2017, and that depicted a young child being sexually abused.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
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.
Jackson County Resident Charged with Methamphetamine OffenseRead the Press Release
James E. Sizemore, a/k/a "Jimmy," 58, of Carbondale, was indicted on January 4, 2018, in a one-count indictment charging conspiracy to distribute methamphetamine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges that the offense occurred between June 2016 and November 2017, in Jackson County. Sizemore made his initial appearance in federal court on January 31, 2018. He was ordered held without bond pending an April 9, 2018, jury trial.
The conspiracy offense carries a maximum penalty of up to 20 years of imprisonment, to be followed by three years of supervised release, and a $1,000,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Carbondale Police Department, and Drug Enforcement Administration.
Honduran Citizen Indicted for Scheme to Facilitate Employment of Undocumented Aliens in Construction Industry, Evasion of Payroll Taxes and Workers’ Compensation LawsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Oscar Arnelson Rodriguez-Cruz (40, Orlando) with multiple counts of wire fraud. He faces a maximum penalty of 20 years in federal prison on each count. Rodriguez-Cruz is a Honduran citizen who is illegally present in the United States.
The indictment also notifies Rodriguez-Cruz that the United States intends to seek forfeiture of approximately $626,817, the amount of proceeds obtained as a result of the offenses, and of $105,461 that was seized from him on October 11, 2017.
Pursuant to the scheme alleged in the indictment, Rodriguez-Cruz 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 a shell company Rodriguez-Cruz established to provide workers, most of whom were undocumented aliens, for the contractors and subcontractors. By obtaining and paying the workers through the shell company, 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.
The indictment further alleges that Rodriguez-Cruz registered a corporation called Gedeon Multiservices, Inc., with the State of Florida. He then applied for a workers’ compensation insurance policy for the period from November 29, 2016, through November 29, 2017, to cover five employees and an estimated annual payroll of $121,000. The insurance company issued the policy for an annual premium of $20,473.20, based on the payroll information set forth in the application.
Rodriguez-Cruz “rented” the insurance policy to numerous construction contractors and subcontractors who employed hundreds of workers, causing the insurance company to send a certificate 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 company for work performed by the workers. Rodriguez-Cruz 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. Rodriguez-Cruz kept approximately 4% of the amount of each payroll check as a “rental” fee. Throughout the scheme, he cashed payroll checks totaling $15,670,438, with his 4% fee totaling $626,817. The annual premium for a workers’ compensation insurance policy covering a payroll of $15,670,438 would have been more than $2,500,000. Many of the workers were undocumented aliens living and working in the United States illegally.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Hartford Man Charged with Sex Trafficking of 2 MinorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging HIRAN SANCHEZ, also known as “Ivan” and “Pablo,” 20, of Hartford, with one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.
The indictment was returned on November 15, 2017, and SANCHEZ was arrested on January 22, 2018. He entered a plea of not guilty to the charges and is detained pending trial.
As alleged in the indictment, SANCHEZ recruited, harbored and transported two minor victims to engage in commercial acts. SANCHEZ trafficked the first victim in July 2016 and the second victim in April and May 2017.
The charge of sex trafficking of a minor carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut State Police and Hartford Police Department, through the Connecticut Human Trafficking Task Force, and with the assistance of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Nancy V. Gifford.
Hart County Kentucky Felon Sentenced to 70 Months for Unlawful Possession of Multiple FirearmsRead the Press Release
BOWLING GREEN, Ky. – A Hart County, Kentucky, felon was sentenced to serve 70 months in prison followed by three years of Supervised Release, by United States District Judge Greg N. Stivers, in United States District Court yesterday, for unlawful possession of firearms announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
Rodney Earl Staples, 52, of Munfordville, admitted on June 16, 2017, to the unlawful possession of a firearm. Law enforcement officials became aware of Staples’ criminal conduct during a follow-up investigation relating to his father’s business as a federal firearms’ licensee and the suspected transfer of firearms to his convicted felon sons. On August 21, 2013, law enforcement officials seized twelve firearms (11 long guns and one revolver), from Staples’ residence. He claimed that the firearms belonged to his then 10-year-old son.
Staples was convicted on June 6, 2006, in Hart Circuit Court, Hart County, Kentucky, in case number 05-CR-00152, with the attempted manufacture of methamphetamine, possession of a controlled substance – first degree, and trafficking in marijuana.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The investigation
Firearms charged in Staples casewas led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Gustavo Falcon Pleads Guilty to Conspiracy to Possess with Intent to Distribute and to Distribute CocaineRead the Press Release
On February 1, 2018, Gustavo Falcon, of Miami, member of the Falcon-Magluta organization, pled guilty in federal court to conspiracy to possess with intent to distribute and to distribute cocaine, in violation of Title 21, United States Code, Section 846, an offense punishable by up to twenty years in prison. Prior to his arrest in April 2017, Falcon was a fugitive for 26 years.
Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS), made the announcement.
Falcon’s conviction arises out of his participation in the cocaine trafficking organization headed by his older brother, Augusto Guillermo Falcon, a/k/a “Willie,” and Salvador Magluta. From the early 1980s through mid-October 1991, the Falcon-Magluta organization was an extraordinarily prolific cocaine trafficking organization based in the Southern District of Florida and elsewhere. As an illustration of the scope of the organization’s activities, cocaine ledgers seized from a residence controlled by Magluta that covered the period of January 1, 1990, through October 15, 1991, recorded the distribution of 8,921 kilograms of cocaine for a total price of $142,509,800.
In the mid-1980s, the Falcon-Magluta organization established a base in Southern California. From that base, the organization distributed cocaine in the Southern California area and moved large tractor-trailer loads of cocaine from California to various destinations in the United States, including the Southern District of Florida. On almost a daily basis, the organization’s local distribution operations in Southern California received between $50,000 and $200,000 in cash drug proceeds.
Falcon’s wife brother was a Falcon-Magluta organization cocaine trafficker. In 1986, the defendant’s brother-in-law told the defendant that he had a client in California that he needed to supply with cocaine. The defendant gave his brother-in-law the names of two organization members working in the Los Angeles area and told his brother-in-law that one of them would be able to supply any cocaine he needed.
After his arrest in Los Angeles in mid-December 1986, the defendant’s brother-in-law returned to South Florida. In late 1987, Falcon asked his brother-in-law to receive large shipments of cocaine transported from California and introduced him to the organization member responsible for delivering the cocaine to a farm in west Miami-Dade County. The tractor-trailers arrived every one to two months and generally contained 1,000 kilograms of cocaine per load. After the loads were delivered to the farm, the defendant’s brother-in-law then would transport the cocaine to stash houses in the South Florida area.
In late 1989, Falcon contacted a separate organization member and offered him $10,000 per month to stash large quantities of cocaine in his house. After this organization member accepted the defendant’s offer, he received and stored organization cocaine through 1991. A search of that organization member’s house in early January 1992 yielded 3.093 kilograms of cocaine from his attic.
On April 10, 1991, a federal grand jury returned a cocaine trafficking indictment in this case that charged ten Falcon-Magluta organization members. Those charged included Falcon, Willie Falcon, Salvador Magluta, and the defendant’s brother-in-law. After the indictment was unsealed on May 20, 1991, Falcon and others learned of the charges against them. In mid-September 1991, Falcon obtained a false Florida driver’s license in the name of “Luis Andre Reiss.”
In April 2017, the USMS located the defendant in the area of Kissimmee, Florida, where he had been living for a number of years under the “Luis Reiss” alias identity he had established in September 1991. Deputy Marshals captured the defendant on April 12, 2017.
Sentencing for Falcon is scheduled for April 11, 2018, at 10:00 A.M., before United States District Judge Federico A. Moreno.
Mr. Hummel commended the investigative efforts to the DEA and USMS. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Group Indicted for Long Running Scheme to Defraud the GovernmentRead the Press Release
Anthony Horton, 37, of Philadelphia; Aaron Horton, Jr., 39, formerly of Philadelphia; Thomas Gillis, 39, of Philadelphia; Faith Charlton, 34, of Philadelphia; Lynda Slaughter, 36, of Sharon Hill; and Marie “Kellie” Slaughter, 32, of Philadelphia, were all charged today with conspiracy against the United States, announced United States Attorney Louis D. Lappen. According to the Indictment,[1] the co-conspirators engaged in a long-running scheme to defraud the federal government. Their schemes included creating false and fictitious businesses in order to use stolen identity information to collect unemployment benefits; and filing false tax returns to get refunds not due to the co-conspirators. Substantive mail fraud, false returns, aggravated identity theft, and false statement charges are also included in the indictment.
If convicted, all defendants face substantial prison terms, as well as full restitution to the government.
The case was investigated by the United States Department of Labor – Office of Inspector General; the United States Postal Inspection Service; the Social Security Administration – Office of Inspector General; the Internal Revenue Service – Criminal Investigations Division; and the Pennsylvania Department of Labor; and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia man sentenced to prison for involvement in stolen identity tax refund fraud schemeRead the Press Release
ATLANTA - Jahmir Antoine Robinson has been sentenced to four years, six months in federal prison for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.
“Thieves never stop looking for ways to take what is not theirs, no matter the harm they cause to people whose identity they stole,” said U.S. Attorney Byung J. “BJay” Pak. “Robinson’s theft affect’s not only the 153 who were targeted, it touches all taxpayers.”
“With the filing season just starting this week, it is important that taxpayer’s keep their identities protected and notify the IRS immediately when someone files their tax return without authorization, “ said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation “We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who use stolen identities to file fraudulent tax returns.”
According to U.S. Attorney Pak, the charges and other information presented in court: From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, social security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations. To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.
In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011. Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.
Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution. Robinson was convicted on these charges on November 8, 2017, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016 or the IRS-Criminal investigation Public Information Officer at [email protected] or (216) 407-9614. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia man sentenced to prison for involvement in stolen identity tax refund fraud schemeRead the Press Release
ATLANTA - Jahmir Antoine Robinson has been sentenced to four years, six months in federal prison for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.
“Thieves never stop looking for ways to take what is not theirs, no matter the harm they cause to people whose identity they stole,” said U.S. Attorney Byung J. “BJay” Pak. “Robinson’s theft affect’s not only the 153 who were targeted, it touches all taxpayers.”
“With the filing season just starting this week, it is important that taxpayer’s keep their identities protected and notify the IRS immediately when someone files their tax return without authorization, “ said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation “We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who use stolen identities to file fraudulent tax returns.”
According to U.S. Attorney Pak, the charges and other information presented in court: From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, social security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations. To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.
In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011. Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.
Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution. Robinson was convicted on these charges on November 8, 2017, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016 or the IRS-Criminal investigation Public Information Officer at [email protected] or (216) 407-9614. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fraudster sentenced for perpetrating $20 Million investment fraud schemeRead the Press Release
ATLANTA – Franklin B. Trell has been sentenced for conspiracy to commit wire fraud, bank fraud, and money laundering. For over seven years, Trell used myriad corporate entities, complex financial arrangements, doctored financial statements, and false statements to defraud multiple financial institutions and one of Trell’s largest investors out of approximately $20 million dollars.
“Fraud undermines investor confidence and eats at the fabric of our economy,” said U.S. Attorney Byung J. “BJay” Pak. “We and our law enforcement partners will continue to aggressively root-out and prosecute even the most complicated of investment fraud schemes, while securing convictions and strong sentences that will deter others from ever engaging in similar conduct.”
“Individuals who commit this type of fraud should be punished to the fullest extent of the law as a way of deterring this from happening in the future,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office in protecting the sanctity and integrity of legitimate investment ventures.”
“The sentencing of Trell is very little solace for the many victims who have suffered from his criminal activities,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “Even though the defendant has been ordered to pay restitution the victims may never be financially whole again. Hopefully, the punishment will deter others from preying on other unsuspecting investors.”
According to U.S. Attorney Pak, the charges and other information presented in court: During the timeframe of the conspiracy, Trell and co-defendant Cynthia P. Vinson, on behalf of numerous corporate entities they created, obtained multi-million dollar loans by submitting false statements and invoices to financial institutions about how the money would be spent. During that time period, Trell and Vinson repeatedly lied to their largest investor for years by falsely representing that Trell was putting up half of the working capital into the various business entities, most of which were in the medical imaging business. In reality, Trell failed to put in half of the capital and spent much of the investment funds on himself and his family, including spending over $80,000 of the funds on his daughter’s wedding, and over $1.7 million to settle past lawsuits alleging fraud and other misconduct.
From 2007 to 2010, Trell used investor funds and loan proceeds to settle four lawsuits then pending in Fulton County, Georgia, Superior Court. He also authorized Vinson to withdraw millions of dollars from the corporate entities, which she used for her personal benefit. When confronted by his largest investor about the financial state of the corporate entities, Trell presented doctored accounting records and skillfully moved money from one corporate account to another to create the appearance that he was investing money into the businesses as well. The largest investor gave over $20 million to Trell based on the misrepresentation that Trell was contributing the same amount to the ventures. In truth, the evidence showed that Trell and Vinson personally profited over $9 million from the scheme.
From 2006 to 2013, Trell and Vinson used a number of corporate entities to perpetrate their scheme, including MTC Development, LLC; Sunbelt Construction Management, Inc.; Medical Development Group, LLC; Project Personnel Leasing, LLC; MD Office Solutions, LLC; Medical Facility Development Group, LLC; Imaging Center Development Services, LLC; Medical Property Holding, LLC; Medical Software Holding, LLC; Citrus Tower Boulevard Imaging Center, LLC; Palisades at West Paces Imaging Center, LLC: Southcrest Medical Plaza Imaging Center; the Palisades at West Paces Imaging Center, LLC; Southcrest Medical Plaza Imaging Center; Vinson Holdings, Inc.; Vinson Partners, LLLP; and the Palisades at W. Paces Condo Association, Inc.
Franklin B. Trell, 71, of Atlanta, Georgia, was sentenced by United States District Judge Orinda D. Evans to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $20,100,408.25. Trell was convicted on June 22, 2017, after he pleaded guilty.
Cynthia P. Vinson, 66, of Gay, Georgia, will be sentenced by Judge Evans on March 7, 2018, at 1:00 p.m. Vinson was convicted on August 3, 2016, after she pleaded guilty.
This case was investigated by Special Agents of IRS Criminal Investigation and the Federal Bureau of Investigation.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and Assistant U.S. Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Franklin County Man Sentenced to 20 Years on Methamphetamine Related ChargesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that a Benton, Illinois man received a 20-year sentence in Federal Court for methamphetamine-related offenses. Kyle D. Osburn, 35, received the sentence after a sentencing hearing conducted earlier today.
Osburn was convicted in October of 2017, following a guilty plea to an indictment alleging he conspired with others to sell the "ice" form of methamphetamine in the Benton and surrounding Franklin County area. Law enforcement officials with several agencies conducted a year-long investigation during 2016 into Osburn’s activities which culminated in his arrest, charges, conviction and sentencing. The facts developed during the investigation, and established during the proceedings, showed that a group of individuals located in the Southern District of Illinois, were engaged in the acquisition and distribution of the "ice" form of methamphetamine. Several law enforcement officers participated in multiple controlled purchases of "ice" from Osburn. Some of those transactions occurred at Osburn’s Benton residence. After a transaction occurring on December 13, 2016, law enforcement agents executed a valid search of the Defendant’s residence and discovered over an ounce of "ice’ methamphetamine.
The investigation in this case was conducted by the Southern Illinois Enforcement Group, the Southern Illinois Drug Task Force, Illinois State Police, the Drug Enforcement Administration, the Franklin County Sheriff’s Office, the Franklin County States Attorney’s Office and the Benton Police Department.
The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Former Newspaper Publisher, Mortgage Broker, Mortgage Lender and Real Estate Agent Sentenced in $20 Million Mortgage Fraud SchemeRead the Press Release
A former Miami newspaper publisher, mortgage broker, mortgage lender and real estate agent was sentenced in federal court today to serve 180 months imprisonment for leading a $20 million mortgage fraud scheme.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Marco Laureti, 46, of Sunny Isles Beach, was sentenced to 180 months imprisonment, to be followed by five years of supervised release, and ordered to pay $8,316,135, in restitution. In November 2017, after a three-week trial, Laureti was convicted of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 and seven counts of wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1343 (Case No. 16-60340-CR-Bloom(s)(Cohn)).
“The sentence imposed is a success in our continuing efforts to fight mortgage fraud that jeopardizes our nation’s financial institutions,” said U.S. Attorney Benjamin G. Greenberg. “Laureti was a prominent businessman who used his reputation to perpetrate the $20,000,000 mortgage fraud scheme, which thanks to the efforts of law enforcement, was successfully unraveled. We will continue to investigate and prosecute individuals who engage in deceptive and fraudulent behavior that is fueled by greed.”
“Criminals are always looking for ways to exploit vulnerabilities and devise methods to defraud,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “Marco Laureti and his co-conspirators implemented a mortgage fraud scheme for their own personal enrichment, but instead got an investigation, a trial and a conviction. Would-be mortgage fraudsters beware: The FBI remains committed to rooting out this type of fraud.”
According to evidence presented at trial, Laureti and co-conspirators were involved in a $20 million mortgage fraud scheme. Laureti was a former newspaper publisher and owner of Laureti Publishing Company and multiple companies, including Northview Equities LLC, Northview Real Estate LLC, Northview Capital LLC, Laureti Holdings Company, Laureti Media Group, Inc., ReTrade, Inc., and M4 Management LLC, in addition to being a licensed Florida real estate agent and formerly licensed Florida mortgage broker.
At trial, the government presented evidence that the defendant and his co-conspirators engaged in a fraud scheme involving a condominium complex located at 45 Hendricks Isle in Fort Lauderdale. The defendant and other co-conspirators made false and fraudulent statements to a financial institution on mortgage loan applications, including grossly inflating income and bank account balances. These defendants also made fraudulent representations on the closing statements for these multi-million dollar condominiums. Once these loans were approved, a co-conspirator, at Laureti’s direction, diverted the loan proceeds to fund the cash the borrower was expected to bring to the property’s closing, as well as diverting additional monies from the loan proceeds to various companies owned by Laureti and another co-conspirator. The evidence showed Laureti paid a co-conspirator $10,000 for each fraudulent transaction. Furthermore, Laureti and a co-conspirator utilized the same scheme on the mortgage loan applications and closing statements to purchase their own multi-million dollar residential properties in Miami Beach, including Laureti’s $6.9 million home and a co-conspirator’s $6.5 million dollar condominium. The defendants’ scheme defrauded the financial institution of approximately $20 million in disbursed mortgage loans.
Mr. Greenberg commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys Randy Katz and Karen O. Stewart.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Irondequoit Police Officer Sentenced for Cyber Stalking His Ex-GirlfriendRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that William Robert Rosica, 51, of Irondequoit NY, who was convicted of cyberstalking and computer intrusion, was sentenced to 60 months in prison to be followed by three years of supervised release, by Chief U.S. District Judge Frank P. Geraci, Jr. For the first year of supervised release, the defendant will be on home detention. Judge Geraci also ordered Rosica to pay restitution to the victim totaling $2,215.76.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that between February 2016, and March 2017, the defendant, a former Irondequoit Police Officer, subjected the victim to a relentless campaign directed toward threatening and psychologically torturing his victim and injuring, harassing, and intimidating her. Rosica used direct, indirect, and digital surveillance in a focused campaign of online abuse, physical stalking, and harassment aimed at destroying the victim’s life.
The defendant created multiple fictitious email accounts and sent hundreds of harassing emails and text messages to the victim, her family, and her employer. During this time, Rosica also directed and used other people to conduct physical surveillance of the victim and her family, which included people driving by the victim’s home and place of employment and reporting their observations back to Rosica who then used the information to harass the victim. The defendant improperly used his position as a police officer to access law enforcement databases and other restricted online systems in order to obtain information on the victim and her family. Other harassing behaviors included:
• anonymous emails and text messages directing and instructing the victim to commit suicide; • unlawfully accessing and attempting to access the victim’s cellular phone online account and attempting to reset the victim’s password; • unlawfully accessing and attempting to access the victim’s work email and voicemail accounts on several hundred occasions; • unlawfully accessing and attempting to access the victims’s Walgreens Pharmacy and University of Rochester MyChart health care account on multiple occasions; and
• unlawfully accessing and attempting to access the victim’s Time Warner Cable online account on multiple occasions. Rosica also unlawfully accessed the Time Warner Cable account of the victim’s family.Following his arrest, the defendant made materially false statements to FBI Agents. In addition, the investigation identified several other victims who were subjected to similar physical and digital harassment over several years before he started stalking the victim. As part of the investigation, the FBI conducted extensive electronic and physical surveillance during which they identified Rosica driving by the victim’s home on multiple occasions in various vehicles while attempting to disguise himself from detection. They also obtained footage of the defendant buying some of the items he used to harass the victim, including pay-as-you-go credit cards. Rosica was also captured on audio recordings and digital chats trying to access the victim’s online accounts. The defendant commenced his nearly year-long campaign to harass and torment the victim after she ended their three-year relationship in February 2016.
“The badge worn on the chest of law enforcement officers in our country serves as a gleaming reminder of the many virtues, such as bravery, honor, and duty, found within the hearts they cover,” noted U.S. Attorney Kennedy. “In this case, however, Rosica hid behind his badge and used it to cover the cruel cowardice which existed within his depraved heart. The maximum sentence imposed by the Court was richly deserved.”
"In an ironic and satisfying way, law enforcement identified, arrested, and removed William Rosica from living and working in our community using the same type of techniques he used to sadistically stalk and surveille his victims," said FBI Buffalo Division's Assistant Special Agent in Charge Philip E. Frigm, Jr. "The FBI's Cyber Task Force and its partners conducted this investigation because stalking is no longer only a crime committed by people who physically follow and track their victims. And, today's sentencing proves that cyber stalking -- especially through intrusions as was done in this case -- is no less sinister or frightening."
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and New York State Police under the direction of Major Richard Allen.
Former Controller at Portland Industrial Facility Indicted for EmbezzlementRead the Press Release
David G. King, 51, of Gallatin, Tennessee, was indicted yesterday by a federal grand jury and charged with four counts of wire fraud, announced United States Attorney Don Cochran of the Middle District of Tennessee.
The indictment alleges that King, while employed at a Portland, Tennessee company as a controller, embezzled approximately $235,000 over a 23-month period, beginning in June 2014. King allegedly concealed the fraud by creating fictitious vendor accounts in the company’s accounts payable system and then issued checks made payable to himself and linked to the fake vendors.
If convicted, King faces up to 20 years in prison and up to a $1million fine.
This case is being investigated by the FBI and Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty in a court of law.
Former CPA Sentenced for Obstructing the IRSRead the Press Release
St. Louis, MO – Mark A. Beckham was sentenced today to 36 months in prison for obstructing the administration of the internal revenue laws.
Beckham, 62, St. Charles County, was found guilty in September 2017 of one felony count of attempting to interfere with the administration of the internal revenue laws. The six-day trial was held before United States District Judge Ronnie L. White.
Beckham was a former CPA, whose license to practice as a CPA was revoked following his federal mail fraud conviction in 2006.
The evidence at trial showed that Beckham prepared 2009 and 2010 individual and corporate federal income tax returns for a client. These returns were subsequently audited by the IRS. During this audit, Beckham provided his client’s dayplanner calendar to the IRS. This dayplanner calendar had been altered to reflect that Beckham’s client worked for a company that had large tax losses, when, in fact, Beckham’s client had not worked for this company. This dayplanner calendar was given to the IRS to support deductions for non-passive losses on the tax returns that Beckham prepared for his client.
This case was investigated by IRS-Criminal Investigation. Assistant United States Attorneys Steven Muchnick and Reginald Harris are handling the case for the U.S. Attorney's Office.
Former CEO of Scranton Federal Credit Union Sentenced to 70 Months’ ImprisonmentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Malachy E. Mannion sentenced Sean Jelen, age 35, of Breezy Point, NY, to 70 months’ imprisonment and four years of supervised release on January 31, 2018, for bank fraud and attempted bank fraud offenses.
According to United States Attorney David J. Freed, Jelen served as the CEO of Valor Federal Credit Union (Valor), now known as Pentagon Federal Credit Union, from 2012 to 2015. In July 2016, Jelen pleaded guilty to defrauding and attempting to defraud Valor and several insurance companies, both before and after his tenure as CEO. Jelen’s criminal activities, many of which involved the use of forged and altered documents, and the impersonation of others, included:
- Causing Valor to pay $34,500 of his personal credit card debt by forging a fake service contract between Valor and a non-existent entity;
- Obtaining a $450,000 line of credit from Valor by using altered bank records to conceal his existing mortgage liability;
- Causing Valor to pay over $30,000 to fund his wife’s birthday party, by forging a fake service contract between Valor and a non-existent entity;
- Embezzling nearly $140,000 from Valor by causing it to double-pay his life insurance premium directly to his own bank account;
- Rigging the Valor Board of Directors election to elect two candidates who he subsequently impersonated;
- Causing Valor to fund a $25,000 golf tournament sponsorship at his alma mater, while altering records to disguise it as a donation to a local soup kitchen;
- Providing false documents to the National Credit Union Administration to deflect its investigation of his activities;
- Forging a severance contract in an attempt to trigger millions of dollars in payouts and benefits upon his termination from Valor;
- Attempting to obtain the surrender value of various life insurance contracts owned by Valor; and
- Impersonating his physician, psychiatrist, and former employee in an attempt to obtain disability insurance payments after his termination from Valor.
In pronouncing the sentence, Judge Mannion highlighted the disturbing nature of Jelen’s conduct, and that his criminal activities continued after he was aware of the federal criminal investigation. Judge Mannion also focused on Jelen’s use of embezzled money to fund life luxuries, naming greed and power as his motivation.
Judge Mannion ordered Jelen to pay $694,971.88 in restitution to the victims of his crimes. The United States is seeking forfeiture of a vacation home in Breezy Point, New York, that Jelen purchased with the proceeds of his frauds.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Phil Caraballo and Evan Gotlob.
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Florida Man Sentenced to More Than 17 Years for Attempting to Entice A Minor for SexRead the Press Release
Orlando, FL –U.S. District Judge Roy B. Dalton, Jr. has sentenced Eric Bishop (43, Orlando) to 17 years and 5 months in federal prison for attempting to entice a minor to engage in sexual activity. He pleaded guilty on September 25, 2017.
According to court documents, between June 12 and June 21, 2017, Bishop communicated with an undercover FBI agent who was posing as the grandfather of a five-year-old autistic child. During those communications, Bishop made plans to meet and have sex with the “child.” When arrived to meet with the “child,” he was arrested.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Alejandro J. Salicrup.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Felons who Stole Guns Sentenced to Federal PrisonRead the Press Release
BOISE – Robby David Haley, 28, of Weiser, Idaho, and, Shawn Michael Hart, 28, of Payette, Idaho, were sentenced in federal court on Tuesday for unlawful possession of firearms, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye ordered Haley to serve 30 months in prison followed by three years of supervised release and ordered Hart to serve 54 months in prison, followed by three years of supervised release. Judge Nye also ordered both defendants to pay restitution jointly and severally in the amount of $21,299.
According to court records, in February of last year, Haley and Hart broke into a home in Weiser, Idaho. The homeowner, who was out of state at the time, returned to discover that several items, including seven firearms and ammunition, were stolen. Several weeks later, Hart and Haley were arrested. Haley told police that he and Hart broke into the home, stole property including firearms, and pawned the property for cash. Haley and Hart, both felons, were prohibited from possessing firearms. Both pled guilty in federal court to one count of unlawful possession of firearms.
At his sentencing, Haley promised to work towards an associate degree in computer science while in prison to repay the victim. After the court sentenced Haley, the victim, a retired computer scientist, asked if she could use the restitution money to establish a fund for Haley’s education.
The case was investigated through the combined efforts of the Washington County Sheriff’s Office, the Ontario Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Federal Jury Convicts Knoxville Man and Former Washington State Prosecutor Turned Leader of Sovereign Citizen Movement of Wire Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
KNOXVILLE, Tenn. - Following an eight-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, a jury found Randall Keith Beane, 50, of Knoxville, Tennessee, and Heather Ann Tucci-Jarraf, 45, of Pierce County, Washington, guilty of conspiracy to commit money laundering. The jury also found Beane guilty of six additional counts of wire and bank fraud.
Sentencing is set for Beane on June 12, 2018, and Tucci-Jarraf on June 26, 2018 in U.S. District Court. Tucci-Jarraf faces a sentence of up to 20 years. Beane faces up to 30 years on the charges. There is no parole in the federal system.
Evidence presented at trial showed that Tucci-Jarraf acted as an unlicensed attorney for Beane in a scheme to defraud United Services Automobile Association (USAA) Bank, of more than 31 million dollars. In court filings, Tucci-Jarraf and Beane claim the government was foreclosed upon and has no jurisdiction over them. The defendants asserted at trial that the United States hides individuals’ secret accounts in the Federal Reserve Bank, a common ideology among sovereign citizen groups. Tucci-Jarraf was a former prosecutor in Pierce County, Washington.
"When wrongdoers attempt to stand behind an anti-government movement to hide or justify fraudulent criminal activity, they will fail. This jury sent the message that the American judicial system will not shield them, and these two defendants now know they will be punished, whether or not they acknowledge the authority of the Court to do so," said U.S. Attorney J. Douglas Overbey.
The United States is also forfeiting a motor home worth over $500,000 that Beane purchased with the proceeds of the bank and wire fraud offenses. The loss to victim USAA bank totaled over $550,000.
Beane was arrested by FBI Special Agents in July 2017 as he attempted to flee in a half-million dollar motor coach purchased with stolen funds. He resisted arrest and fought the agents during the incident. Tucci-Jarraf was arrested in Washington, D.C., after attempting to meet with President Trump at the White House.
“Americans are free to believe as they choose about their government,” said Renae McDermott, special agent in charge of the FBI Knoxville Field Office. “When those beliefs turn into criminal actions, law enforcement must act.”
The FBI’s white collar crime squad and cyber task force conducted the investigation. Assistant U.S. Attorneys Cynthia Davidson and Anne-Marie Svolto represented the United States.
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Federal Judge Sentences Three Men Involved in International Child Pornography RingRead the Press Release
ASHEVILLE, N.C. – Three men involved in an international online child pornography ring responsible for producing and sharing thousands of images and videos of child pornography were sentenced today by U.S. District Judge Max O. Cogburn, Jr., announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Gregory L. Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Van Duncan of the Buncombe County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
Dane William Anderson, 32, of Candler, N.C., was sentenced to 20 years in prison; Samuel Heineman, IV, 54, of Marietta, Pennsylvania, previously residing in Berlin, Germany, was sentenced to 21 years in prison; and Mark Christopher Klein, 38, of Hugo, Minnesota, was sentenced to 16 years in prison. All three defendants were also ordered to serve a lifetime of supervised release and to register as sex offenders after they are released from prison.
“The three men sentenced today were part of a sinister network of online child predators, responsible for producing and amassing child pornography on a scale rarely seen. It took law enforcement nearly a year to shift through and analyze Anderson’s massive collection of disturbing images and videos,” said U.S. Attorney Murray. “While this sentence will never repair the trauma suffered by the victims in this case, it does, hopefully, send a message of deterrence to other would-be offenders.”
“This was a heinous child predator conspiracy, crossing international and state borders,” said acting HSI Special Agent Wiest. “Our deepest concern is for the victims of these horrible crimes and we hope today’s sentencing can help them continue on the path of recovery.”
According to court documents and other court records, from 2002 through 2015, the three men were members of a child pornography ring referred to as the “Rippernet,” that produced child pornography through “capping.” Capping is a sophisticated method of producing child pornography by tricking victims, in this case teenage boys, into performing sexually explicit acts in front of webcams, and capturing the video to create new child pornography. Court records show that the defendants induced their young victims by creating false online personas of adolescent girls, specifically developed to be sexually explicit and enticing.
Court records show that law enforcement identified Anderson as an individual responsible for producing images and videos of child pornography, which he traded with others via a peer-to-peer file trading software. According to court records, a forensic analysis of devices seized from Anderson’s home revealed that the defendant possessed more than 17,000 videos and 10,000 images of files depicting the abuse of children. Court records also show that Anderson was the “archivist” of the ring, responsible for collecting and organizing the child pornography in files, and distributing the images and videos to his capper associates.
Court records show that Anderson learned the capping method from Heineman, who was the most prolific producer of child pornography using the capping method. According to court records, Heineman taught Anderson “the art of capping.” In turn, Anderson taught the method to other group members, including Klein. Court records indicate that the combined number of known production victims among the three defendants is over 2,290.
Anderson pleaded guilty to one count of production and one count of possession of child pornography. Heineman and Klein each pleaded guilty to one count of conspiracy to sexually exploit a child. All three defendants are currently in the custody of the United States Marshal pending their designation to a federal Bureau of Prisons facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Murray thanks HSI for leading the investigation. U.S. Attorney Murray also thanks the Buncombe County Sheriff’s Office for their assistance in this case. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Elkhart Man Sentenced for Receipt of Child PornographyRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Donald J. Meachum, age 21, of Elkhart, Indiana was sentenced before District Court Judge Jon E. DeGuilio for one count of receipt of child pornography.
Meachum was sentenced to 60 months imprisonment and 5 years of supervised release.
According to documents in this case, from December 2013 to December 2016, Meachum used his cellular phone to download images and videos of child pornography from the internet. Some of these videos or images involved minors under the age of 12.
This case was investigated by the Federal Bureau of Investigation with the assistance of the St. Joseph County Cybercrimes Unit. This case was handled by Assistant U.S. Attorney John M. Maciejczyk.
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East Pittsburgh Man Sentenced to Time Served for Participating in Counterfeit Currency SchemeRead the Press Release
PITTSBURGH – A Pittsburgh-area resident has been sentenced in federal court on his conviction of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence yesterday on Shad McClelland, 31, of East Pittsburgh, Pennsylvania. Shad McClelland received a sentence of time served and two years of supervised release, of which the first three months he will be on home detention with electronic monitoring.
According to information presented to the court, McClelland conspired and passed counterfeit $100, $50 and $20 FRNs throughout the Western District of Pennsylvania.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of McClelland.
East Hartford Man Sentenced to More than 6 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOEL GONZALEZ, also known as “Tuti,” 34, of East Hartford, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 77 months of imprisonment, followed by four years of supervised release, for distributing heroin.
According to court documents and statements made in court, in November and December 2015, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made a total of six controlled purchases of heroin from GONZALEZ at 71 Warrenton Avenue and 30-32 Putnam Street in Hartford.
GONZALEZ was arrested on December 16, 2015. On that date, a search of his East Hartford residence revealed 30 bags of heroin and $23,302 in cash; a search of 71 Warrenton Avenue revealed 2,000 bags of heroin and $5,298 in cash, and a search of 30-32 Putnam Street revealed 330 bags of heroin, approximately 30 grams of crack cocaine, approximately 12 grams of cocaine and $2,762 in cash.
GONZALEZ has been detained since his arrest. On May 10, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Duquesne Woman Admits Passing Counterfeit Bills throughout Western PARead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
Destiny S. Dayton, 21, of Duquesne, Pennsylvania, pleaded guilty on January 31, 2018, to three counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between May 16, 2015 and June 12, 2015, Dayton conspired and passed counterfeit $100, $50 and $20 Federal Reserve Notes throughout the Western District of Pennsylvania.
Judge Fischer scheduled sentencing for May 31, 2018, at 9:30 a.m. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Dayton.
District Man Sentenced to 25 Years in Prison on Charges Stemming from Trafficking Four Children for Commercial SexRead the Press Release
WASHINGTON – Daraya Marshall, 37, of Washington, D.C., was sentenced today to 25 years in prison on four federal charges of sex trafficking of children, one federal count of sexual exploitation of a minor, and one District of Columbia offense of first-degree child sexual abuse.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Marshall pled guilty on Oct. 16, 2017, the day that his trial was scheduled to begin in the U.S. District Court for the District of Columbia. He had been charged by the grand jury in a 15-count indictment; the remaining counts were dismissed at sentencing pursuant to the plea agreement. Marshall was sentenced by the Honorable Tanya S. Chutkan. Following his prison term, Marshall will be placed on 15 years of supervised release. By law, he will also be required to register as a sex offender for a minimum period of 25 years. Judge Chutkan also ordered Marshall to pay $21,800 in restitution and an equal amount in a forfeiture money judgment.
According to the government’s evidence, Marshall and his co-defendant, Jarnese Harris, 31, ran a sex trafficking operation out of their apartment in Southeast Washington. At times, Marshall had six or more women and girls prostituting for him, including Ms. Harris. In 2014 and 2015, Marshall separately persuaded four girls - who were ages 14, 15, 15-16, and 17 years old - to prostitute for him by engaging in commercial sexual acts with strangers who responded to ads placed on Backpage.com. These commercial sexual transactions would occur either in Marshall’s apartment, or Marshall or Harris would drive the victims to other locations in the District of Columbia, Maryland, and Virginia. Marshall and Harris took pictures of the girls in sexually provocative poses, and paid for and placed advertisements on Backpage.com.
The victims were vulnerable because of their youth and difficult life circumstances, and Marshall lured them with the promise of independence and a chance to make money. He provided the victims with food and marijuana, let them stay in his apartment, and gave them rides to and from home or school so that they could work for him at night and on weekends. Additionally, Marshall took photos and videos of one of the victims, which depicted child pornography, when the victim was 15 and 16 years old. He also sexually abused one of the victims by engaging in intercourse with her when she was just 14 years old.
Marshall and Harris came to the attention of law enforcement in May 2015, after the mother of the 14-year-old victim reported to police that she learned her daughter, who had run away and been reported missing, was being prostituted by a man living on South Capitol Street. After an initial investigation, Marshall was arrested and charged in the Superior Court of the District of Columbia. During the investigation, additional victims and federal charges were identified and Marshall was charged in the U.S. District Court for the District of Columbia. Marshall has been in custody since his arrest on June 29, 2015.
“Daraya Marshall cold-heartedly exploited four teenage girls, including one who was in the eighth grade, and turned them into prostitutes,” said U.S. Attorney Liu. “Time after time, he took advantage of vulnerable victims for his own financial gain. Today’s sentence holds him accountable for his reprehensible actions. This case highlights our commitment to preventing and prosecuting those who engage in human trafficking. “
“Child sex trafficking is a horrible crime that creates a cycle of victimization and must be stopped,” said Assistant Director in Charge Vale. “The FBI is committed to bringing child predators to justice and rescuing children from this heinous exploitation. We will continue to work with our local, state, and federal partners to aggressively prevent and investigate crimes against children.”
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham expressed appreciation for the work performed by detectives of the Metropolitan Police Department’s Youth Division, and Special Agents and Analysts of the FBI Child Exploitation and Human Trafficking Task Force. They also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Chrisellen Kolb; former Assistant U.S. Attorney Jeffrey Cook; former Special Assistant U.S. Attorney Marina Stevenson; Victim/Witness Advocates Lezlie Richardson and Veronica Vaughan; Victim/Witness Security Specialists Lesley Slade, Tanya Via, and Wanda Queen; Paralegal Specialists Tiffany Jones and Elena Buruncenco; Litigation Technology Specialist Claudia Gutierrez, and Criminal Investigators John Marsh and Mark Crawford.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Cassidy Kesler Pinegar, Kenya K. Davis, and Jason Park, who prosecuted the case.
Department of Justice Announces Settlement with Z Street over Improper IRS TreatmentRead the Press Release
The Department of Justice today announced that it has entered into a settlement with Z Street, a non-profit corporation dedicated to educating the public about various issues related to Israel and the Middle East, pending approval by the United States District Court for the District of Columbia. Z Street alleged that the Internal Revenue Service (IRS) applied heightened scrutiny to applications for tax-exempt status received from organizations connected in any way to Israel, and applied this policy to Z Street’s application, resulting in delay. The settlement agreement includes an apology from the IRS to Z Street for the delayed processing of the group’s application for tax-exempt status.
“Tax exemption eligibility should be based on whether an organization’s activities fulfill requirements of the law, not a group’s policy positions or the name chosen to reflect those views,” said Principal Deputy Assistant Attorney General Zuckerman. “The attorneys at the Department of Justice work hard to ensure that all Americans receive equal treatment under the law. Today’s settlement further illustrates this commitment.”
This is the final settlement in a series of cases brought by groups alleging that their tax-exempt status was delayed by the IRS based on inappropriate criteria, including names and policy positions. The United States District Court for the District of Columbia recently approved settlement agreements in Linchpins of Liberty v. United States and True the Vote v. IRS. In Norcal Tea Patriots v. IRS, the United States agreed to a settlement in this class action lawsuit which is currently pending approval in the United States District Court for the Southern District of Ohio. In Freedom Path v. IRS, the United States entered into a settlement resolving a wrongful disclosure claim and dismissing other claims, including allegations of improper IRS targeting. A single regulatory challenge remains following the settlement. Freedom Path lost this challenge at the District Court and the issue is currently on appeal to the Fifth Circuit.
Announcement and quote from Attorney General Jeff Sessions in Linchpins of Liberty v. United States and Norcal Tea Patriots v. IRS can be found here.
Coventry Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
PROVIDENCE, RI – Marcus A. Venson, 29, of Coventry, pleaded guilty in federal court in Providence today to being a felon in possession of a firearm. Venson, previously convicted in Rhode Island state court for drug trafficking, was found to be in possession of a loaded firearm at the time of his arrest in May 2017 by Rhode Island State Police following an incident in Newport.
Venson’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Newport Police Chief Gary T. Silva; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
According to information presented to the Court, during the afternoon of May 26, 2017, the Newport Police Department transmitted a broadcast for law enforcement to be on the lookout for Venson who was in possession of a handgun and who was a passenger in taxi, after allegedly brandishing a firearm earlier in the day. The broadcast provided law enforcement with a detailed description of the cab that it was traveling on Route 138 over the Newport Bridge and possibly heading to Coventry.
Shortly after the police broadcast, North Kingston Police contacted the Rhode Island State Police and advised them that one of their officers observed the cab traveling on Route 4 North passing Exit 6. A Rhode Island State Police Trooper observed the cab traveling on Route 4 North and then exit the highway, at which time Rhode Island State Police Troopers conducted a motor vehicle stop.
A Rhode Island State Police trooper approached the rear of the cab and observed a rear seated passenger that fit the description of the suspect sought by the Newport Police Department. The trooper ordered the suspect out of the cab and to lay face down on the ground. The State Police trooper searched the suspect and seized from him a fully loaded, Smith and Wesson .38 caliber revolver.
Venson is scheduled to be sentenced on April 19, 2018, by U.S. District Judge John J. McConnell, Jr. Felon in possession of a firearm is punishable by statutory penalties of up to 10 years in federal prison; 3 years supervised; and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the Newport Police Department and the Rhode Island State Police, with the assistance of the North Kingstown Police Department, Warwick Police Department and members of the ATF Task Force, including the Special Investigations Unit at the Rhode Island Department of Corrections.
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Couple Pleads Guilty to $2.7 Million Bank Fraud SchemeRead the Press Release
BOSTON – A Rockland couple pleaded guilty today in federal court in Boston to engaging in a scheme to embezzle more than $2.7 million from Bank of America using fraudulent donations to non-profit organizations.
Palestine Ace, a/k/a Pam Ace, 45, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division pleaded guilty to one count of conspiracy to commit bank fraud, five counts of wire fraud, and 12 counts of bank fraud. Her husband, Jonathan R. Ace, 46, pleaded guilty to one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of engaging in an unlawful monetary transaction. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Palestine Ace for May 16, 2018, and May 17, 2018, for Jonathan Ace.
From approximately October 2010 to April 2015, the couple engaged in an embezzlement and kickback scheme to defraud Bank of America of approximately $2.7 million using fraudulent donations to non-profit organizations. As part of the scheme, Palestine Ace used her position as a Senior Vice President at Bank of America to misappropriate funds from a marketing budget and transfer the money to non-profit organizations. Specifically, Palestine Ace authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta. Then, the couple, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds had to be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or a co-conspirator, or they returned funds to a Bank of America account, to which the couple had access. On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation.
Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle.
The charges of wire fraud and bank fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transaction provides for a sentence of no greater than 10 years in prison, two years of supervised release and a fine of $250,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William B. Evans; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Neil J. Gallagher of Lelling’s Economic Crimes Unit is prosecuting the case.
Corpus Christi Man Convicted of Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 40-year-old Corpus Christi man has admitted he possessed child pornography, announced U.S. Ryan K. Patrick.
In March 2017, Queensland Police Services in Australia identified a computer discussing child pornography on an Internet website. That computer was later linked to Timothy Traut who was using a profile name of “Horndog.” Traut had posted pictures to that website and made comments about the desire to have sexual intercourse with a child pictured in some of those images.
Agents later executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 850 images and approximately 104 videos child pornography. Many of those videos included images of sexually explicit conduct involving prepubescent girls.
Today, Traut admitted he reviewed and collected child pornography.
U.S. District Judge Nelva Gonzalez Ramos accepted the guilty plea today and set sentencing for May 2, 2018. At that time, Traut faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Traut also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Traut has been and will remain in custody pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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."
Convicted felon sentenced to 10 years in federal court on ammunition chargeRead the Press Release
Three prior felonies result in an Evansville man sentenced for illegal possession of ammunition
PRESS RELEASE
Evansville –United States Attorney Josh J. Minkler announced today that an Evansville man was sentenced for possessing ammunition as a convicted felon after being arrested by the Evansville Police Department during a domestic disturbance in 2016. Jason E. Galloway, 40, was sentenced to 120 months (10 years) by U.S. District Judge Richard L. Young after pleading guilty to being a felon in possession of ammunition.
“Convicted felons have no right to carry firearms or ammunition in the state of Indiana,” said Minkler. “If someone chooses to willfully violate federal law, they will face serious consequences.”
According to a police report generated by the Evansville Police Department, police were called to the 1100 block of North Main Street on January 21, 2016, on a reported domestic violence incident. When officers arrived, they spoke with Galloway’s former wife who stated Galloway had waived a gun around the house, threatened to shoot her, and assaulted her and her minor daughter. Officers found a stolen .22 caliber revolver in the house and a cylinder loaded with eight rounds of ammunition. Galloway left the home before officers arrived, but officers found him behind a nearby gas station with live ammunition in his pocket and placed him under arrest.
Galloway cannot legally possess a firearm or ammunition because he has three felony convictions. The convictions include:
- Manufacturing methamphetamine, Henderson County, Kentucky, in 2000
- Criminal recklessness resulting in serious bodily injury, in Posey County, Indiana, in 2010
- Battery, Vanderburgh County, Indiana, in 2013
This case was investigated by the Evansville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“ATF is committed to combating gun violence in our communities,” said Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work with our law enforcement partners to make Evansville safer for all residents.”
“This should serve as another example to those who wish to create havoc in our community that justice will in turn wreak havoc on their lives,” said Evansville Police Chief Billy Bolin.
According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting this case for the government, Galloway must also pay a $1,000 fine and serve three years of supervised release following his sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged firearm violations in the District’s most violent areas. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2
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Contractor Sentenced to 5 Years Probation for Making False Statements and Theft of Government FundsRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, was sentenced to five (5) years probation by the Honorable U.S. District Judge Martin L.C. Feldman today for making false statements in violation of 18 U.S.C. § 1001 and theft of government funds in violation of 18 USC § 641.
According to court documents, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program, also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. In 2011 and 2012, each elevation grant from HMGP was worth up to $100,000.00 with contractors and homeowners being entitled to an advanced payment of 80% of the grant prior to a contractor doing any elevation work. The HMGP expected homeowners receiving HMGP grants to commit their $30,000.00 Road Home elevation grant to the total cost of the elevation.
In 2011, SPEARS signed contracts with multiple homeowners in the Eastern District of Louisiana to elevate their homes through the HMGP. For many of these contracts, SPEARS received advanced payments from the HMGP prior to starting the elevation work. For at least two contracts, the homeowners gave him Road Home elevation funds prior to HGMP approving their grants or giving them an advanced payment.
On or about May 5, 2012, SPEARS was placed on a restricted status with the HMGP that prohibited him from getting any advanced payments on new elevation contracts because he was significantly out of compliance with a number of his pending elevation projects. On or about July 20, 2012, in an effort to be removed from his restricted status with the HMGP, SPEARS falsely represented to the program that certain funding recipients had requested that their elevation be delayed when, in truth and in fact, they had not requested a delay. In August 2012, the HMGP removed SPEARS from restricted status on representations from him that he would have the properties completed by the end of 2012.
However, as of 2013, SPEARS had still failed to do any work on at least 3 properties for which he had received $118,000.00 in federal funds, including the two properties for which he had received the Road Home elevation funds as down payment. Despite demands, SPEARS has not returned the funds to the government or the homeowners.
As part of the sentence imposed, SPEARS was ordered to pay $118, 000 in restitution.
U.S. Attorney Evans praised the work of the Department of Homeland Security-OIG, and the Federal Bureau of Investigation for investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Columbia Man Sentenced to 99 Months in Prison for Possessing Child PornographyRead the Press Release
CONCORD, N.H. - David Morris, 57, of Columbia, New Hampshire, was sentenced to serve 99 months in prison for possession of child pornography, announced Acting United States Attorney John J. Farley.
According to court documents and statements in court, law enforcement officers executed search warrants at two residences associated with the defendant on July 20, 2016. A review of various electronic devices found in the residences showed that they contained hundreds of images and videos of child pornography.
Morris pleaded guilty on October 25, 2017. After serving his 99-month sentence, he will be on supervised release for the rest of his life.
“Child pornography offenses are terrible crimes that have, at their core, the abuse of the children depicted in the images,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office is committed to protecting children from predators and pornographers. Along with our law enforcement partners, we will continue to identify and prosecute those who possess, distribute or produce child pornography in order to protect our children and our community.”
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction with Immigration and Customs Enforcement’s Homeland Security Investigations Manchester, as well as the Lincoln, Littleton, and Columbia police departments. The case was prosecuted by Assistant United States Attorneys Seth Aframe and Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Charleston drug dealer sentenced to 10 years in federal prison for opioid and gun crimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 10 years in federal prison for drug and gun crimes, announced United States Attorney Mike Stuart. A jury previously found Charles York Walker, Jr., 39, guilty of being a felon in possession of a firearm. Walker also pleaded guilty to two counts of distributing heroin and one count of distributing fentanyl. U.S. Attorney Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Regional Jail Authority.
During the trial, witnesses testified that Walker was arrested in Charleston by the Metropolitan Drug Enforcement Network Team on July 14, 2017. A search warrant was later executed at Walker’s apartment on Washington Street, West, and officers seized Walker’s cell phone and two handguns. Law enforcement obtained a search warrant for Walker’s cell phone and discovered photos linking Walker to one of the handguns. A witness testified that he saw Walker pistol whip an individual with a .38 revolver, which was the same type of gun as one of the firearms seized from Walker’s apartment. Walker was prohibited from possessing any firearm under federal law because of a 1997 federal drug conviction, a 1998 state conviction for wanton endangerment, and a 2010 federal conviction for being a felon in possession of a firearm.
In addition to the firearms charged in the superseding indictment, Walker was also charged with three counts of distributing drugs. On the first day of trial, Walker pled guilty to the three drug counts, admitting that he sold drugs in Charleston on three separate occasions. He admitted to selling heroin to a confidential informant working with law enforcement on April 14, 2016, on the railroad tracks close to Beuhring Avenue. He also admitted that he sold fentanyl to a confidential informant on June 23, 2016, in a drug deal that began at the KFC on Washington Street, West. Walker additionally admitted that on July 12, 2016, he sold heroin to a confidential informant at the apartment on Washington Street, West.
“Walker is justifiably headed to prison for a long time,” stated U.S. Attorney Mike Stuart. “If you sell illegal drugs or if you violate gun laws, I will do all I can to send you to prison for as long as we possibly can.”
Assistant United States Attorneys Steven I. Loew and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin imposed the sentence and presided over the trial.
This prosecution was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case is also part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Castle Rock Breast Cancer Charity Promoter Sentenced for Failure to File Tax ReturnRead the Press Release
DENVER – Adam C. Shryock, age 37, of Castle Rock, Colorado, was sentenced by U.S. District Court Magistrate Judge Michael J. Watanabe on January 25, 2018 to serve 12 months in prison followed by one year of supervised release for willful failure to file a tax return, announced U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Shryock, who pled guilty on April 4, 2017, was also ordered to pay restitution of $430,970 to the Internal Revenue Service.
According to the information and plea agreement, Shryock created a promotional campaign “Boobies Rock Awareness for Breast Cancer” in February, 2011 and subsequently incorporated “Boobies Rock” in California in April, 2011 as its sole owner and operator. Between April, 2011 and June 2013, Boobies Rock!, operating as a for-profit business, held between 3,600 and 4,500 promotional events selling breast cancer awareness merchandise and accepting donations at bars and sporting events throughout the country.
The Boobies Rock merchandise consisted of t-shirts, hoodies, koozies and bracelets. Hiring managers and/or sales representatives accepted cash, checks, and credit card payments at the events. Shryock instructed the money received be deposited into bank accounts controlled by Shryock at two different banks. Proceeds were also mailed or hand delivered to Shryock’s Castle Rock residence.
During the years under investigation over 2,200 cash deposits totaling over $1.8 million were made into Shryock’s accounts. Shryock used some of these funds to support his lifestyle. Based on over $2.4 million in income, Shryock earned operating Boobies Rock and other businesses between 2011 and 2013, along with income Shryock did not report in 2010 while residing in California, the amount of restitution owed to the IRS is $430,970.
“Schemes to conceal and insulate wealth in order to evade income tax, such as those utilized by Shryock do not ‘rock.’ They are unfair to every taxpayer who obeys the law and pays his/her fair share. The public should know that IRS CI will do everything we can to hold individuals accountable ensuring that our tax system is fair to everyone,” Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office said.
This case was investigated by Internal Revenue Service – Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Martha Paluch.
Buffalo Man Pleads Guilty to Distributing FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeremy Jorge, 21, of Buffalo, NY, pleaded guilty to distribution of fentanyl before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Scott S. Allen, Jr., and Wei Xiang, who are handling the case, stated that on at least seven occasions, between December 2016 and September 2017, the defendant sold what he marketed as heroin in exchange for sums of money between $300 and $1,300. A forensic analysis later determined that the substances contained a mixture of various controlled substances including heroin, fentanyl, butyryl fentanyl, furanyl fentanyl, and U-47700. In total, Jorge distributed over 24 grams of fentanyl in the Buffalo community.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for May 15, 2018, at 9:30 a.m. before Judge Vilardo.
Bradenton Man Sentenced to Ten Years for Possessing Methamphetamine with the Intent to DistributeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Andrew Aaron Kutt (46, Bradenton) to 10 years in federal prison for possessing methamphetamine with the intent to distribute it. He pleaded guilty on November 3, 2017.
According to court documents, during January and February 2017, Kutt sold fentanyl and methamphetamine to an individual inside his residence on multiple occasions. On February 24, 2017, deputies from the Manatee County Sheriff’s Office executed a search warrant at Kutt’s residence and recovered various controlled substances, including more than 20 grams of crystal methamphetamine and over 4 grams of a substance containing fentanyl. Kutt admitted that all the drugs found in the home belonged to him.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Manatee County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Berkeley County man admits to firearm chargeRead the Press Release
MARTISNBURG, WEST VIRGINIA – Jarius Jovanghn Styles, of Martinsburg, West Virginia, has admitted to a firearm charge, United States Attorney Bill Powell announced.
Styles, age 31, pled guilty to one count of “Unlawful Possession of a Firearm.” Styles, having previously been convicted of felonies in Virginia, admitted to illegally possessing a Rock Island Armory 10mm pistol. The crime occurred in June 2017 in Berkeley County.
Styles faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
U.S. Magistrate Judge Robert W. Trumble presided.Berkeley County man admits to cocaine chargeRead the Press Release
MARTISNBURG, WEST VIRGINIA – A Martinsburg, West Virginia man has admitted to distributing cocaine, United States Attorney Bill Powell announced.
Michael Jacque Severe, age 33, pled guilty to one count of “Conspiracy to Distribute Cocaine Base.” Severe conspired with others to distribute crack cocaine in Berkeley County from April 2015 to February 2017.
Severe faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Beaumont man sentenced to 10 years in prison for kidnapping girls after theft in SulphurRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Beaumont man was sentenced Tuesday to 120 months in prison for kidnapping two girls after stealing the truck they were in.
Henry Dwight Moore, 23, of Beaumont, Texas, was sentenced by U.S. District Judge Jay C. Zainey on one count of kidnapping. He was also sentenced to five years of supervised release. According to the October 11, 2017 guilty plea, Moore drove a black truck into a Lowe’s parking lot in Sulphur, La., on December 13, 2015. He stole a customer’s purse who had walked away from it to return a shopping cart. A bystander saw Moore take the purse, and the bystander jumped into the back of Moore’s truck as he drove away. The truck’s engine died at one point, and the bystander attempted to confront him. Moore got the engine started again and sped off, leaving the bystander in the truck bed. Eventually Moore stopped and the bystander got out. Moore then continued westbound on Interstate 10 in the rain. He lost control and struck the side of a Toyota Tundra truck. After the accident, Moore’s truck died again, and he and the Tundra pulled over to the side of the road. After the Tundra owner exited the truck and walked to the passenger side to inspect the damage, Moore jumped into the driver’s seat and drove off. Inside the Tundra truck were the owner’s daughters ages 5 and 7. Moore told the girls he was going to drop them off at a police station but instead abandoned the car and the girls on the side of the road in Orange, Texas. The oldest girl located her father’s cell phone and called 911 for help.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Aggravated Felon Found to Be Back Illegally in the United States Sentenced to Four Years in PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Rene Rolando Ceron-Flores (39, El Salvador) to four years in federal prison for illegally reentering the United States after having been previously deported. He pleaded guilty on October 31, 2017.
According to court documents, Ceron-Flores, an alien of the United States, was convicted of criminal sexual abuse of a minor in July 2014 and was deported in October 2014. In September 2017, Ceron-Flores was found to be voluntarily back in the United States illegally.
This case was investigated by the United States Border Patrol. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
4 Individuals Indicted for Trafficking Methamphetamine and MarihuanaRead the Press Release
SAN JUAN, PR – On January 31, 2018, a federal grand jury in the District of Puerto Rico returned an indictment against four individuals as a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the U.S Postal Service, Office of Inspector General, DEA and the Puerto Rico Police Department, announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The defendants are charged in a three-count indictment with conspiracy to possess with intent to distribute controlled substances, and the use of mail to distribute controlled substances.
The indictment alleges that beginning in the year 2015, the defendants conspired to possess with intent to distribute methamphetamine in Puerto Rico for significant financial gain. U.S Postal Service, Office of Inspector General, DEA San Juan Tactical Division Squad, and PRPD, started an investigation into a Drug Trafficking Organization (DTO) responsible for shipping crystal meth (also known as “ice”) and marihuana from the state of California to Puerto Rico via the United States Postal Service (USPS) with the assistance of two postal employees.
The defendants are:
1. José Chávez, a.k.a. “El Mejicano/El Ingeniero”- sent the drugs from California to Puerto Rico
2. Pedro Rodríguez Valentin- USPS employee
3. Julio Valenzuela Morel- facilitator
4. Josué Torres Colón- USPS employee
According to the indictment, the defendants mailed the packaged methamphetamine and/or marihuana to Puerto Rico from United States Post Offices in California. They had the methamphetamine and/or marihuana laden boxes have specific existing addresses on the postal employee’s delivery route, so that he could take control of the package to deliver to co-conspirators. The defendants and co-conspirators held meetings in Puerto Rico or Florida to discuss the distribution of controlled substances and communicated via text or phone regarding the shipments of controlled substances to Puerto Rico and its distribution. They used Well Fargo and Banco Popular accounts to pay co-conspirators for the shipments of methamphetamine.
“The US Attorney’s Office will continue to vigorously pursue the criminal prosecution of U.S. Postal Service employees and others who would defraud the U.S. Postal Service or utilize its services in their criminal schemes,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “We are committed to dismantling and removing the threat posed by these criminal organizations flooding our communities with dangerous narcotics.”
Eileen Neff, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office stated: “The U.S Postal Service, Office of Inspector General will utilize every resource available, to include our strong law enforcement partnerships, to prevent USPS employees from abusing positions of public trust by assisting with the trafficking of methamphetamine, as alleged in this case. This type of destructive and dangerous scheme will not be tolerated. We greatly appreciate the support of the Drug Enforcement Administration, Puerto Rico Police Department, and the U.S. Attorney’s Office in this matter.”
The case is being prosecuted by Assistant United States Attorney Laura Montes under the supervision of Julia Díaz-Rex, Deputy Chief for International Narcotics Unit. If convicted, the defendants could face a minimum penalty of 10 years up to life imprisonment and/or fines of up to $10,000,000. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). This multi-agency task force investigates and dismantles major drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics as well as the gang violence that accompanies drug trafficking.
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2017 Year in Review:Read the Press Release
• 144 cases filed involving members/associates of gangs in Utah
• 204 Project Safe Neighborhoods cases filed – the majority targeting felons with guns
• 41 indictments returned in child exploitation cases
• 41 robbery cases indicted, including 29 bank robbery cases
• 300 cases filed charging illegal re-entry into the countrySALT LAKE CITY -- Efforts to capitalize on existing law enforcement partnerships and re-invigorate successful programs already in place to reduce violent crime and make communities safer for everyone are well under way in Utah.
“As the United States Attorney in Utah, I use my position to ensure that the efforts aimed at reducing violent crime in our state are working toward the same goal without duplicating efforts. We are promoting collaboration between federal, state, local and tribal agencies, existing task forces, and other stakeholders to prioritize efforts to reduce violent crime in our neighborhoods,” U.S. Attorney John W. Huber said today.
“We look to identify the offenders who are responsible for violent crime in Utah neighborhoods. The cases we filed last year are representative of those efforts,” Huber said. “My partners and I will build on the momentum we established last year with targeted and prioritized enforcement efforts. Our primary goal is to reverse recent trends and reduce violent crime in Utah, where every resident deserves to live and thrive in a safe neighborhood. The recent spate of violence on the west side of Salt Lake County – likely gang related – brings into focus the urgency of our combined efforts.”
Transitioning into 2018, the U.S. Attorney’s Office is focused on enhancing and expanding Utah Project Safe Neighborhoods, an initiative targeting violations of federal firearms laws, to include other areas of violent crime such as gang activity, drug distribution, organized crime, domestic violence and robberies.
Utah is fortunate to have well-established working relationships between law enforcement agencies at the local, state, and federal levels, Huber said. “Our law enforcement officers and agents in Utah are skilled at helping us identify the most violent offenders in a community.”
Case examples:
Gangs
- Operation Rio Grande case – US v Jose Rodriguez, aka King Kong: A grand jury returned a six-count indictment in December charging Jose Rodriguez, aka King Kong, with drug and firearms violations. The two incidents that make up the indictment come from investigations done by Salt Lake City police officers working as a part of Operation Rio Grande. Rodriguez is charged with distribution of heroin, distribution of cocaine base, carrying a firearm in relation to a drug trafficking crime and felon in possession of a firearm for the first incident in late September. He also faces distribution of heroin and felon in possession of a firearm in connection with an October incident. Rodriguez, age 35, a Mexican national living in Salt Lake City, faces up to 20 years in federal prison for each of the drug distribution counts and up to 10 years for each of the felon in possession counts. Carrying a firearm during and in relation to a drug trafficking offense has a mandatory five-year sentence which would run consecutive to any other sentence imposed. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court. A five-day jury trial has been set for March 5, 2018, before U.S. District Judge Robert J. Shelby. Rodriguez, who has entered not guilty pleas to the charges, will remain in custody pending the resolution of this case. U.S. Magistrate Judge Paul M. Warner found him to be a danger to the community and a risk of non-appearance at a detention hearing.
Salt Lake City police officers are investigating the case.
Robberies
- 112-month sentence for serial bank robber: Bret Michael Edmunds, age 41, of Salt Lake City, was charged with seven counts of bank robbery in an indictment returned May 3, 2017. As a part of a plea agreement in October 207, he admitted to a March 28, 2017, robbery of Zions Bank in Draper and an April 3, 2017, robbery of Utah First Credit Union in Provo. In both cases, Edmunds told the teller he had a gun. Edmunds is serving 112 months in federal prison for the convictions. He was ordered to pay $8,977 in restitution to the victim banks.
The FBI’s Violent Crime Task Force, which includes officers from the Salt Lake City Police Department and the Unified Police Department, investigated the case. Local police agencies in Salt Lake and Utah counties also assisted with responses to the robberies.
Firearms
- Criminal career spanning a decade: Jonathan Fernando Chavez, age 31, of Logan, Utah, was sentenced to 77 months in federal prison Nov. 9, 2017, after pleading guilty to possession of a firearm and ammunition following a felony conviction. U.S. District Judge Robert J. Shelby issued the sentence. Chavez was charged with felon in possession of a firearm and associated ammunition and possession of a sawed off shotgun in April 2017. In a sentencing memorandum, a federal prosecutor told the Court that Chavez’ criminal career – which spans more than a decade – includes a drug charges, escape from custody, and aggravated burglary. “The defendant’s criminal history score does not tell everything about his troubling characteristics, particularly his gang affiliation,” the prosecutor told the Court. “An examination of the defendant’s criminal history suggests that the only apparent periods of non-criminality in the life of the defendant occur, for the most part, when he is in custody. The defendant’s criminal history and characteristics are as disturbing as they are diverse,” the prosecutor wrote in the memorandum
The Cache County Sheriff’s Office and special agents of the ATF investigated the case. Utah AP&P also contributed to the case.
- Assault on a federal officer: Jarvis Charlie Cuch, age 28, of Ft. Duchesne, will be sentenced in February after pleading guilty in December to assault on a federal officer and possession of a firearm after a felony conviction in U.S. District Court Monday afternoon. The plea agreement includes a stipulated 12-year sentence, subject to the Court’s approval. As a part of stipulated facts included in the plea agreement, Cuch admitted that on Dec. 18, 2016, Bureau of Indian Affairs (BIA) police officers working in Ft. Duchesne attempted to initiate a traffic stop on a vehicle he was driving. Cuch fled from the BIA officers. As the officers continued their pursuit, Cuch admitted he reached out of the vehicle window and fired two rounds from a .40 caliber semi-automatic pistol, according to the plea agreement. The pursuit went from Ft. Duchesne through Vernal City. Vernal City police officers and Uintah County Sheriff’s Office deputies assisted the BIA in apprehending Cuch after his tires were spiked and his car came to a stop in Vernal. Cuch was on escape status with federal authorities when the crimes occurred. Cuch was charged in an indictment returned by a federal grand jury in March 2017.
Special agents of the FBI investigated the case. Vernal police officers and Uintah County Sheriff’s Office deputies assisted in stopping Cuch’s car and his bringing him into custody.
Child Exploitation
- 27 ½ years in prison, lifetime supervision: Donald Ray Fritcher, age 36, of Salt Lake City, is serving 27 ½ years in federal prison after pleading guilty to distribution of child pornography. He was sentenced in July 2017. Fritcher will be on supervised release for life when he finishes his federal prison sentence. Fritcher admitted that between about July 1, 2015, and April 2016, he shared, through a file sharing program, images and videos of child pornography. These images included depictions of prepubescent and minor children posing in various stages of undress and in sexually explicit poses. He further stipulated that the images also depicted the sexual abuse of minor children. Fritcher had more than 600 images and videos in his possession. Included in the pictures Fritcher took were images of two minor victims. Fritcher, a registered sex offender in Utah, has two previous state convictions for attempted sex abuse of a child. According to the indictment filed in the case, the pictures of the two minors were taken after his convictions in state court.
Federal authorities arrested Fritcher in Utah in May 2016. His arrest followed an investigation conducted by special agents of Homeland Security Investigations in Salt Lake City and Philadelphia working in collaboration with an investigator with the Royal Canadian Mounted Police. The special agents of Homeland Security Investigations in Utah are members of the Utah Internet Crimes Against Children Task Force and the FBI’s Child Exploitation Task Force.
- Second case from Dr. Ward investigation: Robert Edwin Francis, age 41, of Lehi, Utah, will serve 144 months in federal prison after pleading guilty to receipt of child pornography. U.S. District Judge Dee Benson imposed the sentence Jan. 22, 2018. Francis was charged with production, receipt, and possession of child pornography in an indictment returned in August 2017. Francis admitted he engaged in sexually explicit conduct involving children via an on-line social network and that he possessed at least 150 but fewer than 300 images of child pornography.
Special agents from the U.S. Department of Homeland Security, the Davis County Sheriff’s Office, and the Utah ICAC Task Force are investigating these cases.
- Change of plea hearing set in Dr. Ward case: A change of plea hearing for Dr. Nathan Clark Ward has been scheduled for March 5, 2018, at 3 p.m. before U.S. District Judge Dee Benson.
Immigration
- Four deportations – four DUIs: Oscar Antonio Lara-Garcia was charged in September 2017 with illegal re-entry of a previously deported alien. (There are 14 versions of his name – also known as -- on his plea agreement document.) Lara-Garcia has been removed from the United States four times. He has four DUI convictions and two prior possession of controlled substances convictions. Lara-Garcia pleaded guilty to illegally re-entering the country in November 2017. He faces up to 10 years in prison when he is sentenced Feb. 5, 2018.
- Firearms and drug distribution: Mario Roman-Cornello was charged with illegal re-entry, alien in possession of a firearm, possession of an unregistered sawed off shotgun, and possession with intent to distribute more than 100 grams of heroin in September 2017. He was selling heroin and had agreed to facilitate the sale of the sawed off shotgun and possibly other firearms at the time of his arrest. He pleaded guilty in January to possessing a firearm while illegally present in the country and possession of heroin with intent to distribute. Roman-Cornello faces a minimum mandatory five years in prison with a maximum of 40 years when he is sentenced in March.
- Operation Rio Grande case – US v Jose Rodriguez, aka King Kong: A grand jury returned a six-count indictment in December charging Jose Rodriguez, aka King Kong, with drug and firearms violations. The two incidents that make up the indictment come from investigations done by Salt Lake City police officers working as a part of Operation Rio Grande. Rodriguez is charged with distribution of heroin, distribution of cocaine base, carrying a firearm in relation to a drug trafficking crime and felon in possession of a firearm for the first incident in late September. He also faces distribution of heroin and felon in possession of a firearm in connection with an October incident. Rodriguez, age 35, a Mexican national living in Salt Lake City, faces up to 20 years in federal prison for each of the drug distribution counts and up to 10 years for each of the felon in possession counts. Carrying a firearm during and in relation to a drug trafficking offense has a mandatory five-year sentence which would run consecutive to any other sentence imposed. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court. A five-day jury trial has been set for March 5, 2018, before U.S. District Judge Robert J. Shelby. Rodriguez, who has entered not guilty pleas to the charges, will remain in custody pending the resolution of this case. U.S. Magistrate Judge Paul M. Warner found him to be a danger to the community and a risk of non-appearance at a detention hearing.
31 January 2018
Worcester Man Pleads Guilty to Fraud and Identity TheftRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to fraud and identity theft charges arising from unlawfully using the identity of a disabled Medicare beneficiary for 17 years.
Jose Agosto, 51, pleaded guilty to four counts of wire fraud, four counts of misusing a Social Security number, three counts of making false statements relating to health care services, and five counts of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 25, 2018. Agosto was charged on Aug. 9, 2017, and has been in custody since.
Agosto admitted that he began living under the name of another individual in order to avoid the consequences of an arrest warrant, and that he used the victim’s name and other personal identifying information to obtain replacement Social Security cards, driver’s licenses and bank accounts. Agosto also admitted to seeking medical treatment under the victim’s name and that doing so caused medical providers to submit more than $148,000 in claims to Medicare, despite the fact that Agosto was not a Medicare beneficiary. In addition, Agosto executed promissory notes under the victim’s name and then defaulted on those notes. Agosto acknowledged that by using the victim’s identity, Agosto threatened the victim’s continued receipt of Social Security and Medicare benefits as well as the victim’s credit rating.
Furthermore, Agosto admitted to leaving threatening voice mails in an effort to intimidate the victim and his family. In these voice mails, Agosto threatened to kill various members of the victim’s family and warned of a “massacre.” One such statement made by Agosto was: “I’m going to start killing all of your family one-by-one. I’ll start killing your mother, I’ll kill your sister, and then the last one’s going to be you.”
Each wire fraud count provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of $250,000. The charges of Social Security fraud and making false statements provide for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison, up to three years of supervised release, and a fine of $250,000. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Christina Scaringi, Special Agent in Charge of the U.S Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The U.S. Department of Agriculture, Office of Inspector General, and the Massachusetts Bureau of Special Investigations provided assistance with the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Woman Charged with Smuggling Cash Across the BorderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Liliya Dzyuba, 42, of North York, Ontario, Canada, was arrested and charged by criminal complaint with bulk cash smuggling. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on January 25, 2018, Customs and Border Protection officers encountered the defendant at the Peace Bridge Port of Entry coming into the United States from Canada. Dzyuba indicated that she was coming to Buffalo and staying for a few days to go shopping at the Eastern Hills Mall. When asked how much money she was traveling with, the defendant responded “$5,000.00.” Dzyuba was given a Customs Declaration form and checked “no” when asked if she was carrying “currency or monetary instruments over $10,000 U.S. or Foreign equivalent.” The defendant declared a total of $5,000 and signed the form.
However, during subsequent searches, officers discovered that Dzyuba was carrying $37,000.00 in U.S. Currency around her waist and hidden in her pants. She also had a list of names and money wire transfer locations in the Buffalo, NY area.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and bail was set at $5,000 cash. The government requested that Judge McCarthy stay his release order. The release order was stayed and another appearance is scheduled for February 1, 2018, at 11:00 a.m.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Washington Man Sentenced to over 5 Years in Prison for Drug OffenseRead the Press Release
MISSOULA – Eric David Fletcher, a 36-year-old resident of Washougal, Washington, was sentenced today to 66 months in prison followed by 5 years supervised release after pleading guilty to conspiracy to possess with intent to distribute a controlled substance. U.S. District Judge Dana Christensen handed down the sentence.
On December 12, 2014, Montana Division of Criminal Investigation (“MTDCI”) completed a controlled drug purchase wherein a Confidential Source (“CHS”) purchased approximately three ounces of methamphetamine for $3,300.00 from Judy Collins and her supplier/son, Eric Fletcher. They met at the La Quinta Inn in Butte, Montana to do the transaction. The CHS and Fletcher discussed future purchases of approximately a half-pound of methamphetamine and discussed meeting halfway between Butte and Washington for the transaction. Fletcher also stated that he would normally pick up at least a half-pound on a regular basis and bring it over to Butte for resale. That methamphetamine was later sent to the DEA Western Regional Laboratory. Analysis of the drug evidence revealed 81.4 grams of actual methamphetamine with a purity of 97.8%.
On January 24, 2015, the FBI and MTDCI used the same CHS to communicate with Fletcher. They learned that Fletcher was on his way from Washington to Montana with a drug load. The CHS advised investigators that Fletcher would be soon arriving in Saint Regis, Montana. Investigators saw Fletcher’s vehicle exit the highway and enter the Motel 6 parking lot. Officers conducted a traffic stop of Fletcher’s car. As officers patted Fletcher down for weapons/officer safety they discovered a plastic baggie containing suspected heroin. A search warrant for Fletcher’s vehicle was obtained and executed by officers. The search resulted in officers finding a .22 caliber pistol, ten rounds of .22 caliber ammunition, a digital scale, and a plastic baggie containing suspected methamphetamine. The suspected methamphetamine found in Fletcher’s car was later sent to the DEA Western Regional Laboratory for testing and revealed that there was 108.5 grams of methamphetamine with a purity of 98.2%. After the traffic stop, Fletcher waived his rights and agreed to talk with investigators. He admitted his role in the drug conspiracy. He told investigators that he had made approximately 12 to 18 trips from Washington to Montana beginning in September or October of 2014 and that he had distributed between three and eight ounces each time he made the trip. Fletcher further told investigators that he still owed his source of supply in Washington money because of methamphetamine that had been fronted to him.
Fletcher’s co-conspirator Judy Collins previously pled guilty to drug trafficking on August 10, 2016, and was sentenced to 72 months in prison.
The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
U.S. Attorney announces office changesRead the Press Release
ATLANTA – U.S. Attorney for the Northern District of Georgia, Byung J. “BJay” Pak, has announced leadership changes designed to address Department of Justice priorities, critical issues in the district, and the vision for the priorities of this Office, to enhance the mission of the office, and better serve the citizens of this district.
“As the U.S. Attorney I am grateful for the opportunity to lead an office with so many talented and dedicated professionals,” said U.S. Attorney Byung J. “BJay” Pak. “It is my sincere belief that these changes will energize the office and help us focus on the matters that are the most impactful to the citizens of our district.”
These changes became effective on January 16, 2018. The Assistant U.S. Attorney (“AUSA”) and administrative leadership announcements are as follows:
- First Assistant U.S. Attorney Kurt Erskine will continue to serve in his current position.
- AUSA Gentry Shelnutt will become the Deputy U.S. Attorney.
- AUSA Yonette Buchanan is the new Criminal Division Chief. AUSAs Glenn Baker and Jill Steinberg are the new Deputy Criminal Division Chiefs.
- AUSA Lori Beranek is the new Chief of our Civil Division. Additionally, AUSAs Neeli Ben-David and Darcy Coty will serve as Deputy Civil Division Chiefs.
- AUSA Larry Sommerfeld is our new Appeals & Legal Advice Division Chief.
- Greg Marshall will continue to serve in his current position as our Administrative Officer.
- AUSA Richard Moultrie is the new Chief of the Violent Crime & National Security Section (VCNS). AUSAs Katherine Hoffer and Ryan Buchannan will serve as Deputy Chiefs of the VCNS Section.
- AUSA Kim Dammers is the new Chief of our new Organized Crime & Gang Section, and AUSA Mike Herskowitz will serve as the Deputy Chief.
- AUSA Beth Hathaway will continue to serve as Chief of the Transnational Organized Crime Section. AUSAs Lisa Tarvin and Brock Brockington will continue their service as Deputy Chiefs of this section.
- AUSA Doug Gilfillan has been selected to serve as the Chief of the Cyber & Intellectual Property Section. AUSAs Nathan Kitchens and Kamal Ghali will serve as the Deputy Chiefs of C&IPS.
- AUSA Steve McClain has been selected as the new Chief of the Complex Frauds Section. AUSAs Jeffrey Brown and Chris Huber will serve as the Deputy Chiefs of the section.
- AUSA Jeffrey Davis is the new Chief of the Public Integrity and Special Matters Section. AUSA Brent Gray will serve as the Deputy Chief of this section.
- AUSA William Toliver is the Chief the new General Crimes Section.
- AUSA Dahil Goss will continue to as the Chief of the Asset Forfeiture and Money Laundering Section (AFML). AUSA Michael Brown will serve as the Deputy Chief.
- AUSA Tommy Krepp is the new Chief of our Data Analytics Unit in the Criminal Division.
- AUSA Randy Chartash is the new lead criminal division attorney for our Health Care Fraud Unit.
- AUSA Lena Amati is the new lead civil division attorney for our Health Care Fraud Unit.
- AUSA Tom Devlin will continue in his role as Senior Trial Counsel.
- AUSA Charysse Alexander is also transitioning to a Senior Litigation Counsel.
- AUSA Bill McKinnon, a Senior Litigation Counsel who serves as our Gainesville Division Coordinator, will continue in his leadership role in Gainesville.
- In addition to her role as a Deputy Chief of the VCNS section, AUSA Katherine Hoffer will be the new Rome Division Coordinator.
- AUSA Angela Munson will serve as our Newnan Division Coordinator.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two charged with illegally reentering U.S. after deportationRead the Press Release
Two people were indicted in federal court for illegally reentering the United States, U.S. Attorney Justin E. Herdman said.
Jose Guillermo Uribe Perez, 30, a citizen of Mexico, was found in Austintown in December 2017 after having been previously deported to Mexico, according to the indictment.
Timateo Calel-Herrera, 32, a citizen of Guatemala, was found in Dover on Jan. 22 after having been previously deported three times to Guatemala, according to the indictment.
Assistant United States Attorney Brad J. Beeson is prosecuting the cases following investigations by the Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Riviera Beach Men Sentenced for Stealing Sea Turtle EggsRead the Press Release
Two Riviera Beach men were sentenced to prison for stealing sea turtle eggs from a St. Lucie County beach.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Andrew Aloise, Resident Agent in Charge Florida, U.S. Fish and Wildlife Service (USFWS), and Major Olin Rondeau, Florida Fish and Wildlife Conservation Commission (FWC), Southern Region, made the announcement.
Carl Lawrence Cobb, 60, of Riviera Beach, was convicted of two counts of transporting sea turtle eggs for the purpose of sale, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B). U.S. District Judge Kenneth Marra sentenced Cobb to 7 months in prison, followed by 2 years of supervised release. He was also ordered to pay $227 in restitution to the State of Florida.
Raymond Saunders, 50, also of Riviera Beach, was convicted of one count of transporting sea turtle eggs for the purpose of sale, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B). Judge Marra sentenced him to 7 months in prison, followed by 2 years of supervised release, and ordered him to pay restitution in the amount of $227 to the State of Florida.
According to the court record, on May 5, 2017, a concerned citizen reported to the FWC that a man was disturbing sea turtle nests on North Hutchinson Island. A law enforcement investigation revealed that Cobb had removed over 200 eggs from two sea turtle nests. On May 24, 2017, law enforcement officials observed Cobb and Saunders remove approximately 469 sea turtle eggs from nests on North Hutchinson Island. Cobb and Saunders were arrested as they were transporting the eggs to Palm Beach County. The recovered eggs were relocated by marine biologists in the hope that some of them will yield hatchlings.
Mr. Greenberg commended the investigative efforts of USFWS and the FWC. This case was prosecuted by Special Assistant United States Attorney Ryan Butler.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.