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Friday 8 December 2017
Former Business Executive Pleads Guilty to Federal Charges, Admits Engaging in Contract Kickbacks and Phony Billing SchemesRead the Press Release
WASHINGTON – John T. Fitzgerald, a former vice president of the Washington, D.C. office of an investment banking firm, pled guilty today to federal charges stemming from a scheme in which he allegedly accepted kickbacks for construction management contracts he steered to another firm, as well as other allegedly fraudulent activities.
The guilty plea was announced by Alessio Evangelista, Acting U.S. Attorney in this case, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Kimberly Lappin, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.
Fitzgerald, 48, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to charges of wire fraud and tax evasion. Wire fraud carries a statutory maximum of 20 years in prison and tax evasion carries a statutory maximum of five years; both also carry potential financial penalties. Under federal sentencing guidelines, he faces a range of 37 to 46 months in prison and a fine of up to $75,000. The plea agreement calls for Fitzgerald to pay $713,806 in restitution, representing his share of proceeds from the scheme, and an identical amount in a forfeiture money judgement. He also has agreed to pay $114,411 in taxes to the IRS. The Honorable Amy Berman Jackson scheduled sentencing for Feb. 23, 2018.
A co-defendant, Bryan D. Wright, 55, of Laytonsville, Md., pled guilty in February 2016 to one count of conspiracy to engage in wire fraud and one count of conspiracy to engage in money laundering. He is awaiting sentencing.
In his guilty plea, Fitzgerald acknowledged that he began work at the investment banking firm in 2008 and oversaw its real estate development activities and investments. His responsibilities included oversight of a commercial development project in Hanover, Md., known as the Station Ridge development project. The investment banking firm was the managing investor-owner of the project, which ultimately included three buildings for use as offices by various tenants.
In or around mid-2011, Fitzgerald admitted, he began to invoice the general contractor on Station Ridge through a company Fitzgerald owned, and thereby obtained roughly $41,000 for himself on the project.
Later in 2011, Fitzgerald installed Wright as construction manager on Station Ridge, and the two agreed to an invoicing and kickback scheme that lasted into 2013. Wright was president of P&E Services, LLC. Between 2011 and 2013, through their scheme, Wright and Fitzgerald took $769,000 from the investment banking firm employing Fitzgerald, and another $417,000 from the general contracting company (which was reimbursed by the investment banking firm). Wright, through P&E and other companies, paid Fitzgerald nearly $600,000 in proceeds from the Station Ridge project, roughly half of the total amount that P&E Services obtained.
In a related scheme involving purported projects on the Bridgewater office building in Fairfax, Va., which was another development project of the investment banking firm, Wright and Fitzgerald submitted invoices for work that was not completed, and obtained additional money from Fitzgerald’s employer. Once again, Fitzgerald and Wright split the proceeds between them, with Fitzgerald receiving approximately $70,000.
In his plea today, Fitzgerald admitted that the total loss to his employer as a result of his conduct on these projects was over $1.3 million, and his share of the illegal proceeds was $713,806. The tax charges stem from Fitzgerald’s failure to report the income in calendar 2012 and 2013.
In announcing the plea, Acting U.S. Attorney Evangelista, Assistant Director in Charge Vale, and Special Agent in Charge Lappin commended the work of those who investigated the case from the FBI’s Washington Field Office and the Internal Revenue Service-Criminal Investigation. They acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney David A. Last, Paralegal Specialists Tasha Harris, Aisha Keys, and C. Rosalind Pressley; Legal Assistants Angela Lawrence and John Lowell, and Litigation Technology Specialist Ron Royal. Finally, they acknowledged the work of Assistant U.S. Attorneys John Marston, Kendra D. Briggs, and Zia Faruqui, who are investigating and prosecuting the matter.
Former Amazon Financial Analyst Sentenced to Prison for Insider TradingRead the Press Release
A former financial analyst at Amazon.com, Inc., was sentenced today in U.S. District Court in Seattle to 6 months in prison, a $2500 fine and two years of supervised release for securities fraud involving insider trading, announced U.S. Attorney Annette L. Hayes. BRETT D. KENNEDY, 27, currently of Blaine, Washington, pleaded guilty in September 2017, admitting that in April 2015, he provided non-public quarterly financial results to a friend who then purchased Amazon stock and sold it at a profit once the results were made public. The friend paid KENNEDY for this inside information. KENNEDY is no longer employed by Amazon. At sentencing Chief U.S. District Judge Ricardo Martinez said, “This is a serious offense. If the public cannot have confidence in the financial markets it impacts the entire country.”
“Those who trade on inside information fundamentally undermine the trust that is necessary for our financial markets to operate,” said U.S. Attorney Annette L. Hayes. “Those responsible – like the defendant in this case – will be held accountable. I commend the Federal Bureau of Investigation and the Securities and Exchange Commission for their work to ensure that those responsible for this type of financial crime are held to account.”
According to the information filed in the case, KENNEDY began work as a financial analyst at Amazon in 2013. As part of his employment he signed a confidentiality statement that he would not disclose Amazon’s non-public financial information outside the company. The policy specifically mentions information such as earnings and losses as material confidential information. In April 2015, KENNEDY used his access to view and write down Amazon first quarter earnings that were going to be announced later in the month. KENNEDY provided this information to his friend. After viewing the information, the friend purchased 4400 shares of Amazon stock for $1.7 million. When the positive earnings news was announced publicly, and the stock price rose, the friend sold the shares for a gain of nearly $116,000. The friend paid KENNEDY $10,000 in cash for the information.
Speaking to the court, Kennedy apologized to his family and to Amazon saying, “I threw my success away in an instant . . . I wish every day I could go back and not be so stupid and reckless.”
The Securities and Exchange Commission filed civil charges against KENNEDY. In its complaint it identifies the friend as Maziar Rezakhani, and names him as a defendant. Rezakhani, 28, is currently serving a five year prison term for defrauding a bank, Apple, Inc., and various shipping and insurance companies. The insider trading investigation grew out of the investigation into Rezakhani’s frauds. The SEC is seeking disgorgement of all profits from Rezakhani’s alleged illegal trading. KENNEDY agreed to a settlement with the SEC. Details of the SEC action are available here.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Brian Werner.
Five Florida residents indicted on fraud charges involving gas station skimmersRead the Press Release
WHEELING, WEST VIRGINIA – Four people from Florida are scheduled to appear next week in court after being indicted by a federal grand jury in Wheeling on December 5, 2017, on fraud charges, United States Attorney Bill Powell announced.
Each is charged with one count of “Conspiracy to Commit Access Device Fraud,” and several other fraud-related charges. They are accused of a conspiracy spanning four states that involved using skimming devices at gas pumps, using technology to upload the account information, and creating fraudulent cards with said accounts to make unauthorized transactions at different businesses in West Virginia and elsewhere. Those appearing in court and named in the indictment are:
• Meylan Montalvo Gomez, of Hialeah, Florida, age 27
• Yarai Fuentes Quinones, of Hialeah, Florida, age 26
• Naudi Reyes Fernandez, of Miami, Florida, age 36
• Yosan Pons Sosa, of Miami, Florida, age 28Lazaro Serrano Diaz , of Miami, Florida, age 27, is also named in the indictment, and a warrant has been issued for his arrest.
The crimes are alleged to have occurred from August 28, 2017 to December 5, 2017 in Monongalia County, West Virginia and elsewhere. The United States is also seeking forfeiture of the following:
- approximately $41,140.00 in United States Currency
- approximately $28,498.00 worth of Western Union money orders
- approximately $10,300.00 worth of MoneyGram money orders
- approximately $29,350.00 in funds previously contained on approximately sixty (60) gift cards seized in Huntington, West Virginia on or about October 23, 2017
- approximately $1,510.73 remaining in TD Bank Account
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation, United States Secret Service, West Virginia State Police and the Monongalia County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Federal Jury Finds Former Live Oak Police Sergeant Guilty of Producing and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Kyle Adam Kirby (37, Live Oak) guilty of producing, attempting to produce, possessing, and accessing child pornography. He faces a minimum mandatory penalty of 15 years, up to 120 years, in federal prison and a potential life term of supervised release. Kirby was arrested on October 28, 2015, and has remained in custody since that time. A sentencing hearing has not yet been set.
According to testimony and evidence presented at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a police sergeant with the Live Oak Police Department (LOPD). That same morning, the LOPD police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car computer to download, access, and possess child pornography from as early as December 24, 2014.
A subsequent search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He then transferred these images to the LOPD desktop computer, and later unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of his victims.
Chief Alton “Buddy” Williams from the Live Oak Police Department stated, “I have been in law enforcement for 30 years, and this has been the most difficult situation I have faced. A trusted friend, officer and protector of the public betrayed all facets of the job he swore to do. I realize that mistakes happen, but this was no mistake it was a choice, a choice that has impacted not only his agency, but his trusted friends, family, and community to include all brothers and sisters of the badge. I am appreciative of the F.B.I, the U.S Attorney’s Office and all others involved. Justice did prevail.”
"This case is another example of the relentless efforts of the FBI and our law enforcement partners to identify those who prey on our children," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. "It is made even more egregious having been committed by someone who swore to uphold the law and protect the community. Let it be known that the FBI will stop at nothing to protect innocent victims, and seek justice for the heinous acts committed against them."
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Federal Jury Convicts Founder and CEO of Charlotte Area Start-up Company of Defrauding Victims of More Than $25 MillionRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted Robert M. Boston, 54, of Hickory, N.C., of conspiracy, wire fraud, securities fraud and money laundering for his role in defrauding victims of more than $25 million, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. The jury delivered the guilty verdict following a five-day trial, which began on Monday December 4, 2017.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and evidence presented at trial, Boston and co-defendant Robert LaBarge defrauded franchisees, investors, and lenders of their start-up company, Zloop. Through their fraud, the defendants obtained millions of dollars, much of which was spent on expensive personal real estate, a private plane, and the racing career of Boston’s son. Evidence at trial indicated that Boston caused Zloop to spend more money on his son’s racing career than the entire operational revenue of the company before it went bankrupt. According to evidence presented at trial, while inquiring about the potential purchase of a private island, Boston wrote, “My son is a NASCAR driver I spend 5 Million a year so he can play race car driver.”
According to previously filed court documents, trial evidence and witness testimony, Boston and LaBarge founded Zloop, an electronic waste recycling firm, in 2012 and began marketing Zloop franchises the same year. Court records show that Boston concealed crucial information from franchisees, including that Boston’s former company had filed bankruptcy, that Boston had filed personal bankruptcy, that Boston had a judgment against him for fraud, and that Boston had been held liable in an action alleging that he had knowingly submitted false financial documentation to a bank to obtain a $2.9 million line of credit. When Boston was warned that concealing this information from the franchisees of Zloop would be fraud, he wrote, “it is my decision how I want to move forward.”
Beginning in or about December 2012, Boston and LaBarge caused Zloop to raise money through the sale of equity. To sell equity in the company, Boston and LaBarge caused a misleading private placement memo (“PPM”) to be sent to investors who invested millions in Zloop. Evidence at trial demonstrated that the PPM contained material half-truths and omissions, including the omission of the litigation and bankruptcy history of Boston, that Zloop was planning to use the investors’ money to pay off a $4 million debt that it owed to a prior lender, and that Boston and LaBarge had already caused Zloop to spend more than $1.5 million on their personal real estate. Evidence at trial also indicated that the books and records of Zloop had been falsified to conceal the personal real estate expenses.
Evidence at trial also demonstrated that Boston promised investors that their money would be held until the offering closed, but he instead spent their money on the same day that much of it came in.
When Zloop investors sought the return of their money in or about the middle of 2013, Zloop sought a loan from an individual identified as Victim 1. To do so, Boston repeatedly falsified emails to make the company look more attractive to Victim 1.
According to trial evidence, Boston induced Victim 1 to secure a $14 million line of credit from a bank. After Boston and LaBarge caused Zloop to draw approximately $3.5 million from that line of credit, they spent hundreds of thousands of dollars on, among other things, a private plane, a new Corvette, and a new Grand Cherokee. Zloop subsequently drew an additional $1.3 million from the credit card line, of which more than $500,000 was spent on racing-related expenditures and approximately $79,808 on a suite at a professional football stadium.
LaBarge pleaded guilty to conspiracy to commit wire fraud on November 2, 2017.
Both Boston and LaBarge are released on bond pending sentencing. The penalty for each of the conspiracy, wire fraud and securities fraud charges carry a maximum term of 20 years in prison. The maximum penalty for the money-laundering conspiracy charge is 10 years in prison. A sentencing date has not been set.
The FBI led the investigation. Assistant U.S. Attorneys Taylor J. Phillips and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Federal Grand Jury Indicts Two Men in $1 Million Fraud SchemeRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted Joshua Pugh, 23, of Dallas, Texas, and Johnny Glenn Clifton, 50, of Frisco, Texas, on wire fraud charges stemming from an elaborate scheme to defraud an individual out of approximately $1 million between November 2015 and March 2017, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, the indictment charges Pugh, aka “Joshua Wealthy,” “Joshua Money,” “Joshua Looney” and “Jmoney” and Clifton, aka “John Mason” and “John Glenn,” with one count of conspiracy to commit wire fraud and five counts of wire fraud. The indictment was returned this week and unsealed yesterday. Detention hearings for both defendants are scheduled for December 12, 2017 before U.S. Magistrate Judge Renee Harris Toliver.
According to the indictment, in March 2016, Clifton contacted an individual, Victim 1, and detailed an opportunity to invest in Sectors Global Management (Sectors), a fictitious elite real estate company. According to Clifton, Sectors was backed by elite individuals. Clifton alleged that he would serve as the chief executive officer of Sectors and an individual that Clifton referred to as “Joshua Wealthy” was a leading member.
Clifton explained to Victim 1 that both he and “Wealthy” were also members of or connected to the Illuminati, which he described as a clandestine cabal of high net worth individuals who delegated control of the world to a select group of 43 families through the manipulation of banks, politics, and intelligence/law enforcement organizations. Clifton stated that Victim 1 was selected to invest in Sectors because of a secret reason that even Clifton was not allowed to know.
The indictment alleges in an effort to convince Victim 1 of the legitimacy of these claims, Pugh and Clifton used extravagant means to effectuate their scheme to defraud Victim 1, including the use of helicopters, caravans, bodyguards, chauffeurs, falsified documentation, and contrived video chats and teleconferences with purported world leaders. The defendants also created a library of falsified documents intended to corroborate their claims, including, emails and communications describing major business deals; letters to major corporations and sport franchises discussing Pugh’s roles in such entities; alleged communications with businesses detailing endorsements with major companies such as Under Armour and the National Basketball Association (NBA); daily itineraries for “Wealthy,” which referenced frequent travel in private jets; and falsified tax documents and W-2 forms.
During certain meetings with Victim 1, Pugh outlined the ramifications to Victim 1 if he did not comply with their demands, which included the seizure of Victim 1’s assets, Victim 1’s incarceration by law enforcement and claimed his life would be in danger. The defendants would also send emails often demanding additional money from Victim 1 and outlined the consequences of non-compliance, according to the indictment.
Based on the representations and interactions with the defendants, Victim 1 feared the ramifications of not meeting their demands. Victim 1 invested approximately $1 million between November 2015 and March 2017 with Sectors. The money invested was used by the defendants to purchase two Porsche Panameras, a Maserati Quatraporte, merchandise from Louis Vuitton, a black mink stroller coat, a ticket to Super Bowl LLI, a private jet, $400 per month payment to an individual who would put in and take out Pugh’s contact lenses on a daily basis, and chartered helicopter rides.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the maximum statutory penalty for each count of wire fraud is 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. The indictment also includes a forfeiture allegation that would require the defendant, upon conviction, to forfeit the proceeds obtained as a result of the offense, including, a 2010 Porsche Panamera, 2012 Porsche Panamera and 2007 Maserati Quattroporte. .
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney PJ Meitl is in charge of the prosecution.
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Eagle Butte Man Charged with Assault and Brandishing a Firearm During a Crime of ViolenceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation, Assault with a Dangerous Weapon, and Brandishing a Firearm During and in Relation to a Crime of Violence.
Jared Bourland, age 36, was indicted on November 17, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 28, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, 5 years of supervised release, and $100.00 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 28, 2016, in Dewey County, South Dakota, Bourland did unlawfully assault his spouse by strangulation and suffocation. The Indictment further alleges that on December 29, 2016, Bourland assaulted his spouse with a dangerous weapon with the intent to do bodily harm and knowingly carried a long gun during and in relation to a crime of violence.
The charge is merely an accusation and Bourland is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Bourland was released to reside in Rapid City, South Dakota. A trial date has not been set.
Eagle Butte Female Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, female convicted of Assault Resulting in Serious Bodily Injury was sentenced on November 27, 2017, by U.S. District Judge Roberto A. Lange.
Brianna High Elk, age 24, was sentenced to 24 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.00.
High Elk was indicted by a federal grand jury on June14, 2017. She pled guilty on September 11, 2017.
The conviction stemmed from an incident on April 16, 2017, when High Elk assaulted another female. The victim suffered a fracture through the left lamina papyracea (part of the eye socket), a fractured nasal bone, and a small minimally displaced fracture through the left inferior orbital rim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
High Elk was immediately turned over to the custody of the U.S. Marshals Service.
Dripping Springs Man Sentenced to Federal Prison for Making Threats to Kill Individuals on Fort HoodRead the Press Release
In Waco today, a federal judge sentenced a Dripping Springs man to 18 months in federal prison for making threats to kill individuals on Fort Hood in back in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Robert Pitman ordered that 29-year-old Thomas Anthony Chestnut, Jr., be placed on supervised release for a period of three years after completing his prison term. Chestnut has remained in federal custody since being arrested by FBI agents on February 24, 2017.
On September 19, 2017, jurors found Chestnut guilty of one count of threatening to assault or murder a uniformed service member and one count of interstate communications with threat to injure. Testimony during the two-day trial revealed that on February 22, 2017, Chestnut made verbal threats when he called and spoke with a sergeant at the US Army 1st Calvary Division at Fort Hood. Chestnut threatened to go to Fort Hood, kill the sergeant, take hostages, start a mass killing spree and then kill himself if he was not allowed to speak with someone of rank. Chestnut then spoke with a major and advised that he was a former soldier wrongly accused of a crime and eventually released from prison in 2016. Chestnut further advised if he was unable to speak with a U.S. Army III Corps Commander or a Sergeant Major regarding back pay, or did not receive the money he believed was owed to him, that he planned to shoot soldiers on Fort Hood.
The FBI together with the U.S. Army Military Police Investigations at Fort Hood and the Hays County Sheriff’s Office conducted this investigation. Special Assistant U.S. Attorney/Active Duty U.S. Army Major Benjamin Hogan and Assistant U.S. Attorney Chris Blanton prosecuted this case on behalf of the government.
Detroit man sentenced for selling crack cocaineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Aaron Deshawn Campbell, of Detroit, Michigan, was sentenced today to 96 months incarceration for selling cocaine, United States Attorney Bill Powell announced.
Campbell, also known as “Mike,” age 29, pled guilty to one count of “Distribution of Cocaine Base” in October 2017. Campbell admitted selling crack cocaine in Monongalia County in June 2015.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force, a HIDTA-funded program, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Delaware County Duo Found Guilty of Drug Distribution and MurderRead the Press Release
Anthony Vetri, 30 of Essington and Michael Vandergrift, 31 of Chester were found guilty by a federal jury of three men and nine women of murder through the use of a firearm and conspiracy to distribute oxycodone. The trial of Vetri and Vandergrift was held from November 29, 2017, through December 7, 2017, before the Honorable Gerald J. Pappert.
Vetri and Vandergrift were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone and both distributed the drugs throughout Delaware and Philadelphia Counties.
During the drug conspiracy, Patel also illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a recipient of Patel’s illegally distributed oxycodone in order to increase the volume of oxycodone that they could receive from Patel. Vetri and Vandergrift ultimately decided to murder Olabode. Vandergrift recruited Michael Mangold and Allen Carter to assist in the murder. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he walked to his home. Olabode was struck approximately 13 times in his head and body. He died from the gunshot wounds. Following Olabode’s murder Vetri continued to illegally distribute oxycodone that he obtained from Patel.
Mitesh Patel, Michael Mangold, and Allen Carter all previously pled guilty to charges for their respective involvement in drug distribution, the murder of Olabode and other offenses, and are currently awaiting sentencing.
Anthony Vetri and Michael Vandergrift each face a sentence of up to life imprisonment. Both defendants are in custody awaiting sentencing. Sentencing is scheduled for Anthony Vetri on March 20, 2017, and for Michael Vandergrift on March 21, 2017.
The case was prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer.
The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives
Cleburne Woman Sentenced to 720 Months’ Imprisonment for Producing Child PornographyRead the Press Release
DALLAS — A Cleburne woman, Linzi Ladawn Shifflett, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 720 months in federal prison and a lifetime of supervised release, following her guilty plea to two counts of production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Shifflett, 29, has been in custody since October 2016.
According to the plea agreement factual resume and information presented at the sentencing hearing, from at least February 25, 2016 through September 28, 2016, Shifflett molested a four-year-old minor child who was in Shifflett’s custody and took sexually explicit photographs and videos of the child. Shifflett then sold the child pornography for nominal amounts of money to a man in Florida. As a part of the sentence, the Court ordered Shifflett to pay $194,815.17 in restitution.
Michael Eugene Williams, the man in Florida who paid for the child pornography, is being separately prosecuted by the U.S. Attorney’s Office for the Middle District of Florida. He has pleaded guilty to one count of sex trafficking of a child. His sentencing hearing is currently scheduled for January 29, 2018.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Cleburne Police Department in Texas, and the Jacksonville Police Department in Florida. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Citizen of Honduras Pleads Guilty to Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANKLIN OMAR RODRIGUEZ, 36, a citizen of Honduras last residing in Norwalk, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of reentry of a removed alien.
According to court documents and statements made in court, in December 2005, RODRIGUEZ was convicted in Carroll County, Georgia, of statutory rape and was sentenced to time served and three years of probation. In February 2009, RODRIGUEZ was convicted in Carroll County, Georgia, of failure to register as a sex offender and two counts of false identification documents and was sentenced to 10 years of incarceration, execution suspended after two years, followed by eight years of probation. In February 2011, RODRIGUEZ was deported from the U.S. to Honduras.
RODRIGUEZ illegally reentered the U.S. and, on January 13, 2017, was arrested by Stamford Police for the sale of illegal drugs, possession of narcotics with intent to sell and interfering/resisting arrest.
Judge Shea scheduled sentencing for March 6, 2018, at which time RODRIGUEZ faces a maximum term of imprisonment of 20 years.
The state case is pending in Stamford Superior Court.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Brevard County Man Sentenced to More Than 17 Years for Distributing Crystal Methamphetamine and Possessing A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced James Arthur Van Meerten (35, Palm Bay) to 17 years and 6 months in federal prison for conspiracy to distribute methamphetamine and for possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on September 7, 2017.
According to court documents, from February 2016 through his arrest on April 27, 2017, Van Meerten entered into an agreement with several individuals whereby he would purchase large amounts of crystal methamphetamine from an out-of-state supplier and then resell the drugs. Some of the individuals who purchased the drugs resold them to their own customers for profit. As part of this investigation, law enforcement seized more than 1.8 kilograms of crystal methamphetamine containing an average purity of 99.5%. At the time of his arrest, Van Meerten possessed a firearm while attempting to distribute a large amount of the drugs.
This case was investigated by the Drug Enforcement Administration and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Baltimore Man Sentenced to 17 Years in Federal Prison for RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Igor Yasinov, age 28, of Baltimore, Maryland today to 17 years in prison, followed by five years of supervised release, for armed robbery. Judge Hollander also ordered Yasinov pay $500,000 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police.
According to his plea agreement, on December 25, 2012, Yasinov and co-conspirator Stanislav Yelizarov ("Yelizarov"), and others committed a burglary of a residence in Baltimore, where they stole a shotgun and semiautomatic handgun. The handgun would later be used in the robbery of a jewelry store on January 16, 2013.
In the fall of 2012, Yelizarov also devised a plan to commit the jewelry store robbery and recruited Yasinov, Zilberman, Sosonko, M. Yelizarov, Peter Magnis, Sorhib Omonov and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee. As part of the planning, S. Yelizarov obtained a law enforcement-type light bar and a loudspeaker to impersonate a police officer to stop the employee's vehicle. Yasinov participated in the obtaining of a rental vehicle for use during the crime.
According to the plea agreements, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the other conspirators met at S. Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location.
Once at the location, Sosonko, Yasinov, Magnis, and S. Yelizarov continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and S. Yelizarov drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee and held him at gunpoint. M. Yelizarov and Omonov were stationed near the jewelry store to act as look-outs. S. Yelizarov and Sosonko entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some, but not all, of the jewelry and stones taken during the robbery of Antony Jewelers. S. Yelizarov received over $100,000 in cash for the sale of the jewelry and stones. On or about January 21, 2013, S. Yelizarov returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Yasinov received in excess of $5,000 from S. Yelizarov for his role in the crimes.
Stanislav Yelizarov, age 27, of Pikesville, Maryland, was sentenced to 30 years in prison, after he pleaded guilty to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence. Marat Yelizarov, age 29, of Pikesville, and Aleksey Sosonko, age 36, of Owings Mills, were sentenced to 18 years and 14 years in prison, respectively. Peter Aleksandrov Magnis, age 29, of Hydes, Maryland, and Sorhib Omonov, age 29, of Baltimore, were sentenced to seven years in prison and four years in prison, respectively. Grigoriy Zilberman, age 27, of Owings Mills, Maryland, was sentenced to three years in prison.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Athol, South Dakota Man Pays $180,000 After Defrauding the GovernmentRead the Press Release
Jason Sparling submitted an application for a drought disaster payment to the United States Department of Agriculture (USDA), Livestock Forage Disaster Program (LFDP), for a loss of grazing during the summer of 2014. Based on Sparling’s statements, he received an LFDP payment of $94,696. The USDA later determined that none of Sparling’s cattle were on the drought stricken pasture during the qualifying period and Starling was not entitled to the disaster payment.
Sparling subsequently entered into a settlement agreement and paid the government $180,000, to settle the civil debt resulting from his false statements made to the USDA, pursuant to the False Claims Act (31 U.S.C. § 3729). The False Claims Act imposes liability on persons and companies who knowingly submit false claims to the government to get a benefit paid by the government. Persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.
The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government, and works with various law enforcement agencies to identify and investigate these matters. The investigation, in this case was conducted by USDA, Office of Inspector General.
Assistant U.S. Attorney Cheryl Schrempp DuPris handled the civil case.
Arlington Woman Sentenced for Scheme to Defraud the IRSRead the Press Release
DALLAS — Crystal Burrows, of Arlington, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 28 months in federal prison and ordered to pay $320,375 in restitution. The sentencing follows Burrows’ guilty plea in January 2017 to one count of wire fraud. The announcement was made by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Judge Boyle ordered Burrows to surrender to the Bureau of Prisons on January 17, 2018.
According to documents filed in her case, beginning in 2014, Borrows knowingly and intentionally participated in a scheme to defraud the Internal Revenue Service (IRS). More specifically, Burrows electronically filed tax returns for the tax year 2013 with her EFIN, and for tax years 2014 and 2015 with EFINs of coconspirators, under taxpayers’ names and social security numbers without the taxpayers’ knowledge or consent. In total, Burrows prepared and filed at least 22 fraudulent tax returns using stolen identifying information of tax payers. Burrows also used two stolen social security numbers to establish numerous credit card accounts, a car loan, store accounts, and care credit accounts typically used for medical procedures.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging JOSE RAYMUNDO RODRIGUEZ-GONZALEZ, age 36, of Mexico, with Illegal Reentry of a Deported Alien.
RODRIGUEZ-GONZALEZ, found in Wake County, is alleged to have been previously deported subsequent to an aggravated felony conviction (sexual battery). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charge and allegation contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations are investigating the case.
Adair County Man Indicted on Fraud Charge Relating to Oil and Gas Investment SchemeRead the Press Release
LEXINGTON, Ky. – A federal grand jury in Lexington has indicted an Adair County man, on a charge of conspiracy to commit mail fraud, wire fraud and securities fraud, arising out of an oil and gas exploration investment scheme. As alleged in the indictment, from 2007 until 2017, Ronnie C. Rodgers, 62, of Columbia, Ky., solicited investors in oil and gas production programs involving oil and gas leases, in South Central Kentucky and Tennessee. He solicited these investors under various business names, including Rick-Rod Oil Company, Inc.; Big South Resources; Big South Energy; Hydro & Green Global Energy, LLC; and R&R Plus, LLC.
The indictment alleges a scheme in which Rodgers and his associates profited from misappropriating investor money, rather than from the sale of oil and gas. Rogers is alleged to have obtained money from the investors by making false representations and by failing to advise them of facts, which were material to their investments. These misrepresentations included predictions about the amount of expected oil production, statements about when the investors could expect a return of their investment, claims that oil was already being produced, and other similar misrepresentations. According to the indictment, Rodgers also failed to disclose that he was a convicted felon; that he had been enjoined by state authorities from selling oil and gas investments; and that he had mostly drilled dry wells.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Chris White, Assistant Inspector in Charge, U.S. Postal Inspection Service; and Charles A. Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly announced the indictment. The indictment results from a joint investigation by the United States Postal Inspection Service and the Kentucky Department of Financial Institutions.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
Thursday 7 December 2017
“King of Death” Supplier Pleads Guilty to Heroin and Fentanyl ChargesRead the Press Release
NORFOLK, Va. – A New Jersey man pleaded guilty today to Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin, Fentanyl, and Furanyl Fentanyl resulting in death.
According to court documents, Rashad L. Clark, 38, of Elizabethport, New Jersey, supplied local ringleader, Erskine Dawson, Jr., with heroin and fentanyl from September to December 2016 while co-supplier, Kenneth Stuart, aka “Bones,” aka “Brutal,” was incarcerated on state charges. Clark concealed the narcotics in stuffed animals and trafficked them from New Jersey to Virginia where he would stay for days at a time to oversee Dawson’s operation, which was based out of a Studios 4 Less motel in Virginia Beach. Clark supplied Dawson with thousands of wax baggies containing heroin and fentanyl stamped with labels like “King of Death,” “Last Call,” “Mad Max,” “Bentley,” “No Evil,” “Black Dynamite,” “Superman,” “Tango Cash,” “Moneybag,” “Tower of Power,” and “Steph Curry.”
On Sept. 7, 2016, H.D. consumed fentanyl supplied by Dawson via Clark and suffered a fatal overdose. On Nov. 14, 2016, G.M. consumed heroin supplied by Dawson via Clark and suffered a fatal overdose. On Dec. 8, 2016, the DEA in partnership with officers from the Virginia Beach and Chesapeake police departments executed search warrants on motels in Virginia Beach, Chesapeake, and Norfolk, made arrests, and seized guns and over 1,800 wax baggies of heroin and fentanyl. From September to December 2016 over $70,000 cash was deposited by members of this conspiracy into a Wells Fargo account controlled by Clark.
Six of the eight co-conspirators have now pleaded guilty and four have been sentenced. Co-defendants Kenneth Stuart and Carolyn Freeman are scheduled for trial Jan. 17, 2018.
Name, Age
Hometown
Guilty Plea
Sentence
Erskine Dawson, Jr., 33
Chesapeake
July 18
432 months (36 years)
Christopher Boone, 31
Chesapeake
August 17
186 months (15 ½ years)
Thomas Jennings, 33
Virginia Beach
June 9
180 months (15 years)
David Thomas, 33
Chesapeake
June 22
51 months
Frank Harris, 23
Chesapeake
September 19
January 11, 2018
Rashad Clark, 38
Elizabethport, New Jersey
December 7
April 2, 2018
Clark faces a mandatory minimum of 20 years and a maximum of life in prison when sentenced on April 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, James A. Cervera, Chief of Virginia Beach Police, and Kelvin L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse, Daniel T. Young, and William D. Muhr are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-61 and 2:17-cr-92.
Woman Sentenced to Five Years in Federal Prison for Bilking Elderly Man out of $4.1 MillionRead the Press Release
CHICAGO — A federal judge has sentenced a woman to five years in prison for bilking an elderly suburban man out of $4.1 million through a telephone sweepstakes scam.
CORINNE DZIESIUTA was working for a call center in Costa Rica when she made numerous telephone calls and sent letters to the elderly victim, who lived in Palatine. The victim was told that he won millions of dollars in a sweepstake but had to pay various fees and taxes in order to collect. Dziesiuta and her co-schemers tricked and bullied the man into transferring large sums of money to accounts she and her co-schemers controlled. Dziesiuta knew the man had not actually won any money, yet she continued to participate in the scheme for more than six years, causing the man to pay more than $4.1 million.
Dziesiuta, 39, who is originally from New Jersey, pleaded guilty in August to one count of wire fraud. U.S. District Judge Thomas M. Durkin on Tuesday imposed the 60-month sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Nani M. Gilkerson.
The investigation revealed that Dziesiuta, using the name “Lisa Conti,” communicated with the victim from 2010 to 2016. The man made 37 payments, ranging from $23,751 to $210,000.
In 2016 the victim began cooperating with law enforcement, who directed him to inform Dziesiuta that he would only provide additional funds in person. Dziesiuta agreed to travel to New York to meet the victim and collect additional money from him. Dziesiuta was arrested when she arrived at LaGuardia Airport in New York City.
Wisconsin Man Sentenced for Enticing and Traveling to Have Sex with a MinorRead the Press Release
HOUSTON – A 42-year-old Wisconsin man has been ordered to prison following his convictions of traveling to Texas with intent to engage in illicit sexual conduct and enticement of a four-year-old child, announced Acting U.S. Attorney Abe Martinez. Benjamin David Sherwood pleaded guilty Aug. 23, 2017.
Today, Chief U.S. District Judge Lee H. Rosenthal took into consideration that Sherwood had a prior juvenile adjudication for third degree sexual assault from Wisconsin as well as the fact that he has been battling a long-term sexual interest in children. She then sentenced Sherwood to 135 months for the traveling and enticement convictions that will run concurrently. Sherwood was further ordered to be placed on supervised release for the rest of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Sherwood began on Aug. 10, 2015, when an agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) participated in an undercover operation. The agent entered a chat room that was dedicated to the discussion and promotion of child abuse that focused on infants and toddlers. She portrayed herself as a mother of a two-year-old female.
From August 2015 through May 2017, Sherwood and the undercover agent communicated via chats, emails, text messages and phone conversations in which they discussed Sherwood wanting to have sex with the toddler. Sherwood admitted he was very “turned on” by the fact that the child wore a diaper and used a pacifier.
On May 12, 2017, Sherwood was arrested in Houston after traveling from Wisconsin to meet the undercover agent and whom he believed was her four-year-old daughter. Sherwood had rented a hotel room, brought the child clothes and a stuffed animal, and arranged the room in anticipation of having sex with the child.
HSI conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo prosecuted 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."
Waycross Man Indicted for Sex Trafficking of a MinorRead the Press Release
Savannah, GA – Tracy Wayne Crosby, 42, of Waycross, Georgia, was indicted by a federal grand jury for his role in sex trafficking of a minor. The indictment alleges that, from at least August 2017 to November 29, 2017, Crosby recruited, enticed, harbored, transported, provided, obtained, maintained, patronized, and solicited a minor to engage in commercial sex acts.
Crosby is further alleged to have used facilities of interstate commerce, namely a cellular telephone and the internet, to persuade, induce, entice and coerce a minor to engage in prostitution and sexual activity, and to have possessed one or more images depicting a minor engaged in sexually explicit conduct.
United States Attorney Bobby L. Christine said, “Those who solicit children online and pay to have sex with them are a horrible, driving force behind the dark underground of child sex trafficking. By holding these people accountable for their actions, we can help end this scourge. We continue to relentlessly work with our law enforcement partners to strike blows against this sick industry, to rescue children, and to put traffickers and customers behind bars.”
“Sexual exploitation steals the innocence of children, and the criminals who engage in these acts often inflict life-long trauma on their victims,” said Acting Special Agent in Charge Greg Wiest of the Atlanta field office of Homeland Security Investigation (“HSI”), a directorate of U.S. Immigrations and Customs Enforcement (“ICE”). “As this case shows, ICE HSI is committed to investigating and seeking prosecution of child exploitation cases as one of the agency’s highest priorities.”
The indictment against Crosby charges three counts: sex trafficking of a minor, coercion and enticement of a minor to engage in sexual activity, and possession of child pornography. If convicted, Crosby faces not less than 10 years’ imprisonment and up to life imprisonment.
Mr. Christine emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The indictment of Crosby arises out of an ongoing investigation led by ICE HSI. Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, which is operated by the National Center for Missing and Exploited Children in partnership with HSI, the Federal Bureau of Investigation, and other law enforcement agencies.
Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
Waterloo Man Charged with Possessing a FirearmRead the Press Release
Armando Adame, age 21, from Waterloo, Iowa, has been charged with one count of being a felon in possession of a firearm. The charge is contained in a complaint unsealed today in United States District Court in Cedar Rapids.
The complaint alleges that on November 17, 2017, Adame possessed a firearm, specifically a sawed-off Iver Johnson Arms & Cycle Works 12 gauge shotgun. Investigators located the firearm after searching a residence in Waterloo where they found Adame sleeping. Investigators seized the firearm from a backpack containing other items belonging to Adame. During an examination of the firearm, investigators located a latent print consistent with Adame’s palm print on it. The complaint further alleges that Adame is prohibited from possessing firearms because of two prior felony convictions, namely conspiracy to commit a forcible felony and felon in possession of a firearm.
If convicted, Adame faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Adame appeared today in federal court in Cedar Rapids and was held without bond. Adame’s next appearance for an arraignment will be set for a future date.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sherriff’s Office, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-mj-396.
Follow us on Twitter @USAO_NDIA.
Waterloo Man Charged with Possessing a FirearmRead the Press Release
Armando Adame, age 21, from Waterloo, Iowa, has been charged with one count of being a felon in possession of a firearm. The charge is contained in a complaint unsealed today in United States District Court in Cedar Rapids.
The complaint alleges that on November 17, 2017, Adame possessed a firearm, specifically a sawed-off Iver Johnson Arms & Cycle Works 12 gauge shotgun. Investigators located the firearm after searching a residence in Waterloo where they found Adame sleeping. Investigators seized the firearm from a backpack containing other items belonging to Adame. During an examination of the firearm, investigators located a latent print consistent with Adame’s palm print on it. The complaint further alleges that Adame is prohibited from possessing firearms because of two prior felony convictions, namely conspiracy to commit a forcible felony and felon in possession of a firearm.
If convicted, Adame faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Adame appeared today in federal court in Cedar Rapids and was held without bond. Adame’s next appearance for an arraignment will be set for a future date.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sherriff’s Office, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-mj-396.
Follow us on Twitter @USAO_NDIA.
Utah Business Owner Sentenced to Four Years in Prison for Illegally Dealing Firearms and Filing Fraudulent Tax ReturnsRead the Press Release
SALT LAKE CITY – A Salt Lake City, Utah, man was sentenced to four years in prison Thursday for dealing in firearms without a license and filing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg, of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and evidence presented to the court, Adam Michael Webber reached an agreement with the United States in 2007 that barred him from applying for a federal firearms license or engaging in the business of dealing firearms. Between 2007 and 2008, Webber was the sole owner of HK Parts, an Internet gun parts business. In 2008, Webber added firearms to his product line and primarily sold them on the Internet at hkparts.net. He also sold firearms and firearm parts out of the basement of his residence.
Webber never held a federal firearms license and, from 2009 through May 2012, illegally sold firearms under the auspices of a company owned by another Utah resident. Webber also sold firearms to undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents on two separate occasions, including selling one firearm for cash in a parking lot. In May 2012, approximately $180,000 in cash, a 70-pound silver bar, silver coins, and firearms were found at Webber’s residence during the execution of a search warrant.
From 2007 through 2010, Webber earned more than $10 million in gross receipts from the sale of illegal firearms and his firearm parts business. For those years, he reported only a total of $183,397 in gross receipts, underreporting his earnings on his 2007, 2008 and 2009 individual income tax returns and underreporting gross receipts on his 2009 and 2010 corporate tax returns. In 2010, Webber paid $670,000 in cash for a new home in Salt Lake County.
In addition to the term of prison imposed, U.S. District Court Judge Dee Benson ordered Webber to serve three years of supervised release. Webber paid $1,817,887.05 in restitution to the Internal Revenue Service prior to sentencing. He was ordered to pay a $100,000 fine. A jury convicted Webber of the tax offenses in September 2016. He later pleaded guilty to the firearms count. He agreed to forfeit more than 300 seized firearms.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber commended special agents of ATF, IRS Criminal Investigation and Homeland Security, who conducted the investigation, and AUSAs Cy H. Castle and J. Drew Yeates and Paralegal Heather Nielson of the U.S. Attorney’s Office and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.Utah Business Owner Sentenced to Four Years in Prison for Illegally Dealing Firearms and Filing Fraudulent Tax ReturnsRead the Press Release
A Salt Lake City, Utah, man was sentenced to 4 years in prison today for dealing in firearms without a license and filing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg, of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and evidence presented to the court, Adam Michael Webber reached an agreement with the United States in 2007 that barred him from applying for a federal firearms license or engaging in the business of dealing firearms. Between 2007 and 2008, Webber was the sole owner of HK Parts, an Internet gun parts business. In 2008, Webber added firearms to his product line and primarily sold them on the Internet at hkparts.net. He also sold firearms and firearm parts out of the basement of his residence. Webber never held a federal firearms license and, from 2009 through May 2012, illegally sold firearms under the auspices of a company owned by another Utah resident. Webber also sold firearms to undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents on two separate occasions, including selling one firearm for cash in a parking lot. In May 2012, approximately $180,000 in cash, a 70 pound silver bar, silver coins, and firearms were found at Webber’s residence during the execution of a search warrant.
From 2007 through 2010, Webber earned more than $10 million in gross receipts from the sale of illegal firearms and his firearm parts business. For those years, he reported only a total of $183,397 in gross receipts, underreporting his earnings on his 2007, 2008 and 2009 individual income tax returns and underreporting gross receipts on his 2009 and 2010 corporate tax returns. In 2010, Webber paid $670,000 in cash for a new home in Salt Lake County.
In addition to the term of prison imposed, U.S. District Court Judge Dee Benson ordered Webber to serve three years of supervised release. Webber paid $1,817,887.05 in restitution to the Internal Revenue Service prior to sentencing, and he was ordered to pay a $100,000 fine. Webber was convicted by a jury of the tax offenses in September 2016 and later pleaded guilty to the firearms count. He agreed to forfeit more than 300 seized firearms.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber commended special agents of ATF, IRS Criminal Investigation and Homeland Security, who conducted the investigation, and AUSAs Cy H. Castle and J. Drew Yeates and Paralegal Heather Nielson of the U.S. Attorney’s Office and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
U.S. Attorney’s Office, Law Enforcement Partners, and Community Leaders Introduce PROJECT EJECT to Combat Violent Crime in City of JacksonRead the Press Release
Jackson, Miss – Today, Mike Hurst, the United States Attorney for the Southern District of Mississippi, along with the Jackson Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and many other federal, state and local law enforcement and community leaders, announced the rollout of a new collaborative initiative to combat violent crime in the City of Jackson, Mississippi.
Known as PROJECT EJECT, the initiative is designed as an enhanced violent crime reduction program that incorporates decades of experience in bringing various levels of law enforcement together with stakeholders in the community, with the overall goal of producing a long-term, meaningful reduction in and prevention of violent crime.
PROJECT EJECT stands for “Empower Jackson Expel Crime Together.”
Joined by law enforcement, community, faith-based, non-profit, neighborhood association and business leaders in Jackson, U.S. Attorney Hurst described the project as a multi-disciplinary, holistic approach that combines law enforcement arrests and prosecutions of violent criminals with prevention efforts, rehabilitation and reentry, educational initiatives, and improved communication.
“We want to empower Jackson and its citizens, expel crime from our communities, and work together to make our Capitol City safe for everyone. The message to violent criminals in Jackson is simple - if you violate our laws and terrorize our neighborhoods, you will be ejected from our community. In the federal system, we will immediately lock you up, move to detain you without bond, you will serve a significant prison sentence without parole, and we will seek to have you serve your sentence away from Mississippi.” said U.S. Attorney Hurst.
“But, there is hope in all of this. To those terrorizing our neighborhoods, put down your illegal guns and obey the law, and you can live as law-abiding citizens with us in our communities. And, if you do break the law and are ejected, know that there is grace at the other end. After you serve your sentence, you can choose to be rehabilitated, follow the law and re-enter society. The ultimate goal of PROJECT EJECT is a safer Jackson for all of us.”
The goal of PROJECT EJECT is to reduce violent crime and make Jackson neighborhoods safer for all to enjoy. Part of the project will include discussions with the public and encouraging communities to help law enforcement in this effort, as well as communicating to the criminals that they will be prosecuted and punished for gun crimes and violent crimes. The Project will also seek to support locally-based prevention, rehabilitation and re-entry efforts, to stop violence and crimes before they occur and to help those whom have been punished to return to society as law-abiding citizens.
PROJECT EJECT is comprised of approximately a dozen agents and task force officers from various federal and state agencies who interact on a daily basis with the Jackson Police Department to identity and respond to violent crimes when they occur in Jackson. Cases arising from these crimes are then presented to the U.S. Attorney’s Office for prosecution. Over the next few months, PROJECT EJECT will seek to hold town hall meetings to educate the public and solicit input, conduct media campaigns to raise awareness of the project and its consequences to would-be criminals, and grow and strengthen the partnership between the project and its stakeholders in the community.
“If we expect Jackson and the surrounding metropolitan area to be a viable option for our children and their future, then we need to work diligently to reduce not only violence in general but violence committed with a firearm,” said Christopher Freeze, Special Agent in Charge of the FBI’s Jackson Division. “We will leverage the full resources of the FBI to provide a long term solution to dramatically reduce violent crime in the city of Jackson, and create a safer place today and for our children in the future.”
“Ensuring the safety and security of our residents in the city of Jackson, Mississippi is a priority for ATF,” said ATF Special Agent in Charge Dana Nichols. “We are proud to partner with local law enforcement, our federal partners, the United States Attorney's Office, and the community on this violent crime initiative. Project EJECT is another example of how by working together, law enforcement and the community, we can truly make a difference in the city of Jackson.”
Today’s announcement of PROJECT EJECT follows a recent directive from U.S. Attorney General Jeff Sessions to the U.S. Department of Justice to reinvigorate DOJ’s Project Safe Neighborhoods (“PSN”) with the intent to reduce the rising tide of violent crime in America. PROJECT EJECT is the Southern District of Mississippi’s PSN initiative specifically tailored to address violent crime in the City of Jackson.
The U.S. Attorney’s Office is leading PROJECT EJECT, with First Assistant U.S. Attorney Darren LaMarca guiding the taskforce and Assistant U.S. Attorney Abe McGlothin serving as the Project Safe Neighborhoods Coordinator.
U.S. Army Employee at Picattiny Arsenal Indicted for Conspiring to Defraud the United States, Engaging in Kickback Scheme, Traveling to Promote Bribery and Obstructing JusticeRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged today in connection with his role in two conspiracies in connection with construction projects at Picattiny Arsenal (PICA) and at the Joint Base McGuire-Dix Lakehurst (Ft. Dix) and for endeavoring to obstruct justice, Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Joseph Leondi, 57, was indicted by a federal grand jury in Newark on a charge of conspiring to defraud the United States in connection with his acceptance of repeated bribes given by other conspirators to influence Leondi to take official action for the benefit of his conspirators and their companies and to violate his duties as an employee of the U.S. Army. He is also charged with causing another to travel across state lines to facilitate a portion of this bribery scheme and with conspiring to steer kickbacks from one conspirator to another in connection with the award and administration of a prime contractor’s subcontracts.
Leondi had been charged in March 2017 with conspiring to defraud the United States through bribes and contactor kickbacks in connection with the conduct that now is charged in the indictment. He currently remains free on bail.
According to documents filed in this case and statements made in court:
Leondi was employed by the U.S. Army’s Contracting Command in New Jersey and represented the Army with respect to renovation projects at PICA and Ft. Dix. There was a construction company referred to as Construction Company No. 1 in the indictment, which served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Ft. Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale construction projects at PICA and Ft. Dix. George Grassie ran a construction, excavation and landscaping business in Pennsylvania that did subcontracting work at the bases.
From December 2010 through August 2015, Leondi allegedly conspired with Conway and Grassie to accept more than $125,000 in bribes from them in return for task orders and other favorable assistance at the bases and in not denying them future work. The bribes included direct cash payments to Leondi (in one instance Conway traveled from New Jersey to Pennsylvania to pay Leondi $5,000 in cash). In some instances, Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating Leondi’s property in East Stroudsburg, Pennsylvania.
Leondi also allegedly conspired to steer at least $46,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Fort Dix.
As alleged in the indictment, Leondi also endeavored to obstruct the federal grand jury investigation by submitting a false document to federal authorities in response to a federal grand jury subpoena in order to conceal part of his bribe-taking involving Grassie.
Grassie pleaded guilty to one count of conspiracy and one count of providing unlawful kickbacks in February 2017 for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both cases are pending before U.S. District Judge Susan D. Wigenton.
The conspiracy charges and the travel in aid of bribery charge each carry a maximum penalty of five years in prison; the obstruction of justice charge carries a maximum penalty of 10 years in prison. Each charge carries a maximum $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction Special Agent in Charge Leigh-Alistair Barzey, Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Barbara Llanes, Chief of the General Crimes Unit, in Newark.
Two Tribal Members Sentenced to Prison in Separate Sex Crime CasesRead the Press Release
An enrolled member of the Quinault Indian Nation was sentenced last week to 12 years in prison and 20 years of supervised release for rape of a child, announced U.S. Attorney Annette L. Hayes. DEVELIN L. HOWTOPAT, 33, pleaded guilty in December 2016, admitting that he sexually molested a young child in Taholah, Washington. The abuse occurred in 2008 when the child was 7 or 8-years-old. The molestation was reported to the Hoquiam Police Department in 2015 and was investigated by Hoquiam Police, the Quinault Nation Police Department and the FBI. HOWTOPAT was arrested in April 2016, and has remained in custody since that time. On December 1, 2017, U.S. District Judge Ronald B. Leighton sentenced HOWTOPAT to the 12-year prison term calling the crime “despicable.”
In a second, unrelated sex assault case, an enrolled member of the Spirit Lake Tribe of North Dakota, was sentenced to five years in prison and five years of supervised release, for the sexual assault of a 19-year-old woman. AARON JOSEPH MITZEL, 37, has been in federal custody since his arrest on October 9, 2015. The assault occurred on October 4, 2015, in an apartment on the Puyallup Indian Reservation where the victim was sleeping. The victim awoke to MITZEL sexually assaulting her and he then bit her ear and smothered her with a pillow. At today’s sentencing hearing, U.S. District Judge Ronald B. Leighton said, “this is a very horrendous, serious offense.”
The MITZEL assault was investigated by the Puyallup Tribal Police Department and the FBI.
Both cases were prosecuted by J. Tate London and Rebecca Cohen who serve as Tribal Liaisons for the U.S. Attorney’s Office, prosecuting criminal cases in Indian Country.
Two Associates of La Cosa Nostra Plead Guilty to Extortion-Related ChargesRead the Press Release
Two associates of the Genovese La Cosa Nostra (LCN) crime family pleaded guilty today to extortion-related charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement.
Francesco Depergola, 61, of Springfield, Mass., and Gerald Daniele, 52, of Longmeadow, Mass., each pleaded guilty to federal charges related to extortion. Depergola pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of interference with commerce by threats or violence. Depergola also pleaded guilty to charges brought by the U.S. Attorney’s Office in the Southern District of New York of making an extortionate extension of credit. Daniele pleaded guilty to one count of using extortionate means to collect an extension of credit. U.S. District Court Judge Timothy S. Hillman scheduled their sentencings for March 9, 2018.
According to admissions in their plea agreements, Depergola, Daniele and co-defendants Ralph Santaniello, John Calabrese, and Richard Valentini were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Mass., including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. Depergola and Daniele admitted that they used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.
In addition, Depergola also admitted that in 2013, Depergola, Santaniello, Calabrese, and Valentini attempted to extort money from a Springfield businessman. Santaniello assaulted the businessman and threatened to cut off his head and bury his body if he did not comply. Over a period of four months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini to protect himself and his business.
Daniele further admitted that during a six-month period in 2015, he extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
Santaniello and Calabrese previously pleaded guilty for extortion-related crimes. Their sentencings are scheduled respectively for Jan. 29, 2018, and Jan. 30, 2018. Valentini pleaded not guilty. His trial is scheduled to start Dec. 11, 2017. Valentini is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorneys Kevin O’Regan and Katharine Wagner and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Two Associates of La Cosa Nostra Plead Guilty to Extortion-Related ChargesRead the Press Release
BOSTON – Two associates of the Genovese La Cosa Nostra (LCN) crime family pleaded guilty yesterday in federal court in Worcester to extortion-related charges.
Francesco Depergola, 61, of Springfield, Mass., and Gerald Daniele, 52, of Longmeadow, Mass., each pleaded guilty to federal charges related to extortion. Depergola pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of interference with commerce by threats or violence. Depergola also pleaded guilty to charges brought by the U.S. Attorney’s Office in the Southern District of New York of making an extortionate extension of credit. Daniele pleaded guilty to one count of using extortionate means to collect an extension of credit. U.S. District Court Judge Timothy S. Hillman scheduled their sentencings for March 9, 2018.
According to admissions in their plea agreements, Depergola, Daniele and co-defendants Ralph Santaniello, John Calabrese, and Richard Valentini were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Mass., including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. Depergola and Daniele admitted that they used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.
In addition, Depergola also admitted that in 2013, he, Santaniello, Calabrese, and Valentini attempted to extort money from a Springfield businessman. Santaniello assaulted the businessman and threatened to cut off his head and bury his body if he did not comply. Over a period of four months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini to protect himself and his business.
Daniele further admitted that during a six-month period in 2015, he extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
Santaniello and Calabrese previously pleaded guilty to extortion-related crimes. Their sentencings are scheduled respectively for Jan. 29, 2018, and Jan. 30, 2018. Valentini pleaded not guilty. His trial is scheduled to start Dec. 11, 2017.
Each charge provides for a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $250,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office; Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section; and Katherine Wagner of Weinreb’s Springfield Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twenty-six people indicted for their roles in two conspiracies to bring drugs – including fentanyl, heroin and cocaine – to Northeast OhioRead the Press Release
Twenty-six people were indicted in federal court for their roles in two separate conspiracies to bring large amounts of drugs – including fentanyl, heroin and cocaine – to Northeast Ohio, law enforcement officials said.
Fifteen people were charged in a 29-count indictment with conspiracy to distribute fentanyl, heroin, cocaine and U-47700 (a fentanyl analogue). They are: Irwin Jose Vargas, 42, of Euclid; Keyra Linnette Martinez, 42, of Euclid; Irwing Vargas Rosario, 24, of Cleveland; Isidoro M. Gonzalez, 41, of Cleveland; Alcides Garcia, 46, of Ponce, Puerto Rice; Austin Natale, 27, of Cleveland; Kayle Mae Jonela, 22, of Brook Park; Rosemary Howell, 55, of Cleveland; Dennis Mansfield, 58, of Cleveland; William Rodriguez, 41, of Cleveland; Jeffrey Mack, 44, of Cleveland; Victor Felix, 39, of Cleveland; Nelson Benitez, Jr., 34, of Cleveland; Thomas Lopez, 39, of Cleveland, and Edgar Arroyo, 37, of Cleveland.
Twelve people were charged in a 26-count indictment with conspiracy to distribute cocaine, N-Ethyl Pentalone (an analogue to MDMA or “molly”) and marijuana. They are: Emad Silmi, 43, of North Olmsted; Christopher Young, 46, of Westlake; Herbert Shaw, 44, of Cleveland; Samer Abu-Kwaik, 46, of Cleveland; Nelson Benitez, Jr., 34, of Cleveland; Jonathan Smith, 34, of Lathrup Village, Mich.; John D. Ciarlillo, 42, of Medina; Anthony Quinn Greenlee, 26, of Huron; Santana Jones, 22, of Cleveland; Gregory Lowery, 32, of Painesville; Mogahed Mustafa, 30, of North Olmsted, and Erkan Nevzadi, 29, of Cleveland.
Benitez is charged in both indictments.
“These groups brought hundreds of pounds of dangerous drugs into Northeast Ohio and sold them throughout our community,” U.S. Attorney Justin E. Herdman said. “We will continue to work collaboratively to shut off the flow of drugs and seek long prison sentences for traffickers.”
“This long term investigation was aimed at stopping dangerous drugs from flowing into our city and streets, and holding accountable those that choose to illegally pollute our communities. Heroin, fentanyl, cocaine, and synthetic opioids were among the drugs seized, and the FBI, along with our many law enforcement partners, are committed to working to defeat this menacing threat one drug trafficking organization at a time."
"This investigation was the culmination of strong relationships between the various law enforcement partners,” Cuyahoga County Sheriff Cliff Pinckney said. “The Sheriff's Department will always vigorously pursue drug traffickers in conjunction with this partnership."
“Today's massive take down marks a major step forward in combating illegal opiate sales within the city of Cleveland,” Cleveland Police Chief Calvin Williams said. “As you can see from this joint effort, law-enforcement remains committed to erasing this problem in Northeast Ohio. Further, we encourage anyone battling addiction to utilize the many resources that are available and to strive to get well.”
Vargas, Martinez and Gonzales arranged for shipments of fentanyl, heroin and cocaine from Puerto Rico between 2016 and the present. These shipments included at least a kilogram of fentanyl, a kilogram of heroin and five kilograms of cocaine. Many of these shipments came through the U.S. Postal Service, FedEx and UPS, according to the indictment.
Vargas, Martinez, Gonzales and Rosario then sold the drugs to other drug traffickers in Cleveland. Members of the conspiracy used several locations in Greater Cleveland to receive, store and distribute the drugs, including: 4705 Bridge Ave. (Vargas’ business, Santiago Auto Care Services, also known as Capu Auto and Sound); 6841 Day Drive, Apartment 605, in Parma and 754 Hemlock Drive in Euclid (Vargas’ and Martinez’s residences); 3871 Ridge Road (Gonzales’ business, Ways to Save Auto Sales); 5601 Wichita Ave. (Gonzales’ residence) and 11901 Lena Ave. (Howell’s and Mansfield’s residence), according to the indictment.
Vargas and Martinez often used the U.S. Postal Service online system to track shipments of parcels sent to Northeast Ohio from Puerto Rico, as well as packages shipped from China to Puerto Rico, according to the indictment
In the second conspiracy, Silmi obtained large amounts of cocaine from Abu-Kwaik and then sold it to other drug dealers from his business Global Auto Body & Collision at 4317 W. 130th Street. He also obtained large amounts of N-Ethyl Pentylone – an analogue of “molly” – from Greenlee, which Greenlee had obtained from suppliers in China. Silmi sold the molly analogue to other dealers from his Cleveland auto body shop, according to the indictment.
Silmi obtained at least five kilograms of cocaine and more than 100 kilograms of marijuana between January 2016 and March 2017, according to the indictment.
Greenlee used 3006 Cleveland Road West, Apartment 8 in Huron (his residence) and U.S. Motor Sales at 4927 Brookpark Road in Parma (his business) to store and distribute drugs. Kwaik used U.S. Motor Sales at 4927 Brookpark Road, Parma, Ohio (his business) and 7358 Meadow Lane, Parma, Ohio (his residence) to store and distribute drugs, according to the indictment.
Greenlee and Nevzadi used firearms, ammunition and other weapons to protect their drug trafficking activities, according to the indictment.
Silmi is also charged with conspiracy to launder money as part of an effort to hide his drug profits, according to the indictment.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI, the U.S. Postal Inspection Service, the Cuyahoga County Sheriff’s Department, Cleveland Division of Police, the IRS, and members of the Northern Ohio Law Enforcement Task Force and High Intensity Drug Trafficking Area personnel.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, and the police departments of Broadview Heights, Brooklyn Heights, Cleveland, Cleveland Heights, the Cuyahoga County Sheriff’s Office, Cuyahoga Metropolitan Housing Authority, Euclid, Independence, North Royalton, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The cases are being prosecuted by Assistant U.S Attorney Matthew J. Cronin.
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.
Tohatchi Man Sentenced to 210 Months in Prison for Federal Murder ConvictionRead the Press Release
ALBUQUERQUE – Dennison Hale, 44, an enrolled member of the Navajo Nation who resides in Tohatchi, N.M., was sentenced today in federal court in Albuquerque, N.M., to 210 months in prison for his conviction on a second-degree murder charge. Hale will be on supervised release for five years after completing his prison sentence.
Hale was arrested on Feb. 23, 2016, by the FBI on a criminal complaint alleging that he murdered a Navajo woman on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, on Feb. 20, 2016, Hale struck the victim in the head and fled from the scene of the crime, the victim’s home in Hogsback, N.M. The victim was transported by helicopter to the hospital, where she was pronounced dead. Hale was later indicted on a murder charge on March 23, 2016.
On Feb. 28, 2017, Hale pled guilty to a felony information charging him with second degree murder. In entering the guilty plea, Hale admitted that on Feb. 20, 2016, he killed the victim by striking her twice in the head with a crowbar.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Texas pilot pleads guilty to wire fraud and arson conspiraciesRead the Press Release
TYLER, Texas – Acting U.S. Attorney Brit Featherston announced that a Texas pilot has pleaded guilty today to federal wire fraud and arson charges.
Theodore Robert Wright, III, 32, formerly of Kemah, Texas, pleaded guilty before U.S. Magistrate Judge K. Nicole Mitchell to conspiring to commit wire fraud and conspiring to commit arson. At sentencing, Wright faces up to 20 years in federal prison on the wire fraud conspiracy count and 5 to 20 years in federal prison on the arson conspiracy count.
According to information presented in court, Wright led a multi-jurisdictional fraud and arson scheme that spanned from Hawaii to the Gulf of Mexico and involved the destruction of various assets, including vehicles, aircraft, and vessels. Wright and his co-conspirators, Shane Gordon, 45, of Houston, Texas, Raymond Fosdick, 41, of Houston, Texas, and Edward Delima, 41, of Honolulu, Hawaii, acquired assets and obtained insurance coverage in amounts exceeding their purchase prices. Wright and his co-conspirators then devised and carried out schemes to destroy the assets and defraud insurance companies.
The assets destroyed in the scheme included a 1966 Beechcraft Baron, a 2008 Lamborghini Gallardo, a 1971 Cessna 500, and a 1998 Hunter Passage. The Beechcraft Baron made an emergency landing in the Gulf of Mexico, sank in deep water, and was not recovered. The Lamborghini Gallardo crashed into a ditch full of water, causing the vehicle to flood. The Cessna 500 was completely destroyed when Fosdick set it on fire at Wright’s direction at an airport in Athens, Texas. The Hunter Passage sank in a marina in Hawaii. Fraudulent insurance claims were filed in relation to each of these incidents. Wright and his co-defendants also filed a fraudulent $1 million personal injury lawsuit related to the crash in the Gulf of Mexico. The suit was settled for $100,000.
On May 17, 2017, Wright, Gordon, Fosdick, and Delima were charged with various offenses related to their conduct in the scheme in the Eastern District of Texas. Wright’s co-conspirators have all pleaded guilty. On September 26, 2017, Delima pleaded guilty to conspiring to commit wire fraud. On October 12, 2017, Fosdick pleaded guilty to conspiring to commit wire fraud and conspiring to commit arson. On October 25, 2017, Gordon pleaded guilty to making false statements to a federal agent.
At sentencing, Delima faces up to 20 years in federal prison. Fosdick faces up to 20 years in federal prison on the wire fraud conspiracy count and 5 to 20 years in federal prison on the arson conspiracy count. Gordon faces up to 5 years in federal prison. Sentencing dates have not been determined.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
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Tampa Man Pleads Guilty for Role in “Ghost” Employee and Credit Line ScamsRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Rany Smith (48, Tampa), a/k/a “Abdelmajid Wahbi,” has pleaded guilty to conspiracy to commit mail and wire fraud and aggravated identity theft. He faces a maximum penalty of 22 years in federal prison. A sentencing date has not yet been set. As part of his plea agreement, Smith is required to pay restitution to his victims and forfeit at least $93,586.65 in ill-gotten gains traceable to the offenses.
According to the
plea agreement , Smith, originally from Morocco, stole the identities of other immigrants and used them to carry out a variety of fraud schemes throughout Florida. In 2016, Smith was convicted of public benefits fraud in federal court (Boston, MA) and was sentenced to probation. He then moved to Tampa and obtained employment as a manager of a local franchise using the name of another North African immigrant to hide his felony record. As a manager of the franchise, Smith put several fictitious employees on the business’s payroll and collected their wages for months.Smith pursued a similar scheme in south Florida where he was hired as a manager of a business in Delray Beach, again using a stolen identity to hide his criminal past. He then hired multiple co-conspirators who, while real employees, fraudulently received extra wages due to Smith regularly inflating their hours in the business’s time clock management system.
In separate scheme, Smith used a variety of other identities stolen from North African immigrants to take out lines of credit from various Florida retailers and online merchants. He then financed tens of thousands of dollars in purchases from these vendors and had the merchandise shipped to his Tampa address and to those of his co-conspirators. Smith never repaid any of these debts.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ National Security Division, the United States Air Force Office of Special Investigations, and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
St. Louis Man Pleads Guilty to Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – Sean McChord O’Donnell pled guilty to charges of racketeering, involving the use of interstate facilities to promote prostitution occurring between November 2016 and January 2017.
According to court documents, in November 2016, O’Donnell travelled to the First Western Inn, 4828 North Broadway, Saint Louis, Missouri. He did so to meet with a 21-year-old heroin addicted prostitute referred to as MB and paid MB to engage in commercial sex acts. He also drove MB on prostitution calls, provided security for her, rented hotel rooms for her and lent her money. The defendant also posted online advertisements on MB’s behalf on escort/prostitution websites. During the course of a late November visit, O’Donnell observed 15-year-old Jane Doe in the hotel lobby. Jane Doe had just recently left her pimp. Jane Doe was a missing juvenile and St. Louis County Police had been looking for her since September 2016. O’Donnell handed Jane Doe his card and told her to call him. O’Donnell subsequently engaged in commercial sex acts with Jane Doe.
Between late November and January 2017, Jane Doe moved between several hotels in St. Louis City and St. Louis County, Missouri. O’Donnell rented most of the rooms for Jane Doe since she had no identification. O’Donnell began to post and pay for Jane Doe’s advertisements on Backpage.com. The defendant took pictures of a scantily clad Jane Doe, which were included in postings. He posted the advertisements with her pictures using his email address. O’Donnell continued to engage in commercial sex acts with Jane Doe and took explicit photos of Jane Doe and used his phone to send images to others.
Officers had been searching for Jane Doe since September 2016, and on or about January 23, 2017, observed her image on Backpage.com. Police attempted to arrange a prostitution visit with Jane Doe and determined that she was at the Econolodge at 4576 Woodson Road, in a room rented by O’Donnell. On January 24, 2017, officers were able to locate and retrieve Jane Doe from a motel room.
O’Donnell, 52, of St. Louis, MO, pled guilty to one felony count of Racketeering Using Interstate Facilities to Promote, Manage, Establish and Carry on the Unlawful Activity of Prostitution before United States District Judge Audrey G. Fleissig. Sentencing has been set for March 18, 2018.
This charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis County Police, Bridgeton Police, St. Charles County Police and the Federal Bureau of Investigation. Assistant United States Attorney Howard Marcus is handling the case.
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Springdale Man Sentenced to over 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jeremy Lynn McGrew, age 36, of Springdale, was sentenced today to 75 months in federal prison followed by fifteen years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in December of 2016, members of the Internet Crimes Against Children (ICAC) identified an IP address that was making files of child pornography available for download. As a result, members of the ICAC Taskforce executed a federal search warrant on April 5, 2017, at the residence of Jeremy Lynn McGrew, which is located in the Western District of Arkansas, Fayetteville Division. At that time, law enforcement confiscated multiple items of digital evidence that contained child pornography. While on the scene, law enforcement also encountered McGrew. After being informed of his Miranda rights, McGrew admitted viewing and accessing child pornography for fourteen years.
McGrew was indicted in June 2017 and pled guilty in August 2017.
This case was investigated by the Internet Crimes Against Children (ICAC). Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Sex Trafficker Sentenced to 100 Years in PrisonRead the Press Release
Kevino Graham, 36, of Philadelphia was sentenced yesterday to 100 years in federal prison for sex trafficking by the Honorable C. Darnell Jones, II, United States District Court Judge, announced United States Attorney Louis D. Lappen. In addition, Judge Jones imposed a fine of $1000, a $300 special assessment, lifetime supervised release, and restitution of $641,900.
According to court documents, the defendant ran a striptease club, known as “Club Passions,” and brothel, known as “Passionate Touch,” at a property he leased in the Cathedral Park section of Philadelphia. Along with his three co-defendants, the defendant engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution, including subjecting them to repeated acts of sadistic sexual torture.
The defendant and co-defendant Raffael Robinson were convicted by a jury on February 5, 2016. Defendant Graham was convicted of two counts of sex trafficking by force and one count of attempted sex trafficking by force. Robinson was convicted of one count of sex trafficking by force, and awaits sentencing. Co-defendant Brian Wright pled guilty and was previously sentenced to 262 months’ incarceration. Co-defendant Renato Teixeira pled guilty and was previously sentenced to 102 months’ incarceration.
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Special Victims’ Unit and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle Morgan.
Sentencings for December 4 - December 6, 2017Read the Press Release
Sheila Kay Fundenberger, 44, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 6, 2017, for conspiracy to distribute methamphetamine. Fundenberger was arrested in Gillette, Wyoming. She received 60 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Daniel Thomas Poynor, 37, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 4, 2017, for conspiracy to distribute methamphetamine; carrying a firearm during and in relation to a drug trafficking crime; and possession with intent to distribute methamphetamine. Poynor was arrested in Cheyenne, Wyoming. He received 300 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $300.00 special assessment. This case was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
David Netterfield, 27, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 4, 2017, for bank theft. Netterfield was arrested in Cheyenne, Wyoming. He received three years of supervised release and was ordered to pay a $100.00 special assessment and $59,000.00 in restitution. This case was investigated by the Federal Bureau of Investigation.
Michael Shane-Lourcey Clements, 25, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 4, 2017, for possession of child pornography. Clements was arrested in Casper, Wyoming. He received 60 months of imprisonment, to be followed by five years of supervised release, was ordered to pay a $100.00 special assessment and $15,000.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Second Man Pleads Guilty to Robbery with Member of the Baltimore Police Gun Trace Task ForceRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Thomas Robert Finnegan, age 38, of Easton, Pennsylvania, pleaded guilty today to one count of robbery and one count of brandishing a firearm in furtherance of a crime of violence stemming from a 2014 home invasion robbery of a Baltimore city couple.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
David Kendall Rahim and Rahim’s cousin, Detective Jemell Lamar Rayam, were also charged in the robbery. Rayam was a member of the Gun Trace Task Force (GTTF,) a division of the Baltimore Police Department (BPD).
According to his plea agreement, on June 27, 2014, police officers with the Gun Trace Task Force, including Detective Rayam, executed a search and seizure warrant at a store that sold birdseed and pigeons. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes.
After the search, Rayam told Finnegan and Rahim about the money and agreed to rob the couple at their residence later that evening. Using a law enforcement database, the GTTF detective located the home address of the victims. The defendants surveilled the house, then Rayam gave Finnegan and Rahim BPD tactical gear to impersonate the police during the home invasion. Rayam remained outside in the vehicle so that he could intercept any police officers who responded to the home invasion by telling them that he was a BPD officer. Finnegan and Rahim entered the residence and robbed the victims at gunpoint of the $20,000. During the robbery, Finnegan pointed a gun at one of the victims and said to “sit still and be patient,” while Rahim looked on. Rahim, Finnegan, and Rayam split the proceeds.
Finnegan faces up to 20 years in prison for the robbery charge and up to life in prison for the firearm charge. Rayam and Rahim have also pleaded guilty. Sentencing for Rahim has been set for March 9, 2018 at 11:00 a.m. and sentencing for Finnegan has been set for March 9, 2018 at 12 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Saratoga Springs Man Sentenced to 10 Years in Heroin Overdose DeathRead the Press Release
ALBANY, NEW YORK – Matthew P. Charo, age 36, of Saratoga Springs, New York, was sentenced today to 10 years in prison for distributing heroin to a 30-year-old woman who died from taking it.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Acting United States Attorney Grant C. Jaquith stated: “Today’s sentence holds Matthew Charo accountable for causing the death of a young woman who was struggling to overcome her addiction. Though his decade of imprisonment cannot undo the harm to the victim and her family, who will continue to endure the unimaginable loss of their daughter, vigorous enforcement is a key component of prevention. Heroin kills, and dealing heroin is a deadly choice that can subject the dealer of even a small amount to severe consequences if a customer dies from taking heroin. As part of our multi-pronged approach to the opioid crisis, we will continue to work with our law enforcement partners to hold drug dealers accountable for fatal overdoses.”
FBI Special Agent in Charge Vadim D. Thomas stated: “Today’s sentencing is the culmination of many long hours and dedicated work, but the effort to make our communities safer continues. The FBI is committed to investigating those like Mr. Charo, who endanger our families and our communities with drugs.”
As part of his guilty plea on August 14, 2017, Charo admitted that on October 2, 2014, he sold heroin to a 30-year-old woman who was his acquaintance from high school. Before the sale, the victim told Charo that she had tried all day to buy heroin without success. Charo agreed to help the victim buy heroin, and used the victim’s food stamp EBT card to buy heroin from another individual, which he then distributed to the victim. She ingested the heroin and died due to acute heroin intoxication.
New York State Police Superintendent George P. Beach II stated: “I want to thank our law enforcement partners at the federal, state and local level for bringing this man to justice. Drugs such as heroin destroy our communities and put lives at risk. This sentencing sends a clear message that we will not tolerate the illegal drug activity and the deadly consequences that are associated with such activity. We will remain vigilant in pursuing and prosecuting criminals who threaten the safety of our neighborhoods through the distribution of these illegal and harmful narcotics.”
Saratoga Springs Police Department Chief Gregory Veitch stated: “As this investigation has clearly demonstrated, drug dealing is not a victimless crime. No prison sentence will ever bring this victim back to life or alleviate the suffering of her loved ones. The Saratoga Springs Police Department remains committed to working with our state and federal partners in law enforcement in this never-ending battle against those who choose prey on our community.”
As part of the sentence, Senior United States Judge Frederick J. Scullin Jr. also imposed a 3-year term of supervised release, to begin following Charo’s release from prison.
This case was investigated by the FBI, the New York State Police, and the Saratoga Springs Police Department, and was prosecuted by Assistant U.S. Attorney Daniel Hanlon.
Sapulpa Man Sentenced for Conspiracy to Unlawfully Manufacture and Possess Destructive DevicesRead the Press Release
District Judge John W. Dowdell sentenced Christopher Dean Nichols, 23, of Sapulpa, Oklahoma to 44 months in prison for the crime of Conspiracy to Unlawfully Manufacture and Possess Destructive Devices. Nichols must also pay a special monetary assessment totaling $100. After release from prison, Nichols must serve two years on supervised release.
On or about May 20-23, 2017, Nichols conspired with another person to manufacture and possess pipe bombs. He made the bombs with materials he bought at a hardware store, including pipe and fittings. He added explosive powder to the pipe, threaded a fuse through one end of each device and placed BBs in the devices. The devices were not registered and were illegally manufactured and possessed. He then planted the pipe bombs in a parked vehicle at the Creek County Courthouse without the owner’s knowledge, intending to scare the owner of the vehicle.
United States Attorney Shores stated, “If you chose to make a pipe bomb and terrorize citizens in our communities, you will be held accountable,” United States Attorney Shores said. “Let it be clear, we will not tolerate attempts to thwart courtroom processes - be they civil or criminal, federal or state - by threats and intimidation with improvised explosive devices. I commend the ATF and Creek County law enforcement for their swift actions in this investigation.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sapulpa Police Department and the Tulsa Police Department Bomb Squad investigated the matter. Assistant United States Attorney Allen J. Litchfield prosecuted the case.
Salvadoran National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after deportation.
Gerardo Alberto Perez-Fuentes, 22, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 8, 2018.
Perez-Fuentes was previously deported on Oct. 8, 2015. On Sept. 6, 2017, law enforcement in Chelsea encountered Perez-Fuentes and determined him to be illegally present in the United States.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Perez-Fuentes will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this case.
Saluda Felon Sentenced to 71 Months Imprisonment for Gun ChargeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated that Zebedee Cleo Adams, age 37, of Saluda, South Carolina was sentenced yesterday afternoon in federal court in Greenville for Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g). United States District Judge Bruce Howe Hendricks of Charleston sentenced Adams to 71 months imprisonment and 3 years of supervised release.
Evidence presented at the change of plea and sentencing hearing established that on September 5, 2015, the Saluda Police Department attempted to stop Adams for speeding. Adams drove his vehicle at high speeds through a neighborhood. Adams was apprehended when he wrecked his car into a ditch. Adams was arrested, and had a loaded Beretta .32 caliber pistol in his pocket. Adams had prior felony convictions for which he had not received a pardon and was prohibited from carrying a firearm.
The case was investigated by agents of the ATF and Saluda Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Russian Citizen Sentenced to 37 Months for Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Nikolay Souslov, a/k/a “Nikolay Glukhov,” a/k/a “Nikolai Kuznetsov,” a/k/a “Nikolai Burov,” age 70, and a citizen of Russia, was sentenced today to 37 months in prison for alien smuggling.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Souslov was convicted following a four-day jury trial in May 2017. Chief United States District Judge Glenn T. Suddaby also ordered him to serve a 3-year term of post-imprisonment supervised release.
The evidence at trial showed that between 2013 and October 19, 2016, Souslov smuggled people into the United States by walking them through the woods from Canada during the night. Souslov, who is experienced in orienteering, used only a compass to guide people through the woods to a pickup spot, where they were transported to New Jersey. On October 19, 2016, Border Patrol arrested Souslov as he led an alien into the United States.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Douglas G. Collyer.
Roswell Man Sentenced to Five Years for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joseph Vallejos, 25, of Roswell, N.M., was sentenced yesterday in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on methamphetamine trafficking charges. Vallejos will be on supervised release for four years after completing his prison sentence.
Vallejos and co-defendant Renee Rodriguez, 33, also of Roswell, were charged in a criminal complaint filed in Sept. 2015, with conspiracy, distribution of methamphetamine, and firearms offenses in Chaves County, N.M. According to the criminal complaint, Vallejos and Rodriguez sold an aggregate of 157.7 grams of methamphetamine to undercover law enforcement officers during nine separate transactions between July 2015 and Sept. 2015. The complaint further charged Rodriguez with brandishing a handgun during a methamphetamine transaction on July 8, 2015.
Vallejos and Rodriguez subsequently were charged in a nine-count indictment that was filed on Dec. 17, 2015. The indictment charged Vallejos and Rodriguez with conspiring to distribute methamphetamine from July 1, 2015 through July 30, 2015. It also charged Rodriguez with distributing methamphetamine on three occasions in July 2015, and Vallejos and Rodriguez with distributing methamphetamine on four occasions in July 2015. Rodriguez also was charged with brandishing a firearm during a drug trafficking crime on July 8, 2015. According to the indictment, Vallejos and Rodriguez committed the nine crimes in Chaves County.
On Aug. 3, 2016, Vallejos pled guilty to a conspiracy charge and four methamphetamine distribution charges. In entering the guilty plea, Vallejos admitted that he was responsible for distributing approximately 52.6 grams of methamphetamine in Chaves County in July 2015.
On Aug. 12, 2016, Rodriguez pled guilty to two of the distribution of methamphetamine charges and to brandishing a firearm during a drug trafficking crime. In entering the guilty plea, Rodriguez admitted that on July 8, 2015, she distributed approximately 15 grams of methamphetamine to an undercover law enforcement officer, and during that transaction she used and carried a firearm. Rodriguez further admitted that she distributed approximately 11.9 grams of methamphetamine to an undercover law enforcement officer on July 30, 2015. Rodriguez was sentenced on Oct. 31, 2017, to 63 months in prison followed by three years of supervised release.
This case was investigated by the Roswell office of the FBI and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Rocklin Man Charged with Enticing a Minor Online for Sexual Purposes and Producing and Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a sealed three-count indictment last week, against Cameron Fox, 34, of Rocklin, charging him with online enticement of a minor for sexual purposes, production of child pornography, and possession of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed after Fox’s arrest on December 5, 2017. Fox was arraigned on Tuesday and he pleaded not guilty.
According to court documents, it is alleged that Fox enticed a minor to meet with him to engage in sexual activity, and that he produced child pornography of that same minor on at least one occasion. It is also alleged that Fox possessed other child pornography. Fox’s next court date is January 4, 2018.
This case is the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
If convicted, Fox faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Real Estate Developers Sentenced in White Plains Federal Court for Conspiracy to Corrupt the Electoral Process in BloomingburgRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, today announced that SHALOM LAMM and KENNETH NAKDIMEN were sentenced for conspiracy to corrupt the electoral process, in connection with an election in Bloomingburg, New York. LAMM was sentenced today to 10 months in prison. NAKDIMEN was previously sentenced on September 15, 2017, to six months in prison. Both defendants were sentenced by United States District Judge Vincent Briccetti in White Plains federal court.
Acting U.S. Attorney Joon H. Kim stated: “False and fraudulent voter registrations have no place in our democracy. As the sentences imposed on Shalom Lamm and Kenneth Nakdimen show, those who try to undermine the integrity of our elections will be prosecuted and punished.”
According to the allegations contained in the Indictment, as well as statements made in related court filings and proceedings:
Starting in 2006, LAMM and NAKDIMEN, real estate developers, sought to build and sell real estate in Bloomingburg, New York. From these real estate development projects, LAMM, NAKDIMEN, and others hoped for and anticipated making hundreds of millions of dollars. But by late 2013, the first of their real estate developments had met local opposition, and still remained under construction and uninhabitable. When met with resistance, rather than seek to advance their real estate development project through legitimate means, LAMM, NAKDIMEN, and others instead decided to corrupt the democratic electoral process in Bloomingburg by falsely registering voters and paying bribes for voters who would help elect public officials favorable to their project.
Specifically, in advance of an election in March 2014 for Mayor of Bloomingburg and other local officials, LAMM, NAKDIMEN, and others, and people working on their behalf, developed and worked on a plan to falsely register numerous people who were not entitled to register and vote in Bloomingburg because they actually lived elsewhere. Those people included some who never intended to live in Bloomingburg, some who had never kept a home in Bloomingburg, and indeed, some who had never set foot in Bloomingburg. LAMM, NAKDIMEN, and others took steps to cover up their scheme to register voters who did not actually live in Bloomingburg by, among other things, creating and back-dating false leases and placing items like toothbrushes and toothpaste in unoccupied apartments to make it seem as if the falsely registered voters lived there.
LAMM, NAKDIMEN, and others also bribed potential voters by offering payments, subsidies, and other items of value to get non-residents of Bloomingburg to register unlawfully and vote there.
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In addition to the prison terms, LAMM, 58, of Bloomingburg, New York, was sentenced to one year of supervised release, a $20,000 fine, and 400 hours of community service and NAKDIMEN, 64, of Monsey, New York, was also ordered to pay a $20,000 fine and 400 hours of community service.
Mr. Kim praised the outstanding investigative work of the FBI-Hudson Valley White Collar Crime Task Force, the Sullivan County District Attorney’s Office, the Sullivan County Sherriff’s Office, the Orange County Sheriff’s Office, the Orange County District Attorney’s Office, the Internal Revenue Service, and the United States Postal Inspection Service. Mr. Kim also thanked the Department of Justice’s Public Integrity Section, Election Crimes Branch, for its assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Kathryn Martin, Benjamin Allee, and Perry Carbone are in charge of the prosecution.
Quincy Man Sentenced to 7 Years in Federal Prison for Patronizing a 13 Year Old Engaged in Commercial SexRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Albert Castro, Jr., of Quincy, Washington, was sentenced after having previously pleaded guilty in March, 2017, to patronizing a thirteen-year-old child engaged in commercial sex. United States District Judge Salvador Mendoza, Jr. sentenced Castro to a seven-year term of imprisonment, to be followed by ten years of supervised release upon release of federal prison.
According to information disclosed during court proceedings, a thirteen-year-old female contacted Castro at the direction of Eric J. Perez, who was also charged in connection with this case. Castro paid the child $80 for two sex acts at his residence.
Castro’s criminal conduct was discovered while law enforcement officers were independently investigating Perez. The Perez investigation began after a sister of one of the child-victims informed a school counselor that she was concerned about her sister’s Facebook contacts with Perez. The counselor immediately informed the Quincy Police Department. The Quincy Police Department, together with the FBI, discovered that Perez’s Facebook account contained multiple conversations between Perez and multiple 12-15 year old girls. For his part, Perez pled guilty on September 28, 2017 to seven criminal charges -- Production of Child Pornography, Attempted Production of Child Pornography, Coercion and Enticement of a Minor to Engage in Criminal Sexual Activity, Child Sex Trafficking, Attempted Child Sex Trafficking, and Possession of Child Pornography. He is scheduled to be sentenced on December 13, 2017.
Joseph H. Harrington said, “The impact of Castro’s crime on his victim cannot be overstated. The United States Attorney’s Office for the Eastern District of Washington prosecutes crimes against children aggressively, in part because of the extreme vulnerability of the young victims.” Harrington went on to add, “This case is yet another example of the successful investigative efforts that can be accomplished when state and federal law enforcement, such as the Quincy Police Department and the FBI, work in partnership.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The Quincy Police Department and the FBI conducted the investigation of this matter. Scott T. Jones, an Assistant United States Attorney for the Eastern District of Washington, prosecuted the case.