Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 January 2018
Dedication Ceremony in Memory of Deborah A. JohnstonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
DEDICATION CEREMONY IN MEMORY OF DEBORAH A. JOHNSTON
Baltimore/ Greenbelt, Maryland - The United States Attorney’s Office for the District of Maryland has the distinct honor of announcing the dedication of the main conference room in the Greenbelt Office of the Southern Division in memory of its former Chief, Deborah Ann Johnston. The dedication will take place Friday, January 19, 2018 at 4 p.m. at the United States Attorney’s Office in Greenbelt, steps away from the office where Debbie worked until her untimely death on November 1, 2017, at the age of 64.
Deborah Ann Johnston was born in Reading, Pennsylvania. She graduated from Holy Name High School in Reading, Penn. in 1971. After high school, she attended Catholic University, where she graduated with a B.A. in Economics, followed by her J.D. Debbie served as a judicial law clerk in the Circuit Court for Prince George's County. Debbie began her career at the Prince George’s County State’s Attorney’s Office in 1988 and was eventually promoted to Chief of the Homicide/Narcotics Unit and then named Deputy State’s Attorney. During her time at the State’s Attorney’s Office, Debbie successful prosecuted high-profile defendants including Kirk Bruce, and Alphonso Quinn.
In November 1994, Debbie began her career at the United States Attorney’s Office for the District of Maryland. Highly decorated and honored, during her 23 years in federal service, she served as Chief of the Southern Division of the United States Attorney’s Office, as Associate Deputy Attorney General in the United States Department of Justice, and as Senior Litigation Counsel for now Deputy Attorney General Rod J. Rosenstein.
Debbie’s cases at the United States Attorney’s Office included dismantling narcotics organizations and prosecuting large multi-defendant drug cases such as Borda, Osorio, Nicholson, Bivins, Hernandez, Changtin, Minnick, Paulette Martin and Omar Steele et al. Though Debbie’s work in narcotic cases was legendary, she also expertly handled capital murder, drug diversion, kidnaping, and fraud cases. Her last trial, in January 2017, resulted in the conviction of a well-known Philadelphia criminal defense attorney for money laundering and obstruction of justice.
Indeed, some of Debbie’s notable prosecutions included her work on death penalty cases which led who to the successful prosecution of the sole two death row defendants in the District of Maryland, ensuring that the interests of the United States were fully vindicated. One of those cases, against Dustin Higgs and Willis Mark Haynes involved the notorious execution of three innocent young girls found dead in the Beltsville Agricultural Research Center in 1996.
Debbie’s sustained exceptional performance in the most complex and difficult cases over the years was unmatched. She worked tirelessly, putting in long hours, and seven-day work weeks. She was the epitome of a dedicated public servant.
Debbie was the first active prosecutor and the second female trial lawyer in Maryland to be offered fellowship in the Maryland Chapter of the American College of Trial Lawyers, whose membership is offered "only by invitation, after careful investigation, to those experienced trial lawyers who have mastered the art of advocacy and whose professional careers have been marked by the highest standards of ethical conduct, professionalism, civility and collegiality."
Debbie also spent years teaching criminal procedure for undergraduate students at the University of Maryland, where she was highly regarded and sought by students interested in pursuing a career in law enforcement.
Debbie’s trial skills were well known. She had instant credibility with judges and juries. Though a zealous advocate for the United States, Debbie’s reputation was as a fair and honorable litigant.
Debbie is greatly missed by family, friends and colleagues. The United States Attorney’s Office celebrates her life and her contribution to the community through the naming of the Deborah A. Johnston conference room.
Credit card theft ringleader sentencedRead the Press Release
ATLANTA - Quentin Pickett has been sentenced for operating a credit card theft ring that stole hundreds of credit cards that were being mailed to accountholders. Pickett and his co-conspirators stole credit cards from the secured baggage loading area of Hartsfield-Jackson International Airport and a private mail sorting facility. After stealing the credit cards, Pickett and his co-conspirators used them at ATMs and elsewhere, attempting over $2.3M in fraudulent transactions and succeeding in extracting approximately $1.7M in funds.
“The harm caused to the citizens and financial institutions affected by this ring is substantial,” said U.S. Attorney Byung J. “BJay” Pak. “People expect their mail to be handled securely, especially within the protected areas of Hartsfield-Jackson International Airport. Pickett led a ring of thieves that circumvented the protocols for secure handling of mail, with no care for those affected by this theft. Citizens must be diligent and continually monitor their own accounts as criminals look for new ways to victimize the public.”
“The U.S. Postal Inspection Service is committed to working with our law enforcement partners to ensure the U.S. Mails are not utilized as a tool to defraud victims in these types of schemes. This investigation is an excellent example of a partnership between law enforcement agencies working together and I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved, which resulted in bringing these individuals to justice,” said David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.
“The United States Secret Service and our law enforcement partners will continue to take an aggressive approach to arrest individuals who violate their positions of trust to illegally enrich themselves,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentence should be a warning to Pickett, Herring, and other like-minded criminals that when they steal from the American people they will be punished for their wrongdoings.”
According to U.S. Attorney Pak, the charges and other information presented in court: From December of 2015 until April of 2017, the defendants stole credit cards from the secured baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility. The stolen credit cards were being shipped via the U.S. Postal Service to the rightful accountholders, who were located throughout the United States.
Pickett was involved in almost every aspect of the scheme, interfacing with co-conspirators who stole credit cards and those who were involved in extracting value from the stolen credit cards. Cornelius Henderson, through his employment at the airport, had access to the airport’s secured baggage loading areas, where he stole mail that contained credit cards. Treveyon Herring worked at a private mail sorting facility where he also stole mail containing credit cards. LaSuhn Turner and Brandon Foster participated in the scheme by assisting Pickett in obtaining cash from the stolen credit cards. Turner used stolen credit cards at ATMs to obtain cash advances. Foster, through his employment as a bank teller, executed fraudulent transactions at the bank when presented with stolen credit cards by other co-conspirators.
Quentin Pickett, 25, of Jonesboro, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross, to six years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,758,476.67. Pickett’s co-defendants have also been sentenced:
- On January 9, 2018, Cornelius Henderson, 23, of Riverdale, Georgia, was sentenced to serve five years and five months in prison, to be followed by three years of supervised release. He was ordered to pay restitution in the amount of $478,222.97.
- On January 10, 2018, Treveyon Herring, 22, of Forest Park, Georgia, was sentenced to serve two years in prison, to be followed by three years of supervised release. He was ordered to pay restitution in the amount of $1,329,334.41.
- On December 7, 2017, LaSuhn Turner, 25 of Stockbridge, Georgia, was sentenced to three years’ probation, with eight months’ home confinement. He was ordered to pay restitution in the amount of $70,483.50.
- On January 16, 2018, Brandon Foster, 25, of Stockbridge, Georgia, was sentenced to three years’ probation, with eight months’ home confinement. He was ordered to pay restitution in the amount of $14,831.
This case was investigated by the U.S. Postal Inspection Service and U.S. Secret Service.
Assistant U.S. Attorney Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Felon Sentenced to 84 Months in Federal PrisonRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bobby Joe Drakeford, Jr., age 27, of Wallace, South Carolina, was sentenced in federal court in Florence, South Carolina, for Felon in Possession of a Firearm. United States District Judge Bryan Harwell, of Florence, sentenced Drakeford to 84 months in federal prison with 3 years of supervised release to follow.
The evidence presented at the guilty plea hearing established that on January 5, 2017, deputies with the Chesterfield County Sheriff’s Office observed a vehicle that matched the description of a vehicle involved in an attempted sale of suspected stolen firearms. After deputies attempted to make a stop on the vehicle, Drakeford, who was driving the vehicle, failed to stop, and a vehicle chase ensued. During the vehicle chase, Drakeford ran a stop sign, slammed the driver side of his car into the passenger side of a deputy’s patrol vehicle, struck a metal light pole, and caused his vehicle to roll into a parked car after exiting the vehicle and fleeing on foot. During the foot chase, a deputy observed Drakeford throw a small pistol over a fence and then climb over the fence. Eventually, Drakeford succumbed to verbal commands to stop, and deputies were able to detain Drakeford and recover the pistol he had thrown over the fence. The evidence presented also established that Drakeford had previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chesterfield County Sheriff’s Office, and the Cheraw Police Department. Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
#####
Columbia Man Sentenced to 22 Years for Child ExploitationRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today on charges related to child pornography and the sexual exploitation of a minor.
Jayme Nathaniel Walker, 43, of Columbia, was sentenced by U.S. District Judge Roseann Ketchmark to 22 years in federal prison without parole. The court also sentenced Walker to a term of supervised release for 25 years following incarceration.
On March 22, 2017, Walker was found guilty of producing child pornography, receiving child pornography and transferring obscene materials to a minor.
Evidence introduced during the trial indicated that Walker communicated with a 14-to-15-year-old victim in Illinois, texting and exchanging pornographic photos and videos. The investigation began on June 13, 2014, when the child victim’s parents contacted Illinois State Police officers. The parents turned over a laptop computer, two cell phones and an iPod to investigators.
The child victim gave information to the investigators regarding his online relationship with Walker. He stated that he never met Walker in person, although they talked about meeting several times. He stated that he told Walker his true age. They had numerous conversations, including sexual conversations, and exchanged sexually explicit photos and videos.
Investigators discovered 77 images and six videos exchanged between Walker and the child victim, although not all of the images depicted child pornography.
According to court documents, investigators also found evidence on Walker’s cell phone that he had a pattern of seeking out minor children through the internet in order to engage in sexual activity. Walker used the Kik app to communicate with a 17-year-old victim and exchange sexually explicit photographs. This victim told investigators that he and Walker met in Columbia and engaged in sex, which is corroborated by the chats. A 13-year-old victim told agents he recalled chatting with Walker, who attempted to arrange a sexual rendezvous with him.
Today’s sentence includes an adjustment for obstruction of justice. The court found that Walker perjured himself by fabricating information while testifying under oath at trial in two instances. The government dismissed a fourth count from the indictment (possession of child pornography) prior to the jury’s deliberations because it could not refute Walker’s testimony. However, following the trial, an FBI agent investigated Walker’s claims and found evidence that Walker’s testimony was false.
This case was prosecuted by Assistant U.S. Attorneys Ashley Turner and Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Illinois State Police.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Columbia Man Pleads to Heroin and Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Abdullah Jabbar Aquil, a/k/a “Wap,” age 42, of Columbia, plead guilty in federal court to possession with intent to distribute heroin and to being a felon in possession of a firearm and ammunition, all in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 851 and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge Mary Geiger Lewis, 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 in court established on February 3, 2017, after making several controlled buys of heroin from Aquil, deputies with the Richland County Sheriff’s Department executed a state search warrant upon one of Aquil’s residences. Inside they found a Glock .40 caliber firearm, ammunition, and digital scales. A further search of Aquil’s vehicle revealed a little over 9 grams of heroin.
Aquil is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions for distribution of cocaine, possession with intent to distribute marijuana 2nd offense, possession of crack cocaine 2nd offense, and possession of a stolen pistol. At the time of the incident, Aquil was on federal supervised release for a 2009 federal conviction for felon in possession of a firearm, for which he previously served a 70 months’ term of imprisonment. Aquil’s federal supervised release was revoked in April 2017, and he is currently serving 24 months’ term of imprisonment for that revocation.
Aquil faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge. On the heroin charge, Aquil faces maximum of 30 years imprisonment, a fine of $2,000,000, and 6 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####
Clairton Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Clairton, Pennsylvania, pleaded guilty yesterday in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Samuel Lopresti, 56, pleaded guilty to one count of conspiracy, between March and August 2017, to distribute cocaine. In connection with the guilty plea, the court was advised that Lopresti was responsible for the distribution of between 400 and 500 grams of cocaine, which he purchased from his codefendant, Skyler Carter, in the Clairton, Pennsylvania area. He is the third of 21 defendants charged in the conspiracy to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for July 11, 2018 at 9:00 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Lopresti remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. 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. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Chula Vista Man Sentenced in Computer Hacking and Wire Fraud SchemeRead the Press Release
Assistant U. S. Attorney Sabrina Feve (619) 546-6786
NEWS RELEASE SUMMARY – January 19, 2018
SAN DIEGO – Victor Alejandro Fernandez was sentenced in federal court today to 129 months in custody for his involvement in a conspiracy to steal and misuse mortgage customers’ sensitive personal information.
Fernandez was charged along with Jason Ray Bailey, John Gordon Baden and Joel Nava with conspiracy to commit wire fraud and computer hacking. Fernandez was also charged with aggravated identity theft. All four defendants have pleaded guilty.
According to charging and sentencing documents, between 2011 and 2014, Fernandez and his coconspirators were part of a Tijuana-based conspiracy that hacked the computer servers of major U.S. mortgage brokers, stole over 4,200 customers’ mortgage applications, and then used the victims’ social security numbers, addresses, dates of birth and personal information to open unauthorized lines of credit and take over and drain victims’ retirement and brokerage accounts.
For example, according to Fernandez’s plea agreement, he identified multiple victims’ brokerage accounts and fraudulently took control of the victims’ accounts by first calling the brokerage companies and providing the victims’ personal identification information, and then changing the victims’ passwords and contact information. Once he and his codefendants gained control of the accounts, members of the conspiracy wired funds from the victims’ brokerage accounts to coconspirators’ U.S. bank accounts in the San Diego and Calexico areas. Several of these wires were over $20,000 and $30,000 each.
DEFENDANT Case Number: 14cr0277GPC
Victor Alejandro Fernandez Age: 42 Chula Vista, CA
SUMMARY OF CHARGES
Count 1: Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalties: Up to 30 years in prison and $1,000,000 fine.
Count 2: Computer Hacking – Title 18, U.S.C., Sections 1030 (a) (4) and (c) (3) (A)
Maximum Penalties: Up to five years in prison and $250,000 fine
Count 5: Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Maximum Penalties: 24 months’ consecutive sentence
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Chugiak Man Sentenced for Threatening Smithsonian Institution Employee by EmailRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Chugiak man was sentenced for emailing threats to a local Smithsonian Institution employee.
Brandon McElroy, 33, of Chugiak, Alaska, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to five years of probation with conditions that McElroy undergo mental health and substance abuse treatment programs. He was also ordered to not comment about the case, directly or indirectly, on social media. McElroy previously pleaded guilty on Dec. 14, 2016, to one count of transmitting threatening communication in interstate commerce.
According to court documents, McElroy worked for several years on a project filming rural Alaska for the Smithsonian Institution’s Arctic Studies Center. As the project began to wind down, McElroy became upset and sent a Smithsonian employee several threatening emails beginning on Feb. 1, 2016. In one email, McElroy stated “I very seriously thought about driving to your house and killing you tonight” and in another “This wasn’t going to go away until one of us was dead.” At sentencing, Judge Burgess noted that McElroy’s threats placed the Smithsonian employee in fear. Even after his guilty plea, McElroy made several social media posts which falsely and intentionally impugned the Smithsonian employee’s integrity and professionalism.
Prior to sentencing, McElroy was ordered by the court to undergo a mental health assessment with the Federal Bureau of Prisons.
U.S. Attorney Schroder commends the Federal Bureau of Investigation, Anchorage Police Department, and Municipal Prosecutors Office for their efforts in the investigation and prosecution of this case.
Chinese National Sentenced in White Plains Federal Court for Economic Espionage and Theft of A Trade Secret from U.S. CompanyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dana J. Boente, Acting Assistant Attorney General for National Security, announced that XU JIAQIANG was sentenced yesterday to five years in prison for economic espionage and theft of a trade secret, in connection with XU’s theft of proprietary source code from XU’s former employer, with the intent to benefit the National Health and Family Planning Commission of the People’s Republic of China. XU previously pled guilty to all six counts with which he was charged. Yesterday’s sentence was imposed by U.S. District Judge Kenneth M. Karas in White Plains federal court.
U.S. Attorney Geoffrey S. Berman said: “As he previously admitted in federal court, Xu Jiaqiang stole high-tech trade secrets from a U.S. employer, intending to benefit the Chinese government. The laws governing economic espionage and trade secrets exist, in part, to protect the sanctity of American ingenuity and property. Xu’s prison sentence should be a red flag for anyone attempting to illegally peddle American expertize and intellectual property to foreign bidders.”
Acting Assistant Attorney General Dana J. Boente said: “Xu, a Chinese national, is being held accountable for engaging in economic espionage against an American company. Xu not only stole high tech trade secrets from his U.S. employer – a federal crime – he did so both for his own profit and intending to benefit the Chinese government. Xu’s sentence clearly demonstrates that the National Security Division will not hesitate to pursue and prosecute those who steal from American businesses. I thank the many people who worked hard to bring this result.”
According to the allegations contained in the Complaint and the Superseding Indictment filed against XU, as well as statements made in related court filings and proceedings:
From November 2010 to May 2014, XU worked as a developer for a particular U.S. company (the “Victim Company”). As a developer, XU enjoyed access to certain proprietary software (the “Proprietary Software”), as well as that software’s underlying source code (the “Proprietary Source Code”). The Proprietary Software is a clustered file system developed and marketed by the Victim Company in the United States and other countries. A clustered file system facilitates faster computer performance by coordinating work among multiple servers. The Victim Company takes significant precautions to protect the Proprietary Source Code as a trade secret. Among other things, the Proprietary Source Code is stored behind a company firewall and can be accessed only by a small subset of the Victim Company’s employees. Before receiving Proprietary Source Code access, Victim Company employees must first request and receive approval from a particular Victim Company official. Victim Company employees must also agree in writing at both the outset and the conclusion of their employment that they will maintain the confidentiality of any proprietary information. The Victim Company takes these and other precautions in part because the Proprietary Software and the Proprietary Source Code are economically valuable, which value depends in part on the Proprietary Source Code’s secrecy.
In May 2014, XU voluntarily resigned from the Victim Company. XU subsequently communicated with one undercover law enforcement officer (“UC-1”), who posed as a financial investor aiming to start a large-data storage technology company, and another undercover law enforcement officer (“UC-2”), who posed as a project manager, working for UC-1. In these communications, XU discussed his past experience with the Victim Company and indicated that he had experience with the Proprietary Software and the Proprietary Source Code. On March 6, 2015, XU sent UC-1 and UC-2 a code, which XU stated was a sample of XU’s prior work with the Victim Company. A Victim Company employee (“Employee-1”) later confirmed that the code sent by XU included proprietary Victim Company material that related to the Proprietary Source Code.
XU subsequently informed UC-2 that XU was willing to consider providing UC-2’s company with the Proprietary Source Code as a platform for UC-2’s company to facilitate the development of its own data storage system. XU informed UC-2 that if UC-2 set up several computers as a small network, then XU would remotely install the Proprietary Software so that UC-1 and UC-2 could test it and confirm its functionality.
In or around early August 2015, the FBI arranged for a computer network to be set up, consistent with XU’s specifications. Files were then remotely uploaded to the FBI-arranged computer network (the “Xu Upload”). Thereafter, on or about August 26, 2015, XU and UC-2 confirmed that UC-2 had received the Xu Upload. In September 2015, the FBI made the Xu Upload available to a Victim Company employee who has expertise regarding the Proprietary Software and the Proprietary Source Code (“Employee-2”). Based on Employee-2’s analysis of technical features of the Xu Upload, it appeared to Employee-2 that the Xu Upload contained a functioning copy of the Proprietary Software. It further appeared to Employee-2 that the Xu Upload had been built by someone with access to the Proprietary Source Code who was not working within the Victim Company or otherwise at the Victim Company’s direction.
On December 7, 2015, XU met with UC-2 at a hotel in White Plains, New York (the “Hotel”). XU stated, in sum and substance, that XU had used the Proprietary Source Code to make software to sell to customers, that XU knew the Proprietary Source Code to be the product of decades of work on the part of the Victim Company, and that XU had used the Proprietary Source Code to build a copy of the Proprietary Software, which XU had uploaded and installed on the UC Network (i.e., the Xu Upload). XU also indicated that XU knew the copy of the Proprietary Software that XU had installed on the UC Network contained information identifying the Proprietary Software as the Victim Company’s property, which could reveal the fact that the Proprietary Software had been built with the Proprietary Source Code without the Victim Company’s authorization. XU told UC-2 that XU could take steps to prevent detection of the Proprietary Software’s origins – i.e., that it had been built with stolen Proprietary Source Code – including writing computer scripts that would modify the Proprietary Source Code to conceal its origins.
Later on December 7, 2015, XU met with UC-1 and UC-2 at the Hotel. During that meeting, XU showed UC-2 a copy of what XU represented to be the Proprietary Source Code on XU’s laptop. XU noted to UC-2 a portion of the code that indicated it originated with the Victim Company as well as the date on which it had been copyrighted. XU also stated that XU had previously modified the Proprietary Source Code’s command interface to conceal the fact that the Proprietary Source Code originated with the Victim Company and identified multiple specific customers to whom XU had previously provided the Proprietary Software using XU’s stolen copy of the Proprietary Source Code.
* * *
In addition to the five-year prison term, XU, 32, formerly of Beijing, China, was ordered to pay a $100 special assessment.
Mr. Berman and Mr. Boente praised the Federal Bureau of Investigation’s outstanding investigative efforts. He also thanked the U.S. Department of Justice’s National Security Division.
The case is being handled by the Office’s Terrorism and International Narcotics Unit and its White Plains Division. Assistant U.S. Attorneys Benjamin Allee and Ilan Graff, with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
Canfield physician incarcerated for tax crimesRead the Press Release
A physician from Canfield was sentenced to six months in jail and ordered to pay $105,673 after failing to pay over Social Security, Medicare and employment taxes collected from his employees, said U.S. Attorney Justin E. Herdman and Ryan L. Korner, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office.
Nicholas M. Garritano, 55, previously pleaded guilty to willful failure to pay over taxes.
"This doctor took out the taxes from his employees but kept the money for himself," Herdman said. "He victimized his workers and those who paid their fair share of taxes."
"As the person who controlled the finances on behalf of Dr. N.M. Garritano, Inc., Dr. Garritano was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes," said Korner. "His failure to pay over the withheld taxes not only affected the revenue to the United States government, but more importantly, it affected the employees’ Medicare and Social Security benefits."
During 11 quarters spanning from 2009 through 2012, Garritano was president and sole shareholder of a corporation run by the name “Dr. N.M. Garritano, Inc.,” located in Canfield. Garritano was responsible for the corporation’s business and financial operations. Garritano caused the corporation to pay taxable wages and salaries to its employees, from which federal income and FICA taxes were withheld, according to court documents.
Garritano filed quarterly forms with the Internal Revenue Service on behalf of the corporation relating to the employment taxes. Although the corporation withheld substantial employment taxes from the wages of its employees for each quarter, the defendant failed to pay over the full amount of the withheld taxes to the IRS, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.
Camden County, New Jersey, Woman Gets 12 Years in Prison for Conspiring to Produce Sexually Explicit Images of Two ChildrenRead the Press Release
CAMDEN, N.J. – An Audubon, New Jersey, woman was sentenced today to 144 months in prison for conspiring with her former boyfriend to produce sexually explicit images of two children, U.S. Attorney Craig Carpenito announced.
Janine Kelley, 36, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiring with Alexander Capasso, 44, of Collingswood, New Jersey, to engage in the sexual exploitation of two children. Judge Simandle imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
Kelley, a registered nurse, entered into a sexual relationship with Capasso in or about 2011, during which Capasso expressed an interest in engaging in sexual conduct with children. From November 2011 through October 2012 Kelley took, and allowed Capasso to take, recorded images of her engaged in sexually explicit conduct with two children. Kelley also took, or allowed Capasso to take, images of Capasso engaged in sexually explicit conduct with one of the children.
In addition to the prison term, Judge Simandle sentenced Kelly to 10 years of supervised release.
Capasso previously pleaded guilty to his role in the conspiracy and was sentenced Jan. 17, 2018 to 20 years in prison.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the FBI Washington D.C., Field Office, under the direction of Assistant Director in Charge Andrew Vale, with the investigation.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Sara Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
California Man Sentenced for Identity Theft, Conspiracy as Part of Scheme to File False Income Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a California man was sentenced for his scheme to use illegally obtained personal identity information of others to prepare false W-2’s and then file false individual income tax returns in order to get refunds due to others.
Demetrick Ruffin, 43, from Los Angeles, CA, was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 95 months (just under 8 years) in prison, followed by a three-year term of supervised release. As a condition of his supervised release, Ruffin is prohibited from accessing, by any means, the internet. A later hearing will determine the amount of restitution to be paid by Ruffin to the victims. Ruffin previously pleaded guilty on April 12, 2017, to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
According to court documents, Ruffin conspired with others to obtain identity information, such as names, dates of birth, and social security numbers, which were then used to prepare false IRS W-2 Forms that contained fabricated wage and withholding amounts. The co-conspirators then took the identity information and falsified documents to tax return preparation services in Anchorage, Eagle River, and Palmer, Alaska, as well as in Los Angeles and Orange County, California, to have tax returns prepared and electronically submitted to the IRS.
The false returns requested refunds totaling between $1,400 and $8,600. In some instances, Ruffin and his co-conspirators used the stolen identity information to claim that the “taxpayers” had dependent children that they did not, in fact, have. By claiming additional dependents, the co-conspirators were able to increase the amount of refunds that the returns generated. In many cases, the defendants applied for refund anticipation loans and had the fraudulently obtained tax refunds loaded onto stored value cards allowing them instant access to the money even if the IRS later rejected the falsely filed returns.
To date, the following co-conspirators have been sentenced as part of this case:
- Jameane Bolton-Williams, of Los Angeles, CA, was previously sentenced to 82 months in prison and ordered to pay restitution in the amount of $91,927.65;
- Joe Douglas, of Los Angeles, CA, was previously sentenced to 57 months in prison and ordered to pay restitution in the amount of $43,043.55;
- Lucille Stansberry, of Los Angeles, CA, was previously sentenced to 36 months and one day in prison and ordered to pay restitution in the amount of $48,619.95.
In imposing the sentence Judge Burgess noted that because of the seriousness of the offenses and the need for deterrence of others, the sentence was at the top of the Sentencing Guideline range. Most importantly Judge Burgess stated, the public needed to be protected because Ruffin had committed part of his crimes while incarcerated in Los Angeles, “undeterred even by jail bars.” Because of the rampant increase in stolen identity tax refund fraud via the internet, Judge Burgess ordered Ruffin to have no access to the internet while on court supervision after serving his sentence.
“The sentence handed down today recognizes the arrogance of Mr. Ruffin’s conduct,” said Assistant Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Mr. Ruffin demonstrated a brazen disregard of the United States tax system and caused immeasurable damage to his victims. Together with the U.S. Attorney’s Office, IRS Criminal Investigation will continue to identify and investigate those who defraud the American taxpayers by stealing identities and filing false tax returns.”
U.S. Attorney Schroder commends the IRS Criminal Investigation for the investigation leading to the successful prosecution of this case.
Belgrade Woman Sentenced to 5 Years in Prison for Drug OffenseRead the Press Release
BUTTE – Shannon Marie Leavitt, a 30-year-old resident of Belgrade, was sentenced today to 60 months in prison followed by four years supervised release after pleading guilty to conspiracy to possess with intent to distribute controlled substances. U.S. District Judge Dana Christensen handed down the sentence.
In late September 2016, investigators from the Missouri River Drug Task Force used a confidential informant to purchase methamphetamine. The confidential informant used Leavitt to arrange the drug deal. Again on October 3, 2016, investigators again used a confidential informant to purchase methamphetamine from Leavitt. The informant and Leavitt went to her father’s, Richard Clarke, house to pick up the methamphetamine. During that transaction, Leavitt told the informant that she was in business of dealing meth with her father.
Investigators also learned that methamphetamine was being shipped through the United States Mail to the Clarke/Leavitt address. Investigators were then notified by the U.S. Postal Service about an express mail package being shipped to that address. Investigators had a K9 from the Bozeman Police Department sniff the package. The K9 positively alerted on the package for the presence of drugs. Investigators obtained a search warrant for Clarke/Leavitt residence. They then delivered the package to the residence. Later that afternoon, Richard Clarke returned to the home, retrieved the package, and went inside. Investigators then executed the search warrant at the house and found evidence of drug dealing. When they searched the Express Mail package, investigators found that it contained a candle and a tennis ball. There was an obvious hole in the tennis ball and investigators pulled a package out of it that contained 10.4 grams of methamphetamine. The candle was cut open which revealed the bottom half had been hollowed out and then resealed in a manner which made it look as though it had not been tampered with. The hollowed out portion of the candle held a package with 29.1 grams of methamphetamine.
Leavitt was interviewed after the search and admitted her role in the conspiracy. She said she was getting an ounce of methamphetamine a week for the past month from her source in Salt Lake City. She further said that she had previously driven to meet her source halfway between Montana and Salt Lake to get methamphetamine. Leavitt also stated that she would send her source the money through Western Union or Wal-Mart to Wal-Mart.
Richard Clarke has also pled guilty to his role in the drug conspiracy and is scheduled to be sentenced on February 21, 2017.
The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Federal Bureau of Investigation, Gallatin County Sheriff’s Office, Bozeman Police Department, and the United States Postal Service. The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Baltimore Man Sentenced to Two Life Sentences Plus 10 Years in Prison for Murdering A Witness in Exchange for Money and DrugsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt / Baltimore, Maryland – United States District Judge Roger W. Titus sentenced Troy Allen Lucas a/k/a “Troy Madron,” age 49, of Baltimore, Maryland to two life sentences and a consecutive ten year sentence in prison for the murder-for-hire of Robert Long. At the time of his death, Long was a cooperating witness in several cases pending in 2007 and 2008 in the Circuit Court for Baltimore City.
The sentence was announced by the Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to evidence presented at the two-week trial, Lucas was a member of "Dead Man Inc." (DMI), a criminal street and prison gang. Lucas symbolized his allegiance to DMI while in prison in 2007 by having a large tattoo of a hangman’s noose around his neck and on his chest.
Jose Morales solicited Lucas and his now deceased brother to kill Morales’s employee, Robert Long, in order to retaliate for Long’s cooperation with the police and to prevent Long from testifying against Morales. Morales paid Lucas in cash and cocaine to kill Long. The federal case focused on the use of cellular telephones with the intent to have Long murdered and the evidence showed that Lucas and Morales used cell phones to contact one another regarding Long’s cooperation and Long’s whereabouts. Minutes after the murder, Lucas called Morales to advise that the “job” was done.
Long was shot twice in the head on March 24, 2008, in an open area behind Traci Atkins Park in southwest Baltimore known as the “Lumber Yard.” The evidence presented at trial showed that Long was shot with a .25 caliber handgun at close range and that Lucas used, carried, and discharged the gun that caused Long’s death.
Jose Joaquin Morales, age 42, of Baltimore, Maryland, was convicted at trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long, and was sentenced to life in prison on December 9, 2013.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
Acting United States Attorney Stephen M. Schenning commended the DEA, Maryland Transportation Authority Police and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Sandra Wilkinson and Martin Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Arkansas Man Charged in the Kidnapping of Edina WomanRead the Press Release
United States Attorney Gregory G. Brooker today announced a federal criminal complaint charging JOSEPH SEAN ANTHONY PORTER, 25, with the kidnapping of an Edina woman. PORTER is currently in custody in Little Rock, Arkansas and will make an initial appearance before a United States Magistrate Judge at a later date.
Alleged in the criminal complaint and law enforcement affidavit is a detailed timeline of PORTER’S actions related to the kidnapping offense. The criminal complaint (including the affidavit) is attached as a pdf document.
The Edina Police Department and the Federal Bureau of Investigation are leading the investigation with assistance from various other state and local law enforcement agencies.
This case is being prosecuted by Assistant United States Attorney Karen B. Schommer.
Defendant Information:
JOSEPH SEAN ANTHONY PORTER, 25
Jacksonville, Ark.
Charges:
- Kidnapping, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Appeals Court Upholds BP Oil Spill Compensation Fund Fraud ConvictionsRead the Press Release
BIRMINGHAM – The U.S. Court of Appeals for the 11th Circuit on Thursday upheld the convictions and sentences for three south Alabama family members who schemed to steal $2 million from the fund established by British Petroleum to compensate victims of the 2010 Deepwater Horizon Oil Spill, announced U.S. Attorney Jay E. Town.
The appellate court affirmed sentences of 12 years and a month in prison for MARCELLA TRUSS, 57, 13 years and three months for her husband, MARTEE DAVIS, 45, and seven years and eight months for Truss’ brother, HOWARD LENARD CARROWAY, 45. A federal jury in Birmingham convicted the trio in October 2014 of conspiracy to commit wire and mail fraud between August 2010 and December 2011 by filing false claims with the Gulf Coast Claims Facility. Separately, the jury convicted each of the defendants on other counts underlying the scheme.
During the course of the scheme, Truss and Davis lived in Grand Bay, Ala., and Birmingham, and Carroway lived in Mobile.
“The Eleventh Circuit affirmed the righteous prosecution of these defendants who chose to exploit a tragedy for their personal gain and at the expense of all of the true victims of this disaster,” Town said. “The FBI led a thorough investigation that enabled the U.S. Attorney’s Office to successfully bring these individuals to justice.”
The overall conspiracy involved the filing of more than 50 fraudulent claims in the names of 37 people alleging damages in the form of lost earnings from the oil spill. All of the claims were purported to be from individuals employed by, or otherwise associated with, a company named Built By Request, which Truss formed in 2006. All 37 people had supposedly worked for, or held an ownership interest in, Built By Request, and claimed they had lost earnings from the company due to the oil spill. All of the claims were indisputably false.
To get the false claims filed, Truss, Davis and Carroway all solicited the participation (and the needed personal information) of others. When the money came in, Truss, Davis or Carroway always took substantial portions of the payments.
###
Albuquerque Woman Pleads Guilty to Assaulting a Federal Law Enforcement OfficerRead the Press Release
ALBUQUERQUE – Charmaine Peralta, 38, of Albuquerque, N.M., pled guilty today in federal court in to assaulting a federal law enforcement officer.
Peralta was charged in Jan. 2017, by criminal complaint with assaulting a federal officer in Bernalillo County, N.M. According to the complaint, Peralta assaulted a Task Force Officer of the South West Investigative Fugitive Team (SWIFT) of the U.S. Marshals Service by biting the Task Force Officer on the arm resulting in bleeding and bruising, and by kicking the Officer repeatedly in the chest. According to the complaint, Peralta committed the assault when SWIFT Officers were executing an arrest warrant on Peralta for the underlying charge of possession of a controlled substance and she became combative and actively resisted arrest when confronted by the Officers.
Peralta subsequently was indicted on March 14, 2017, and was charged with assaulting and resisting a federal officer involving physical contact on Jan. 19, 2017, in Bernalillo County. During today’s proceedings, Peralta pled guilty to the indictment without the benefit of a plea agreement.
At sentencing, Peralta faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the South West Investigative Fugitive Team (SWIFT) of the U.S. Marshals Service for the District of New Mexico with assistance from the New Mexico Department of Corrections and is being prosecuted by Assistant U.S. Attorney David M. Walsh.
2 Los Angeles-Area Men Charged with Conspiring to Illegally Obtain Technology and Computer Chips that Were Sent to ChinaRead the Press Release
LOS ANGELES – Federal authorities this morning arrested two local men on federal charges that allege a scheme to illegally obtain technology and integrated circuits with military applications that were exported to a Chinese company without the required export license.
Yi-Chi Shih, 62, an electrical engineer who is a part-time Los Angeles resident, and Kiet Ahn Mai, 63, of Pasadena, were arrested this morning without incident by federal agents.
Shih and Mai, who previously worked together at two different companies, are named in a criminal complaint unsealed this morning that charges them with conspiracy. Shih is also charged with violating the International Emergency Economic Powers Act (IEEPA), a federal law that makes illegal, among other things, certain unauthorized exports.
The complaint alleges that Shih and Mai conspired to illegally provide Shih with unauthorized access to a protected computer of a United States company that manufactured specialized, high-speed computer chips known as monolithic microwave integrated circuits (MMICs). The conspiracy count also alleges that the two men engaged in mail fraud, wire fraud and international money laundering to further the scheme.
According to the affidavit in support of the criminal complaint, Shih and Mai executed a scheme to defraud the U.S. company out of its proprietary, export-controlled items, including technology associated with its design services for MMICs. As part of the scheme, Shih and Mai accessed the victim company’s computer systems via its web portal after Mai obtained that access by posing as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. Shih and Mail allegedly concealed Shih’s true intent to transfer the U.S. company’s technology and products to the People’s Republic of China.
“This case outlines a scheme to secure proprietary technology, some of which was allegedly sent to China, where it could be used to provide companies there with significant advantages that would compromise U.S. business interests,” said United States Attorney Nicola T. Hanna. “The very sensitive information would also benefit foreign adversaries who could use the technology to further or develop military applications that would be detrimental to our national security.”
“According to the complaint, the defendants allegedly schemed to illegally export semiconductors having military and civilian applications to a Chinese company,” said Acting Assistant Attorney General Boente. “Protecting this type of technology and preventing its illegal acquisition by our adversaries remains a key priority in preserving our national security.”
The victim company’s proprietary semiconductor technology has a number of commercial and military applications, and its customers include the Air Force, Navy and the Defense Advanced Research Projects Agency. MMICs are used in electronic warfare, electronic warfare countermeasures and radar applications.
“The FBI, working jointly with our law enforcement partners, remains committed to bringing to justice those who seek to illegally export some of our nation’s most sensitive technologies to the detriment of our national security and hard-working United States companies,” said Paul Delacourt, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Rest assured, the FBI will continue to diligently pursue any and all leads that involve the illegal exportation of U.S. technology which will cause harm to our long-term national security interests.”
The computer chips at the heart of this case allegedly were shipped to Chengdu GaStone Technology Company (CGTC), a Chinese company that established a MMIC manufacturing facility in Chengdu. Shih was the president of CGTC, which in 2014 was placed on the Commerce Department’s Entity List, according to the affidavit, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and technologies for unauthorized military end use in China.” Because it was on the Entity List, a license from the Commerce Department was required to export U.S.-origin MMICs to CGTC, and there was a “presumption of denial” of a license.
The complaint outlines a scheme in which Shih used a Los Angeles-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of MMICs by the victim company. The complaint affidavit alleges that Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States.”
Mai acted as the middleman by using his Los Angeles company – MicroEx Engineering – to pose as a legitimate domestic customer that ordered and paid for the manufacturing of MMICs that Shih illegally exported to CGTC in China, according to the complaint. It is the export of the MMICs that forms the basis of the IEEPA violation alleged against Shih. The specific exported MMICs also required a license from the Commerce Department before being exported to China, and a license was never sought or obtained for this export.
“Today’s actions serve as a reminder that the government will hold individuals accountable who fraudulently procure and export unlawfully protected United States technology and attempt to conceal their criminal activity through international money laundering,” stated Special Agent in Charge R. Damon Rowe with IRS Criminal Investigation. “The IRS plays an important role in tracing illicit funds through both domestic and international financial intuitions. The IRS is proud to partner with the FBI and Department of Commerce and share its world-renowned financial investigative expertise in this investigation.”
“Today’s arrests demonstrate the Office of Export Enforcement’s strong commitment to enforcing our nation’s export control and public safety laws,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office. “We will continue to work with our law enforcement partners to identify, deter, and keep the most sensitive U.S. origin goods and technology out of the most dangerous hands.”
Shih and Mai are expected to make their first court appearances this afternoon in United States District Court in downtown Los Angeles.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If they were to be convicted of the charges in the criminal complaint, Mai would face a statutory maximum sentence of five years in federal prison, and Shih could be sentenced to as much as 25 years in prison.
This case is being investigated by the Federal Bureau of Investigation; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and IRS Criminal Investigation.
The case against Shih and Mai is being prosecuted by Assistant United States Attorneys Judith A. Heinz, Melanie Sartoris and Khaldoun Shobaki of the National Security Division, and Trial Attorney Matthew Walczewski of the Department of Justice’s National Security Division.
18 January 2018
Wynantskill Woman Pleads Guilty to Misusing Names of Government AgenciesRead the Press Release
ALBANY, NEW YORK – Kristina Gross, age 37, of Wynantskill, New York, pled guilty today to misusing the names of the Department of the Treasury and the Internal Revenue Service (IRS), a misdemeanor offense.
The announcement was made by United States Attorney Grant C. Jaquith and William A. Kalb, Special Agent in Charge of the Northeastern Field Division of the Office of the Treasury Inspector General for Tax Administration (TIGTA).
As part of her guilty plea, Gross admitted that she worked for a construction services company in Rensselaer County, whose bank account had been levied by the IRS on February 14, 2017. On February 23, Gross twice emailed a bank employee what she claimed was an IRS release of levy form, in an unsuccessful attempt to induce the bank to provide her company with access to funds that the bank had frozen as a result of receiving the IRS levy.
Gross admitted that the document she sent to the bank on February 23 was forged, inaccurate and not approved or authorized by the Department of the Treasury or the IRS. She also knew that the document would create the false impression at the bank that the IRS had actually issued the document when, in fact, the IRS had not.
Gross faces up to a year in jail and a maximum $10,000 fine when she is sentenced on May 18, 2018 by United States Magistrate Judge Daniel J. Stewart. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by TIGTA and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
West Hartford Man Sentenced to Prison for Distributing Fentanyl and PCP to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN MALDONADO, also known as “Chewy,” 31, of West Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing fentanyl and PCP to an overdose victim in 2016. Judge Underhill also ordered MALDONADO to pay restitution to the victim’s family to cover the victim’s funeral expenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 25, 2016, Bristol Police and emergency medical personal responded to a Bristol residence on a report of an untimely death and encountered a deceased 24-year-old female on a bed in the residence. At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone, numerous wax folds that are typically used to package heroin, and two Naloxone injectors (one used and one unused) contained within an overdose kit. A witness at the scene reported that the victim had recently sought medical assistance for bleeding from the ears.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died from fentanyl and PCP intoxication.
The investigation revealed that MALDONADO provided drugs to the victim shortly before her death. The victim’s cellphone contained numerous text messages between MALDONADO and the victim. In one text message sent the day before she was found dead, the victim stated “Omg! Im bleeding out my ears!! Wat did u giv me?”
MALDONADO was arrested on May 26, 2016. On September 26, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl and phencyclidine (“PCP”).
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Bristol Police Department. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Waterville Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Darin Doe, 41, of Waterville, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 10 years in prison and 10 years of supervised release for possession of child pornography. He was also ordered to pay $5,000 in restitution. Doe pled guilty on July 12, 2017.
According to court records, on about November 4, 2015, Doe possessed over 7,000 computer files depicting images of child pornography. Many of these images, which he had purposely sought out and downloaded from the Internet, depicted the sexual exploitation of prepubescent girls under the age of 12. Doe was subject to a mandatory-minimum prison term of 10 years because of his 2002 federal conviction for receiving child pornography.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Waterloo Man Sentenced to Nine Years in Federal Prison for Unlawfully Possessing GunRead the Press Release
A man who broke into a semi-truck and stole the driver’s firearm was sentenced yesterday to nine years in federal prison.
Willie Johnson, age 46, from Waterloo, Iowa, received the prison term after a June 29, 2017, guilty plea to being a felon in possession of a firearm.
In a plea agreement, Johnson admitted he knowingly possessed the firearm, despite being a felon with previous convictions including assault by display of a weapon, carrying weapons, and possession of crack cocaine with intent to deliver. Evidence at sentencing showed that Johnson obtained the firearm after breaking the windows of a semi-truck during a domestic dispute, and stealing the driver’s firearm when she fled to get help. Johnson was apprehended later that day with the firearm in his possession. Evidence also showed that Johnson, a former Mixed Martial Arts fighter, threatened the driver and her family members on multiple occasions in an attempt to dissuade her from testifying about his theft of the firearm.
Johnson was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Johnson was sentenced to 108 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
“Fighting violent crime is one of the highest priorities of this office and the Department of Justice,” said United States Attorney Peter E. Deegan, Jr. “Through Project Safe Neighborhoods, we will continue to work with our law enforcement partners to send armed offenders to prison and make our communities safer.”
Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Ravi T. Narayan and Lyndie M. Freeman and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2019.
Follow us on Twitter @USAO_NDIA.
Valparaiso Man Sentenced to 60 Months ImprisonmentRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Brian Oliver, age 41, of Valparaiso, Indiana was sentenced before U.S. District Court Judge James T. Moody. Oliver was sentenced to 60 months of imprisonment, and 2 years of supervised release.
According to documents in this case, Brian Oliver, pled guilty to possession of a stolen firearm. On July 15, 2016, the defendant knowingly possessed a stolen firearm which was a Glock 19 9mm pistol, a firearm that had been shipped in interstate commerce before being stolen.
The case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Valparaiso Police Department. This case was prosecuted by Special Assistant United States Attorney Armando Salinas.
# # #
Union Officer Pleads Guilty to Embezzlement, Aggravated ID TheftRead the Press Release
PROVIDENCE, RI – A former business manager and financial secretary for the Operative Plasterers and Cement Masons International Association Local 40 in Rhode Island pleaded guilty in federal court in Providence today to charges that he embezzled approximately $319,795 in union funds.
Richard D’Antuono, 42, of Cranston, pleaded guilty to a three-count information charging him with embezzlement from a labor organization, embezzlement from an employee benefit plan, and aggravated identity theft, announced United States Attorney Stephen G. Dambruch and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, Boston-Buffalo District Office.
Appearing before U.S. District Court Chief Judge William E. Smith, D’Antuono admitted to the Court that for two years, beginning in 2015, he embezzled approximately $319,795 from a union operational account and from an apprentice fund, an employee benefit plan used to finance training programs for apprentice plasterers and masons and for the retraining or refresher training of journeymen union members.
D’Antuono admitted to the Court that he made checks out to himself substantially in excess of his salary and a stipend to which he was entitled. In some instances, he had the authorized signatories sign blank checks, which he later used to embezzle funds from the operational account. In other instances, he forged the signature of the authorized signatories on checks. D’Antuono admitted that he also embezzled funds from the Apprenticeship Fund by writing checks payable to the Local 40 operation account and then embezzling the funds in the same manner.
D’Antuono was the sole full-time officer of the Operative Plasterers and Cement Masons International Association Local 40.
D’Antuono is scheduled to be sentenced on April 6, 2018. Embezzlement from a labor organization is punishable by statutory penalties of up to 5 years imprisonment, a fine of $10,000 and a term of supervised release of 3 years. Embezzlement from an employee benefit plan is punishable by statutory penalties of up to 5 years imprisonment, a fine of $250,000, and a term of supervised release of 3 years. Aggravated identity theft is punishable by statutory penalties of mandatory term of two years imprisonment in addition to the sentence imposed on counts on the embezzlement charges.
The case is being prosecuted by John P. McAdams.
The matter was investigated by U.S. Department of Labor, Office of Labor-Management Standards with the Office of Inspector General Office of Investigations - Labor Racketeering & Fraud, and the Employee Benefits Security Administration.
###
U.S. Attorney’s Office Collects $3,332,723.69 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that the District of Maine collected $3,332,723.69 in criminal and civil actions in Fiscal Year (FY) 2017. Of this amount, $2,755,431.76 was collected in criminal actions and $577,291.93 was collected in civil actions.
Additionally, the District of Maine worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $283,936.46 in cases pursued jointly with these offices. Of this amount, $6,000 was collected in criminal actions and $277,936.46 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the FY 2017 ending September 30, 2017.
The U.S. Attorneys’ Offices, along with the department’s 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’s 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 Maine, working with partner agencies and divisions, collected $915,194 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.
U.S. Attorney Presents Program to Streamline Decision on State or Federal ProsecutionRead the Press Release
BIRMINGHAM – U.S. Attorney Jay E. Town today presented Alabama district attorneys with a new program to boost collaboration between state and federal prosecutors in choosing which jurisdiction is best for prosecuting repeat offenders or defendants accused of serious criminal conduct.
Town detailed his Prosecutor-to-Prosecutor Program, or P3, at a statewide gathering of state prosecutors at The Wynfrey Hotel in Hoover for the Alabama District Attorneys Association 2018 Winter Conference. Every district attorney in the Northern District of Alabama has agreed to participate in P3, he said.
P3 is a six-step process by which state and federal prosecutors jointly determine whether a criminal case should be prosecuted by the U.S. Attorney’s Office, Town said. It is part of Project Safe Neighborhoods, the Department of Justice’s centerpiece program for fighting violent crime. PSN and P3 both underscore the need to target the worst offenders in the worst areas of crime in order to reduce violence.
“This program will advance the common goal of state and federal prosecutors to charge our worst offenders with the most serious, readily provable offense in whichever jurisdiction offers the greatest available sanction,” Town said.
P3 is designed to capture cases that, otherwise, would not come to the attention of federal prosecutors.
P3 liaisons in the U.S. Attorney’s Office and in each of the district attorney’s offices within the Northern District will ensure consistent communication among the prosecutorial agencies. DA’s offices also have received a “P3 Overlay” identifying state and federal criminal statutes with similar elements. Common elements that could trigger federal prosecution include use of a firearm, crossing of state lines, use of phones or internet to commit a crime, or victimizing an institution that is federally regulated or insured, or that receives federal grant funds.
“The training conducted today is the product of local, state and federal law enforcement representatives investing hundreds of hours to develop P3’s strategic framework,” Town said. “Prosecutors at all levels can now collectively target our worst offenders like never before.”
###
U.S. Attorney Announces Senior Leadership TeamRead the Press Release
WHEELING, WEST VIRGINIA –United States Attorney Bill Powell has announced his Senior Leadership Team. Those appointed to the team bring a combined 109 years of service to the United States Attorney’s Office in the Northern District, and will assist Mr. Powell in the management of the Wheeling, Martinsburg, Clarksburg, and Elkins offices.
Those named are Randolph J. Bernard, First Assistant United States Attorney; Helen Campbell Altmeyer, Civil Division Chief; Paul T. Camilletti, Criminal Division Chief; Fawn E. Thomas, Administrative Officer; and Traci M. Cook, Branch Office Supervisor Clarksburg.
“I am excited about our team. We have important work to do, but I am confident we will get it done. The guidance and support I have already received has been invaluable. Along with our dedicated Assistant United States Attorneys and all of our support staff, we will continue to do the work of our district in a professional and unwavering manner,” said Powell.
Assistant United States Attorney Randolph J. Bernard has been named First Assistant United States Attorney, after the retirement of former First Assistant Betsy Steinfeld Jividen. Mr. Bernard previously served as the Chief of the Criminal Division. Mr. Bernard joined the office in 2002. Mr. Bernard has also served as the District Office Security Manager. Before becoming an Assistant United States Attorney, Mr. Bernard served as a Special Agent with the Federal Bureau of Investigation in the Wheeling, West Virginia Resident Agency. Prior to the FBI, he was a litigator with Coolidge, Wall, Womsley & Lombard in Dayton, Ohio.
Helen Campbell Altmeyer will continue in her role at the Civil Division Chief. She has served as an Assistant United States Attorney in the Civil Division since 1989. Before joining the United States Attorney’s Office, Ms. Altmeyer was an Associate at Bachmann, Hess, Bachmann & Garden, in Wheeling, West Virginia. She also served as an Assistant County Prosecutor in Ohio County, West Virginia, where she was primarily responsible for handling child abuse and neglect cases.
Paul T. Camilletti has been named the Criminal Division Chief. Mr. Camilletti was most recently the Deputy Chief of the Criminal Division. He joined the office in 1991 as an Assistant United States Attorney responsible for Asset Forfeiture. He has also served as a task force attorney for the Organized Crime Drug Enforcement Task Force. He presently serves as the National Security Cyber Specialist and Crisis Management Coordinator. Before joining the United States Attorney’s Office, Mr. Camilletti was a partner in the law firm of Camilletti & Sacco in Wheeling, West Virginia. He has also served as an assistant Prosecuting Attorney in both the Ohio County and Marshall County, West Virginia Prosecutor’s offices.
Fawn E. Thomas will continue in her role as Administrative Officer, serving as the Chief of the Administrative Division and as the primary advisor to the United States Attorney for planning and managing all office resources. Ms. Thomas has been with the office since 1983. Prior to her appointment as Administrative Officer, she served as the Public Affairs Specialist and the Human Resource Specialist. Ms. Thomas was previously an EEO Investigator for the Executive Office for United States Attorneys and an Evaluation and Review Staff Evaluator. Ms. Thomas also served on the Administrative Officers’ Working Group.
Traci M. Cook is the branch office supervisor in the Clarksburg office. Ms. Cook joined the office in 2016. Before becoming an Assistant United States Attorney, Ms. Cook was a senior assistant prosecuting attorney in Harrison County. She also served as an associate attorney at Reed Kimble PLLC in Morgantown, West Virginia. Prior to that, she was an assistant public defender in Clarksburg, West Virginia and an associate attorney at Seibert & Kasserman, LC in Wheeling, West Virginia.
Tyler County man admits to meth distribution and a firearm violationRead the Press Release
WHEELING, WEST VIRGINIA – A Middlebourne, West Virginia man has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
William “Jack” Parr, age 51, pled guilty to one count of “Conspiracy to Possess With Intent to Distribute and to Distribute Methamphetamine” and one count of “Possession of a Firearm by a Prohibited Person.” Parr admitted to distributing methamphetamine from 2015 to August 2017 in Tyler County, West Virginia. Parr, having previously been convicted of a felony in the Circuit Court of Tyler County, also admitted to illegally possessing two .22 caliber pistols, a 9mm pistol, and a .45 caliber pistol.
Parr faces up to 20 years incarceration and a fine of up to $1,000,000 for the conspiracy charge, and up to 10 years incarceration and a fine of up to $250,000 for the firearms charge. 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 Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office are investigating.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Sentenced for Fentanyl DistributionRead the Press Release
Concord, N.H.—Acting United States Attorney John J. Farley announced that Jose Serrano Ayuso, 31, and Lilian Zapata, a/k/a Marta Arus, 52, both previously of Manchester, New Hampshire, have been sentenced to federal prison for their roles in a conspiracy to distribute fentanyl in 2016.
According to court records and statements in court, on several occasions between August and October of 2016, investigators used a cooperating individual to make purchases of heroin from Ayuso. On two occasions when Ayuso was unavailable, Zapata delivered the requested drugs. Laboratory analyses later showed that the defendants actually were distributing fentanyl.
During the execution of a search warrant at the defendants’ shared residence in Manchester in October 2016, investigators found more than 230 grams of fentanyl, a handgun, drug ledgers, over $5,000 of U.S. currency, and identifying documents in Ayuso’s bedroom. In the apartment kitchen, investigators found an iced tea container containing over 640 grams of fentanyl. Investigators also located a scale and a press for forming “fingers” of fentanyl for distribution in other areas of the apartment. In total, this investigation led to the seizure of more than one kilogram of fentanyl.
Both Zapata and Ayuso pleaded guilty in fall 2017. On January 5, 2018, Zapata received a sentence of 54 months in prison. On January 18, 2018, Ayuso received a sentence of 144 months in prison.
“As our state grapples with the challenges of the opioid crisis, there are still those who seek to profit from the sale of fentanyl and other deadly drugs,” said Acting U.S. Attorney Farley. “Far too many lives in New Hampshire have been lost to drug overdoses. Those who choose to sell fentanyl and other deadly drugs are endangering their customers and causing great damage to our community. We will continue to work closely with our law enforcement partners to stop the flow of fentanyl into the Granite State and to protect our community from further harm.”
“Mr. Ayuso and Ms. Zapata will now pay the price for their roles in a large scale drug operation that distributed more than a kilo of fentanyl, the top cause of drug related deaths in New Hampshire,” said Harold H. Shaw, Special Agent in Charge, Federal Bureau of Investigation’s (FBI) Boston Division. “Each and every day, the FBI New Hampshire Safe Streets Gang Task Force is hard at work targeting distributors and their supply chains, who are blatantly contributing to the tragic opioid crisis that is wreaking havoc in communities all over our state.”
The matter was investigated by the FBI Safe Streets Gang Task Force, which consists of FBI Special Agents and members of the Manchester Police Department, the Hudson Police Department, the New Hampshire State Police, the Nashua Police Department, and the New Hampshire Department of Corrections Probation and Parole. Investigators also received assistance of the New Hampshire HIDTA. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
###
Two Mineral County men appear on drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Keyser, West Virginia man and a Piedmont, West Virginia man appeared in federal court after being indicted by a grand jury in November 2017 for drug distribution charges, United States Attorney Bill Powell announced.Jordan Foster, of Piedmont, age 22, was indicted on one count of “Distribution of Cocaine Base,” four counts of “Distribution of Cocaine Hydrochloride,” one count of “Possession with Intent to Distribute Cocaine Hydrochloride,” and “Aiding and Abetting Possession with Intent to Distribute Hydrochloride.” Foster is accused of distributing cocaine and cocaine hydrochloride in July and August 2017 in Mineral County.
Brandon Suter, of Keyser, age 26, was indicted on one count of “Aiding and Abetting Possession with Intent to Distribute Hydrochloride.” Suter is accused of assisting Foster in possessing with the intent to distribute cocaine hydrochloride in August 2017 in Mineral County.
Foster faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Suter faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug and Violent Crimes Task Force is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Magistrate Judge Robert W. Trumble presided.
Two Men Indicted for Illegally Trafficking American EelsRead the Press Release
Joseph Kelley and James Lewis were each indicted in Newark, New Jersey, with crimes related to illegally trafficking juvenile American eels, also known as “elvers” or “glass eels.” A seven-count indictment was returned on Jan. 18, 2018, charging Kelley and Lewis with conspiracy to smuggle elvers and violate the Lacey Act.
The Indictment alleges that Kelley and Lewis knowingly harvested elvers illegally in the states of New Jersey and Massachusetts, and sold those elvers to dealers or exporters. Among those dealers is Thomas Choi, who pleaded guilty to related crimes in the District of Maine in 2016, and who was subsequently sentenced to six months’ imprisonment for those offenses.
The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and Acting Director Greg Sheehan of the U.S. Fish and Wildlife Service.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand. However, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels. Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
These indictments were the result of “Operation Broken Glass,” a multi-jurisdiction, U.S. Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in two other indictments, as well as guilty pleas for nineteen other individuals in Maine, Virginia, and South Carolina. These defendants combined have admitted to illegally trafficking more than $4.5 million worth of elvers.
Operation Broken Glass was conducted by USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.
Two Men Admit They Were Crew Members Aboard a Go-Fast Vessel Full of Cocaine; Plead Guilty to Drug ChargesRead the Press Release
Assistant U.S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – January 18, 2018
SAN DIEGO – Roberto Carlos Sanchez-Loor and Jose Antonio Gomez-Cuzme, both Ecuadorian nationals, pleaded guilty in federal court today to conspiracy to distribute and cause the distribution of approximately 980 kilograms of cocaine, knowing that the cocaine would be unlawfully imported into the United States.
Each defendant admitted that they were crew members on board a stateless go-fast vessel (GFV) in international waters approximately 110 nautical miles southwest of the Guatemalan and El Salvadorian border and that they were helping transport the cocaine northward for distribution into the United States.
According to court documents, on May 23, 2017, the U.S. Coast Guard (USCG) interdicted the GFV in international waters after a maritime patrol aircraft initially detected the GFV with three persons onboard. The USCG Cutter Waesche interdicted the GFV.
The defendants will appear for sentencing on April 6, 2018 before U.S. District Court Judge Dana M. Sabraw. The remaining defendant, Edwin Cristobal Vera-Solorzano, is set for a motion hearing on January 26, 2018 at 2 p.m.
Bales of Cocaine Seized from GFV
Blue GFV containing bales of cocaine
Individual cocaine packages weighing 980 kilograms taken from GFV.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Criminal Case No.17CR1656DMS
ROBERTO CARLOS SANCHEZ-LOOR 32 years old Ecuador
JOSE ANTONION GOMEZ-CUZME 31 years old Ecuador
SUMMARY OF CHARGES
Conspiracy to distribute cocaine intending to unlawfully import into the United States
21 U.S.C. 959, 960 and 963
Maximum Penalty: Ten-year mandatory minimum to life; fine of $1 million
AGENCIES
Homeland Security Investigations (HSI)
U.S. Coast Guard (USCG)
Customs & Border Protection (CBP)
Drug Enforcement Administration (DEA)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Brazilian nationals indicted after being arrested with credit card skimmers, 250 counterfeit credit or bank cards and nearly $140,000 in cashRead the Press Release
Two Brazilian nationals were indicted after police arrested them with two credit card skimmers, more than 250 counterfeit credit or bank cards and nearly $140,000 in cash, law enforcement officials said.
Felipe Trovo Pena, 27, and Antonio Pedro de Oliveira Neto, 26, were charged in a five-count indictment with conspiracy to commit credit card fraud, use of counterfeit credit cards and possession of counterfeit credit cards.
Pena and Neto were arrested on Nov. 12, 2017 after a teller at the Cortland Banks branch in Hubbard called police to alert them to an individual(s) making ATM withdrawals while obscuring the camera in the ATM. The bank had been victimized by fraudulent withdrawals two days earlier, according to court documents.
Pena and Neto were taken into custody and an extensive investigation resulted in the search of a storage unit they had rented on West 61st Street in Cleveland. A search of the unit uncovered approximately $139,480 in cash, the true Brazilian passports of Pena and Neto, 420 cards with magnetic strips, including 253 which were counterfeit credit or bank cards containing customer account data and two skimming devices, among other items, according to court documents.
Pena and Neto, between August and November 2017, covertly installed skimming devices on ATMs to fraudulently capture the magnetic data on credit and debit cards, which they then re-encoded on counterfeit credit and bank cards. They then used the counterfeit cards to obtain cash, according to court documents.
“These defendants stole personal information from people and then used it to steal hundreds of thousands of dollars through counterfeit bank and credit cards,” U.S. Attorney Justin E. Herdman said.
FBI Special Agent in Charge Stephen D. Anthony said: “Individuals engaged in typical day to day credit and debit card transactions unfortunately became financial victims to these fraudsters. Financial fraud is a significant, damaging crime that can occur without your knowledge. The FBI would like to remind people to review their credit card and bank statements on a regular basis and report any suspicious activity to the respective financial institution. The FBI will continue to investigate and hold financial scammers, such as these, responsible for their actions.”
“This case involves suspects traveling around the state of Ohio and placing skimming devices on ATMs and stealing innocent peoples’ personal and financial information,” said Secret Service Special Agent in Charge Jonathan Schuck. “These suspects would then use that information for their financial gain. These types of investigations are complex and the successful prosecution of these suspects are due to the great collaboration of law enforcement agencies working together.
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the FBI, U.S. Secret Service, the Hubbard Police Department and the Trumbull County Prosecutor’s Office.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twin Falls Man Pleads Guilty to Second Federal Gun OffenseRead the Press Release
BOISE – Karl Valencia, 39, of Twin Falls, Idaho, pleaded guilty yesterday in United States District Court to unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced.
According to the plea agreement, Valencia was prohibited from possessing a firearm due to a 1997 aggravated assault conviction in Twin Falls County. In 2016, Valencia was convicted for the first time of unlawful possession of a firearm in the United States District Court for the District of Idaho. In July 2017, he was serving the remainder of his federal sentence in the 2016 case at the Port-of-Hope halfway house. On July 16, 2017, after not returning to the Port-of-Hope as scheduled, Valencia was stopped for a traffic infraction in Mountain Home, where he was found in possession of a Ruger pistol. As part of his plea, Valencia also agreed to forfeit the Ruger pistol.
Sentencing is set for April 18, 2018, before U.S. District Court Judge David C. Nye.
Unlawful possession of a firearm is punishable by up to 10 years imprisonment, a $250,000 fine and a term of supervised release up to three years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Marshals Service, and the Elmore County Sheriff’s Office.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Tunica Biloxi tribal chairman pleads guilty to illegally taking more than $83,000 from tribeRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that Tunica-Biloxi Tribal Chairman Joey Barbry pleaded guilty Wednesday to illegally taking more than $83,000 from the tribe’s check cashing business.
Barbry, 40, of Mansura, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of theft from an Indian tribal organization. According to the guilty plea, Barbry cashed 105 non-sufficient fund (NSF) checks totaling $83,510 from July 2014 to November 2014 with the Tunica-Biloxi Tribe of Louisiana. Barbry made the checks out to the Tunica Biloxi Financial Services (TBFS), which is an organization the tribe owns that functions as a check cashing business for the tribal casino. Normal operation of the TBFS for NSF checks would require that the person writing NSF checks be placed into a computer tracking system and would be barred from writing further checks. The violator would also be turned over to the Avoyelles Parish District Attorney’s Office for criminal prosecution if the money was not repaid. TBFS manager Brent Barbre told employees not to input Barbry into the tracking system, and that he would handle the chairman’s NSF checks personally. Brent Barbre allowed the defendant to continue writing NSF checks because he was the chairman of the tribe and Brent Barbre’s supervisor.
Barbry faces five years in prison, three years of supervised release, restitution and a $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Texas Man Sentenced to 8 Years for Enticing A Woman to Travel Across State Lines to Engage in ProstitutionRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Erwin Phillips Burley (29, Houston, TX) to eight years in federal prison for enticing a woman to travel across state lines to engage in prostitution. The Court also ordered him to pay restitution to the victims in the case.
Burley pleaded guilty on May 9, 2017.
In July 2016, law enforcement officers received information that Burley was offering women for prostitution in the Jacksonville area. Further investigation resulted in the identification of a woman who said she had been picked up in New Orleans, Louisiana and transported to Jacksonville to engage in prostitution for Burley.
“This defendant exploited the victim for his own benefit,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “Human trafficking offenders, like this, pose a threat to the overall safety of our communities, and the FBI is committed to working tirelessly with our law enforcement partners to identify these predators, and seek justice for the heinous acts they commit."
“I appreciate the investigators for their work on this case,” said FDLE Special Agent in Charge John Burke. “FDLE is committed to assisting our law enforcement partners in keeping our Florida communities safe.”
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Jacksonville Sherriff’s Office. It was prosecuted by Assistant United States Attorney Ashley Washington.
Tennessee felon pleads guilty to federal gun crimeRead the Press Release
BECKLEY, W.Va. – A Tennessee felon pleaded guilty today to a federal gun charge, announced United States Attorney Mike Stuart. Marvin Dunigan, 46, of Johnson City, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigation of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Beckley Police Department.
Dunigan admitted that on August 16, 2016, he possessed a Cobra Model C32, .32 caliber firearm in Beckley. Dunigan was prohibited from possessing any firearm under federal law because of a 2010 conviction in the United States District Court for the Eastern District of Tennessee for being a felon in possession of a firearm.
Dunigan faces up to 10 years in federal prison when he is sentenced on May 2, 2018.
United States District Judge Irene C. Berger presided over the plea hearing.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
- Follow us on Twitter: SDWVNews
Tax preparer sentenced to 18 months in prison for tax scheme that led to more than $105,000 in IRS lossesRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a Scott tax preparer was sentenced last week to 18 months in prison for falsifying tax returns and causing the IRS to pay out more than $105,000.
Vida Prejean Thomas, 44, of Scott, La., was sentenced Friday by U.S. District Judge Dee D. Drell on one count of aiding and assisting in the preparation of false documents under Internal Revenue laws. She was also sentenced to one year of supervised release and ordered to pay $105,813 restitution. According to the October 10, 2017 guilty plea, the IRS began investigating Thomas’ tax preparation business after receiving a tip alleging fraudulent activity. They interviewed nine of her customers and found that 2010 through 2013 personal income tax returns contained false information put there without their knowledge or authorization. The false returns Thomas prepared caused a loss of $105,813 to the IRS.
The IRS conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Tampa Restaurant Owner Pleads Guilty to Tax Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Natalie Rene Panko (57, Tampa) has pleaded guilty to one count of conspiracy to commit theft of government funds, three counts of theft of government property, three counts of access device fraud, and three counts of aggravated identity theft. She faces up to 5 years in federal prison for the conspiracy count, up to 10 years in federal prison for each theft of government property and access device fraud count, and a consecutive 2-year prison term for the aggravated identity theft charges. A sentencing date has not yet been set.
According to court documents, Panko is the owner and operator of “Ladies of the Sea,” a restaurant in Tampa that has operated for over 15 years. Between August 22 and November 28, 2012, Panko, along with co-conspirators Rico Simmons and Mazie Hill, used the restaurant to extract tax fraud proceeds from debit cards issued by various card companies.
During 2012, individuals connected with this conspiracy filed more than 60 fraudulent tax returns with the IRS using identities stolen from living and deceased taxpayers. These fraudulent tax returns directed tens of thousands of dollars in tax refunds to debit cards issued in the names of the identity theft victims. Simmons brought the debit cards, loaded with the fraudulently obtained refunds, to Panko and Hill at Ladies of the Sea. Together, they devised a plan to retrieve the funds from the cards by swiping them at the restaurant and pretending the transactions were for legitimate purposes, such as catering. After the cards were swiped at Ladies of the Sea, the tax fraud money was deposited into Panko’s and Hill’s respective bank accounts. The women then made large cash withdrawals, keeping some of the money for themselves and sharing some with Simmons.
Simmons and Hill previously pleaded guilty for their roles in this case. Simmons’s sentencing hearing has been scheduled for March 22, 2018. Hill is scheduled to be sentenced on February 21, 2018.
This case was investigated by the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Megan Kistler, Kelley Howard-Allen, and Simon Gaugush.
Supporting the Priorites of the U.S. Department of JusticeRead the Press Release
Since being sworn in as United States Attorney for the Eastern District of Tennessee on November 21, 2017, I have been working diligently to support the Department of Justice (DOJ) priorities outlined by United States Attorney General Jeff Sessions as well as the mission of the U.S. Attorney’s Office for the Eastern District of Tennessee.
Currently, the top five DOJ priorities include: reducing violent crime; establishing a lawful and constitutional immigration system that makes us safer and more secure; combatting the drug/opioid addiction crisis; protecting our national security; and, enforcing the rule of law. To aid in the enforcement of these priorities, Attorney General Sessions has announced several new tools, initiatives, and programs as well as enhancements to existing programs for U.S. Attorney’s offices and federal, state, and local law enforcement.
In May 2017, Attorney General Sessions issued a memo establishing DOJ charging and sentencing policies. This guidance reestablished the longstanding DOJ policy, trusting our federal prosecutors to use their discretion and judgment to apply the law to the facts of the investigation and pursue the most serious, readily provable offense(s) supported by the facts of the case.
Attorney General Sessions has also repeatedly reinforced his commitment to assist law enforcement in performing their duties, celebrating the noble, honorable, essential, and challenging work of law enforcement communities, while always seeking to affirm the critical role of police officers in our society. Supporting our law enforcement partners and the excellent work that they do as well as promoting coordination and cooperation between local, state, and federal law enforcement agencies, will also continue to be a top priority in East Tennessee.
The nation is currently facing the deadliest drug crisis in American history. Unfortunately, East Tennessee is not immune to this problem. In fact, statistics show that Tennessee is one of the “hot spots” for drug abuse and overdose related deaths in the country. Combatting this drug/opioid crisis is a top priority for President Trump and his administration as well as Attorney General Sessions. Accordingly, the U.S. Attorney’s office will continue to take every action available to address this crisis, including working with our federal, state, and local partners, to target and prosecute those who are unlawfully furthering this epidemic.
In August 2017, the Attorney General announced the formation of the Opioid Fraud and Abuse Detection Unit, a new Department of Justice program to utilize data to help combat the devastating opioid crisis. The Eastern District of Tennessee received one of 12 experienced Assistant U.S. Attorney positions allocated across the country to focus solely on investigating and prosecuting health care fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids.
In October 2017, Attorney General Sessions announced the expansion of Project Safe Neighborhoods (PSN), which encourages U.S. Attorneys’ offices to work with the communities they serve to develop customized crime reduction strategies. Originally launched in 2001, one study showed that, in its first seven years, PSN reduced violent crime overall by 4.1 percent with case studies showing reductions in certain areas of up to 42 percent. The PSN program has always been strong in the Eastern District of Tennessee and will continue to thrive during a reinvigoration of the district’s crime reduction strategy incorporating lessons learned since its inception. I am fully onboard with making our neighbors, schools, and communities free from illegal drugs and crime.
Also in October 2017, the Attorney General announced Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative promoting creative enforcement strategies and best practices to assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. MS-13, identified as one of the most violent and ruthless gangs on the streets today, was designated as a priority, allowing federal law enforcement to utilize an expanded toolkit in its efforts to dismantle the organization.
While the current administration has made great progress toward establishing a lawful and constitutional immigration system to make us safer and more secure, the threats we face from terrorists are diverse and evolving. A report released in January 2018 by DOJ and the Department of Homeland Security (DHS) revealed that between September 11, 2001, and December 31, 2016, three of every four individuals convicted of international terrorism-related charges in U.S. federal courts were foreign-born. During this same period, U.S. Immigration and Customs Enforcement removed 1,716 aliens with national security concerns. Further, in 2017 alone, DHS encountered 2,554 individuals on the terrorist watch list (also known as the FBI’s Terrorist Screening Database) traveling to the United States.
There is no higher DOJ priority than protecting the nation against acts of terrorism and other threats to national security. The hard work of DOJ professionals and our partners at home and abroad have enabled the disruption of numerous terrorist plots and the successful prosecution of those involved. We will use every available tool to continue these efforts.
In the Eastern District of Tennessee, the Anti-Terrorism Advisory Council (ATAC), established after the terrorist attacks in September 2001, serves as a conduit for information sharing about suspected terrorists among federal, state and local law enforcement entities. The ATAC operates as an umbrella organization of local, state, and federal agencies that coordinates activities, develops policy, implements strategic plans, and provides training to combat terrorism. It also coordinates with the other ATACs around the nation and works closely with the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF). Member agencies include those from law enforcement, public health, emergency planning and response, the military, and the intelligence community.
Finally, Attorney General Sessions has pledged that it is his duty to ensure that the laws of the United States are enforced and that the Constitutional order upheld. Enforcing the law saves lives, protects communities and taxpayers, and prevents human suffering. Failure to enforce the laws in the past has put our nation at risk of crime, violence, and even terrorism. During my watch as United States Attorney, the experienced prosecutors and other professionals in our office will continue to enforce the law and defend the interests of the United States, ensuring the fair and impartial administration of justice for the people of East Tennessee.
J. Douglas Overbey
United States Attorney
Eastern District of Tennessee
Suburban Man Sentenced to Ten Years in Federal Prison for Manufacturing Synthetic CannabinoidsRead the Press Release
CHICAGO — A south suburban man has been sentenced to ten years in federal prison for manufacturing synthetic cannabinoids into a smokeable drug known as K2, or “spice.”
KHALID HAMDAN, 51, of Justice, mixed the synthetic cannabinoids with leaves and other substances to create the drug. Hamdan then sold wholesale quantities of the drug to customers under various brand names, including “Diablo,” “Bomb Marley,” “Joker,” and “7H Hydro.”
U.S. District Judge Manish S. Shah on Tuesday sentenced Hamdan to ten years in prison. It is the highest sentence to date in the Northern District of Illinois for manufacturing a synthetic cannabinoid.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert Bell, Acting Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. The Bridgeview Police Department initiated the investigation with the DEA. The Federal Bureau of Investigation’s Cryptanalysis and Racketeering Records Unit also assisted with the investigation.
“Synthetic cannabinoids are often falsely marketed as the ‘legal,’ equivalent alternative to marijuana, but the effects are much stronger, more adverse, and less predictable than marijuana,” Assistant U.S. Attorneys Kelly M. Greening and Matthew Schneider argued in the government’s sentencing memorandum. “Defendant was a large-scale drug trafficker who manufactured and sold kilograms and kilograms of these drugs to customers across Illinois, Indiana and other states.”
A jury last year convicted Hamdan on one count of conspiracy to manufacture the synthetic cannabinoid XLR 11, and two counts of possessing XLR 11 with the intent to distribute.
Evidence at trial showed that Hamdan used storage units in Bridgeview and Chicago Ridge to manufacture and store the XLR 11 chemical and the finished K2 product. A law enforcement search of the Chicago Ridge storage unit in 2014 revealed tools and products for manufacturing the drugs, including the raw XLR 11 powder, cans of acetone, bottles of flavoring, boxes of untreated damiana tea leaves, and boxes for packaging.
Once manufactured, the drug was sold to consumers in baggies with professionally printed, animated designer labels.
Stratford Man Sentenced to 18 Months in Prison for Role in Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MATTHEW HARWOOD, 43, of Stratford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a large-scale fencing operation. Judge Shea also ordered HARWOOD to pay a $35,000 fine and perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, between January 2012 and December 2014, HARWOOD participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resell the property at online websites. HARWOOD, his co-conspirator Andrew Sacco, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price. At times, HARWOOD provided expenses for car rentals and spending money for overnight or out-of-state trips to steal products.
After receiving the stolen merchandise, HARWOOD and Sacco stored the merchandise at multiple locations, including HARWOOD’s former residence in Durham, Sacco’s former residence in Durham, and business locations in North Haven. HARWOOD and Sacco then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
On November 3, 2016, HARWOOD pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.
HARWOOD also has forfeited the house in Durham where he formerly resided, and two mutual fund accounts in his name.
HARWOOD, who is released on a $100,000 bond, was ordered to report to prison on March 19, 2018.
Sacco pleaded guilty to the same charges and, on December 6, 2017, was sentenced to 48 months of imprisonment.
This matter has been investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
Statement by Attorney General Sessions on Deputy U.S. Marshal Killed in the Line of Duty in Harrisburg, PennsylvaniaRead the Press Release
Today Attorney General Sessions issued the following statement on Deputy U.S. Marshal Christopher David Hill, killed in the line of duty in Harrisburg, Pennsylvania, while protecting his community: "Today in the law enforcement community, our hearts are broken over the senseless killing of one of our Deputy Marshals, Chris Hill. He was shot and killed while doing his job executing a warrant on a wanted fugitive. Every day, Deputy U.S. Marshals make the people of this country safer by catching fugitives on the run, protecting our courthouses, our judges, and witnesses at trial. They achieve these critical accomplishments at often heroic risk. Chris Hill’s ultimate sacrifice calls to my mind the example of Robert Forsyth, whose name is given to the Marshals Service award for valor. Chris Hill’s name should also be remembered as synonymous with valor.”
St. Louis Fentanyl Dealer Sentenced to 108 Months ImprisonmentRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Andre Walker was sentenced on January 17, 2018, in the United States District Court in East St. Louis, to 108 months in federal prison for one count of delivery of fentanyl, with three years of supervised release to follow the imprisonment, and a $100 special assessment.
Facts revealed in open court at the sentencing and plea hearings established that Walker sold 324.8 grams of fentanyl between August 2016 and April 2017. Agents also discovered a make-shift manufacturing operation at Walker’s home, where he measured fentanyl into individual capsules. Additionally, Walker was arrested in this case while he was in possession of 89.4 grams of pre-packaged fentanyl, more than $3,000 in cash, and a loaded .40 caliber handgun, with a bullet in the chamber and an extended magazine containing 19 bullets. After considering many factors, such as the need to protect the public from dangerous narcotics like fentanyl, the District Court sentenced Walker to 108 months of imprisonment.
The investigation was conducted by agents from the Drug Enforcement Administration. Assistant United States Attorney Derek J. Wiseman prosecuted the case.
Somersworth Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD, N.H. - Matthew Felton, 38, of Somersworth, pleaded guilty in federal court to one count of production of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, the defendant used several social media accounts to disguise his identity, pose as a female representative of a modeling agency, and solicit sexually explicit photographs of young girls purportedly to help them secure modeling contracts. Specifically, he persuaded three girls (ages 12 through 14), all of whom were located in Canada, to photograph themselves engaging in sexually explicit conduct. The girls sent the photographs to the defendant over the Internet.
Felton is scheduled to be sentenced on April 26, 2018.
“Those who produce child pornography cause untold amounts of damage to their youthful victims,” said Acting U.S. Attorney Farley. “Unfortunately, the widespread use of social media has increased the opportunities for young people to be victimized. While we will work closely with our law enforcement partners to prosecute those who rob children of their innocence by committing crimes like this, we also encourage parents to speak to their children about the need to be extremely cautious when communicating on social media.”
“This case was a great example of what strong coordination among federal, state, and local law enforcement and prosecutors can achieve in combatting the scourge of child pornography and child endangerment from those who would engage in such depraved acts”, said Michael Shea, Acting Special Agent–In -Charge, Homeland Security Investigations (HSI), Boston. “HSI is committed to ensuring that justice is delivered against these type of predators.”
This matter was investigated by the Department of Homeland Security - Homeland Security Investigations, the New Hampshire Internet Crimes Against Children Task Force, and law enforcement authorities in Canada. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Sevierville Resident Sentenced to Serve 222 Months in Prison for Child Pornography Offenses and Attempted Enticement of a Minor for Illegal SexRead the Press Release
KNOXVILLE, Tenn.- On January 18, 2018, Michael Anthony Carpenter, 29, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 222 months in prison for advertising and distributing child pornography and attempted enticement of a minor to engage in illegal sexual activity. Following his release from prison, the U.S. Probation Office will supervise him for the rest of his life. He will also be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Carpenter pleaded guilty in August 2017 to federal charges stemming from two separate investigations. An undercover law enforcement task force in Australia first identified Carpenter in the spring of 2016, after he posted hyperlinks to his online storage account in a chat room devoted to exchanging child pornography so others could download his cache of child pornography. Australian law enforcement officers provided information concerning his involvement to the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). During a separate undercover investigation in May 2017, Carpenter contacted undercover law enforcement officers and expressed interest in paying to have sex with a child. He was arrested in Sevier County, Tennessee, when he arrived at a pre-arranged location to have sex with who he believed was a nine-year-old girl.
“Technological advances, particularly the Internet and mobile devices, have facilitated the sex trafficking of children by providing a convenient worldwide marketing channel,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Individuals can now use online classifieds and social media to advertise, schedule, and purchase sexual encounters with minors. This individual committed some of the most serious criminal offenses perpetrated against the most vulnerable members of our society. This sentence sends a clear message that these crimes against children will continue to be vigorously investigated and prosecuted by the U.S. Attorney’s Office.”
The local investigation was conducted by HSI and Knoxville Police Department, with assistance from the Sevierville Police Department and Sevier County Sheriff’s Office. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Serial Fraudster Convicted; Daniel Stephen Wray Directed Fraudulent Credit Card Scheme Targeting San Diego RetailersRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak and Matthew J. Sutton
(619) 546-9709 and (619) 546-8941
NEWS RELEASE SUMMARY – January 18, 2018
SAN DIEGO – Daniel Stephen Wray pleaded guilty in federal court today, admitting that he was the leader of an elaborate scheme to steal identities and make and use fraudulent credit cards at multiple San Diego retailers.
Wray, 29, pleaded guilty to an indictment returned by a federal grand jury on November 16, 2017, charging him with Conspiracy to Commit Access Device Fraud. As detailed in the plea agreement, indictment, and other publicly filed court documents, Wray recruited multiple co-conspirators to join his ring of credit card fraudsters in late 2016. Wray then provided these individuals with counterfeit access devices—credit cards bearing altered names, but encoded with real credit card numbers for the accounts of unwitting victims—and drove them to San Diego-area stores.
Investigators believe that many of the victims’ identities and credit card numbers were stolen after Wray and his co-conspirators installed a skimmer at a La Jolla gas station. A skimmer is a device capable of reading and recording account information, including customer names, account numbers, and personal identification numbers, from credit and debit cards. After creating the fraudulent credit cards with the stolen credit card numbers, Wray and his co-conspirators then used them to purchase tens of thousands of dollars of merchandise from multiple San Diego retailers, including Costco and Smart N Final.
In a proceeding today before U.S. Magistrate Judge Andrew G. Schopler, Wray admitted his role as the leader of the fraudulent scheme, acknowledging that he obtained dozens of counterfeit and unauthorized access devices from multiple victims in San Diego County and then used these fraudulent credit cards to make tens of thousands of dollars in purchases, ranging from Apple iPads, luxury wristwatches, gold and silver, and large quantities of liquor and energy drinks from large San Diego retailers. Wray also admitted to being a prior federal felon in that he was previously convicted of illegally possessing 269 counterfeit access devices in 2014. A sentencing hearing is scheduled for May 7, 2018 at 8:30 a.m. before U.S. District Judge John Houston.
“Identity theft is one of the fastest growing crimes in the United States,” said U.S. Attorney Adam L. Braverman. “We will vigorously prosecute those who prey on our citizens and steal their identities.”
“Today’s change of plea is a reminder that the U.S. Secret Service and its law enforcement partners will actively investigate and pursue prosecution of those who engage in financial fraud and use others’ personal information for their own personal gain,” said United States Secret Service Special Agent in Charge Brian S. Christensen.
This case was investigated by the San Diego Regional Fraud Task Force. The Task Force is led by the United States Secret Service, together with multiple state and local partners, including the San Diego Police Department and the San Diego County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Matthew J. Sutton.
DEFENDANT Case Number 17CR3856-JAH
Daniel Stephen Wray Age: 29 San Diego, California
SUMMARY OF CHARGES
Conspiracy to Commit Access Device Fraud, in violation of Title 18 U.S.C. § 1029; Term of custody including 20 years in prison, $250,000 fine and 3 years supervised release and mandatory restitution.
AGENCIES
San Diego Regional Fraud Task Force:
- United States Secret Service
- San Diego Police Department
- San Diego District Attorney’s Office
Sentencings for January 8 - January 17, 2018Read the Press Release
Robert Allen Davis, a/k/a Robert A. Davis, Jr., 53, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 17, 2018, for failure to register as a sex offender. Davis was arrested in North Platte, Nebraska. He received 15 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the U.S. Marshals Service.
Ann Songhee Tanquary, 37, of Selah, Washington, was sentenced by Federal District Court Judge Alan B. Johnson on January 12, 2018, for conspiracy to distribute methamphetamine. Tanquary was arrested in Casper, Wyoming. She received 240 months of imprisonment, to be followed by 10 years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation.
Daniel James Montoya, 34, of Rozet, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 8, 2018, for conspiracy to distribute methamphetamine and for use and carry a firearm during and in relation to a drug trafficking crime. Montoya was arrested in Gillette, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Douglas Police Department, the Converse County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sanford Felon Sentenced to More Than 21 Years for Selling Drugs and Firearms in OrlandoRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Christopher Gerard Dickerson (39, Sanford) to 21 years and 10 months in federal prison for conspiracy to distribute and possess with the intent to distribute controlled substances, distribution and possession with the intent to distribute controlled substances, and possessing a firearm as a convicted felon. A federal jury found him guilty on October 23, 2017.
According to testimony and evidence presented at trial, Dickerson conspired with others to possess and sell street-level quantities of heroin, cocaine, fentanyl, and crack. On two occasions in September 2016, in parking lots in east Orlando, Dickerson sold grams of heroin to a confidential informant who was working for law enforcement. Thereafter, he agreed to sell firearms and drugs to an undercover agent with the Orange County Sheriff’s Office.
On March 17, 2017, at a hotel on International Drive in Orlando, Dickerson and a co-conspirator, David Charles Heineman, sold the undercover agent seven firearms, a bag of cocaine, ammunition, and a large-capacity drum magazine for one of the firearms. The firearms included semiautomatic pistols, a tactical rifle, shotguns, and an AK-47 style firearm. Three of the seven firearms had been reported stolen. Heineman also later sold two additional firearms, two bulletproof vests, and other drugs to the undercover agent.
On April 19, 2017, agents executed a federal search warrant at Dickerson’s and Heineman’s apartment in Titusville. After Dickerson’s arrest, agents recovered a stash of drugs from the apartment, including crack and fentanyl.
Due to his multiple prior felony convictions, including possession of cocaine, delivery of hydromorphone, possession of cocaine with the intent to sell or deliver, and possession of a firearm by a convicted felon, Dickerson is prohibited from possessing a firearm or ammunition under federal law.
On October 3, 2017, Heineman pleaded guilty to conspiracy to distribute and possessing with the intent to distribute controlled substances and possessing a firearm as an unlawful user of a controlled substance. On December 20, 2017, he was sentenced to 5 years and 10 months’ imprisonment.
“ATF’s primary focus is protecting the public by reducing violent crime,” said Special Agent in Charge Daryl McCrary. “ATF continues to aggressively pursue violent offenders and will continue to protect and serve communities with our law enforcement partners.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter and former Assistant United States Attorney Andrew C. Searle.
This case was brought as part of Project Safe Neighborhoods (PSN), a historical program involving the successful collaboration of law enforcement, at all levels, to reduce violent crime and making neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception (2001). In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
San Francisco Business Owner Pleads Guilty to Bid-Rigging Conspiracy Involving Government ContractsRead the Press Release
SACRAMENTO, Calif. — John Brewer, 48, of San Francisco, pleaded guilty today to bid rigging, U.S. Attorney McGregor W. Scott announced.
According to court documents, Brewer and his co-defendant Brent Vinch were the owners of, and senior executives for, a company called Expert Network Consultants (ENC), which submitted bids to the State of California for various government contracts. Brewer admitted that from 2008 through early 2012, he conspired with co-defendants Vinch and Loraine Dixon, among others, to rig the state’s competitive bidding process by creating inflated bids for submission by co-conspirators to state contracting agencies in an effort to ensure that Expert Network Consultants received the contracts. Brewer solicited bids from individuals and companies that had no intention or ability to perform the work called for in the contracts, and Brewer directed Vinch to create and submit non-competitive bids. In total, ENC won over 40 state contracts as a result of the bid-rigging conspiracy from multiple state agencies, including the Employment Development Department, Department of Justice, Department of Motor Vehicles, and Department of Insurance. The value of those contracts exceeded $3 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jared C. Dolan and Matthew M. Yelovich are prosecuting the case. The United States is grateful for the assistance of the California Attorney General’s Office in conducting the initial investigation into this matter and referring it to the U.S. Attorney’s Office.
Vinch pleaded guilty to bid rigging on December 14, 2017, and is scheduled to be sentenced on March 15, 2018. Charges are pending against Dixon, and she has a status conference scheduled for March 29, 2018. The charges against her are allegations; and she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Brewer is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on April 26, 2018. Brewer faces a maximum statutory penalty of 10 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.