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29 January 2018
Two Miami-Area Men Sentenced for $1.8 Million Robbery of Armored TruckRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Diosme Fernandez Hano (44, Hialeah) to 10 years and 1 month in federal prison and Reinaldo Arrastia-Cardoso (48, Hialeah) to 10 years in federal prison for armed robbery and conspiracy to commit armed robbery. A federal jury found Hano and Arrastia-Cardosowere guilty on October 31, 2017.
According to evidence presented at trial, on November 30, 2009, Hano and Arrastia-Cardoso committed an armed robbery of a Brink’s armored truck outside of the Fifth Third Bank on Daniels Parkway and Treeline Avenue in Fort Myers. Almost $1.8 million was stolen during the robbery.
This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office, the Florida Department of Law Enforcement, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Jeffrey F. Michelland and Simon R. Eth.
Two Arrested in Major Antiquities TheftRead the Press Release
Richard Steven Johnson, 41, of Rio Linda, California, and Jarred Alexander Goldman, 32, of Palm Beach Gardens, were arrested today, after being charged with conspiring to steal and stealing a 17th century gold bar on or about August 18, 2010, from the Mel Fisher Maritime Heritage Museum in Key West.
Benjamin G. Greenberg, United States Attorney, Southern District of Florida, Robert F. Lasky, Federal Bureau of Investigation (FBI), Miami Field Office, and Donald J. Lee, Jr., Chief, Key West Police Department, made the announcement.
Johnson will make his initial appearance in Sacramento, California, later today. Goldman will make his initial appearance before U.S. Magistrate Judge Lurana S. Snow, in Key West, on January 30, 2018, at 9:30 a.m.
The defendants are accused of driving to Key West from West Palm Beach on or about August 18, 2010, and entering the Mel Fisher Maritime Heritage Museum. It is alleged that Goldman then stood guard as a lookout to enable Johnson to steal the gold bar. Johnson then allegedly removed the gold bar from its display case at the museum and both defendants then drove back to West Palm Beach. The gold bar has not been recovered.
Mr. Greenberg commended the investigative efforts of the FBI and the Key West Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Trio Pleads Guilty to Heroin Distribution ConspiracyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Eric Massey (41) and Meldon Foster (44), both of Jacksonville, have pleaded guilty to conspiring to distribute 100 grams or more of heroin. Their co-defendant, Jaris Anacreon (33, Miami) pleaded guilty to the same offense on December 21, 2017. All three men face a minimum mandatory penalty of 5 years, up to 40 years, in federal prison.
According to their plea agreements, after selling an ounce of heroin to a confidential informant (CI), Massey introduced the CI to Foster, his source of supply, and told the CI that Foster had large amounts of heroin for sale. Foster and Massey later provided the CI with another ounce of what was sold as heroin, but which laboratory testing showed was carfentanil (an analog of the synthetic opioid fentanyl). In the period that followed, Foster sold the CI more heroin and discussed the possibility of larger deals. Foster eventually introduced the CI to Anacreon and bragged that he and Anacreon had access to significant quantities of both cocaine and heroin. The CI brokered the purchase of five ounces of heroin from Anacreon and Foster. While Anacreon was on the way to the deal with the drugs, law enforcement conducted a traffic stop, arrested Anacreon, and seized approximately five ounces of the heroin.
This case was investigated by the Drug Enforcement Administration, the Fernandina Beach Police Department, the Nassau County Sheriff’s Office, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Three Defendants Sentenced for Their Respective Roles in Trafficking Guns from Nevada to Oakland, CaliforniaRead the Press Release
OAKLAND – Richard Straight, Jenna Jeanne Allec, and Kenneth Lee Kemp were each sentenced today for their respective roles in an interstate firearms trafficking scheme announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentences were handed down by the Honorable Haywood S. Gilliam, United States District Judge, following the entry in September of 2017 by each defendant of a guilty plea.
On April 20, 2017, a federal grand jury indicted Straight, 27, of Oakland; Allec, 26, of Oakland; Kemp, 32, of Elko, Nev.; and others in a Second Superseding Indictment for their respective roles in trafficking scores of firearms from Nevada to Oakland, Calif. Straight, Allec, and Kemp each entered into plea agreements in which they acknowledged committing crimes related to the interstate gun trafficking scheme.
According to his plea agreement, Straight, admitted that between March of 2015 and May of 2017, he engaged in the business of dealing firearms without a license. Straight admitted he acted as the middleman for firearms purchases in Nevada and that his conduct was intended to assist buyers who travelled from outside the state for the purpose of firearms trafficking. According to his plea agreement, Straight also admitted he was responsible for the sale of about 39 firearms. Straight admitted buyers paid him for the price of the firearm plus, on average, an extra $50 to $100. Straight pleaded guilty to one count of dealing in firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A), and one count of aiding and abetting traveling interstate to promote illegal firearms trafficking, in violation of 18 U.S.C. § § 924(n) and 2. Today, Judge Gilliam sentenced Straight to 42 months in prison and three years of supervised release.
Allec admitted that she, too, engaged in the business of dealing in firearms without a license. According to her plea agreement, she purchased firearms in Nevada from licensed firearm dealers and then sold the firearms to others. Allec admitted that she sold about 18 firearms during the period of October 2015 to June of 2016 earning approximately $50 to $100 per firearm. Allec pleaded guilty to one count of dealing in firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A). Today, Judge Gilliam sentenced Allec to 48 months of probation with a special condition of 24 months of home confinement and 200 hours of community service.
According to his plea agreement, Kemp admitted he engaged in a conspiracy to deal in firearms without a license. Specifically, he agreed to engage in an illegal operation to traffic firearms from the Reno, Nev. area to Oakland, Calif. He admitted he purchased firearms in Nevada and sold firearms to others who lived in California or who could provide the firearms to others in California. Kemp admitted he trafficked approximately 21 firearms. Kemp pleaded guilty to one count of conspiracy to deal in firearms without a license, in violation of 18 U.S.C. § 371. Judge Gilliam sentenced Kemp to 14 months in prison and three years of supervised release.
In addition to these defendants, on November 27, 2017, Judge Gilliam sentenced Edgar de La Cruz for his role in the scheme, as well as his other crimes of Hobbs Act robbery, in violation of 18 U.S.C. §1951, and use of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. §924(c). Judge Gilliam sentenced de La Cruz to 120 months in prison and five years of supervised release.
This prosecution is the result of an investigation by the ATF Crime Gun Intelligence Center, San Francisco Field Division (SFFD). Additional assistance was provided by the Reno and Sparks Police Departments.
Tennessee Woman Sentenced to Six Years in Prison for Stolen ID Refund FraudRead the Press Release
An Antioch, Tennessee, woman was sentenced to six years in prison for wire fraud and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee.
Monique Ellis was convicted following a jury trial in October 2017 of wire fraud and aggravated identity theft. According to documents filed with the court and evidence presented at trial, in January and February 2012, Monique Ellis used stolen IDs, including those of prisoners held by the Alabama Department of Corrections, to file tax returns with the Internal Revenue Service (IRS) seeking fraudulent refunds. Ellis directed the fraudulently obtained refunds to bank accounts that she controlled, causing a tax loss of $700,933.20.
In addition to the term of imprisonment, U.S. District Court Judge Gershwin A. Drain ordered Ellis to serve three years of supervised release. Restitution will be determined at a later date.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cochran thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Henry Leventis and Trial Attorney Lauren Castaldi of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
David Marrowbone, age 54, was indicted on January 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 23, 2017, and November 25, 2017, Marrowbone, a person required to register under the Sex Offender Registration and Notification Act, did fail to register and update his registration.
The charge is merely an accusation and Marrowbone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Marrowbone was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Shreveport man pleads guilty to illegal possession of pistol after being arrested for feloniesRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport felon pleaded guilty last week to illegally possessing a pistol after being convicted of multiple felonies.
Gabriel Jones, 36, of Shreveport, pleaded guilty Friday before U.S. Magistrate Judge Mark L. Hornsby to one count of possession of a firearm by a convicted felon. The plea will become final after it is accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Shreveport police were executing a warrant for someone else on August 7, 2018 at Jones’ residence. During a search of the residence, police found marijuana in plain view, and they found a Ruger, Model P85, 9 mm caliber pistol, crack cocaine and additional marijuana in the back bedroom closet. The pistol had a 30 round extended magazine inside it. The other occupants of the residence denied ownership of the gun and said it belonged to Jones. Police also searched Jones’ cell phone and found images and data showing the pistol belonged to him. Jones was convicted on May 24, 2010 of aggravated flight from an officer and attempted possession of a firearm by a convicted felon. He was also convicted on December 6, 2004 in Caddo Parish of possession of marijuana, second offense,
Jones faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of May 10, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Session announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF, U.S. Marshals Service and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Shreveport felon pleads guilty to possessing pistol while still on supervised releaseRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man pleaded guilty last week to possessing a pistol even though he was still on supervised release and had been convicted of several felonies.
Derrick D. Morris, 36, of Shreveport, pleaded guilty Friday before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to the guilty plea, Morris was arrested on August 4, 2017 at a gas station in Shreveport on a warrant for violating his supervised release. Officers found Morris with a Glock, Model 26, 9 mm pistol in the front seat area of the car. Morris was convicted in 2003 for possession of a firearm by a convicted felon. He additionally has two prior felony convictions by the State of Louisiana.
Morris faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of March 22, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Session announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF, U.S. Marshals Service and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.
Seven Defendants Plead Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
Abingdon, VIRGINIA – Seven individuals who conspired to distribute crystal methamphetamine in Southwest Virginia from sources in Tennessee and Kentucky have pleaded guilty to federal drug trafficking and firearms charges in the United States District Court in Abingdon, United States Attorney Rick A. Mountcastle and Virginia Attorney General Mark R. Herring announced.
Jeremy Rick Sturgill, 41, of Jonesville, Virginia, pleaded guilty January 24, 2018, to conspiring to distribute more than 50 grams of methamphetamine; maintaining a place for the purpose of manufacturing, distributing, and using methamphetamine; and possessing a firearm in furtherance of a drug trafficking offense. Tony Lynn Ketron, 27, of Church Hill, Tennessee, pleaded guilty January 24, 2018, to conspiring to distribute more than 50 grams of methamphetamine, two counts of distributing methamphetamine, possessing a firearm in furtherance of a drug trafficking offense, and possessing a firearm while being a prohibited person.
In addition, a number of co-conspirators have previously pleaded guilty as part of the case. Todd Houston Conyer, 29, of Pennington Gap, Virginia, pleaded guilty to conspiring to distribute more than 5 grams of methamphetamine. Leslie Ann Clasby, 42, of Jonesville, Virginia, pleaded guilty to conspiring to distribute more than 5 grams of methamphetamine. Jason Dale Moore, 36, of Jonesville, Virginia, pleaded guilty to conspiring to distribute more than 5 grams of methamphetamine. William Benjamin Brewer, 36, of Jonesville, Virginia, pleaded to conspiring to distribute more than 5 grams of methamphetamine. Kristina Karen Burton, 44, of Jonesville, Virginia, pleaded guilty to conspiring to distribute more than 5 grams of methamphetamine.
According to evidence presented at various plea hearings by Virginia Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen, and in court documents, the defendants engaged in a conspiracy to distribute and possess with the intent to distribute crystal ice methamphetamine from April 1, 2016 - November 7, 2016. Evidence presented during the guilty plea hearings demonstrated that the conspiracy involved over 50 grams of crystal ice methamphetamine, acquired from multiple sources in Tennessee and Kentucky, and several firearms. Numerous undercover purchases of crystal ice were conducted by the Southwest Virginia Drug Task Force at Sturgill’s residence in Jonesville, Virginia, where much of the activity concerning the conspiracy occurred.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lee County Sheriff’s Office, the Scott County Sheriff’s Office, the Virginia State Police, the Jonesville Police Department, and the Southwest Virginia Drug Task Force investigated the case. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States involving Leslie Ann Clasby. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States involving all other defendants.
Sanford Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Rusty Hood, 38, of Sanford, Maine, pled guilty today in U.S. District Court to transporting child pornography.
According to court records, in May 2016, Hood chatted online with an individual in Ohio. During the chat, the two men exchanged images of minors engaged in sexually explicit conduct. Hood claimed during the chat that he was interested in babies, and that he had engaged in sexual activity with a young girl.
Hood faces between five and 20 years in prison, between five years and life on supervised release and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Sanford Police Department.
Rapid City Woman Indicted for Defrauding the Rapid City Club for BoysRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that a Rapid City, South Dakota, woman was charged in federal district court with 20 counts of Wire Fraud and 5 counts of Money Laundering.
Olivia Kuehner, age 48, was charged on January 23, 2018. She appeared before U.S. Magistrate Judge Daneta Wollmann on January 26, 2018, and pleaded not guilty to the charges. The maximum penalty on each count upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that Kuehner, between September 2012 and June 2017, while employed as the accounting manager for the Rapid City Club for Boys, Inc. ("Club for Boys"), devised a scheme to defraud the Club for Boys of more than $120,000.00. The indictment alleges Kuehner embezzled money belonging to the Club for Boys by making fraudulent payments to herself, family members, and a nominee entity she controlled, and then omitted the fraudulent payments from the Club for Boys’ accounting records or misclassified the payments to make it appear vendors or other employees had been paid. After receiving the fraudulently obtained funds, Kuehner transferred a portion of the funds to other bank accounts she controlled in order to conceal the nature, source and ownership of the embezzled proceeds.
The charges are merely an accusation and Kuehner is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and Rapid City Police Department. Assistant United States Attorney Benjamin Patterson is prosecuting the case.
Kuehner was detained pending a hearing on Monday, January 29, 2017. A trial date has not been set.
Quebec Man Pleads Guilty to Smuggling over 100 Handguns from Vermont to QuebecRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Alexis Vlachos, 40, of Montreal, Quebec, pled guilty to two counts relating to the smuggling of over 100 handguns from Vermont to Quebec. Specifically, Vlachos pled guilty before United States District Judge William K. Sessions III to conspiring to export, and actually exporting, firearms from the United States to Canada, without a license, in violation of the Arms Control Export Act.
As part of his guilty plea, Vlachos agreed to the following facts: From July 2010 to April 2011, Vlachos and other persons, including defendants Annette Wexler and Jaime Ruiz, executed a plan to smuggle over 100 handguns, purchased in Florida, to Quebec, Canada, by way of northern Vermont and northeast New York. As part of this conspiracy, Annette Wexler and another coconspirator purchased these handguns from multiple federally licensed firearms dealers in the Tampa, Florida area. At the time of purchasing these firearms at the gun stores, Wexler and a coconspirator made multiple misrepresentations about the nature of these purchases on forms required by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
After purchasing these firearms, Annette Wexler, Jaime Ruiz, and another coconspirator transported these firearms to Quebec through northeastern Vermont and northeastern New York. As part of the conspiracy, Vlachos would usually take custody of the firearms in Quebec, where he sold many of them.
Some of the firearms smuggled into Quebec were first brought to the Haskell Free Library in Derby Line, Vermont by Annette Wexler and Jaime Ruiz. The Haskell Free Library building straddles the international border of Derby Line, Vermont and Stanstead, Quebec.
On at least two occasions, in about March of 2011, Annette Wexler and Jaime Ruiz worked together to stash several firearms contained in small backpacks inside the trashcan of the library bathroom. Wexler then coordinated with Vlachos, who had entered the library from Quebec, to retrieve the firearms from the bathroom. Vlachos then transported the firearms to Quebec, where he sold many of them.
In April 2011, a coconspirator in Florida purchased thirty-four firearms from a federally licensed firearms dealer in the Tampa, Florida area. Vlachos and Wexler then drove these guns to a remote section of northeastern Vermont near Lake Wallace. Vlachos hiked these firearms across the international border into Quebec.
This conspiracy involved the smuggling of at least 104 handguns from the United States to Canada. Neither Vlachos, nor any of the others involved in these offenses, obtained a license from the United States Department of State prior to exporting these handguns to Canada.
Annette Wexler previously pled guilty to conspiring to make false statements to licensed gun dealers and unlawful exportation. On July 25, 2017, United States District Judge J. Garvan Murtha sentenced Wexler to time-served and two years of supervised release. Ruiz also pled guilty to two offenses relating to this smuggling conspiracy but, due to his death by illness, the charges against him were dismissed.
Vlachos was originally charged with these offenses in January 2015 but the process of extraditing him to the United States took over two years to complete. Vlachos now faces a maximum possible term of imprisonment of twenty years. However, Judge Sessions will determine the actual sentence pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors. The sentencing is scheduled for May 7, 2018.
This case is being prosecuted by Assistant U.S. Attorney Joseph Perella. Vlachos is represented by Paul Volk, Esq. of Burlington. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Border Patrol, and Homeland Security Investigations of the Department of Homeland Security. In addition, the Royal Canadian Mounted Police and the Surete du Quebec provided assistance in this investigation.
Prior Sex Offender Pleads Guilty to Child Sexual Exploitation, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Noel, Mo., sex offender pleaded guilty in federal court today to charges related to child sexual exploitation and illegally possessing firearms.
Raymond Adair, 58, of Noel, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of traveling across state lines to engage in illicit sexual conduct and one count of being an unlawful user of a controlled substance in possession of firearms.
Adair, a registered sex offender, was previously convicted in Colorado of attempted second-degree kidnapping of a minor and two counts of indecent exposure to a minor.
By pleading guilty today, Adair admitted that he traveled from Missouri to Arkansas on May 9, 2016, to engage in illicit sexual conduct. Bentonville, Ark., police officers received two separate complaints on that day of Adair exposing himself to children walking home from school. One of the children was walking home from a school bus stop, according to the plea agreement, and investigators obtained images of Adair’s vehicle from the school bus’s surveillance cameras.
On May 11, 2016, law enforcement officers executed a search warrant at Adair’s residence and he was arrested. During the search, officers found an AR-15 rifle, a Marlin rifle, a Ruger rifle, and approximately 12 and a half pounds of marijuana.
Under federal statutes, Adair is subject to a sentence of up to 70 years in federal prison without parole. Under the terms of today’s plea agreement, Adair must pay a fine of $150,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bentonville, Ark., Police Department and the McDonald County, Mo., Sheriff’s Department.
Press Conference Lumberton, NCRead the Press Release
MEDIA ADVISORY
WHEN: Tuesday, January 30, 2018 at 2:30 pm
WHERE: Lumberton Police Department
Goodson Conference Room
1305 Godwin Avenue
Lumberton, NC 28358
Re: Suspects in PNC Bank Robbery Update
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the cases against 4 suspects who shot at 8 patrol cars after robbing PNC Bank in Lumberton, North Carolina on January 23, 2018. Additionally, a 5th suspect has been charged related to the case.
The following law enforcement leaders are scheduled to join United States Attorney Robert J. Higdon, Jr. at the event: Lumberton Police Chief Michael McNeill and Robeson County Sheriff Kenneth Sealey.
Credentialed members of the media are invited to attend. For additional information please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Philadelphia Man Admits Role in Scheme to Steal and Cash Postal Money OrdersRead the Press Release
CAMDEN, N.J. – A Philadelphia, Pennsylvania, man today admitted his role in fraudulently cashing stolen U.S. Postal Service money orders, resulting in more than $22,000 in losses, U.S. Attorney Craig Carpenito announced.
Anthony J. Bell, 38, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued U.S. Postal Service money orders with intent to defraud the United States.
According to the documents filed in this case, other cases, and statements made in court:
Bell admitted that a former U.S. Postal Service employee, Marc. E Saunders, 39, of Sicklerville, New Jersey, provided Bell with stolen money orders and told him to recruit others to cash them. Bell admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money from the fraudulently cashed money orders for Saunders and himself. Bell also admitted he recruited an individual in York, Pennsylvania, to cash the money orders and paid the individual a small fee, keeping the rest of the money from the fraudulently cashed money orders for himself.
The charge for transmitting and presenting unlawfully issued U.S. Postal Service money orders carries a maximum penalty of five years in prison and $250,000 fine. Sentencing is scheduled for May 2, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Executive Special Agent in Charge Kenneth Cleevely of the Eastern Area Field Office with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
OKC Man Sentenced to More Than 14 Years in Prison for Drug ConspiracyRead the Press Release
United States Attorney Trent Shores announced that Juan Garcia, 29, of OKC, was sentenced today by United States District Judge John Dowdell to serve 170 months in federal prison. A jury previously found Garcia guilty of violating the federal drug conspiracy statute. After release from prison, Garcia must serve five years on supervised release. Parole has been abolished in the federal system.
On January 26, 2017, Tulsa Department Police officers pulled over a Chevrolet truck in which Garcia was a passenger. The truck had been following another vehicle engaged in transporting three pounds of methamphetamine from Oklahoma City to Tulsa. Upon a search of the truck and Garcia, officers discovered four cell phones in the truck and $19,915 on Garcia’s person. During the resulting investigation, state and federal law enforcement agencies discovered evidence that Garcia participated in a methamphetamine trafficking conspiracy. At the jury trial, the Assistant United States Attorney proved it, beyond a reasonable doubt.
United States Attorney Shores stated, “If you are a drug trafficker, we are looking your way. We will use all of the tools available to prevent you from bringing drugs into our community. Drug traffickers like Mr. Garcia will be held accountable in a court of law.”
The Drug Enforcement Administration and the Tulsa Police Department jointly investigated this matter. Assistant United States Attorney Eric O. Johnston represented the United States at the sentencing hearing.
New York Man Arrested for Role in ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man is charged with carrying out a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced today.
Saoud “Sam” Rihan, 57, was arrested Jan. 28, 2018 and charged by complaint with one count of conspiracy to commit bank fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint:
Rihan was a business partner of Simon Curanaj, 63, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
For example, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan and Curanaj then applied for three HELOCs from multiple banks in the name of Individual 2.
Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.
The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
The charge and allegations against Rihan are merely accusations, and he is presumed innocent unless and until proven guilty.
Curanaj previously pleaded guilty to his role in the scheme and awaits sentencing.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Steven Perez in Newark; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.New Haven Woman Sentenced to 2 Years in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WANDA PISCIL, 52, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido Gonzalez, also known as “Antonio” and “Julian,” and his brother, Antonio Gonzalez, also known as “Bienve.” The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including PISCIL, in New Haven and elsewhere.
The investigation resulted in federal charges against 24 individuals.
PISCIL was arrested on March 16, 2017. On November 1, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribution of, heroin.
Bienvenido and Antonio Gonzalez previously pleaded guilty to related charges and await sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Nevada Pastor Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., pastor pleaded guilty in federal court today to fraudulently receiving more than $90,000 in Social Security disability benefits.
Dennis Engelbrecht, 58, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to the theft of government money.
Engelbrecht admitted that he was employed as a pastor at Pentecostal Assembly of God Church in Nevada, Mo., while receiving disability benefits over an approximately four-year period. Engelbrecht did not report his work activity to the Social Security Administration, as required.
Although Engelbrecht was paid $650 per week by the church, he received a total of $87,705 in disability payments from February 2011 to May 2015. Additionally, his son received a total of $3,220 in auxiliary benefits to which he was not entitled. (Because Engelbrecht was not entitled to benefits, his son was not entitled to auxiliary benefits.)
Under the terms of today’s plea agreement, Engelbrecht must pay restitution to the government of $90,925.
Engelbrecht has worked as a pastor since 2000. His first application for disability benefits in 2009 was denied, but a second application was approved in 2011. Engelbrecht did not report any current employment on either application.
Under federal statutes, Engelbrecht is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Social Security Administration, Office of Inspector General.
Mt. Pleasant, Iowa Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced January 18, 2018, to over 8 years in federal prison.
Richard Helfrich, 34, from Mt. Pleasant, Iowa, received the prison term after a January 19, 2017, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Helfrich admitted his involvement in a conspiracy that distributed at least 5 grams of actual (pure) methamphetamine between January 2016 and July 2016. In May, 2016, law enforcement executed a search warrant at defendant’s residence in Coulter, Iowa, locating methamphetamine and marijuana. Helfrich admitted to selling methamphetamine and owning a lockbox that previously contained methamphetamine.
Helfrich was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Helfrich was sentenced to 100 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Helfrich is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Franklin County Sheriff’s Office, and Butler County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3046.
Follow us on Twitter @USAO_NDIA.
Morgan County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Matthew Dean Smith, of Great Cacapon, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Smith, age 39, pled guilty to one count of “Possession of an Unregistered Firearm.” Smith admitted to possessing an unregistered silencer. The crime took place in Berkeley County in October 2017.
Smith faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Mauro Vasquez-Bautista, age 21, and a citizen of Mexico, was sentenced on Friday to time served (17 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Vasquez-Bautista, a citizen of Mexico, admitted that he was removed from the United States to Mexico on December 4, 2014. On January 9, 2018, an ICE Officer arrested Vasquez-Bautista in the city of Albany.
Vasquez-Bautista was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Men Sentenced for Recruiting Homeless to Cash Counterfeit ChecksRead the Press Release
NEWPORT NEWS, Va. – Three Georgia men have been sentenced to more than 15 years in prison for recruiting individuals from local homeless shelters to cash counterfeit business checks.
Roderick Saunders, 30, of Atlanta, was sentenced today to 42 months, and Ka-Aron Powell, 26, of Stone Mountain, was sentenced to 65 months. Yumahnn Quashawn Brown, 30, of Atlanta, was sentenced to 75 months in prison on May 24, 2017.
According to their plea documents, Brown, Powell, and Saunders traveled from Georgia to Virginia and other states several times between August 2015 and August 2016, to steal mail, including business checks, from industrial parks and to cash counterfeit checks that had been made using the stolen checks as templates. During these trips, Brown and Powell traveled to homeless shelters, where Brown solicited individuals to perform construction and other day jobs. Brown and Powell then provided the recruits with clothing, food, cigarettes, and alcohol while transporting them to the other areas, often more than an hour away from their respective shelters. During these trips, Brown sent information about the recruited individuals to Saunders and other conspirators, who were transporting counterfeit checks and check-making tools in separate cars. These conspirators made the counterfeit checks payable to the homeless recruits in various amounts and provided them to Brown upon arrival in the targeted areas. Brown then told the homeless recruits that they would be cashing checks at nearby banks instead of performing the jobs he had described. In Virginia alone, the conspirators caused 30 homeless people to cash 70 counterfeit checks drawn on accounts belonging to 30 local businesses. The total value of these counterfeit checks was nearly $160,000.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencings by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
This case was investigated through the U.S. Postal Inspection Services' White Collar Crimes Financial Task Force.
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. 4:16-cr-75.
Member of Multi-State Drug Trafficking Organization Sentenced to Life in Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Antonio Crawley, age 40, was sentenced to life imprisonment without the possibility of parole in federal court in Anderson. The Court also imposed a money judgment against Crawley in the amount of approximately $231,000.
The evidence at trial showed that Crawley participated in a drug conspiracy that spanned 13 years, beginning in 2003. Members of the conspiracy operated in South Carolina, Georgia, Alabama, Texas, and Louisiana. Testimony from numerous witnesses established that during the course of the conspiracy, members of the conspiracy distributed in excess of 100 kilograms of cocaine, over 1,000 pounds of marijuana, and in excess of 5 kilograms of crack cocaine.
Crawley operated primarily in Anderson, South Carolina, as a local distributor. The evidence showed that Crawley utilized multiple sources of supply for cocaine from Atlanta, Georgia and the Upstate of South Carolina. Crawley participated in the conspiracy for approximately nine years.
Law enforcement officers utilized remote surveillance, wiretaps, confidential sources and other investigative techniques to ultimately charge in excess of 20 defendants in the case. Crawley and co-defendant Eric Scott were the only defendants who went to trial.
During the course of the investigation, law enforcement seized in excess of $1.5 million in U.S. Currency, over 5 kilograms of cocaine, quantities of marijuana and crack cocaine, and numerous firearms.
The Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
Assistant U.S. Attorney Andy Moorman, Head of the Narcotics Unit, was the lead prosecutor.
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Maryland U.S. Attorney’s Office Collects over $122 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Acting United States Attorney Stephen M. Schenning announced that the District of Maryland collected $122,236,532.64 in criminal and civil actions in Fiscal Year 2017. Of this amount, $12,749,554.70 was collected in civil actions and $109,486,977.94 was collected in criminal actions.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $36,033,331.72 in cases pursued jointly with these offices. Of this amount, $35,737,378.12 was collected in civil actions and $295,953.60 was collected in criminal actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
The statistics show that the $12,749,554.70 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations. These recoveries reflect civil enforcement actions for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the Department of Defense, the Department of Treasury, U.S. Department of Health and Human Services, and the Drug Enforcement Administration.
These cases include the successful resolution of False Claims Act investigations against AC4S, Inc., to settle allegations that it submitted inflated invoices to the government for work performed at Joint Base Andrews; Comprehensive Health Services, Inc., to settle allegations that it knowingly double-charged for vision screenings and electrocardiograms when those costs were included in the bundled contract price for medical exams performed for IRS Special Agents; and Dr. Hitesh Patel and Dr. Darab Hormozi to settle allegations that they billed false claims to Medicare. Additionally, the District of Maryland collected civil penalties under the Controlled Substances Act on behalf of the Drug Enforcement Administration from its investigation of Cardinal Health for failing to report suspicious orders of controlled substances to the DEA.
The U.S. Attorneys’ Offices, along with Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the District of Maryland, working with partner agencies and divisions, collected $9,876,957 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Manchester Man Who Threatened Federal Probation Officer Sentenced to 41 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PETER J. SANTOS, 41, of Manchester, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 41 months of imprisonment, followed by two years of supervised release, for threatening a federal official. On June 2, 2017, a jury found SANTOS guilty of the offense.
According to the evidence presented during the trial, in January 2014, SANTOS was sentenced in the Southern District of New York to 25 months of imprisonment, followed by three years of supervised release, for conspiring to transport stolen goods, conspiring to receive stolen goods and conspiring to commit wire fraud. On December 31, 2015, after completing his period of incarceration, he began serving his three-year period of supervised release, which was transferred to the U.S. Probation Office in the District the Connecticut.
While on supervised release, SANTOS tested positive for controlled substances on multiple occasions. On August 31, 2016, SANTOS appeared before U.S. District Judge Janet Bond Arterton in New Haven for a supervised release violation hearing. Judge Arterton revoked SANTOS’ supervised release and imposed a penalty of six months of imprisonment to be followed by 24 months of additional supervised release. As the U.S. Marshals were walking SANTOS out of the courtroom, SANTOS looked at his supervising U.S. Probation Officer and stated “When I get out, I’m coming for you.” The Probation Officer responded, “Excuse me?” SANTOS responded, “You heard me.”
After they left the courtroom, a Deputy U.S. Marshal said to SANTOS, “That’s not smart.” SANTOS responded by stating that he did not care and he was tired of it, adding that, “Everyone has to meet their maker whether it is by me or some other way.”
The investigation revealed that SANTOS made additional threats while he was incarcerated on the supervised release violation.
SANTOS has been detained since his arrest on January 30, 2017.
This matter was investigated by the U.S. Marshals Service and was prosecuted by U.S. Attorney John H. Durham.
Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man in possession of stolen handguns, who also conspired to distribute methamphetamine was sentenced January 24, 2018, to 12 years in federal prison.
Stephen Scott Smith, 30, from Austin, Texas, received the prison term after a September 7, 2017, guilty plea to conspiracy to distribute methamphetamine.
Smith was involved in a conspiracy that distributed more than 500 grams of methamphetamine from May 2016 through November 23, 2016. On November 23, 2016, after receiving information from a confidential source, Smith was arrested and discovered to possess two stolen Glock handguns. In addition, during a vehicle search, agents discovered Smith possessed a third handgun and approximately 1/4 pound of crystal methamphetamine. Smith was bringing methamphetamine in large quantities from Texas for resale in Sioux City.
Smith was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Smith was sentenced to 144 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4018. Follow us on Twitter @USAO_NDIA.
Man Convicted of Armed Robberies, CarjackingRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Washington, D.C. man today for his participation in three armed robberies and an armed carjacking.
According to court records and evidence presented at trial, Lamont Kortez Gaines, 28, participated in the armed robbery of an Advance America Cash Advance store in Alexandria and two 7-Eleven convenience stores in Arlington. In addition, Gaines participated in an armed carjacking in Alexandria. Three of Gaines’ co-conspirators—Andrew Bernard Duncan, 27, Desmar Rashad Gayles, 25, and Anton Durrell Harris, 27, all of Washington, D.C.—previously pleaded guilty to charges of brandishing a firearm during and in relation to crimes of violence.
Gaines was convicted of conspiring to obstruct commerce by robbery, obstructing commerce by robbery, carjacking, brandishing a firearm during and in relation to crimes of violence, and unlawful possession of a firearm by a convicted felon. He faces up to life in prison and a mandatory minimum of 82 years in prison when sentenced on April 27. 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, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Michael L. Brown, Alexandria Chief of Police, Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, M. Jay Farr, Arlington County Chief of Police, Henry P. Stawinski III, Chief of Prince George’s County Police, and Peter Newsham, Chief of Police, made the announcement after U.S. District Judge T.S. Ellis, III accepted the verdict. Assistant U.S. Attorneys Alexander E. Blanchard and Rebeca H. Bellows are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-106.
MS-13 Member Sentenced to 13 Years in Prison for RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston for RICO conspiracy involving attempted murder.
Daniel Menjivar, a/k/a “Roca,” a/k/a “Sitiko,” 22, a Salvadoran national who resided in Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 13 years in prison and three years of supervised release. Menjivar will also be subject to deportation upon completion of his sentence. In September 2017, Menjivar pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
After a multi-year investigation, Menjivar was one of 61 defendants named in an indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Menjivar was identified as a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique, which operated in Chelsea. As described in court documents, MS-13 is organized into cliques, which are smaller groups acting under the larger mantle of MS-13 and operating in a specific region, city, or part of a city.
On May 29, 2014, Menjivar and another member of the ECS clique repeatedly stabbed and shot an alleged rival gang member in Chelsea. A cooperating witness recorded Menjivar admitting to the attempted murder on video, proudly telling his fellow gang members how he stabbed the victim 21 times. The victim survived the attack following life-saving efforts by first responders as well as emergency surgery.
In April 2015, federal agents used a cooperating witness to make other recordings in which Menjivar and two other MS-13 members plotted to murder another MS-13 member who they incorrectly believed was cooperating with law enforcement. Menjivar also participated in at least one robbery in furtherance of MS-13 activities.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Lexington Man Sentenced to 60 Months for Arson of Qdoba RestaurantRead the Press Release
LEXINGTON, Ky. - Bennie Davis, 21, of Lexington, was sentenced today to 60 months in federal prison, by United States Senior District Court Judge Joseph M. Hood, for arson of a commercial building. Davis was also ordered to pay restitution, in the amount of $250,000.
Davis previously admitted that, on April 25, 2017, he forcibly entered the Lexington Qdoba Mexican Eats Restaurant on Nicholasville Road, after the store had closed. Davis admitted that he had been an employee of the store, but had been fired just before the arson. Davis started the primary fire in the back room and stole a cash drawer from the safe. Davis pleaded guilty to the charges in October of 2017.
Under federal law, Davis must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Stuart Lowrey, Special Agent in Charge of the ATF, jointly announced the sentence.
The ATF and the Lexington Fire Department conducted the investigation. Assistant United States Attorney Roger W. West represented the United States.
Kenai Man Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Kenai man was sentenced in federal court in Anchorage for possessing images of child pornography.
Phillip Miller, 27, of Kenai, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve six years in prison, followed by a lifetime term of supervised release. Miller previously pleaded guilty on Sept. 25, 2017, to possession of child pornography – access with intent to view.
According to court documents, on May 18, 2016, Miller became the subject of a federal investigation after law enforcement officials received images depicting child sexual exploitation, which were shared by Miller using the Bittorrent peer-to-peer file-sharing network. A search warrant was executed on Miller’s Kenai residence, where law enforcement had seized Miller’s computer. Located on Miller’s computer were approximately 36 images depicting the sexual exploitation of children under 12 involving bestiality, sadism, and bondage. The investigation also revealed that Miller had used search terms to find images of child sexual exploitation to access and view, and that those search terms included the phrase “Toddlercon Incest” among others.
Miller was previously adjudicated in 2005 for the sexual abuse of several children. At sentencing in this matter, Judge Burgess noted the seriousness of the images in this case and of his prior conduct.
The Federal Bureau of Investigation (“FBI”) conducted the investigation leading to the successful prosecution of this case in cooperation with state and local agencies comprising the Alaska Internet Crimes Against Children Taskforce (ICAC). Assistant U.S. Attorney Adam Alexander prosecuted the case.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Jury Finds Fresno Couple Guilty of National Guard Recruiting FraudRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury found Jimmy D. Maldonado, 37, and Mayra L. Maldonado, 31, both of Fresno, guilty of three counts of wire fraud in a scheme to fraudulently obtain payments from a military recruitment program for the California Army National Guard, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Jimmy Maldonado, a former full-time recruiter for the National Guard in the Fresno area, and his wife Mayra Maldonado, a former member of the Guard, defrauded a military recruiting program out of tens of thousands of dollars. The program, the Guard Recruiting Assistance Program (G-RAP), offered a financial incentive to members of the Guard who, on their own civilian time, recruited new soldiers. Guard members, also called Recruiting Assistants, who successfully recruited new soldiers into the Guard were typically eligible to receive $1,000 when a new solider enlisted and another $1,000 when the solider left for basic training.
Mayra Maldonado participated in the G-RAP program as a Recruiting Assistant. Based on documents and testimony presented at trial, Jimmy Maldonado was a full-time recruiter who was ineligible to participate in G-RAP as a Recruiting Assistant and was therefore forbidden to receive G-RAP incentive payments. However, he provided information about new soldiers to his wife Mayra Maldonado. Mayra Maldonado then used that information to claim G-RAP payments for those soldiers, even though she had never met the soldiers and played no role in their decision to join the Guard. In exchange for Jimmy Maldonado giving her information about new soldiers, Mayra Maldonado, on numerous occasions, shared G-RAP money she received with Jimmy Maldonado.
Jimmy and Mayra Maldonado are scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on April, 23, 2018. The Maldonados each face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of factors.
This case is the result of an investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Tierney and Special Assistant U.S. Attorney Jacklin Chou Lem prosecuted the case.
Other National Guard members and recruiters have been charged in similar schemes in the Eastern District of California. The following defendants have been convicted:
- 2:14-cr-153 TLN — Brian Kaps, 44, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. He is scheduled to be sentenced on February 22, 2018.
- 2:14-cr-152 TLN — Sarah Nattress, 30, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. She is scheduled to be sentenced on February 22, 2018.
- 1:14-cr-107 DAD — Leonardo Pesta, 49, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud and was sentenced to two years of probation.
- 1:14-cr-108-LJO — Nicholas Huerta, 36, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud and was sentenced to four years of probation.
- 2:14-cr-151 JAM — Richard C. Sihner, 55, of Elk Grove, was convicted on January 22, 2016 of 18 counts of wire fraud and one count of making false statements following a seven-day jury trial and was sentenced to 30 months in prison.
- 1:14-cr-106 DAD — Joaquin Cuenca, 40, of San Diego, was convicted on February 1, 2016, of three counts of wire fraud and one count of making false statements following a seven-day jury trial. He was sentenced to six months in prison.
Illegal Alien Located in Columbia Pleads Guilty to Illegal Re-entryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Carmen Flores-Bautista, age 39, of Mexico, has entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a). United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Flores-Bautista was encountered by ICE-Homeland Security Investigations agents on January 10, 2017, at the Alvin S. Glenn Detention Center in Columbia after she was arrested for Homicide by Child Abuse. An investigation revealed that Flores-Bautista is a citizen of Mexico who had been deported two times pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.
The case was investigated by agents of the ICE-Homeland Security Investigations. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Illegal Alien Located in Columbia Pleads Guilty to Illegal Re-entryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Juan Arturo Ramirez-Rojo, age 39, of Mexico, has entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a). United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Ramirez-Rojo was encountered by ICE-Homeland Security Investigations agents on January 10, 2017, at the Alvin S. Glenn Detention Center in Columbia after he was arrested for Trafficking Cocaine. An investigation revealed that Ramirez-Rojo is a citizen of Mexico who had been deported two times pursuant to an order of removal. U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 2 years and/or a fine of $250,000.
The case was investigated by agents of the ICE-Homeland Security Investigations. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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INTERPOL Washington Participates in 2018 SORNA WorkshopRead the Press Release
Courtesy Office of Justice Programs, SMART Office. Panel members discuss information sharing and enforcement strategies during the 2017 SORNA workshop.INTERPOL Washington—the U.S. National Central Bureau—participated in the 2018 Sex Offender Registration and Notification Act (SORNA) Workshop, held January 9-10, in Albuquerque, New Mexico. The workshop brought together approximately 200 sex offender registry officials to participate in working groups, presentations, and panel discussions designed to assist U.S. states, tribes, and territories to improve sex offender registration and notification in their areas. It was sponsored by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) in the Office of Justice Programs. Other participants included faculty from the U.S. Marshals Service’s National Sex Offender Targeting Center; the FBI DNA Laboratory; FBI-Criminal Justice Information Services; and state, territory, and tribal representatives.
INTERPOL Washington Supervisory Investigative Analyst Michelle Ford-Stepney along with representatives from the Bureau of Indian Affairs, Administrative Office of the U.S. Courts, and the U.S. Marshals Services participated in a panel on “Information Sharing: Enforcement Strategies.” The panel encompassed registration requirements once an offender is released from custody as well as federal enforcement efforts. Ford-Stepney explained INTERPOL’s role in supporting implementation of SORNA, speaking specifically on the dissemination of sex offender notifications and the Green Notice program.
Under SORNA Supplemental Guidelines, registered sex offenders are required to inform their residence of jurisdiction of any intended travel outside of the United States at least 21 days prior to their departure. The registration jurisdiction collects the information about the offender’s intended international travel and sends that information to the U.S. Marshals Service’s National Sex Offender Targeting Center, which, in turn, reviews and forwards it to INTERPOL Washington for foreign country notification. INTERPOL Washington uses Green Notices to provide information to warn law enforcement organizations in INTERPOL member countries about subjects who are a possible threat to public safety or may commit a criminal offense, including those subjects who have been registered under SORNA.
“These workshops are a great opportunity for officials to come together to share information to improve our tracking and monitoring of sex offenders. Our work to support SORNA is one of a number of areas INTERPOL Washington supports to combat the exploitation of children,” said Ford-Stepney. INTERPOL Washington supports domestic law enforcement agencies by providing investigative assistance and serving as a dedicated channel for exchanging intelligence with INTERPOL member countries to counter the transnational, mobile, and clandestine nature of the criminal organizations and violators who commit human trafficking offenses. The agency also works with domestic and foreign law enforcement authorities, as well as non-government organizations, to locate missing and abducted children, combat child sex tourism, track the international movements of registered and non-compliant sex offenders, and end the production and distribution of child sexual exploitation images worldwide.
SORNA refers to the Sex Offender Registration and Notification Act, which is Title I of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA aims to close potential gaps and loopholes that existed under prior law and generally strengthens the nationwide network of sex offender registration and notification programs. Additionally, SORNA:•Extends the jurisdictions in which registration is required beyond the 50 states, the District of Columbia, and the principal U.S. territories, to include federally recognized Indian tribes.
•Incorporates a more comprehensive group of sex offenders and sex offenses for which registration is required.
•Requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
•Requires sex offenders to provide more extensive registration information.
•Requires sex offenders to make periodic in-person appearances to verify and update their registration information.
•Expands the amount of information available to the public regarding registered sex offenders.
•Makes changes in the required minimum duration of registration for sex offenders.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.Harrison County woman admits to oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brittany Brown, of Stonewood, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Brown, age 32, pled guilty to one count of “Distribution of Oxycodone.” Brown admitted to selling oxycodone in Harrison County in January 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County man admits to a firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Clarksburg, West Virginia man has admitted today to illegally purchasing a firearm, United States Attorney Bill Powell announced.
Michael Lewis Woodyard, age 26, pled guilty to one count of “False Statement to Acquire a Firearm.” He admitted to making a false statement when purchasing two pistols in Harrison County in March 2017.
Woodyard faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.Harpswell Man Sentenced to 52 Months for Theft of Firearms from a Licensed Firearms DealerRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Hyunkook Korsiak, 36, of Harpswell, Maine was sentenced today by Chief Judge Nancy Torresen in U.S. District Court to 52 months in prison for theft of firearms from a federally licensed firearms dealer.
According to court records, on January 3, 2017, the defendant stole firearms from C&R Trading Post. Brunswick Police discovered the theft when they responded to a burglar alarm and found a broken window near the building’s entrance. The police, using a police dog, located several firearms, a sledgehammer and drops of blood on snow in nearby woods. The blood was later determined to be the defendant’s. Korsiak pled guilty to the charge last September.
The case was investigated by the Sagadohoc County Sheriff’s Office; the Brunswick Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Grand Rapids Man Indicted for Possession of Stolen Mail, Credit Card Fraud, and Aggravated Identity TheftRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Kahwahnas Nucumbhi Potts, age 38, of Grand Rapids, Michigan, was arrested today on federal charges related to his possession of stolen mail, aggravated identity theft and credit card fraud. Potts remains in federal custody.
According to the indictment, from at least March 2015 until April 2016, Potts possessed stolen mail belonging to various residents of Kent County, Michigan. Potts applied for numerous credit cards in the names of these residents and unlawfully used credit cards issued to these individuals. Potts carried out his criminal activities by knowingly transferring, possessing and using the means of identification of these individuals, including their names, social security account numbers, and dates of birth, when transacting business with various banks and other financial institutions.
Potts arraignment on these charges is scheduled for 10:30 a.m. on February 1, 2018, in federal court in Grand Rapids, Michigan.
The charges for possession of stolen mail and unlawful use of social security account numbers carry a statutory penalty of up to 5 years’ imprisonment. The use of an unauthorized access device (credit card fraud) carries a statutory penalty of up to 5 years’ imprisonment. The aggravated identity theft charges carry a mandatory minimum penalty of 2 years’ imprisonment, consecutive to any other sentence that the court may impose. If convicted, Potts will also be ordered to pay restitution to his victims.
The Grand Rapids Office of the U.S. Postal Inspection Service, in conjunction with the Grand Rapids Police Department Metropolitan Fraud and Identity Theft Team, is handling the investigation. Assistant U.S. Attorney Ronald M. Stella is prosecuting the case.
The charges in an indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law.
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Former President and CEO of New York City Non-Profit Organization Pleads Guilty to Embezzlement of Government FundsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that DEREK BROOMES, the former president and chief executive officer (“CEO”) of a nonprofit housing organization based in Harlem, New York (the “Housing Nonprofit”), pled guilty before U.S. Magistrate Judge Kevin Nathanial Fox to abusing his position at the Housing Nonprofit to embezzle hundreds of thousands of dollars in federal funds.
U.S. Attorney Geoffrey S. Berman said: “Derek Broomes abused his position by selfishly diverting hundreds of thousands of dollars in public funds designed to assist low-income citizens living with HIV/AIDS. It is hard to imagine a more at-risk, vulnerable tenant population than the one Broomes chose to victimize, and for that reason today’s guilty plea is a deserving one.”
According to the allegations contained in the Complaint, the Indictment, and publicly-available documents:
The Housing Nonprofit is a faith-based, non-profit organization located in New York, New York that develops and provides low-income housing in Harlem to a variety of constituencies. In approximately 2002, DEREK BROOMES, the defendant, became the chief financial officer of the Housing Nonprofit. In approximately 2011, BROOMES became its president and CEO. Prior to joining the Housing Nonprofit, BROOMES worked briefly as a Deputy Commissioner at the New York City Human Resources Administration (“HRA”) and, for three years at the City’s Department of Investigation (“DOI”) in various capacities, including as an investigator and Deputy Inspector General.
Since at least 1999, the Housing Nonprofit has participated in the federally funded Scattered Site Housing Program (“SSHP” or the “Program”), through which the Housing Nonprofit receives federal funds that it uses to subsidize rents for low-income individuals who are living with HIV and/or AIDS. According to Program rules, SSHP funds are to be maintained in a segregated account and used exclusively for Program costs, including rental payments for residents covered by the Program. In fiscal years 2014 and 2015, the Housing Nonprofit received more than $3,000,000 in SSHP funds.
Beginning in at least 2013, BROOMES abused his position as president and CEO of the Housing Nonprofit, stealing hundreds of thousands of dollars in funds from his employer by charging personal and unauthorized expenses to a corporate credit card issued in his name (the “Corporate Credit Card”). Using the Corporate Credit Card, BROOMES routinely paid for personal auto repairs, medical bills, electronics, clothing, and gifts. None of these charges were authorized by the Housing Nonprofit, which ultimately was required to pay the monthly bills on the Corporate Credit Card. In total, between approximately March 2013, when the Corporate Credit Card was issued, and March 2015, when it was cancelled, BROOMES charged $394,145.65 to the Corporate Credit Card. Of that, an analysis conducted by the Housing Nonprofit determined that more than $200,000 of those charges were either personal or otherwise unauthorized.
To cover those expenditures and other operating expenses at the Housing Nonprofit, BROOMES misappropriated hundreds of thousands of dollars in federal funds that were provided through the SSHP. Specifically, BROOMES diverted the SSHP funds, which were intended to be used to cover rent payments for residents covered by the Program, to the Housing Nonprofit’s operating account, where they were used to pay for unauthorized expenses, including the monthly Corporate Credit Card bills. As a result of BROOMES’s diversion of SSHP funds, the Housing Nonprofit was often unable to make rent payments for SSHP apartments on a timely basis. The Housing Nonprofit thus fell increasingly behind on its rent obligations due to a lack of sufficient SSHP funds in its accounts, and tenants it sponsored in the SSHP began to receive threats of eviction by landlords who were owed months’ worth of back rent by the Housing Nonprofit.
Moreover, to conceal his conduct, BROOMES submitted, and caused others to submit, false and fraudulent reimbursement requests to HRA, which administers the SSHP, in which BROOMES and others acting at his direction certified that the Housing Nonprofit had properly used SSHP funds for program expenses, including rental payments, when, in fact, substantial amounts of those funds had been diverted to cover unauthorized expenses, including the substantial charges incurred by BROOMES’s use of the Corporate Credit Card. BROOMES personally signed false and fraudulent paperwork submitted to HRA as a part of the Housing Nonprofit’s monthly certifications and reimbursement requests on May 8, 2013, and July 19, 2013, and directed others to sign similarly false monthly certifications and related paperwork throughout the duration of the charged scheme.
* * *
BROOMES, 72, pled guilty to one count of embezzlement from a federally funded program, which carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. As a condition of the plea, BROOMES consented to the entry of a forfeiture order in the amount of $203,408.80 and further agreed to entry of an order of restitution. BROOMES is scheduled to be sentenced by the Chief Judge Colleen McMahon on April 26th, 2018.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Edward B. Diskant and Alison G. Moe are in charge of the prosecution.
Former Newark Watershed Conservation and Development Consultant Admits Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A political consultant from Essex County, New Jersey, today admitted her role in a fraud scheme related to contracts with the Newark Watershed Development Corp. (NWCDC) and kickbacks to officials there, U.S. Attorney Craig Carpenito announced.
Dianthe Martinez Brooks, 42, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging her with one count of wire fraud.
According to documents filed in this case and statements made in court:
Martinez Brooks was the owner and proprietor of a consulting company called DMart127 LLC, which provided political consulting services to local candidates and elected officials, among others, in the Essex County area. Between May 2011 and March 2013, she participated in a scheme with Linda Watkins Brashear, the former NWCDC Executive Director, and Donald Bernard, the former Director of Special Projects, to defraud the NWCDC of the honest services of Brashear and Bernard, and of money and property.
Martinez Brooks submitted fraudulent invoices to the NWCDC in the name of DMart127 detailing services that were purportedly performed, but which sought payments that overstated the value of any services she or her company performed. Martinez-Brooks also assisted in obtaining contracts between companies owned by Kevin Gleaton and the NWCDC and contracts between a company owned by her relative and the NWCDC through Bernard and Brashear. Fraudulent invoices were submitted in the name of those companies to the NWCDC detailing services that were purportedly performed, but were never rendered by Gleaton, his companies, or Martinez Brooks’ relative. Based on the fraudulent invoices, the NWCDC issued checks to DMart127, Gleaton’s companies and company belonging to Martinez’s relative totaling $225,666. Martinez Brooks kicked back a substantial amount of those proceeds to Brashear and Bernard.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division.
Defense counsel: Paulette Pitt Esq., Woodbridge, New Jersey
Former Member of Westminster Planning Commission Sentenced to 18 Months in Federal Prison for Accepting $15,000 BribeRead the Press Release
SANTA ANA, California – A former member of the Planning Commission for the City of Westminster was sentenced today to 18 months in federal prison for taking a $15,000 bribe to help a person obtain a liquor license.
Dave Vo, 43, of Westminster, was sentenced by United States District Judge James V. Selna.
Following a three-day jury trial, Vo was convicted in September of one count of bribery.
Vo, who is an attorney, served as a Planning Commissioner in the Orange County city from early 2009 through early 2013. By virtue of his position, he had influence over the issuance of conditional use permits.
In 2011, Vo solicited a $15,000 bribe from a confidential informant. The informant reported to the FBI that Vo had solicited a bribe in relation to the issuance of a liquor license. During August 2011, over the course of four meetings, Vo received cash payments that totaled $15,000 in exchange for pushing the liquor license permit through the city’s approval process.
During the trial, the jury heard audio recordings of Vo soliciting the bribe – at one point telling the informant to “stay quiet” and “don’t even mention what’s going on” – and then saw video recordings of the payments being made.
“To line his pockets, [Vo] made a calculated decision to help a bribe payer at the expense of law-abiding members of the community who sought conditional use permits and liquor licenses through legitimate channels,” prosecutors wrote in a sentencing memorandum filed with the court. “In so doing, [Vo] sold his influence on the Planning Commission, giving (as he called it) ‘inside’ access for ‘under the table’ money. That conduct reflects a profound breach of the public’s trust.”
The case against Vo was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Daniel H. Ahn of the Santa Ana Branch Office.
Former Major at Angola Prison Convicted of Federal Obstruction Offenses in Connection with Beating of Handcuffed and Shackled InmateRead the Press Release
A former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty Friday in federal court for conspiring to cover up the beating of a handcuffed and shackled inmate, and for writing a false report, falsifying official records, and lying under oath about what happened.
After four days of trial, a jury convicted Daniel Davis, 41, of Loranger, Louisiana, on four charges related to the cover up. The jury heard evidence that Davis and three other supervisory officers used excessive force against an inmate who was shackled and handcuffed. The other three officers -- former Captains James Savoy, 39, John Sanders, 30, and Scotty Kennedy, 49 -- had all previously pleaded guilty to various federal charges related to the beating and the conspiracy to cover it up. At Davis’s trial, two of the Captains testified for the government and described the abuse and the extensive obstruction of justice.
After hearing testimony over the course of four days, the jury convicted Davis on all four counts related to the cover up of the beating. The evidence showed that Davis and the other officers conspired to cover up an incident in which officers had repeatedly punched, kicked, and stomped an inmate, causing serious injury including a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung. The extensive cover up included lying to investigators, writing false reports, and fabricating prison documents to provide a false alibi for some of the participants.
The jury convicted Davis of conspiring with other officers to obstruct justice; obstructing justice by writing a false report; obstructing justice by corruptly persuading his subordinates to lie; and committing perjury by lying under oath in a federal civil deposition. The jury acquitted Davis on one charge of violating the rights of the inmate by beating him, and failed to reach a unanimous verdict on a second charge related to the beating. The government has not announced whether it intends to re-try the defendant on the count for which there was no verdict.
“As a Major at Angola, defendant Davis had been entrusted with great power, which he grossly abused by perverting the justice system by lying, writing false reports, and using his influence to encourage others to lie,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute correctional officers who violate the public’s trust by committing crimes and to covering up violations of federal criminal law.”
Acting U.S. Attorney Corey R. Amundson said, “Although most corrections officers are good and honest public servants doing an enormously challenging and important job, Defendant Davis chose instead to become a criminal himself. His actions were unjustifiable, intolerable, and criminal. Our office remains steadfast in holding accountable those who violate the federal criminal civil rights laws and this prosecution of four high-ranking Angola corrections officers should illustrate that point very clearly. I greatly appreciate the dedication and hard work of the FBI and the prosecutors from my office and the Civil Rights Division who handled this important matter.”
“It is especially disheartening when those entrusted with power and authority in our criminal justice system choose to violate that trust,” said Louisiana Inspector General Stephen Street. “It is outrageous and threatens the integrity of the system. The Louisiana OIG remains committed to working with the U.S. Department of Justice, the FBI and all of our state and local law enforcement partners to root out this sort of corruption wherever it may exist, and these successful criminal prosecutions of four Louisiana Department of Corrections officers are the latest demonstration of that. I wish to thank Acting United States Attorney Corey Amundson and his staff, as well as the prosecutors from the DOJ Civil Rights Division, for an outstanding job presenting the case.”
This case was investigated by the FBI’s Baton Rouge Resident Agency Office, with assistance from the Louisiana Office of Inspector General, and was tried by Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana, and Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section.
Former Jefferson Parish Sheriff’s Office Chief Deputy Found Guilty of 12 Tax CrimesRead the Press Release
U.S. Attorney Duane A. Evans announced that CRAIG A. TAFFARO, age 70, of Harvey, a former Chief Deputy for the Jefferson Parish Sheriff’s Office, was convicted of all charges alleged in a Superseding Indictment. TAFFARO was found guilty of six counts of tax evasion, five counts of filing a false tax return, and one count of failing to file a tax return.
The jury found that TAFFARO willfully attempted to evade tax due and owing by filing returns with false and exaggerated business expenses for tax years 2009, 2010, 2011, 2012, and 2013, and by causing the filing of a false estimate of his tax liability for tax year 2014. The jury also found that TAFFARO willfully failed to file a tax return when required by law for tax year 2014.
TAFFARO faces maximum terms of imprisonment of five years for each count of tax evasion, three years for each count of filing a false return, and one year for failure to file a tax return. Sentencing is set for April 4, 2018, before U.S. District Court Judge Martin L.C. Feldman.
U.S. Attorney Evans praised the work of the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Chandra Menon, Tracey Knight, and David Sinkman are in charge of the prosecution.
Former Council Bluffs Assistant City Prosecutor Sentenced for Conspiracy to Distribute MarijuanaRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Don Bauermeister, 44, was sentenced in federal court in Omaha. Bauermeister was an Assistant City Attorney in Council Bluffs, Iowa. He entered a plea of guilty to conspiracy to distribute at least 13 pounds but less than 20 pounds of marijuana. The Honorable Laurie Smith Camp, Chief United States District Court Judge, sentenced Bauermeister to five years of probation and a $5,000.00 fine.
On January 9, 2017, a Utah State Trooper recovered 12 pounds of marijuana and a pound of THC wax during a traffic stop on I-80. The driver indicated he drove from Omaha to Oregon on two occasions to pick up marijuana for Bauermeister.
A series of texts from the driver’s phone and Bauermeister confirmed the two trips. When the FBI confronted Bauermeister he resigned his position as Assistant City Attorney for Council Bluffs, Iowa and admitted his involvement in the distribution of marijuana.
In sentencing Bauermeister, Judge Smith Camp recognized the felony conviction and noted that a prosecutor should be held to a higher standard. She then imposed a five year term of probation and a $5,000.00 fine. The sentence was within the advisory guidelines range.
Financial Management Consultant Sentenced for Embezzling Medical Firm & Employee Pension FundsRead the Press Release
PROVIDENCE, R.I. – A former office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, was sentenced today to 37 months in federal prison for embezzling more than $700,000 dollars from bank accounts belonging to the medical firm and to an employee 401(k) pension fund. The total amount of restitution to be paid has bot yet been determined.
John M. Hairabet, Jr., 45, pleaded guilty on July 20, 2017, to six counts of wire fraud, one count of pension fund theft and two counts of money laundering. At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Hairabet to serve 3 years supervised release upon completion of his term of incarceration and to pay restitution to the victims in this case, including pensioners whose money was embezzled from the employee 401(k) pension fund. The total amount of restitution to be paid has not yet been determined by the court.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 37- 46 months. The government recommended the court impose a sentence of 37 months imprisonment.
Hairabet’s sentence is announced by United States Attorney Stephen G. Dambruch; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Carol S. Hamilton, Acting Regional Director, U.S. Department of Labor Employee Benefits Security Administration.
At the time of his guilty plea, Hairabet admitted that between October 2007 and August 12, 2013, in his capacity as an independent contract bookkeeper and office manager of New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants, he embezzled $587,218.36 from bank accounts belonging to New England Anesthesiologists. Hairabet also admitted that he embezzled $120,313 in employee elective deferrals that were to be deposited into an employee 401 (k) pension fund.
The case was prosecuted by Assistant U.S. Attorneys Ronald R. Gendron and Richard W. Rose.
The matter was investigated by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Department of Labor, Employee Benefits Security Administration.
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Elkhart Man Sentenced to 188 Months ImprisonmentRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Enrique Cordova Campos, age 42, of Elkhart, Indiana was sentenced before Chief Judge Theresa Springmann on his guilty plea to conspiracy to possess and distribute more than 5 kilograms of cocaine.
Campos was sentenced to 188 months imprisonment and 5 years supervised release.
According to documents in this case, from May through August of 2016, Campos was supplying kilograms of cocaine to a drug distribution group in the Fort Wayne area. Campos supervised several other individuals who delivered drug shipments this group and who collected money from it. In May of 2016, officers stopped one of these men and seized about $100,000 in drug proceeds. In August of 2016, officers served a search warrant at Campos’s Elkhart residence, finding about $44,000 of drug proceeds in his vehicle and a firearm in his residence.
United States Attorney Thomas L. Kirsch II said, “My office, with our law enforcement partners, is focusing our resources on drug distribution networks in an attempt to reduce illicit drugs on the streets of northeast Indiana.”
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Gang Task Force, which includes the FBI, Indiana State Police, Allen County Sheriff’s Department, and Fort Wayne Police Department. The Elkhart Police Department and the Elkhart County Sheriff’s Department also assisted with this investigation. This case was handled by Assistant United States Attorneys Anthony W. Geller and Stacy R. Speith.
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Eight Individuals Charged with Deceptive Trading Practices Executed on U.S. Commodities MarketsRead the Press Release
Eight individuals who allegedly engaged in various deceptive trading practices on commodities markets in the United States have been publicly charged with federal crimes. Seven of the eight individuals were charged with the crime of spoofing, an illegal trading practice that can be used to manipulate the commodities markets. Other than the individuals identified today, only three other individuals have ever been publicly charged with the crime of spoofing. Of those identified today, five were traders employed by global financial institutions, two were traders at large commodities trading firms, and one was the owner of a technology consulting firm.
The enforcement actions were announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Assistant Director Chris Hacker of the FBI’s Criminal Investigative Division and Director James McDonald of the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Enforcement.
The charges announced today aggressively target, among other things, the practice of spoofing, which was allegedly employed in various forms by these defendants and/or their co-conspirators to manipulate the market for futures contracts traded on the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), and the Commodity Exchange Inc. (COMEX). The defendants and their co-conspirators are alleged to have defrauded market participants and manipulated these markets by placing hundreds, and in some cases, thousands of orders that they did not intend to trade, or “spoof orders,” to create the appearance of substantial false supply and demand and to induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded. According to the charging documents, the spoof orders often had the effect of artificially depressing or artificially inflating the prices of futures contracts traded on CME, CBOT, and COMEX. In order to take advantage of the artificial price levels created by their spoof orders, the defendants and/or their co-conspirators are alleged to have executed real, genuine orders to buy (at the artificially low prices) or to sell (at the artificially high prices) in order to generate trading profits or to illicitly mitigate other trading losses.
“As alleged, the defendants in these cases engaged in sophisticated schemes or trading practices aimed at defrauding individuals and entities trading on U.S. futures exchanges,” said Acting Assistant Attorney General Cronan. “Conduct like this poses significant risk of eroding confidence in U.S. markets and creates an uneven playing field for legitimate traders and investors. The Department and our law enforcement partners will use all of the tools at our disposal, including cutting-edge data analysis, to detect these types of schemes and to bring those who engage in them to justice. Protecting the integrity of our markets remains a significant priority in our fight against economic crime.”
“The FBI has taken enforcement action against multiple commodities traders who, for their own personal gain, were spoofing trades through electronic trading platforms,” said Deputy Assistant Director Chris Hacker. “Their deceptive trading artificially affected the perception of supply and demand in the market and took away a level playing field for investors. We ask for those who observe indicators of this type of fraud to come forward to law enforcement so that we can stop those who attempt to exploit our financial system.”
“Spoofing is a particularly pernicious example of bad actors seeking to manipulate the market through the abuse of technology,” said Director McDonald. “The technological developments that enabled electronic and algorithmic trading have created new opportunities in our markets. At the CFTC, we are committed to facilitating these market-enhancing developments. But at the same time, we recognize that these new developments also present new opportunities for bad actors. We are equally committed to identifying and punishing these bad actors. The CFTC’s enforcement program is built around the twin goals of holding wrongdoers accountable and deterring future misconduct. We believe these goals are best achieved when we hold accountable not just companies, but also the individuals involved. As these cases show, we will work hard to identify and prosecute the individual traders who engage in spoofing, but we will also seek to find and hold accountable those who teach others how to spoof, who build the tools designed to spoof, or who otherwise aid and abet the wrongdoing. These cases should send a strong signal that we at the CFTC are committed to identifying individuals responsible for unlawful activity and holding them accountable.”
Northern District of Illinois
Six individuals have been charged in four cases with spoofing and/or manipulative conduct charged in the Northern District of Illinois including:
- James Vorley, 37, of the United Kingdom, and Cedric Chanu, 39, a French citizen, are charged in a criminal complaint with conspiracy, wire fraud, commodities fraud, and spoofing offenses in connection with executing a scheme to defraud involving both solo and coordinated spoofing on the COMEX while they were employed as precious metals traders at a leading global financial institution. Vorley was based in London, United Kingdom and Chanu was based in London, and the Republic of Singapore.
- Edward Bases, 55, of New Canaan, Connecticut, and John Pacilio, 53, of Southport, Connecticut, are charged in a criminal complaint with commodities fraud in connection with an alleged scheme to engage in both solo and coordinated spoofing on the COMEX when they were employed as precious metals traders at a leading global financial institution. Bases is also charged with spoofing offenses. Bases and Pacilio were based in New York City.
- Jitesh Thakkar, 41, of Naperville, Illinois, is charged in a criminal complaint with conspiracy and spoofing offenses alleging that Thakkar developed a software program that was used by Thakkar’s co-conspirator to engage in spoofing through the placement of thousands of orders on the CME when Thakkar was the founder and principal of Edge Financial Technologies Inc. (“Edge”), an information technology consulting firm located in Chicago, Illinois.
- Jiongsheng (“Jim”) Zhao, 30, of Australia, is charged in a criminal complaint with wire fraud, commodities fraud, making false statements to the CME, and spoofing offenses when he was a trader at a proprietary trading firm located in Sydney, Australia. According to the complaint, data analysis identified hundreds of instances of spoofing by Zhao on the CME between approximately July 2012 and March 2016. Additionally, the complaint alleges that Zhao made false written statements to the CME after being confronted with allegations of his disruptive trading practices.
District of Connecticut
- Andre Flotron, 53, a Swiss national currently residing in Wayne, New Jersey, has been charged in an indictment in the District of Connecticut with conspiracy to commit spoofing, wire fraud, and commodities fraud when he was a UBS AG precious metals trader at UBS’s trading desks in Stamford, Connecticut and Zurich, Switzerland. The indictment also alleges that Flotron trained and instructed another UBS trader in the practice of using spoof orders.
Southern District of Texas
- Krishna Mohan, 33, of New York, New York, is charged in a criminal complaint filed in the Southern District of Texas with commodities fraud and spoofing offenses when he was employed as a programmer and trader at a proprietary trading firm in Chicago, Illinois. According to the complaint, data analysis identified that Mohan engaged in a pattern of spoofing over a thousand times in a two-month period.
Today’s enforcement actions were led and coordinated by the Criminal Division Fraud Section’s Securities and Financial Fraud Unit and the U.S. Attorney’s Office for the District of Connecticut, in conjunction with special agents from FBI Offices in New York, Chicago, Connecticut, and Houston, and with invaluable assistance from the Fraud Section’s partners at the U.S. Attorney’s Office for the Northern District of Illinois, the U.S. Attorney’s Office for the Southern District of Texas, the U.S. Postal Inspection Service and the CFTC’s Division of Enforcement. The cases are being prosecuted by Assistant Chiefs Nicholas Surmacz and Carol Sipperly and Trial Attorneys Michael O’Neill, Matthew Sullivan, Jeffrey Le Riche, Michael Rinaldi, Cory Jacobs, and Mark Cipolletti of the Fraud Section’s Securities and Financial Fraud Unit, along with Assistant U.S. Attorney Avi Perry of the U.S. Attorney’s Office for the District of Connecticut.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website or call 889-549-3945 for more information.
To obtain information on the CFTC’s resolutions with three global financial institutions, please go to: http://www.cftc.gov/PressRoom/PressReleases/index.htm.
Eight Arrested and Charged in Roundup of Rochester Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Carlos Javier Figueroa, a/k/a/ Javi, a/k/a Big Bro, 39, Roberto Figueroa, 42, Leitscha Poncedeleon, 28, and Orlando Yelder, 36, Jose Justiniano-Rodriguez, 18, Jashua Figueroa, 19, and Obed Torres, 21, all of Rochester, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, possession with intent to distribute and distribution of five kilograms or more of cocaine, use of a telephone to facilitate drug trafficking and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life. In addition, Felix Figueroa was arrested and charged in a separate complaint with distribution of cocaine and conspiracy to distribute cocaine, which is punishable by up to 20 years in prison.
Assistant U.S. Attorney Katelyn Hartford, who is handling the case, stated that according to the complaint, Carlos Javier Figueroa is the leader of a Rochester-based drug trafficking organization responsible for distributing numerous kilograms of cocaine in the City of Rochester. The organization was involved in the transportation and sale of cocaine and was also responsible for acts of violence in furtherance of the organization’s drug trade. Various locations throughout Rochester were utilized to receive, store, and sell the supply of illegal narcotics. Carlos Javier Figueroa and his co-conspirators coordinated shipments of cocaine from Puerto Rico, which were sent to locations in Rochester via the United States Postal Service (USPS).
Since September 2017, at least 23 packages have been sent from Puerto Rico to addresses associated with the organization via USPS. Once the packages arrived in Rochester, members of the organization, including Carlos Javier Figueroa, Roberto Figueroa, and Poncedeleon, picked up the packages and took them to another location. The cocaine was then distributed or broken down and packaged for sale in quantities to be further distributed by others.
In April 2017, members of the Rochester Police Department’s Major Crimes Unit and Special Investigations Section received information from an active member of the organization stating that the individual feared for his/her safety. The individual told investigators that Carlos Javier Figueroa was willing to provide a reward for his/her murder and that Carlos Javier Figueroa has had people killed in the past and he/she was very afraid of him.
In December 2017, the Rochester Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives began utilizing court authorized wiretaps and surveilling the area of 6 and 12 Burbank Street in Rochester, believed to be Carlos Javier Figueroa’s residence; 292 Barrington Street in Rochester, believed to be Roberto Figueroa and Poncedeleon’s residence and a stash house where shipments of cocaine are stored; 59 Fernwood Avenue in Rochester, a residence belonging to Carlos Javier Figueroa and the address where at least two packages of suspected cocaine were shipped to from Puerto Rico; and 820 East Main Street in Rochester.
On January 29, 2018, during the execution of state search warrants, law enforcement officers seized more than $600,000 in cash, six assault rifles, two loaded handguns, over three kilograms of cocaine, and a quantity of suspected heroin and fentanyl.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief Mark Henderson; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Gregory Johnson.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Eagle Butte Man Sentenced for PerjuryRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Perjury was sentenced on January 24, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charlie Marshall, age 27, was sentenced to 12 months in custody and a special assessment of $100 to the Federal Crime Victims Fund. The custody sentence is to run concurrently with the sentences imposed in Marshall’s controlled substances and firearms case.
Marshall was indicted by a federal grand jury on May 16, 2017, for Perjury and False Declaration Before a Court. Marshall pled guilty to Perjury on August 11, 2017.
On March 13, 2017, Marshall appeared before U.S. District Judge Roberto A. Lange to plead guilty to conspiracy to distribute a controlled substance, methamphetamine, and firearms charges. At the beginning of the change of plea hearing, Marshall agreed, under oath, to answer questions during the hearing truthfully. Marshall was asked by Judge Lange if he understood that he was under oath and required to answer the Court’s questions truthfully, to which Marshall indicted he understood. Judge Lange specifically asked Marshall if he was under the influence of alcohol or drugs, to which Marshall responded that he was not. Immediately following the hearing, because Marshall smelled of alcohol, a U.S. Probation Officer administered a preliminary breath test to Marshall. The preliminary breath test registered a reading of 0.149.
A second change of plea hearing was held by Judge Lange on March 21, 2017, due to Marshall being under the influence of alcohol during the initial change of plea hearing.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.