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18 January 2018
Department of Justice Files Amicus Brief in Montana School Choice CaseRead the Press Release
The Department of Justice today filed an amicus brief with the Supreme Court of Montana supporting parents who claim that the state unconstitutionally discriminated against their children when it barred them from a private school scholarship program because they attend a religious school.
The case, Espinoza v. Montana Department of Revenue, involves children attending a Christian school who were denied participation in the Montana Tax Credit Scholarship Program after the Department of Revenue issued a rule declaring ineligible students attending schools owned or controlled “by a church, religious sect, or denomination.” Under the scholarship program, Montana taxpayers can contribute up to $150 to privately run scholarship organizations and receive a tax credit. The scholarship organizations then provide scholarships for families attending non-public elementary and secondary schools in the state. The parents filed suit in December 2015 after their children were denied participation in the scholarship program because they attend a Christian school. A state trial court ruled in favor of the parents in May 2017 and issued an injunction requiring them to be allowed to participate. The state appealed, arguing that the rule is valid under state law, and that it does not violate the U.S. Constitution.
The United States’ brief argues that excluding these families from the scholarship program because they have chosen to attend a religious school violates their rights under the U.S. Constitution’s Free Exercise Clause, which forbids government discrimination on the basis of religion.
“The Constitution prohibits states from discriminating based on religion,” said Associate Attorney General Rachel Brand. “Today’s amicus brief is further proof that this administration will lead by example on religious liberty.”
The United States’ brief notes that school choice scholarships programs like this one are plainly permissible under the Establishment Clause. And, the brief argues, the Supreme Court’s holding last year in Trinity Lutheran Church of Columbia v. Comer makes clear that blocking students attending religious schools from participating in such scholarship programs violates the Free Exercise Clause. In Trinity Lutheran, the Court held that a Colorado program providing recycled tires for playground surfacing violated the Free Exercise Clause when it excluded religious organization from the program. The Court held that “the Free Exercise Clause protects religious observers against unequal treatment and subjects to the strictest scrutiny laws that target the religious for special disabilities.” The United States brief argues that the Montana scholarship program likewise cannot treat families attending religious schools unequally.
Today’s filing addresses issues set forth in Attorney General Sessions’ Guidance on Federal Law Protections for Religious Liberty issued on Oct. 6, 2017. The Guidance stated that “government may not target persons or individuals because of their religion” and may not “deny religious schools-including schools whose curricula and activities include religious elements-the right to participate in a voucher program, so long as the aid reaches the schools through independent decisions of parents.”
Crown Point Man Sentenced for Identity TheftRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Elbert Johnson, age 40, of Crown Point, Indiana was sentenced before U.S. District Court Judge James T. Moody. Johnson was sentenced to 61 months imprisonment, 2 years supervised release, and ordered to pay $551,647 in restitution to the Internal Revenue Service and the Indiana Department of Revenue.
According to documents in this case, Elbert Johnson, pled guilty to conspiracy to commit identity theft, filing of false claims, aggravated identity theft, and filing a false tax return. The fraud scheme involved filing false federal and state tax returns utilizing the names, dates of birth, and social security numbers of inmates in various prisons across the country without their knowledge, permission, or authority.
The case was the result of an investigation by the Internal Revenue Service-Criminal Investigations, U.S. Postal Inspection Service, U.S. Secret Service, and the Social Security Administration-Office of Inspector General. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
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Convicted Felon Sentenced for Possessing Firearm During Garden City Road Rage IncidentRead the Press Release
SAVANNAH, GA: Anthony Jammoni Atkins, 26, a multi-convicted felon, was sentenced on January 16, 2018, by Senior U.S. District Judge William T. Moore, Jr. to 100 months in prison for possessing a loaded semiautomatic pistol. Atkins used that pistol to threaten a mother and her two children during a rush hour road rage incident. Upon completion of his prison sentence, Atkins will serve an additional three years on supervised release.
According to court documents and evidence presented at hearings, Atkins was traveling through Garden City, Georgia during the afternoon rush hour on November 4, 2016, when another motorist called 911 to report that the driver of an SUV had pulled alongside her car, pointed a gun at her and her two daughters, and slammed the gun into the SUV’s passenger-side window. After locating and stopping the SUV, police officers identified Atkins as the driver. Atkins admitted that there was a firearm inside the SUV, and officers recovered a semiautomatic 9mm pistol that was loaded with nineteen rounds of ammunition in a large capacity magazine. As a convicted felon, Atkins was prohibited from possessing firearms and ammunition.
Atkins’ criminal history includes numerous convictions for violent and drug-related offenses. In 2010, Atkins pled guilty to trafficking marijuana in Chatham County. One year later, in 2011, Atkins was convicted of aggravated battery in connection with his attempt to rob a person to whom he had agreed to sell drugs. During the attempted robbery, Atkins ran over the victim with his car.
U.S. Attorney Bobby L. Christine stated, “The U.S. Attorney’s Office in the Southern District of Georgia is committed to ending the scourge of violent crime that has plagued Savannah for far too long, and we are partnering with federal, state, and local law enforcement to do something about it. A key element of our strategy is ensuring that convicted felons who possess firearms illegally are punished appropriately for their misconduct. Make no mistake – this United States Attorney’s Office will not tolerate the possession and use of firearms by those who seek to threaten and endanger the community.”
The U.S. Attorney’s Office prosecuted Atkins as part of Project Ceasefire, a joint federal, state, and local initiative to combat gun violence and ensure that repeat offenders are subjected to stiff federal prison sentences, all of which must be served without the possibility of parole.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Garden City Police Department. Assistant United States Attorney Theodore S. Hertzberg prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Columbus Man Pleads Guilty to Creating Child Pornography of Toddler & Young GirlRead the Press Release
COLUMBUS, Ohio – Jordan L. Price, 28, of Columbus, pleaded guilty in U.S. District Court to production of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Franklin County Prosecutor Ron O’Brien and other members of the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force announced the plea entered into before Senior U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, in July 2017, the National Center for Missing and Exploited Children (NCMEC) received two reports from Google regarding an email account that had been used to send numerous child pornography files.
A search warrant of the Gmail account revealed the email belonged to Price. Further investigation of Price revealed pornographic pictures of a toddler and a prepubescent female that he had taken on his cell phone.
In addition to the pornography that Price produced, he was also found to possess more than 200 child pornography files, including depictions of the rape of toddlers, in his Dropbox account.
As part of his plea agreement, all parties involved have recommended a term of incarceration between 278 and 322 months in prison. That sentencing recommendation will be considered by Judge Watson at a future hearing.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Director, Franklin County Special Victim’s Unit, who are representing the United States in this case.
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Cleveland man and former Parma resident charged with embezzling $186,000, using some of the money for cocaineRead the Press Release
A former Parma resident and a Cleveland man were indicted in federal court for their roles in a conspiracy to embezzle more than $186,000, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Lisa M. Pfrenger, 48, of Fairfield Bay, Arkansas, and previously of Parma, and Lorenzo Parker, 46, of Cleveland, were indicted on one count of conspiracy to make, utter and possess counterfeit checks and 14 counts of making, uttering and possessing counterfeit checks.
Pfrenger was the operations manager of Resource Title National Agency, Inc. (RTNA) and had control over the day-to-day operations of the company, including check writing. As a title company licensed by the state of Ohio, RTNA kept an account containing unclaimed funds from its various real estate transactions. The amount of funds in a title company’s unclaimed funds can become significant over time and if these monies remain unclaimed, the title company is required to transfer the unclaimed funds to the Ohio Department of Insurance, according to the indictment.
Pfrenger and Parker devised a scheme to embezzle monies in RTNA’s unclaimed funds account. Pfrenger issued checks in the name of previous customers of RTNA to make it look a legitimate payment of funds from a previous real estate transaction. Pfrenger then gave the checks to Parker, who either endorsed the checks himself or had others endorse the checks, by forging the signature of the payee and depositing the checks, according to the indictment.
Parker then withdrew the monies and used it for his personal use. In return, Parker provided Pfrenger with cocaine, according to the indictment.
Both Pfrenger and Parker knew that they had no legitimate basis to possess the counterfeited checks, nor the unclaimed funds. From January 2013 through October 2015, Pfrenger and Parker made, possessed and deposited approximately 216 counterfeit checks resulting in an approximate loss of $186,718 to RTNA’s unclaimed fund accounts, according to the indictment.
The defendants’ sentence, if any, will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Mark S. Bennett after an investigation by the Federal Bureau of Investigation.
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.
Chinese National Sentenced for Economic Espionage and Theft of a Trade Secret from U.S. CompanyRead the Press Release
Xu Jiaqiang, 31, formerly of Beijing, China, 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 pleaded guilty to all six counts with which he was charged.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement. The sentence was imposed by U.S. District Judge Kenneth M. Karas in White Plains, New York federal court.
“Xu, a Chinese national, is being held accountable for engaging in economic espionage against an American company,” said Acting Assistant Attorney General Boente. “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.”
“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,” said U.S. Attorney Berman. “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.”
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 Aug. 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 Dec. 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 Dec. 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.
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Mr. Boente and Mr. Berman praised the FBI’s outstanding investigative efforts. Mr. Berman also thanked the U.S. Department of Justice’s National Security Division.
Assistant U.S. Attorneys Benjamin Allee and Ilan Graff of the Southern District of New York, with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
Central Washington Healthcare Organization Agrees to Settle ADA Claim with Deaf-Blind IndividualRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that a settlement agreement under the Americans with Disabilities Act (ADA) has been reached between the U.S. Attorney’s Office, the U.S. Department of Justice’s (DOJ) Civil Rights Division and Astria Health. Astria Health, formerly known as Regional Health, is the parent company of Sunnyside Community Hospital and other Clinics located in central Washington. Astria operates 34 hospitals, clinics, and medical facilities in the Eastern District of Washington.
The U.S. Attorney Office began an ADA-based investigation of Astria Health after receiving a complaint that, despite a request for a Tactile American Sign Language interpreter, one of Astria Health’s clinics failed on five (5) separate treatment occasions to provide a deaf-blind individual with a qualified interpreter. The deaf-blind individual alleged that, for approximately four months, he did not receive care because he was unable to communicate effectively with his treatment providers concerning his chronic health condition, which condition could result in potentially life-threatening complications if not properly managed.
The ADA establishes a federal mandate that seeks to eliminate discrimination against individuals with disabilities. The ADA requires hospitals and medical providers to ensure that their communication with individuals who are deaf or hard of hearing is as effective as their communication with other patients. See 42 U.S.C. § 12182(b)(2)(A)(iii) (1990); 28 C.F.R. § 35.160 (2007); 28 C.F.R. § 36.303 (2007); 28 C.F.R. pt. 36, App. B at 713-716 (2007). A hospital does this by providing communication aids, known in the law as "auxiliary aids or services," which include qualified sign-language interpreters, the exchange of written notes, text telephones that assist deaf or hard-of-hearing individuals in making phone calls, and a variety of other aids listed in the ADA regulation. The specific type of auxiliary aid or service that may be necessary in a given context will depend upon the needs of the particular individual involved and the nature of the communication at issue.
Astria Health fully cooperated with the U.S. Attorney’s investigation and within days of being notified of the investigation initiated corrective action to ensure the deaf-blind individual involved received a qualified interpreter at his next healthcare visit.
Under the settlement, Astria agrees to take remedial steps to ensure compliance with the ADA at each of its 34 hospitals and clinics in central Washington. These steps include the appointment of an ADA point person who is familiar with the ADA’s health care access and communication – interpreter requirements. This coordinator will also provide training to Astria’s staff on ADA requirements and will enter into contracts with interpretive service providers. Astria will also adopt specific policies and procedures to ensure that auxiliary aids and communication services are provided promptly to individuals who are deaf, blind, or have communication challenges.
Harrington stated: “This Office and the DOJ Civil Rights Division are committed to protecting the rights of those who have vision, hearing, or speech disabilities, ensuring that they are able to effectively communicate with their health care professionals, especially when patients must have critical interaction with their medical care providers. This office did not seek civil penalties in this case – which can be up to $89,078 for a first violation and up to $178,156 for each subsequent violation – because Astria promptly acknowledged a problem, took immediate corrective action at its offending clinic and agreed to additional structural steps that will avoid similar problems at all of its 33 other medical facilities in the Eastern District of Washington. This settlement will ensure deaf and blind individuals get the auxiliary aids and services they need to effectively communicate with their medical providers in a timely manner at Astria’s facilities. I am hopful that other such providers in Eastern Washington will review their ADA compliance obligations to ensure they too are providing quality access to health care for the blind, deaf, hard-of-hearing and other disabled individuals.”
This enforcement action was taken pursuant to the U.S. Attorney Program for ADA Enforcement. The Program began as a pilot project in 1995, with a focus on effective communication in the nation's 911 call services, but has since expanded to other areas of disability discrimination. Virtually every U.S. Attorney Office within the Department of Justice has been involved with enforcement efforts, resolving more than 500 reported matters nationwide annually.
The U.S. Department of Justice has a number of additional resources available to assist entities with complying with ADA requirements. For further information, please visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may also be filed by email to [email protected].
This enforcement action was handled by Joseph P. Derrig, an Assistant United States Attorney and Civil Rights Coordinator for the Eastern District of Washington, with assistance from the U.S. Department of Justice’s Civil Rights Division, Disability Rights Section.
Settlement Agreement attached astria_health_-_doj_agreement_final.pdfCatonsville Man Sentenced to 2 Years in Prison for “Swatting” IncidentRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Zachary Lee, age 26, of Catonsville, Maryland, today to two years in prison, followed by three years of supervised release for Conspiracy to Provide False Information and False Information and Hoax relating to a scheme to cause an emergency services response, a practice known as “swatting.”
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Gary L. Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to Lee’s plea agreement, between February 17 and February 18, 2015, Lee, who resided in Ellicott City at the time, and co-conspirator Robert Walker-McDaid, age 19, of Coventry, England, United Kingdom, conspired to convey false information about a hostage situation that would cause armed law enforcement officers to be dispatched to the home of an acquaintance of Lee (the victim).
Specifically, on February 17, 2015, Lee messaged McDaid via an internet telephone service and stated, “I have someone I need sw@tted.” At McDaid’s request, Lee provided McDaid with the address of the victim and McDaid responded to Lee, “il do it when im up.” On February 18, 2015, a call from McDaid’s internet telephone account was made to the Maryland Coordination and Analysis Center’s (MCAC) Terrorism Hotline. Lee, McDaid, and another individual were participants in that call. The caller pretended to be the victim and stated that he had a loaded gun, several bags of plastic explosives, and three hostages. The caller demanded $15,000 in cash be delivered in a red bag to the victim’s address. The caller stated that he would start executing the hostages in 15 minutes if his demands were not met. Shortly after police arrived at the address, Lee allegedly posted on his Facebook account, “Love my team.”
At the time the call was made, authorities were not aware that the emergency call was false. A Howard County Police Department (HCPD) Tactical team went to the address provided by the callers, and ultimately shot the victim with rubber bullets in the chest and face. The victim suffered significant injuries to his face and chest, including bruised lungs, a fractured rib, and numerous broken bones to the left side of his face. He was transported to the hospital where he underwent approximately three facial reconstructive surgeries.
This “swatting” caused over 40 officers to respond to T.D.’s home and remain there for over 2.5 hours and cost the Howard County Police Department over $10,000. Investigators subsequently discovered that the victim was not in possession of loaded firearms or explosives, did not make the emergency call, and there were no hostages at the residence.
Walker-McDaid has been arrested in the United Kingdom and has an extradition hearing scheduled for March 27, 2018.
Acting United States Attorney Stephen M. Schenning commended the FBI, Howard County Police Department, and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren E. Perry and Zachary A. Myers, who prosecuted the case.
Billings Felon Sentenced to Federal Prison for Possessing Four FirearmsRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that U.S. District Court Judge Susan Watters sentenced Todd Thomas Malmstrom, a 53-year-old resident of Billings to 24 months in prison and three years of supervised release.
Malmstrom previously entered a guilty plea to felon in possession of a firearm. In February of 2017, Malmstrom was contacted by law enforcement officers after he was found in possession of a stolen vehicle in Billings, Montana. Malmstrom was carrying a loaded .45 caliber handgun in a holster on his belt at the time of his arrest and he had three additional firearms stored inside the stolen vehicle.
Malmstrom admitted to ATF agents that he had possessed the four firearms and that he knew he was prohibited from possessing firearms due to his prior felony conviction. In 2013, Malmstrom was convicted of another federal gun crime – subject of a court order in possession of a firearm.
The case was prosecuted by Assistant U.S. Attorney Jared Cobell and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Yellowstone County Sheriff’s Office.
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.
Bank Manager Sentenced to Prison for Stealing More Than $500K from Customer AccountsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARRIE CAESAR, 47, of New Britain, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment, followed by four years of supervised release, for embezzling funds from Webster Bank Corporation.
According to court documents and statements made in court, CAESAR was a long-time employee of Webster Bank where she served in a variety of roles, including bank teller, account manager and, most recently, as manager of the Avon branch office. Between 2003 and 2016, CAESAR withdrew at least $535,600 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.
CAESAR targeted primarily six customers, all of whom were at least 79 years old and with whom she had developed a relationship as an account manager.
Judge Thompson ordered CAESAR to pay $535,600 in restitution to the bank.
On February 13, 2017, CAESAR pleaded guilty to one count of theft, embezzlement and misapplication by a bank officer and employee.
CAESAR, who is released on a $150,000 bond, was ordered to report to prison on March 20, 2018.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Attorney General Sessions Applauds Congress for Voting to Reauthorize Section 702 of the Foreign Surveillance Intelligence ActRead the Press Release
Today Attorney General Sessions issued the following statement applauding Congress for voting to reauthorize Section 702: “Today's vote to reauthorize Section 702 of the Foreign Intelligence Surveillance Act is crucial to allowing us to continue to gather intelligence on foreign terrorists overseas and foil potential plots against Americans abroad and at home. I would especially like to thank the Senate and House leadership on both sides of the aisle, as well as the bipartisan efforts from those leaders on the Senate and House Intelligence and Judiciary Committees that supported and helped pass this critical legislation that gives us the tools to continue to keep the American people safe.”
Arizona U.S. Attorney’s Office collects over $13.7 Million in Fiscal Year 2017Read the Press Release
PHOENIX – First Assistant United States Attorney Elizabeth A. Strange announced today that the U.S. Attorney’s Office for the District of Arizona collected $13,751,877 in criminal and civil actions in Fiscal Year 2017. Of this amount, $5,903,640 was collected in criminal actions and $7,848,237 was collected in civil actions.
The District of Arizona also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,464,078 in cases pursued jointly with those offices. Of this amount, $16,301 was collected in criminal actions and $3,447,777 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
The U.S. Attorneys’ Offices, along with the Justice 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.
Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Criminal restitution is paid directly to the victims and 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 and 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 for the District of Arizona, working with partner agencies and divisions, collected $3,100,141 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.
RELEASE NUMBER: 2018-003_FY2017Collections
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Anchorage Man and Woman Indicted on Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man and woman have been indicted on federal drug trafficking charges.
Wilton Eugene Toney, 62, and Denita Ann Love, a/k/a Denita Ann Solitaire, 58, both of Anchorage, were named in the indictment charging them with drug conspiracy.
According to the charging documents, on Jan. 12, 2018, law enforcement officers seized two FedEx parcels located at the FedEx main hub in Anchorage. A search warrant revealed the parcels contained approximately 13 pounds of methamphetamine and 3 pounds of heroin. On the next day, law enforcement officers conducted a controlled delivery of the parcels to the lobby of the Barratt Inn Anchorage Airport, and observed Toney receive the parcels and take them to his room.
Law enforcement officers converged on and secured the hotel room, where Toney and Love were the only occupants of the room at the time. A search warrant executed on the hotel room resulted in the seizure of additional amounts of methamphetamine and heroin, digital scales, and three firearms. The Alaska State Troopers estimate the approximate combined street value of the seized drugs is $1.2 million.
The Alaska State Troopers (“AST”) and the Drug Enforcement Administration (“DEA”) conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Allentown Attorney Pleads Guilty to Tax OffenseRead the Press Release
Douglas M. Marinos, 56, a licensed attorney, pled guilty today to one-count of willfully failing to collect, truthfully account for, and pay over to the United States taxes owed by his Allentown law firm, announced United States Attorney Louis D. Lappen. The Criminal Information to which Marinos pled guilty alleges that Marinos failed to pay over to the Internal Revenue Service (“IRS”) money that he withheld from the paychecks of his firm’s employees, ostensibly for the purpose of paying federal payroll taxes (including Social Security and Medicare trust fund contributions).
Marinos will be sentenced at a later date. He could face up to five years in prison, three years of supervised release, a $10,000 fine, and a $100 special assessment. In addition, as part of his plea agreement, Marinos is required to pay approximately $285,000 in restitution to the IRS.
The case was investigated by the IRS Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
Albuquerque Residents Sentenced to Prison for Federal Fraud, Identity Theft and Theft of Mail ConvictionsRead the Press Release
ALBUQUERQUE – Two residents of Albuquerque, N.M., were sentenced in federal court today for their convictions on conspiracy, fraud, identify theft and theft of mail charges. Katie Carrillo, 27, was sentenced to 25 months of imprisonment followed by three years of supervised release, while her co-defendant Ralph Eastman, 49, was sentenced to 36 months of imprisonment followed by three years of supervised release
Carrillo and Eastman were charged in a 16-count indictment on Aug. 23, 2016, with conspiracy, ten counts of bank fraud, three counts of aggravated identity theft, and two counts of theft of mail. According to the indictment, the defendants committed the offenses from Dec. 2015 through April 2016, in Bernalillo County, N.M., by stealing mail and packages from cluster mailboxes located in apartment complexes. The mail stolen included checkbooks, checks, ATM cards, PIN numbers and personal identifiers of victims, which the defendants allegedly used to commit further crimes.
On Aug. 2, 2017, Eastman pled guilty to the charges against him in the indictment, namely, conspiracy, eight counts of bank fraud, and two counts of theft of mail. Eastman also pled guilty to a felony information charging him with aggravated identify theft. In entering the guilty plea, Eastman admitted that from Dec. 2015 through April 2016, he conspired with Carrillo and others to steal mail and packages for the purpose of obtaining financial information and forms of identification. Eastman also admitted that he and Carrillo altered checks and used them at local businesses in exchange for goods, services and online transactions. In addition, Eastman admitted that he and others used stolen identifications and personal information to facilitate fraudulent transactions. In his plea agreement, Eastman also acknowledged that he and Carrillo stole mail and packages from authorized depositories for the U.S. Postal Service through mailboxes located at an Albuquerque apartment complex on March 9, 2016 and March 12, 2016.
On Aug. 18, 2017, Carrillo pled guilty to conspiracy, two counts of bank fraud, two counts of aggravated identity theft and two counts of theft or receipt of stolen mail. Carrillo entered the guilty plea without the benefit of a plea agreement.
The U.S. Postal Inspection Service, the Albuquerque Police Department and the Sandoval County Sheriff’s Office investigated this case, which was prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Paul Mysliwiec.
Albuquerque Felon Facing Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Daniel Penrod, 29, of Albuquerque, N.M., with violating federal firearms laws by unlawfully possessing a firearm and ammunition. Penrod was remanded into federal custody pending trial which has yet to be scheduled.
Acting U.S. Attorney James D. Tierney, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and U.S. Marshal Conrad E. Candelaria said that Penrod, whose prior criminal history includes felony convictions for 2nd degree murder, receiving or transferring a stolen vehicle, and battery on a police officer will be prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) filed a criminal complaint against Penrod charging him with being a felon in possession of a firearm in Bernalillo County, N.M., on Jan. 17, 2018. According to the criminal complaint, on that date, Deputy U.S. Marshals arrested Penrod on a state felony arrest warrant for a probation violation. During the arrest operation, Penrod allegedly attempted to pull a loaded firearm out of his waistband but dropped the firearm in response to commands from Deputies.
If convicted of the charge in the criminal complaint, Penrod faces maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the ATF office in Albuquerque and 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 Probation Parole Security Threat Intelligence Unit and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
54-Count Federal Indictment Charges 12 Members and Associates of Mongols Motorcycle Gang with Racketeering Conspiracy and Three Others with Various Federal Crimes Including Large Scale Drug TraffickingRead the Press Release
A 54-count superseding indictment was unsealed today, charging 12 members and associates of the Mongols Motorcycle Gang (Mongols) with racketeering conspiracy, announced Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee. Three other individuals were charged with other federal crimes including large-scale drug trafficking allegedly from California to Tennessee and Kentucky, and crimes related to the Hobbs Act.
Joining U.S. Attorney Cochran in announcing these charges at a morning news conference were Assistant Special Agent in Charge Jack Webb of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Nashville Division; Assistant Director Dewayne Johnson of the Tennessee Bureau of Investigation; and Clarksville Police Chief Al Ansley.
According to the indictment, members and associates of the Clarksville Chapter of the Mongols, engaged in a host of violent criminal activities, including murder, attempted murder, assault, kidnapping, robbery, extortion, witness tampering, money laundering, interstate travel in aid of racketeering, and large scale drug trafficking.
As stated in the indictment, the Mongols Motorcycle Gang identifies itself as an “outlaw” motorcycle gang, and is a nationwide and international organization with chapters located in different geographical areas. Most of the chapters are in California, but chapters have been established in other parts of the United States and in other countries, including Arizona, Arkansas, Colorado, Florida, Idaho, Indiana, Maryland, Missouri, Montana, Nevada, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Tennessee, Utah, Virginia, Washington, Australia, Canada, Denmark, Germany, Indonesia, Malaysia, Mexico, Singapore, Switzerland and Thailand.
This morning, local, state and federal law enforcement officers began arresting those charged in the indictment and all but one are in custody.
“Gangs that conspire to spread illegal drugs like methamphetamine and lethal opioids, extort legitimate businesses, and wage violence on our fellow Americans will be held accountable by the Department of Justice,” said Attorney General Sessions. “Last year, we secured the convictions of more than 1,200 gang members, and, as this case makes clear, we are not slowing down. I want to thank the ATF and all of our incredible state, county, and local law enforcement partners who helped make today's indictment possible, including the Clarksville and Owensboro Police Departments, the Tennessee Bureau of Investigation, and four county sheriff’s offices. Today’s indictment is the next step in our efforts to dismantle gangs and stop the spread of deadly drugs and violent crime.”
“Attorney General Sessions has made it clear that prosecuting violent offenders and reducing violent crime is a top priority of the Department of Justice,” said U.S. Attorney Cochran. “Today’s indictment and arrests have resulted in the removal of many dangerous individuals from neighborhoods in and around middle Tennessee and we intend to vigorously prosecute these individuals and hold them accountable for their actions. I commend the many law enforcement officers and prosecutors who have dedicated enormous amounts of time and effort in bringing these charges.”
The indictment details allegations of violent, criminal activity and drug trafficking in and around the Clarksville area beginning in or about March 2015, by certain Mongols members or associates and continuing until the return of the indictment. The 12 individuals charged in the racketeering conspiracy are:
- James Wesley Frazier aka “Slo-Mo” and “Special,” 30, of Clarksville;
- Aelix Santiago aka “Goon,” “Big O,” and “Big Offit,” 29, of Clarksville;
- Kyle Heade, 30, formerly of Fort Campbell, Kentucky;
- Joel Aldridge aka “Sleezy” and “Spoon,” 36, of Clarksville;
- James Hines aka “Fester,” 42, of Clarksville;
- Michael Forrester, Jr. aka “Stix,” 29, of Clarksville;
- Jamie Hern aka “J-Roc,” 38, of Clarksville;
- Robert Humiston aka “Bric” aka “Brichands,” 25, of Dover, Tennessee;
- Michael Myers aka “Yea Yea,” 33, of Oak Grove, Kentucky;
- Michael Levi West aka “Smurf,” aka “Blue,” 35, of Clarksville; and
- Adrianna Frazier aka “Adrianna Miles,” 32, of Owensboro, Kentucky.
Charged with large-scale drug trafficking is:
- Derek Leighton Stanley, 43, of Owensboro, Kentucky.
Charged with offenses related to Hobbs Act Robbery are:
- Timothy Grant, 31, of Clarksville; and
- Dustin McCracken aka “D,” 28, of Clarksville.
Stephen Cole aka “Lurch,” 36, of Clarksville remains at large and his whereabouts are unknown.
Allegations of criminal conduct contained in the indictment include:
Holding weekly meetings of the Mongols Clarksville Chapter at various residences and businesses in Clarksville for the purpose of discussing club business and to pay dues to support the criminal activities of the club;
Kidnapping and assaulting an individual, using a firearm and a Taser, at a motel in Clarksville on April 20, 2015;
Setting fire to and destroying the Sin City Motorcycle Clubhouse in Clarksville on May 17, 2015;
Kidnapping two individuals at gunpoint in the Clarksville area on May 22, 2015, and transporting them to a cemetery in Bumpus Mills, Tennessee, where one individual was murdered by shooting the victim at least eight times, including once in the head;
Robbing two individuals at gunpoint in the parking lot of a Clarksville apartment complex on July 3, 2015;
Breaking into a home in Hopkinsville, Kentucky on July 4, 2015, and pistol whipping the resident and stealing the resident’s belongings while holding the victim at knifepoint;
On numerous occasions, travelling to California and transporting an aggregate total of at least 50 pounds of methamphetamine back to Tennessee for distribution in Tennessee and Kentucky;
Delivering an aggregate total of at least $300,000 in cash, the proceeds of methamphetamine sales, to a co-conspirator member of the Mongols California Harbor Chapter.
On Jan. 9, 2016, in Clarksville, purchasing 80 to 90 pills containing Oxymorphone, a schedule II substance, in exchange for $3,000 to $3,500;
On Jan. 16, 2016, in Clarksville, attempting to purchase 90 pills containing Oxymorphone, in exchange for $5,400; during this deal, Kyle Heade shot and wounded another individual, using a 9mm handgun;
Kidnapping two individuals at a residence in Clarksville and holding them at gunpoint while they interrogated one of the victims and searched the residence for drug proceeds on Jan. 17, 2016;
On April 24, 2016, three of the individuals charged were travelling from Oak Grove, Kentucky to Boone County, Missouri, where they were stopped by law enforcement for travelling in a stolen vehicle and found in possession of a Glock 9mm pistol with an extra 30 round magazine and a .40 caliber handgun; 113 grams of 100 percent pure methamphetamine; and varying amounts of other illegal controlled substances;
On May 11, 2016, one of the individuals charged sold approximately three grams of 96 percent pure methamphetamine to another individual;
Attempting to murder an individual on July 14, 2016, by shooting the victim multiple times for wearing clothing identifying himself as a member of another motorcycle club;
From Oct. 26, 2016, through on or about Nov. 9, 2016, kidnapping a woman from a hotel in Nashville, and physically assaulting her and threatening her while interrogating her about the death of a co-conspirator member of the Mongols California Harbor Chapter.
This case was investigated by the ATF; the Tennessee Bureau of Investigation; the Clarksville Police Department; and the Owensboro, Kentucky Police Department; with assistance from the Montgomery County, Tenn. Sheriff’s Department; the Stewart County Sheriff’s Department; the Christian County, Kentucky Sheriff’s Department; the Davies County, Kentucky Sheriff’s Department; and the Fort Campbell Army Criminal Investigation. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty in a court of law.
54-Count Federal Indictment Charges 12 Members and Associates of Mongols Motorcycle Gang with Racketeering Conspiracy and Three Others with Various Federal Crimes Including Large Scale Drug TraffickingRead the Press Release
A 54-count superseding indictment was unsealed today, charging 12 members and associates of the Mongols Motorcycle Gang (Mongols) with racketeering conspiracy, announced Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee. Three other individuals were charged with other federal crimes including large scale drug trafficking and crimes related to the Hobbs Act.
Joining U.S. Attorney Cochran in announcing these charges at a Noon news conference were Jack Webb, Assistant Special Agent in Charge of the ATF Nashville Division; Tennessee Bureau of Investigation Assistant Director Dewayne Johnson; and Clarksville Police Chief Al Ansley.
According to the indictment, members and associates of the Clarksville Chapter of the Mongols, engaged in a host of violent criminal activities, including murder, attempted murder, assault, kidnapping, robbery, extortion, witness tampering, money laundering, interstate travel in aid of racketeering and large scale drug trafficking.
As stated in the indictment, the Mongols Motorcycle Gang identifies itself as an “outlaw” motorcycle gang and is a nationwide and international organization with chapters located in different geographical areas. Most of the chapters are in California, but chapters have been established in other parts of the United States and in other countries, including Tennessee.
This morning, local, state and federal law enforcement officers began arresting those charged in the indictment and all but one are in custody.
“Gangs that conspire to spread illegal drugs like methamphetamine and lethal opioids, extort legitimate businesses, and wage violence on our fellow Americans will be held accountable by the Department of Justice,” said Attorney General Jeff Sessions. “Last year, we secured the convictions of more than 1,200 gang members, and, as this case makes clear, we are not slowing down. I want to thank the ATF and all of our incredible state, county, and local law enforcement partners who helped make today's indictment possible, including the Clarksville and Owensboro Police Departments, the Tennessee Bureau of Investigation, and four county sheriff’s offices. Today’s indictment is the next step in our efforts to dismantle gangs and stop the spread of deadly drugs and violent crime.”
“Attorney General Sessions has made it clear that prosecuting violent offenders and reducing violent crime is a top priority of the Department of Justice,” said U.S. Attorney Don Cochran. “Today’s indictment and arrests have resulted in the removal of many dangerous individuals from neighborhoods in and around middle Tennessee and we intend to vigorously prosecute these individuals and hold them accountable for their actions. I commend the many law enforcement officers and prosecutors who have dedicated enormous amounts of time and effort in bringing these charges.”
The indictment details allegations of violent, criminal activity and drug trafficking in and around the Clarksville, Tenn. area beginning in or about March 2015, by certain Mongols members or associates and continuing until the return of the indictment. The 12 individuals charged in the Racketeering conspiracy are:
- James Wesley Frazier, a/k/a “Slo-Mo,” a/k/a “Special,” 30, of Clarksville;
- Aelix Santiago, a/k/a “Goon,” a/k/a “Big O,” a/k/a “Big Offit,” 29, of Clarksville;
- Kyle Heade, 30, formerly of Fort Campbell, Kentucky;
- Joel Aldridge, a/k/a “Sleezy,” a/k/a “Spoon,” 36, of Clarksville;
- James Hines, a/k/a “Fester,” 42, of Clarksville;
- Michael Forrester, Jr., a/k/a “Stix,” 29, of Clarksville;
- Stephen Cole, a/k/a “Lurch,” 36, of Clarksville;
- Jamie Hern, a/k/a “J-Roc,” 38, of Clarksville;
- Robert Humiston, a/k/a “Bric,” a/k/a “Brichands,” 25, of Dover, Tennessee;
- Michael Myers, a/k/a “Yea Yea,” 33, of Oak Grove, Kentucky;
- Michael Levi West, a/k/a “Smurf,” a/k/a “Blue,” 35, of Clarksville; and
- Adrianna Frazier, a/k/a “Adrianna Miles,” 32, of Owensboro, Kentucky.
Charged with large scale drug trafficking:
- Derek Leighton Stanley, 43, of Owensboro, Kentucky.
Charged with offenses related to Hobbs Act Robbery:
- Timothy Grant, 31, of Clarksville, Tennessee;
- Dustin McCracken, a/k/a “D,” 28, of Clarksville.
Steven Cole remains at large and his whereabouts are unknown.
Allegations of criminal conduct contained in the indictment include:
Holding weekly meetings of the Mongols Clarksville Chapter at various residences and businesses in Clarksville, for the purpose of discussing club business and paying dues to support the criminal activities of the club;
Kidnapping and assaulting an individual, using a firearm and a Taser, at a motel in Clarksville on April 20, 2015;
Setting fire to and destroying the Sin City Motorcycle Clubhouse in Clarksville on May 17, 2015;
Kidnapping two individuals at gunpoint in the Clarksville area on May 22, 2015, and transporting them to a cemetery in Bumpus Mills, Tenn., where one individual was murdered by shooting the victim at least 8 times, including once in the head;
Robbing two individuals at gunpoint in the parking lot of an apartment complex in Clarksville on July 3, 2015;
Breaking into a home in Hopkinsville, Kentucky on July 4, 2015, and pistol whipping the resident and stealing the resident’s belongings while holding the victim at knifepoint;
On numerous occasions, travelling to California and transporting an aggregate total of at least 50 pounds of methamphetamine and bringing it back to Tennessee for distribution in Tennessee and Kentucky;
Delivering an aggregate total of at least $300,000 in cash, the proceeds of methamphetamine sales, to a co-conspirator member of the Mongols California Harbor Chapter;
On January 9, 2016, in Clarksville, purchasing 80-90 pills containing Oxymorphone, a schedule II substance, in exchange for $3,000-$3,500;
On January 16, 2016, in Clarksville, attempting to purchase 90 pills containing Oxymorphone, in exchange for $5,400; during this deal, Kyle Heade shot and wounded another individual, using a 9mm handgun;
Kidnapping two individuals at a residence in Clarksville and holding them at gunpoint while they interrogated one of the victims and searched the residence for drug proceeds on January 17, 2016;
On April 24, 2016, three of the individuals charged were travelling from Oak Grove, Kentucky to Boone County, Missouri, where they were stopped by law enforcement for travelling in a stolen vehicle and found in possession of a Glock 9mm pistol with an extra 30 round magazine and a .40 caliber handgun; 113 grams of 100 percent pure methamphetamine; and varying amounts of other illegal controlled substances;
On May 11, 2016, one of the individuals charged sold approximately 3 grams of 96 percent pure methamphetamine to another individual;
Attempting to murder an individual on July 14, 2016, by shooting the victim multiple times for wearing clothing identifying himself as a member of another motorcycle club;
From Oct. 26, 2016, through on or about Nov. 9, 2016, kidnapping a woman from a hotel in Nashville, and physically assaulting her and threatening her while interrogating her about the death of a co-conspirator member of the Mongols Harbor Chapter in California.
Other criminal acts are alleged in the indictment.
If convicted, Timothy Grant and Dustin McCracken face up to 20 years in prison. All other defendants face up to life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Tennessee Bureau of Investigation; the Clarksville Police Department; and the Owensboro, Kentucky Police Department; with assistance from the Montgomery County, Tenn. Sheriff’s Department; the Stewart County Tenn. Sheriff’s Dept; the Christian County, Kentucky Sheriff’s Dept; the Davies County, Kentucky Sheriff’s Dept; and the Fort Campbell Army Criminal Investigation. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the DOJ Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty in a court of law.
2nd Defendant Sentenced in Heroin, Crack Cocaine, Bank Fraud ConspiracyRead the Press Release
PROVIDENCE – The second of two West Warwick men charged with participating in a heroin, crack cocaine trafficking and bank fraud conspiracy was sentenced on Wednesday to 60 months in federal prison.
Robert Wilkins, 26, pleaded guilty on July 28, 2017, to one count each of conspiracy to deliver heroin, possession with the intent to deliver heroin, conspiracy to deliver 28 grams or more of cocaine base, possession with the intent to deliver cocaine base, possession with the intent to deliver cocaine, three counts of delivery of heroin, fifteen counts of delivery of cocaine base, and one count of bank fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Wilkins to serve four years supervised release upon completion of his term of incarceration and to pay $2,000 in restitution. The U.S. Sentencing Guideline imprisonment range in this matter is 57-71 months. However, statutes under which this defendant was charged require a minimum mandatory sentence of 60 months incarceration. The government recommended the Court impose a sentence of 71 months in prison.
A codefendant in this matter, Christian M. Domenech, 23, of West Warwick, was sentenced on October 20, 2017, to 36 months in prison. Domenech pleaded guilty on July 14, 2017, to an indictment charging him with conspiracy to distribute heroin, three counts of distribution of heroin, 14 counts of distribution of crack cocaine, possession with the intent to distribute heroin, possession with the intent to distribute cocaine, possession with the intent to distribute crack cocaine and bank fraud.
The sentences are announced by United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, a three-month investigation by the FBI Safe Streets Task Force into the defendants’ drug trafficking activity included numerous purchases from the defendants of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each transaction was monitored by law enforcement.
Additionally, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. The investigation determined that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew a total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court-authorized search of the defendants’ West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
Robert Wilkins and Christian Domenech have been detained in federal custody since their arrest in July 2016.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division, thank the West Warwick Police Department and the DEA for their assistance investigating the drug trafficking activities of Robert Wilkins and Christian Domenech.
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104 Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, PR – A federal grand jury has indicted 104 individuals as a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation (FBI), US Postal Inspection Service (USPIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Puerto Rico Police Department (PRPD) Bayamón Strike Force, the United States Marshals Service, and the San Juan Municipal Police, announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The defendants are charged in a nine-count indictment with conspiracy to possess with intent to distribute controlled substances, use of firearms in furtherance of crimes of violence, including, murder, drive-by shooting, and other related offenses.
The indictment alleges that beginning in the year 2010, the defendants conspired to possess with intent to distribute cocaine base, also known as “crack,” heroin, cocaine, and marihuana within 1,000 feet of a real property comprising housing facilities owned by a public housing authority in the municipalities of Bayamón, Toa Baja, Cataño, Naranjito, Comerío, and Corozal. The public housing facilities are: Virgilio Dávila, Rafael Falín Torrench, Brisas de Bayamón, Jardines de Caparra, Las Gardenias, La Alambra, José Celso Barbosa, Los Jeannie, Alegría Norte, Jardines de Cataño, Sierra Linda, Los Laureles and Los Dominicos; and Villa Olga, Río Plantation and El Polvorín Wards.
According to the indictment, in the year 2010, this drug trafficking organization gained control of most of the housing projects and wards within Bayamón and the areas nearby, after federal authorities incarcerated most of the leaders from nearly all the drug gangs in the area. This new gang identified themselves as Los Menores or the “new blood.” The goal of Los Menores was to take over and maintain control of all the drug trafficking activities in Bayamón and other areas, by force, violence, and intimidation.
As part of the manner and means of the conspiracy, the defendants and co-conspirators were instructed to shoot and kill suspected rival drug trafficking members. All firearms used during the commission of these violent acts would be returned to the leader of the organization for their disposal. Co-conspirators would also pay bribes to law enforcement officers in exchange for information on informants or cooperators, and on law enforcement initiatives to disrupt the drug points.
The 104 defendants acted in different roles in order to further the goals of their organization, to wit: 22 leaders/drug point owners/drug point administrators; nine (9) enforcers; 13 suppliers; 13 runners, 42 sellers, and five (5) drug processors. Forty-one (41) of the defendants are facing one charge of using and carrying firearms during and in relation to a drug trafficking crime. All of the defendants are facing a narcotics forfeiture allegation of 55 million dollars.
The indictment includes allegations of six (6) murders, including one drive-by shooting, committed by members of this organization. These murders are as follows:
• On or about December 19, 2012, defendants [1] Sadid Medina-Rivera, a.k.a. “El Loco;” [3] Yamil Vázquez-Rivera, a.k.a. “Yamo;” [12] Giovanni Ortiz-Soto, a.k.a. “Pinocho”; [13] Richard A. Franco-Pérez, a.k.a. “El Cagón”; [23] George M. Franco Pérez, a.k.a. “La Flaca”; and [29] Ángel Cruz-Vázquez, a.k.a. “Bebo/Brigante,” shot and killed Jomar J. Marrero-Pérez.
• On or about May 22, 2013, defendants [3] Yamil Vázquez-Rivera, a.k.a. “Yamo;” [12] Giovanni Ortiz-Soto, a.k.a. “Pinocho”; and [23] George M. Franco Pérez, a.k.a. “La Flaca,” fired a weapon into a group of two or more persons (drive-by shooting) and killed Carlos J. Duplessis, a.k.a. “Sombrita,” and Luis R. Rodríguez-Pérez.
• On or about March 2, 2015, defendants [8] Luis G. Ayala-García, a.k.a. “Pájaro/Gaby El Quemao”, and [46] Abimael Narváez-Rosa, a.k.a. “Apu,” shot and killed Nelson R. Troche-Rivera, a.k.a. “Negro.”
• On or about February 10, 2016, defendants [14] Wilfredo Rojas-Suárez, a.k.a. “Piky”; [24] Nelson Rivera-Maldonado, a.k.a. “Cuajo”; and [31] Miguel A. Martínez-Candelaria, a.k.a. “Miky,” shot and killed José M. Barbosa-González, a.k.a. “Peca.”
• On or about October 22, 2016, defendants [14] Wilfredo Rojas-Suárez, a.k.a. “Piky”; Nelson González-González, a.k.a. “Gemelo/Ardilla”; and [87] Juan E. Rivera-Serrano, a.k.a. “Casco,” shot and killed Christian L. Calderón-Rojas, a.k.a. “Chris.”
“This violent drug trafficking organization posed a threat to the lives of citizens of Puerto Rico, specifically those communities in Bayamón and nearby municipalities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests are the result of our strong collaboration with state and federal law enforcement agencies, and the Department of Justice’s continuing efforts to combat violent gangs engaged in drug trafficking.”
Douglas A. Leff, Special Agent in Charge of the FBI-San Juan Field Office said: “Today’s massive operation was made possible through our dedicated partners at the United States Attorney's Office; U.S. Marshals Service; Alcohol, Tobacco, and Firearms; Drug Enforcement Administration; Homeland Security Investigations; Postal Inspection Service; and Puerto Rico National Guard. Over 200 additional FBI personnel were brought in from FBI Headquarters and several other FBI field offices. The FBI’s elite Hostage Rescue Team conducted several of today’s arrests, supported by a fleet of air and ground specialty vehicles brought down from Quantico. Special appreciation is extended to San Juan Police Commissioner Guillermo Calixto for the outstanding task force officers he selected from his department, one of whom served as the lead investigator on this case; to Guaynabo Police Commissioner Victor Franco Rodríguez for his department’s invaluable assistance; and as always, to the Puerto Rico Police Department for their outstanding detective work and unwavering commitment to making Puerto Rico safer.”
“The boldness of these individuals to use the U.S. Mail for their drug trafficking enterprise and think they could get away with it. As alleged in the indictment, the “Los Menores” gang used the U.S. Mail to further their drug enterprise and launder their proceeds through the use of U.S. Postal Service Money Orders. U.S. Postal Inspectors will never tolerate criminal use of the U.S. Mail; and today’s arrest sends a strong message that we will vigorously pursue these types of crimes against the U.S. Mail and the American public,” said Acting Inspector in Charge Joseph Cronin.
ATF Special Agent in Charge Peter J. Forcelli stated: “These indictments and arrests show how well Federal and state agencies can work together to disrupt and dismantle violent drug gangs to stem the crime plaguing Puerto Rico during these difficult times.”
The case is being prosecuted by Assistant United States Attorneys María L. Montañez-Concepción and Victor O. Acevedo-Hernández under the supervision of Alberto R. López-Rocafort and Jenifer Y. Hernández-Vega, Deputy Chiefs for Domestic Narcotics Unit and Violent Crimes Unit, respectively.
The defendants are facing a minimum of 10 years up to life imprisonment. These are:
[1] Sadid Medina-Rivera, a.k.a. “El Loco”; [2] Jorge Molina-Larrion, a.k.a. “Jorge Bush/ El Presidente”; [3] Yamil Vázquez-Rivera, a.k.a. “Yamo”; [4] Felipe Narváez-Colon, a.k.a. “Gavilan/Viejo”; [5] Samuel Arce-Ayala, a.k.a. “Brocoli/Broco/Vegetal”; [6] William J. Díaz-Rodríguez, a.k.a. “Billy/Papa/Bola”; [7] Carlos J. Nazario-López, a.k.a. “Carlos Tati”; [8] Luis G. Ayala-García, a.k.a. “Pájaro/Gaby El Quemao”; [9] Joshua Méndez-Romero, a.k.a. “Joshi/El Guabi/Gemelo/El Identico”; [10] José J. Romero-Bonilla, a.k.a. “Galvan/Colorao/Garban”; [11] Jonathan Milan-Rodríguez, a.k.a. “Polvo/Pica/Polvorin/El Virao”; [12] Giovanni Ortiz-Soto, a.k.a. “Pinocho”; [13] Richard A. Franco-Pérez, a.k.a. “El Cagon/La A”; [14] Wilfredo Rojas-Suárez, a.k.a.“Piky/Picky”; [15] Roberto Ortiz-Toro, a.k.a. “Tillo”; [16] Jaime L. Martínez-Vargas, a.k.a. “Jimmy/El Cojo/Diri/El Gordo”; [17] Joel J. Ayala-Velázquez, a.k.a. “El Puma”; [18] Omar J. Nieves-Pérez, a.k.a. “Cornlakes”; [19] José R. Jiménez-Echevarría, a.k.a. “Cuba/Rafi”; [20] Phillip García-Osorio; [21] Julio Rojas-Suárez, a.k.a. “Chulin/Chuli”; [22] Carlos M. Colón-Cruz, a.k.a. “Flaqui”; [23] George M. Franco-Pérez, a.k.a. “La Flaca”; [24] Nelson Rivera-Maldonado, a.k.a. “Cuajo”; [25] Ángel L. Pagán-Torres, a.k.a. “Gorito/El Desacatao”; [26] Ernesto Jiménez-Candelario, a.k.a. “Nestor”; [27] David F. Nieves-Dávila, a.k.a. “Davisito”; [28] Héctor E. Martínez-García, a.k.a. “Ricky Tamba/Ricky Tonga”; [29] Ángel R. Cruz-Vázquez, a.k.a. “Bebo/Brigante”; [30] Edgar E. Aristud-Maysonet; [31] Miguel A. Martínez-Candelaria, a.k.a. “Miky”; [32] Juan P. Marrero-Díaz, a.k.a. “El Goldo”; [33] Ángel L. Morales-Hernández, a.k.a. “Ángel/Chinese Checker”; [34] Erick Y. Soto-Pérez; [35] José A. Méndez-Ruiz, a.k.a. “Tío Méndez”; [36] Andrés Medina-Maldonado, a.k.a. “Andy Perla/Ricky Martin”; [37] Joel Rosario-Martínez, a.k.a. “Ceda”; [38] Eliezer Rivera-Reyes, a.k.a. “Gordo Teta”; [39] Bryan M. Camacho-Báez, a.k.a. “La Puerca/La Gorda”; [40] José D. Nieves-Ramos, a.k.a. “Joudi”; [41] Alexie López-Robles, a.k.a. “Alex Chengo”; [42] Carlos López-Orria, a.k.a. “Pelota”; [43] Raúl Viguera-Soto, a.k.a. “Viagra/El Gordo/Raulin”; [44] Félix O. Ortiz-Rodríguez, a.k.a. “Chucha”; [45] Andrés D. Reyment-Rodríguez, a.k.a. “Andy La Salida”; [46] Abimael Narváez-Rosa, a.k.a. “Apu”; [47] José L. Cintron-Aponte, a.k.a. “Bebo La Maquina”; [48] Janey Fontan-Otero, a.k.a. “Stuart The Little/Stuart”; [49] Edwin A. Pantoja-Eraso, a.k.a. “Bichote”; [50] Frankie Ortiz-Soto; [51] Wilberto Guzmán-Robles, a.k.a. “Macho/Machito”; [52] Juan G. Pérez-Rivera, a.k.a. “Juanito Culon”; [53] Andrés Báez-Ramos, a.k.a. “Cuajo”; [54] Nelson González-González, a.k.a. “Gemelo/Ardilla”; [55] William Reyes-Garrastegui, a.k.a. “Bebo El Goldo”; [56] Rafael A. Ramos-Marín, a.k.a. “El Negro”; [57] Pedro Orraca-Matos, a.k.a. “Peri”; [58] Francisco R. Maysonet-Morales, a.k.a. “Ñame/Gordo”; [59] Ángel O. Pagán-Torres, a.k.a. “Kibu”; [60] Jaime A. Hernández-Santiago, a.k.a. “Mingui/Coco”; [61] Luis E. Erazo De-Jesús, a.k.a. “Vaquero/Vaquerito”; [62] Carlos J. Nieves-Pérez, a.k.a. “Seven”; [63] Abnel H. Berríos-Natali, a.k.a. “Abnel La Barbie”; [64] Francisco Salas-Ríos, a.k.a. “Chule”; [65] Christian Guzmán-Colón, a.k.a. “Muñequita/Muñe”; [66] Pedro Crespo-Bouchamp, a.k.a. “Colorex/Colo/Pedrito/Colorao”; [67] Juan E. Freites-Torres, a.k.a. “Macho/Macho Kenai”; [68] Luis M. Pantoja-Cruz, a.k.a. “Cantinfla”; [69] Harold L. Abolafia-Borrero, a.k.a. “Ferrari”; [70] Christopher J. Nieves-Pérez, a.k.a. “Chucho”; [71] Jean C. Torres-Soto, a.k.a. “Chicken Pop”; [72] Daniel F. Vélez-Ortiz, a.k.a. “Guayu/Danielito”; [73] Félix J. Alvarado-Ortega, a.k.a. “Filete/Filete Mignon”’ [74] Juan F. Vélez-Cedeño, a.k.a. “Chato”; [75] Jorge L. Negrón-Cruz, a.k.a. “Pollo/Pollito/Tostin”; [76] José L. Jiménez-Candelario; [77] Luis A. Monzon-Ocasio, a.k.a. “El Pito”; [78] José M. Oyola, a.k.a. “Juaco”; [79] José A. Robles-Santiago, a.k.a. “Abi/Guitarreño”; [80] Emanuel Rivera-Álvarez, a.k.a. “Emma”; [81] Jovanni Torres-López, a.k.a. “Bimbo”; [82] Jaime J. Valentin-Rodríguez, a.k.a. “Jay Barente-Rivera/Jay Lombriz/El Jay”; [83] Héctor X. Ortiz-Errazo, a.k.a.“Xavi/El Gordo”; [84] Angelita Bravo-García, a.k.a. “Bebota/Mimitime/Mimi”; [85] Ángel A. Jiménez-Candelario; [86] Luis A. Ortiz-Olivera, a.k.a. “Pache”; [87] Juan E. Rivera-Serrano, a.k.a. “Casco”; [88] Fernando Montañez-García, a.k.a. “Mostri”; [89] Brandon J. Cruz-Verges; [90] Rolando Cotto-Ortega, a.k.a. “Pastelillo”; [91] Héctor Quintana-Figueroa, a.k.a. “Chupa”; [92] Juan C. Pérez-Rivera, a.k.a. “Kibu”; [93] José C. Mojica-Torres, a.k.a. “Chencho”; [94] Héctor Méndez, a.k.a. “Rudy/Ruby/Scooby”; [95] Jean C. Del Valle-Rosa, a.k.a. “Chiwawin”; [96] Jeremy A. Barreto-Berríos; [97] Juan L. Reca-Santiago, a.k.a. “Luis Santiago-Rivera”; [98] Gabriel Sedeño-Aponte, a.k.a. “Limber”; [99] José A. Ortiz-Olivera, a.k.a. “Macho”; [100] Félix J. Ortiz, a.k.a. “Kalkri/Kenobi”; [101] Nasain Ortiz-Nieves, a.k.a. “Bart/Bart Simpson”; [102] Roberto C. Rosa-Pérez, a.k.a. “Papiro”; [103] Pedro Alvino-Colón, a.k.a. “Pello/Peyo/Pedri”; and [104] Carlos J. Santos-Vélez, a.k.a.“Carlitos”.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty. The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). This multi-agency task force investigates and dismantles major drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics as well as the gang violence that accompanies drug trafficking.
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17 January 2018
Two charged with illegally reentering the U.S.Read the Press Release
Two people were indicted in for illegally reentering the United States, law enforcement officials said.
Miguel Marcos-Perez, 31, a citizen of Guatemala, was found in New Philadelphia after having twice previously been deported to Guatamala, most recently in 2012, according to court documents.
Alexis Manueles Mancia, 27, a citizen of Honduras, was found in Mahoning County after having previously been deported to Honduras three times, most recently in 2016, according to court documents.
The cases are being prosecuted by Assistant U.S Attorneys Kathryn G. Andrachik and Brian S. Deckert following investigations by the Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sister Convicted of Retaliating Against Witness in Brothers' TrialRead the Press Release
COLUMBUS, Ohio – Joy McShan Edwards, 37, of Steubenville, was convicted in U.S. District Court today of retaliation against a witness.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and U.S. Marshal Pete Tobin announced the verdict, which was reached today by Chief U.S. District Judge Edmund A. Sargus, Jr, after a one-day bench trial on December 11, 2017.
Edwards’s two brothers, Fred McShan and David McShan, were convicted at a federal jury trial in March 2016 of conspiracy to possess with intent to distribute heroin in the Southern District of Ohio.
During the trial, Deputy U.S. Marshals had to escort multiple family members and friends of the McShan brothers out of the courtroom for violating the Federal Court’s cell phone policy. The family and friends had been attempting to photograph and video record witnesses in the case.
After the first day of trial, a Social Media post to Snapchat was posted by a family member, which revealed a comment about a government witness and a short video of the confidential informant’s testimony.
On May 11, the United States Probation Department released its pre-sentence investigation report and recommended sentences for Fred and David McShan. On that same day, authorities discovered Edwards made a post on her Facebook page about the confidential informant. The post included photos of the witness cropped onto a body and comments that the confidential informant was a “snitch.”
Edwards continued posting multiple images of the witness cropped onto other photographs, including images of rats and skulls.
According to the victim, the retaliation via social media has severely impacted his life and the safety of himself and his family.
“We take very seriously the safety and security of government witnesses,” U.S. Attorney Glassman said. “Those who retaliate against government witnesses will be identified and prosecuted to the fullest extent of the law. Today’s verdict is an example.”
Retaliating against a witness, victim or an informant is a federal crime punishable by up to 10 years in prison.
Edwards was charged by criminal complaint and arrested in June. She was indicted by a federal grand jury in August.
U.S. Attorney Glassman commended the cooperative investigation by the DEA and the U.S. Marshals Service, as well as Deputy Criminal Chief Michael J. Hunter and Jefferson County Prosecutor and Special Assistant United States Attorney Jane M. Hanlin, who are representing the United States in this case.
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Schenectady Man Sentenced to 9 Years for Perjury in Arson Homicide InvestigationRead the Press Release
ALBANY, NEW YORK – Bryan Fish, age 23, of Schenectady, New York, was sentenced today to 108 months in prison, to be followed by 3 years of supervised release, for making false declarations before a federal grand jury investigating an arson that killed four people in Schenectady.
The announcement was made by United States Attorney Grant C, Jaquith and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In pleading guilty on May 31, 2017, Fish admitted that he lied under oath to a federal grand jury investigating the fire, which occurred on or about May 2, 2013 at 438 Hulett Street in Schenectady, New York, and caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
Fish admitted that on May 24, 2013, he provided false testimony regarding his brother, whom Fish claimed: 1) drove him, Jennica Duell, and another man from Saratoga Springs to the vicinity of 438 Hulett Street in the early morning hours of May 2, 2013, 2) popped the trunk so that the other man could remove a gas can, and 3) later drove part of the way back to Saratoga Springs.
Fish is the fourth person to be sentenced for lying to the federal grand jury investigating the 438 Hulett Street fire.
- On March 17, 2016, Edward Leon, age 45, of St. Johnsville, New York, was sentenced to 10 years in prison following a jury trial.
- On September 12, 2016, Duell, age 29, of Schenectady, and the mother of the children who died, was sentenced to 11 years and 3 months in prison following a guilty plea.
- On May 31, 2017, Richard Ramsey, age 48, of Saratoga Springs, New York, was sentenced to 87 months in prison following a guilty plea.
United States Attorney Grant C. Jaquith said: “Bryan Fish, Jennica Duell, Edward Leon, and Richard Ramsey lied to a grand jury investigating one of the worst crimes in the Capital Region in recent memory. The sentences reflect the horror of the underlying crime and the defendants’ disregard for the law and the innocent lives lost. We will not let lies stand in the way of securing justice for the victims and their families, and of bringing to justice the person or people responsible for this deadly arson. We remain committed to continuing the investigation until justice is done.”
ATF Special Agent in Charge Ashan M. Benedict said: “The fire in Schenectady at 438 Hulett Street caused death and destruction that will affect families forever. Fish and the other individuals sentenced for lying to a federal grand jury will not prevent us from determining who was responsible for this heinous crime. The victims and their families will not be forgotten. I would like to extend my gratitude to the United States Attorney’s Office for prosecuting the case. I would also like to thank the Special Agents of ATF, the Schenectady Police Department and the Schenectady Fire Department for working tirelessly on this investigation.”
This case resulted from an ongoing investigation being conducted by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case was prosecuted by United States Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
The ATF notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information is encouraged to call ATF at 1-888-ATF-FIRE (1-888-283-3473), or email [email protected], or contact ATF through its web site at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF through the “report it” app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.
Sacramento Man Indicted for Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. — Joseph Woloszyn, 32, of Sacramento, was arrested today after a federal grand jury returned a five-count indictment last Thursday charging him with obstruction of justice and perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at an evidentiary hearing in the case of United States v. M.W., 2:13-cr-067 KJM. Woloszyn testified on behalf of the defendant in that case and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
If convicted, Woloszyn faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Indicted for Falsely Claiming to Be an Attorney and Defrauding Couple of over $500,000Read the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment on last Thursday against Derek Bluford, 30, of Sacramento, charging him with wire fraud and money laundering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Bluford allegedly told a couple that he was an attorney and could represent them in a dispute they were having with their tenant. After the couple agreed, Bluford then told them that they had incurred numerous fines and court costs, as well as costs to repair their rental unit; he also told them he had negotiated a settlement agreement with the couple’s former tenant. Based on these representations, the couple paid Bluford at least $535,000. According to the allegations in the indictment, Bluford, in fact, was not an attorney and there were no fines or court costs imposed. Bluford then allegedly laundered the proceeds from his scheme.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
If convicted, Bluford faces a maximum statutory penalty of 20 years in prison on the wire fraud count, 10 years in prison on the money laundering counts, and a fine of $250,000, or twice the gross loss or gross gain. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Removed Alien Charged with Illegally Re-entering the United StatesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on January 16, named Rene Hilerio-Ballina, 26, of Mexico, as the sole defendant.
According to the indictment, the defendant, was found in Pittsburgh, Pennsylvania on December 18, 2017, without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of two years in prison, one year supervised release, and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO) Pittsburgh sub-office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Registry of Motor Vehicles Clerk Sentenced for Role in Identity Theft SchemeRead the Press Release
BOSTON – A Massachusetts Registry of Motor Vehicles clerk was sentenced today in federal court in Boston for her role in a scheme to produce false identification documents.
Evelyn Medina, 56, of Boston, was sentenced to 15 months in prison and two years of supervised release. In October 2017, Media and co-conspirators Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; and Bivian Yohanny Brea, 41, of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the cases.
Red Lake Man Sentenced to 60 Months in Prison for Sexual Assault of A MinorRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of BRANDON SCOTT CLOUD, 36, to 60 months in prison for sexually assaulting a minor victim. CLOUD, who was charged via criminal information on July 21, 2017, pleaded guilty on September 21, 2017, and was sentenced yesterday before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, on August 11, 2016, within the exterior boundaries of the Red Lake Indian Reservation, CLOUD sexually assaulted a 13-year-old minor victim. The victim, who was visiting a family member at CLOUD’S residence, was assaulted by CLOUD while she was sleeping. Following the assault, the victim contacted her mother who notified the Red Lake Police Department.
This case is the result of an investigation conducted by the Red Lake Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Clifford B. Wardlaw prosecuted the case.
Defendant Information:
BRANDON SCOTT CLOUD, 36
Red Lake, Minn.
Convicted:
- Sexual abuse of a minor, 1 count
Sentenced:- 60 months in prison
- Three years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Real Estate Broker Pleads Guilty to Role in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen real estate broker pleaded guilty yesterday in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley.
Greisy Jimenez, 50, pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 24, 2018. In March 2017, co-conspirators Jasmin Polanco, 37, a real estate closing attorney, and Vanessa Ricci, 40, a mortgage loan officer, each pleaded guilty to one count of conspiracy to commit bank fraud and are scheduled to be sentenced on March 23, 2018 and March 26, 2018, respectively. Also in March 2017, Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced to time served and one year of supervised release to be served in home detention after pleading guilty to conspiracy to commit bank fraud.
The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
The charge of bank fraud and conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit are prosecuting the cases.
Purported Psychic Sentenced for Evading TaxesRead the Press Release
BOSTON – A south Florida woman, who purported to be a psychic, was sentenced today in federal court in Boston for impeding the Internal Revenue Service by hiding more than $3.5 million of income that she was paid by an elderly Martha’s Vineyard woman.
Sally Ann Johnson, a/k/a Angela Johnson, a/k/a Angelia Johnson, a/k/a Sally Reed, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 26 months in prison and was ordered to repay $3,567,300 to the victim and to pay restitution in the amount of $725,912 to the IRS. In October 2017, Johnson pleaded guilty to attempting to interfere with the administration of the Internal Revenue laws.
Johnson owned and operated various businesses, including Flatiron Psychic, Psychic Match, Inc., and Psychic Spiritual Salon, Inc., all of which purported to offer “psychic readings,” “spiritual cleansing & strengthening,” and “meditation & healing.” From 2007 to 2014, Johnson was paid over $3.5 million by an elderly woman living on Martha’s Vineyard to purportedly perform spiritual cleansing and healing services to rid the woman of demons through repeated exorcisms. Rather than reporting her income to the IRS and paying taxes on it, Johnson took steps to conceal it. Specifically, Johnson used an alias and directed the woman to send payments to at least three different bank accounts with which Johnson was associated, including an account in another person’s name. Johnson then withdrew large portions of the woman’s payments from the accounts in cash. In addition, Johnson accrued substantial charges on a credit card held in the name of the elderly woman, who ultimately paid the credit card bills, thereby concealing from the IRS the true extent of Johnson’s income. Neither Johnson nor any of the businesses she operated filed a tax return or paid taxes on the income she received from the woman.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The Chilmark Police Department provided assistance with the investigation. Assistant U.S. Attorneys Sandra S. Bower and Brian A. Pérez-Daple of Lelling’s Criminal Division are prosecuting the case.
Prior Felon from Carlsbad Sentenced to Federal Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Nathaniel Eddie Madrid, 40, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 57 months in prison for violating the federal firearms laws by unlawfully possessing firearms and ammunition. Madrid will be on supervised release for three years after completing his prison sentence.
Madrid, whose prior criminal history includes felony convictions for possession of a controlled substance, contributing to the delinquency of a minor, breaking and entering, armed robbery with a deadly weapon, and being a felon in possession of a firearm, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Madrid was arrested on April 18, 2016, on a criminal complaint charging him with being a felon in possession of firearms and ammunition and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) in Lincoln County, N.M. According to the complaint, law enforcement officers recovered three firearms, ammunition, marijuana and drug paraphernalia from Madrid’s vehicle. A search of the NFRTR also revealed that Madrid did not have any firearms registered in his name.
Madrid subsequently was indicted on Aug. 17, 2016, and charged with being a felon in possession of firearms and ammunition on Oct. 26, 2015, in Lincoln County. According to the indictment, Madrid was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Court documents indicate that Madrid was on probation for a conviction for being a felon in possession of firearms and ammunition when he was arrested.
On Jan. 12, 2017, Madrid pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police. Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Port Arthur Man Sentenced to 80 years in Federal Prison for Port Acres MurderRead the Press Release
BEAUMONT, Texas - A 35-year-old Port Arthur, Texas man has been sentenced to 80 years in federal prison for violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson today..
Sabino Orlando Martinez was found guilty by a jury on Apr. 27, 2017 of conspiracy to interfere with interstate commerce by robbery, conspiracy to use and carry firearms during a crime of violence, and conspiracy to possess firearms during a drug trafficking crime. Martinez was sentenced to 960 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning in 2001, Martinez and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas. Evidence showed the defendants committed the robberies for the purpose of supporting their crack cocaine habits. The robberies increased to almost daily between 2009 and 2011. During the investigation of these crimes, it was discovered that Martinez and his co-defendants were responsible for the May 14, 2010 death of Allison Neil Clark, of Port Acres, Texas. Clark was shot while driving on West Port Arthur Road. Once law enforcement officers became aware of Martinez’s co-defendant’s vehicle in the area, they were quickly able to focus on Martinez’s involvement. Video surveillance from area businesses verified the vehicle’s presence in the area at the time of the shooting. Testimony at trial revealed that Martinez fired the shot that killed Clark. Martinez was indicted by a federal grand jury on May 4, 2016.
“Allison Neil Clark did not deserve to be executed in front of her child,” said U.S. Attorney Alan R. Jackson. “But because a group of dedicated investigators refused to give up on this case, Sabino Martinez will spend the rest of his life in a federal prison. We hope this sentencing will bring some sense of closure to this family, and remind our communities that we need to stand together against those who would desecrate them with drugs and the violence it encourages.”
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.
This case was investigated by the Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Lesley Woods and Joseph R. Batte.
Pittsburgh Man Charged with Illegally Possessing Firearms while Dealing Cocaine, Crack and MarijuanaRead the Press Release
PITTSBURGH – A former resident of Penn Hills, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotic laws, United States Attorney Scott W. Brady announced today.
The two-count superseding indictment, returned on January 16, named Denver Sangster, 41.
According to the superseding indictment, Sangster possessed four firearms in furtherance of a drug trafficking crime on March 30, 2016; specifically, in furtherance of the possession with intent to distribute cocaine, crack cocaine, and marijuana. The superseding indictment also charges Sangster with possession with intent to distribute 280 grams or more of crack cocaine and quantities of cocaine and marijuana.
For the count of possession of firearms in furtherance of drug trafficking, the law provides for a minimum sentence of not less than 5 years and a maximum of life in prison, a fine of $250,000, or both. For the separate count of possession with intent to distribute controlled substances, the law provides for a maximum total sentence of not less than 10 years and up to life prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 a America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. Assistant United States Attorneys Adam N. Hallowell and Katherine A. King are prosecuting this case on behalf of the government.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pill Mill Owner and Co-Conspirators Convicted and Sentenced for Roles in Opioid Distribution ConspiraciesRead the Press Release
Tampa, Florida – U.S. District Judge Susan Bucklew has sentenced Yolanda Camara (49, Brandon) to 12 years and 7 months in federal prison for her role in operating and managing a medical clinic from which oxycodone, alprazolam, and other controlled substances were illegally prescribed. The Court also ordered her to pay a money judgment of $124,285.64, which are proceeds of the offenses.
Camara pleaded guilty on July 13, 2017.
According to court documents, Camara co-owned and managed Family Medical Express Center, Inc. in Brandon, Florida. She and her co-conspirators operated Family Medical as a purported medical clinic used to sell unlawful prescriptions to individuals who did not need them and to individuals who diverted them for sale in the community on a per-pill basis. In some cases, Camara’s co-conspirator, Dr. Anil Sahijwani, wrote prescriptions at Camara’s or another co-conspirator’s request in the names of individuals he never examined, never met, and, in some cases, who did not actually exist. During the sentencing hearing, Camara was held responsible for conspiring to illegally prescribe over 28,000 oxycodone pills and nearly 6,000 alprazolam (Xanax) pills.
Camara and her co-conspirators have all pleaded guilty to drug conspiracy and drug distribution charges. Camara also pleaded guilty to lying to federal investigators. In total, six defendants have been sentenced in this and related cases. Jonathan Wainwright, a “sponsor” who paid people to go to the clinic and obtain prescriptions for pills he could sell, was sentenced to 9 years and 2 months’ imprisonment. Dr. Anil Sahijwani was sentenced to 3 years and 9 months in federal prison. Justin Oliveira, Camara’s son and clinic employee, and Jeremiah Foor, a patient/co-conspirator, were each sentenced to 33 months’ imprisonment. And, David Arbogast, a patient/co-conspirator, was sentenced to 5 years’ probation.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Daniel George.
Owner of Kansas Tax Preparation Firm Sentenced to Prison for Eight Years for Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Overland Park, Kansas, was sentenced to 96 months in prison today for aiding and assisting in the preparation and presentation of false income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.
According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.
In addition to the term of imprisonment, U.S. District Court Judge Julie A. Robinson ordered Reece to serve one year of supervised release and to pay $648,442 in restitution to the Internal Revenue Service (IRS). Reece pleaded guilty in October 2017 to aiding and assisting in the preparation and filing of false and fraudulent tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Beall commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott C. Rask of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ohio man sentenced to 20 years for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Austin Boyd, Jr., of Toledo, Ohio was sentenced today to 240 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Boyd, age 36, pled guilty to one count of “Possession with Intent to Distribute Cocaine” in September 2017. Boyd admitted to possessing 280 grams or more of cocaine in Harrison County in September 2016.
Boyd was also ordered to forfeit proceeds, directly or indirectly, from the crime, including United States currency in the amount of $35,580.00 and a Taurus revolver, Model 85, .38 caliber.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Nigerian Citizen Sentenced for Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a native of Nigeria and resident of Guatemala, was sentenced to 35 months imprisonment for his participation in a stolen identity tax fraud scheme.
According to court documents, Luke and others used stolen identities to unlawfully obtain data from U.S. Government computers and then used that data to seek $3.5 million in government funds by filing false tax returns in the names of the identity theft victims. Many of the fraudulent tax refunds were stopped and not paid by the IRS. Luke admitted he obtained more than $734,000 in fraudulent tax refunds as a result of this scheme.
Luke was sentenced for one felony count of conspiracy to commit theft of government funds before United States District Judge Henry Autrey. Luke has been in federal custody since April when he was arrested by the United States Marshals Service as he attempted to enter the United States. In addition to the sentence of imprisonment, Luke was ordered to pay $734,000 in restitution to the IRS.
Luke’s co-conspirator, Olefunsho Adeshina, also a native of Nigeria, is serving a sentence of 40 months imprisonment which was handed down in 2016 for his role in the conspiracy.
This case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Treasury Inspector General for Tax Administration (TIGTA) Strategic Data Services Division, the Department of Treasury Inspector General for Tax and Administration (TIGTA) and the Federal Bureau of Investigation (FBI) Cyber Task Force as part of their Stolen Identity Refund Fraud (SIRF) initiative which seeks to disrupt the multi-billion-dollar enterprise whereby Americans’ identities are compromised and used to defraud the government through the income tax system.
U.S. Attorney Jeffrey B. Jensen also credited the investigators of the many financial institutions and the persistence of the investigators of the U.S. Customs and Immigration - Fraud Detection and National Security (FDNS) team with their support of the investigation leading to today’s sentencing. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Nichols Man Sentenced to Prison for Failure to Register as a Sex OffenderRead the Press Release
DAVENPORT, Iowa -- On January 16, 2018, Oscar Lee Hall, Jr., age 41, formerly of Nichols, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 33 months in prison after pleading guilty to failure to register as a sex offender, announced United States Attorney Marc Krickbaum. Hall was ordered to serve five years of supervised release to follow his prison term, a condition of which will include continued compliance with the sex offender registration laws, and pay a $100 special assessment to the Crime Victims’ Fund.
Hall was convicted in Michigan of criminal sexual conduct in 1998. Between November 18, 2016 and March 24, 2017, Hall returned to Iowa and failed to register and update his registration pursuant to the Sex Offender Registration and Notification Act.
This matter was investigated by the United States Marshals Service, Muscatine County Sheriff’s Office, and West Liberty Police Department. The case was prosecuted by the United States Attorney’s Office for Southern District of Iowa.
New Mexico Man Pleads Guilty to Directing Computer Attacks Against Websites of Dozens of Victims, as Well as Felon-In-Possession ChargesRead the Press Release
A New Mexico man pleaded guilty today in St. Paul, Minnesota, to engaging in and directing distributed denial of service (DDoS) attacks against the websites of his prior employers, business competitors and public services, as well as felon-in-possession charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
John Kelsey Gammell pleaded guilty to one count of conspiracy to commit intentional damage to a protected computer and two counts of being a felon-in-possession of a firearm before District Judge Wilhelmina M. Wright of the District of Minnesota. He will be sentenced at a later date.
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, Gammell engaged in a campaign of DDoS attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of internet traffic to be directed to the computer or website. Gammell directed DDoS attacks at a number of victims’ websites, including websites operated by companies he used to work for, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
Gammell admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing “DDoS-for-hire” companies from which he purchased services to launch the DDoS attacks. Gammell purchased subscriptions to multiple DDoS-for-hire companies, including VDoS, CStress, Inboot, Booter.xyz and IPStresser. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, the Hennepin County Sheriff’s Office and others. Gammell took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services at once to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers.
Gammell, who is prohibited from possessing firearms or ammunition based on prior felony convictions, also admitted that he possessed parts for use in the building of AR-15 assault rifles, upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube and 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition in Colorado, where he worked. He further admitted that he possessed a Heckler & Koch P2000 handgun, and a Springfield Armory model 1911-A1, .45 caliber handgun, as well as hundreds of rounds of ammunition in New Mexico, where he resided.
This case was investigated by the FBI’s Minneapolis Field Office. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
New Mexico Man Pleads Guilty to Directing Computer Attacks Against Websites of Dozens of Victims, as Well as Felon-In-Possession ChargesRead the Press Release
A New Mexico man pleaded guilty today in St. Paul, Minnesota, for directing computer attacks against the websites of his prior employers, business competitors and public services, as well as felon-in-possession charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.
U.S. Attorney Greg Brooker stated, "Cyber-attacks, such as the ones perpetrated by the defendant, are serious crimes that cause real harm to real victims. As this prosecution shows, these crimes also carry serious consequences. This Office will continue to prioritize the prosecution of cybercriminals that pose a substantial threat to private businesses, public entities, and critical infrastructure."
FBI Minneapolis Division Special Agent in Charge Richard Thornton added, "Unfortunately, crime on the internet has become an everyday reality across the United States. Cybercriminals looking to turn a buck or with an axe to grind mistakenly see the internet as fertile ground for anonymous criminal activity." "Cybercrime," Thornton explained, "has real world consequences. While many cases involve the loss of money or personal information, it’s no less impactful when victims are denied internet services that have become vital in our personal and commercial lives. We’re grateful to our corporate and law enforcement partnerships that helped achieve justice for the victims in this case."
JOHN KELSEY GAMMELL, 55, pleaded guilty to one count of conspiracy to cause intentional damage to a protected computer and two counts of being a felon-in-possession before District Judge Wilhelmina M. Wright of the District of Minnesota. He will be sentenced at a later date.
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, GAMMELL engaged in a campaign of distributed denial of
service ("DDoS") attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of internet traffic to be directed to the computer or website. GAMMELL directed DDoS attacks at a number of victims’ websites, including websites operated by companies he used to work for, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
GAMMELL admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing "DDoS-for-hire" companies from which he purchased services to launch the DDoS attacks. GAMMELL purchased subscriptions to multiple DDoS-for-hire companies, including VDoS, CStress, Inboot, Booter.xyz, and IPStresser. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, the Hennepin County Sheriff’s Office, and others. GAMMELL took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services at once to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers. GAMMELL, who is a convicted felon, also admitted that he possessed parts for use in the building of AR-15 assault rifles, upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube, and 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition in Colorado, where he worked. He further admitted that he possessed a Heckler & Koch P2000 handgun, and a Springfield Armory model 1911-A1, .45 caliber handgun, as well as hundreds of rounds of ammunition in New Mexico, where he resided.
This case was investigated by the FBI’s Minneapolis Field Office.
Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
Defendant Information:
JOHN KELSEY GAMMELL, 55
Las Cruces, N.M.
Convicted:
- Conspiracy to commit intentional damage to a protected computer, 1 count
- Felon in possession of a firearm, 2 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Morton Man Pleads Guilty to Social Security Disability FraudRead the Press Release
Jackson, Miss. – Bobby Earl Thweatt, 53, of Morton, pled guilty today before United States District Judge Tom S. Lee, to theft of government funds by fraudulently obtaining Social Security Disability payments, announced U.S. Attorney Mike Hurst and Resident Agent in Charge Marvin Mauldin of the Office of Inspector General, Social Security Administration.
Thweatt was approved for Title II Social Security disability benefits effective in October, 1998, based on an injury. As part of the application, he agreed under penalty of perjury to notify the Social Security Administration in the event that his medical condition improved so that he was able to work. Thweatt received monthly Social Security Disability payments based on his medical condition.
In January, 2009, Thweatt began working again on a full-time basis but did so using his wife’s Social Security number instead of his own, in order to avoid having to notify the Social Security Administration that he was able to work and therefore was no longer eligible to receive disability payments from the United States government. From January, 2009, to April, 2015, Thweatt received a total of $97,083.00 in funds belonging to the United States by receiving Social Security Title II Disability Insurance benefits to which he knew he was not entitled. Thweatt converted this money to his own personal use and benefit.
Thweatt will be sentenced in Jackson by Judge Tom S. Lee on April 19, 2018, and faces a maximum penalty of 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine. Federal law mandates the full payment of restitution.
The case was investigated by the Office of Inspector General of the Social Security Administration. It is being prosecuted by Assistant United States Attorney Dave Fulcher.
More Than $1.7 Million in Forfeited Funds Presented to Law Enforcement AgenciesRead the Press Release
Jacksonville- FL - United States Attorney Maria Chapa Lopez, along with Special Agent in Charge James Spero, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), announce today the distribution of more than $1.7 million in civilly forfeited funds to three law enforcement agencies. These awards are the result of a federal civil forfeiture of more than $4.5 million in funds obtained fraudulently through the hacking of bitcoin accounts. Pursuant to the Department of Treasury Equitable Sharing Program, the funds were distributed to the Nassau County Sheriff’s ($1,044,550.05); the Florida National Guard ($627,487.74); and the Jacksonville Sheriff’s Office ($209,162.58). The presentations took place today at the Jacksonville Office of Homeland Security Investigations.
“I applaud the cooperation and diligence of our law enforcement partners in working with us to investigate and prosecute this case successfully,” said U.S. Attorney Chapa Lopez. “Divesting criminals of their ill-gotten gains and returning these resources to our enforcement agencies is yet another step in continuing our fight against crime.”
“This asset sharing is a perfect example of how a criminal’s illegal profits can be used to protect the citizens of our communities,” said Special Agent in Charge Spero. “The Nassau County Sheriff’s Office, the Florida National Guard’s Counterdrug Program and the Jacksonville Sheriff’s Office all worked with HSI to hold these criminals accountable and we are honored to be able to publically recognize them for their hard work, while sharing with them a large portion of the seized monies.”
According to court documents, in November 2013, HSI special agents learned of the theft of approximately 5,400 bitcoins from Sheep Marketplace, an illicit online marketplace that has since been shut down. Sheep Marketplace was used predominantly for the illicit sale of narcotics. Jacksonville residents Sean Mackert and Nathan Gibson determined that the Sheep Marketplace had a single online “wallet” that contained the bitcoins earned by individuals using the marketplace. They devised a scheme that tricked Sheep Marketplace’s “wallet” into transferring the bitcoins of others into “wallets” they controlled. During their investigation, HSI agents determined that Mackert and Gibson had routed the bitcoins through multiple online “wallets,” then wired them to a licensed money service business. At their direction, the money service business exchanged the bitcoins for United States currency, then wired the funds to bank accounts in Jacksonville that were controlled by Mackert and Gibson.
Mackert and Gibson both have pleaded guilty to conspiracy to commit wire fraud and are awaiting sentencing. Each faces up to 20 years in federal prison.
During the criminal investigation, HSI agents and local law enforcement, with the assistance of the United States Attorney’s Office, seized the funds and two vehicles. The United States commenced a civil forfeiture action against the funds, alleging that they were the proceeds of fraud. The district court ultimately ordered the forfeiture of the funds and two vehicles.
In the Middle District of Florida, enforcement of federal asset forfeiture laws is an integral part of our law enforcement mission. Taking the profit out of crime is important in disrupting and dismantling illegal enterprises, deterring crime, and restoring property to victims. It is also an effective way to have criminals help fund law enforcement efforts. Through the Equitable Sharing Program, our state and local law enforcement partners receive resources to supplement their law enforcement mission. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Nassau County Sheriff’s Office, the Florida National Guard, and the Jacksonville Sheriff’s Office. The civil forfeiture action was handed by Assistant United States Attorney Bonnie Glober. The criminal prosecution is being handled by Assistant United States Attorney Kevin Frein.
Missouri Man Indicted for Attempting to Disable TrainRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on January 17, 2018, a Grand Jury indictment was returned charging Taylor Michael Wilson, age 25 of St. Charles, Missouri, with two counts of attempting to disable a train and attempting to interfere with a locomotive engineer or railroad conductor on October 23, 2017. The first count charges an attempt to wreck, derail and disable on-track railroad equipment and a mass transportation vehicle, specifically, an Amtrak train, while that train was carrying passengers and employees at the time of the offense. If convicted of the count, Wilson faces up to life in prison, a $250,000 fine, and up to five years of supervised release.
The second count charges Wilson with acting with an intent to endanger the safety of any person or with a reckless disregard for the safety of human life while attempting to interfere with, disable, or incapacitate any locomotive engineer or railroad conductor, while that person was employed in dispatching, operating, controlling, or maintaining railroad on-track equipment or a mass transportation vehicle, specifically an Amtrak train, while the train was carrying passengers and employees. If convicted of this count, Wilson faces up to life in prison, a $250,000 fine, and up to five years of supervised release.
Wilson was previously arrested pursuant to a criminal complaint. His initial appearance on the indictment will take place before Magistrate Judge Cheryl Zwart at a time to be determined later.
This case was investigated by the Federal Bureau of Investigation.
Michael “Mickey” Munday Convicted of Conspiracy to Commit Mail Fraud and Mail FraudRead the Press Release
A Miami jury convicted North Miami resident Michael “Mickey” Munday of conspiracy to commit mail fraud and mail fraud after a four-day trial.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Munday, 72, was convicted of one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and five counts of mail fraud, in violation of Title 18, United States Code, Section 1341. He faces a statutory maximum sentence of 20 years imprisonment for each count. Sentencing is scheduled for March 29, 2018, at 8:30 a.m. before U.S. District Court Judge Robert N. Scola, Jr. Nine other co-defendants were indicted and pled guilty in connection with the same scheme.
The evidence presented at trial established that Munday obtained vehicles from throughout the country using various fraudulent methods. These methods included, among other things, convincing people who were behind on their car payments to turn over their vehicles to him in exchange for cash, illegally repossessing vehicles, and covertly transporting stolen cars from other states to Florida. In order to evade detection by law enforcement, Munday and his co-conspirators used several towing and repossession companies as fronts for their illegal activity.
After Munday and his co-conspirators obtained the vehicles, the automobiles were then hidden from owners, banks and lienholders at a number of locations, including at Munday’s North Miami residence. While the vehicles were hidden, another co-conspirator prepared and sent, via U.S. mail, false and fraudulent lien notices claiming thousands of dollars in nonexistent tow services to the vehicle owners and true lienholders. Sham auctions were then held at a strip mall, some of which were facilitated by Munday. Of the more than 150 cars involved in the scheme, only one car appeared at an “auction,” and there were never any customers. After the sham auction was held, the conspirators then cleaned the respective car titles by falsely and fraudulently removing the legitimate owners and lienholders from the title. The cars were then sold to a co-conspirator in the automotive wholesale business at prices below market value and resold for a profit to local dealerships. Overall, banks suffered more than $1.7 million in loss as a result of the scheme.
During the trial, videos and social media postings were introduced showing Munday bragging about his past experience as a drug smuggler, explaining the effectiveness of tow companies as fronts for smuggling, proclaiming himself the “UPS of the smuggling industry,” and advertising himself as a master of evading law enforcement.
Mr. Greenberg commended the investigative efforts of the USSS and the Fort Lauderdale Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Anne P. McNamara.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
McKeesport Man Facing Multiple Charges Relating to the Sexual Exploitation of a MinorsRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on three charges of coercion and enticement of a minor to engage in illegal sexual activity, three charges of production of material depicting the sexual exploitation of a minor, and one charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The seven-count indictment, returned on January 16, named Scott Joseph Payne, 31, as the sole defendant.
According to the indictment, from April 9, 2017 through April 10, 2017, and in two separate incidents on June 10, 2017, Payne persuaded, induced, and coerced individuals who had not attained the age of 18 years to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. The indictment further charges that on June 19, 2017, Payne unlawfully possessed photographs and videos in computer graphics files which depicted minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 90 years in prison, a fine of $1,750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bloomfield, New Jersey Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan Man Arrested for Stealing More Than $1.2 Million of Rare and Expensive WineRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging NICOLAS DE-MEYER with the interstate transportation of stolen property for DE-MEYER’s theft of more than $1.2 million of fine wine. DE-MEYER was arrested last night at Los Angeles International Airport and will be presented today in federal court in Los Angeles. The case has been assigned to United States District Judge Paul G. Gardephe in the Southern District of New York.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Nicolas De-Meyer, personal assistant to a Manhattan-based employer, stole over a million dollars’ worth of some of the world’s finest wines from his boss. We thank our law enforcement partners at the FBI for their excellent investigative work on this case.”
FBI Assistant Director William F. Sweeney Jr. said: “Rare wines have a very specific market, but even given the narrow chance of making money illegally, thieves will find a way to break the law. The theft in this case, however, was no small amount, totaling more than a million dollars. The FBI Art Crime Team is tasked with investigating and recovering rare and many times invaluable items, and bringing to justice criminals who believe no one is watching. We would like to thank the East Hampton Village Police Department for its partnership in this case.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
From 2008 to November 2016, NICOLAS DE-MEYER worked as a personal assistant to a Manhattan-based individual (the “Victim”) who collects rare and expensive wine. From at least 2014 to approximately October 2016, DE-MEYER stole from the Victim hundreds of bottles of wine worth more than $1.2 million. During that time, DE-MEYER used an alias to sell the wine that he stole from the Victim to a North Carolina-based wine dealer. Among the wine DE-MEYER stole were bottles of wine from the French estate Domaine de la Romanée-Conti (“DRC”), whose wines are widely considered among the best, most expensive, and rarest wines in the world. For example, in October 2016, DE-MEYER stole from the Victim seven bottles of DRC wine that the Victim had previously purchased for $133,650.
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NICOLAS DE-MEYER, 40, of New York, New York, is charged with one count of interstate transportation of stolen property, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Berman praised the outstanding investigative work of the FBI’s Art Crime Team.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Justin V. Rodriguez is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced for Firearms and Drug Trafficking CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to eight years in prison for drug trafficking and his role in stealing 52 firearms from a federally licensed firearms dealer in February 2017.
According to court documents, Angel Lewis Bruno, 19, was part of a robbery crew that stole 52 firearms from Hunter’s Heaven Gun Store in Hayes on Feb. 12, 2017. Approximately nine days later, law enforcement apprehended all four defendants, including two who fled in a vehicle travelling at over 100 miles per hour.
Name, Age
City
Charges
Result
Angel Lewis Bruno, 19
Newport News
Pleaded guilty to: Possession of a Stolen Firearm; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
8 years in prison
Xavier Justice Lee Greenauer-Mattox, 23
Newport News
Pleaded guilty to: Possession with Intent to Distribute Cocaine; Possession of a Stolen Firearm; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Sentencing scheduled for April 18
Philip Thomas Evans, 23
Yorktown
Pleaded guilty to: Possession of a Stolen Firearm; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Sentencing scheduled for April 9
Alissha Shalee Faulks, 28
Newport News
Pleaded guilty to: Possession with Intent to Distribute Cocaine; Possession of a Stolen Firearm
3 years’ probation
Law enforcement has recovered 17 of the stolen firearms to date. The whereabouts of other 35 firearms are unknown.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Michael C. Grinstead, Acting Chief of Newport News Police, and Darrell W. Warren, Jr., Gloucester County Sheriff, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-72.
Mail carrier charged with stealing more than 700 pieces of mailRead the Press Release
A mail carrier from North Olmsted was charged with one count of willful obstruction of the passage of mail, law enforcement officials said.
Alaina Chalkley, 36, took 24 pieces of first-class mail, 17 gift cards, 14 tobacco mailers, 694 pieces of undelivered mail and an envelope containing lottery tickets worth $5. This took place between March and July 2017, according to the criminal information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing 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.
The case is being handled by Assistant U.S. Attorney Danielle K. Angeli following an investigation by the U.S. Postal Service – Office of Inspector General.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Leaders of Multi-State Drug Distribution Ring Sentenced to Long Prison TermsRead the Press Release
Three key players in a drug distribution ring that operated over a large swath of Washington State were sentenced late Tuesday in U.S. District Court in Seattle to long prison terms, announced U.S. Attorney Annette L. Hayes. The leader of the drug distribution ring BALTAZAR REYES-GARCIA 45, of Camano Island, Washington, was sentenced to eighteen years in prison; HECTOR CONTRERAS-IBARRA, 33, of Pasco, WA, was sentenced to fifteen years in prison; and ANGEL SERRANO-CARRENO, 30, of Mt. Vernon, WA was sentenced to thirteen years in prison. The drug ring distributed heroin, methamphetamine and cocaine in King, Snohomish, Skagit and Whatcom Counties. At the sentencing hearing for BALTAZAR REYES-GARCIA, U.S. District Judge James L. Robart said the quantities of drugs involved is “immensely alarming” and noted that REYES-GARCIA was a “major drug supplier.”
“The kilograms of heroin, meth and cocaine that these defendants sold ultimately became hundreds and thousands of doses of poison in addicts’ hands,” said U.S. Attorney Annette L. Hayes. “Make no mistake – these drugs kill or otherwise destroy lives. I commend our federal, state and local law enforcement partners for working together to arrest and convict these defendants who earned their living off the misery of Western Washington residents.”
All three defendants were convicted in October 2017, following a ten-day jury trial. The conspirators operated stash houses on Camano Island and in Mount Vernon, as well as in Yakima and Franklin Counties. The organization had broad connections spanning from Mexico to Nevada, Arizona and California, and north to British Columbia. Fourteen other co-conspirators charged in the case pleaded guilty in the months following their arrests in November 2016. These other defendants in the case have been sentenced to prison terms ranging from two to twelve years in prison.
As court records and evidence admitted at trial demonstrate, law enforcement investigated the drug ring in late 2015, and early 2016, utilizing pole cameras, confidential sources, wiretaps and undercover officers to document the drug distribution activity, and identify the leaders of the ring. In November 2016, law enforcement served search warrants on more than two dozen locations seizing two kilos of cocaine, more than $180,000 cash, and more than 20 firearms – including a loaded AK47. Those totals were in addition to the seizures made during the investigation: eight kilos of methamphetamine, two kilos of cocaine, nearly a kilo of heroin, and more than $117,000 in cash.
The investigation was named “Operation Car Wash” as some of the conspirators would meet up to conduct their deals at a Mount Vernon car wash.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration (DEA) in conjunction with the FBI, Whatcom Gang & Drug Task Force and Skagit County Inter-Agency Drug Task Force. The investigation was supported by the Auburn Police Department, Snohomish County Sheriff’s Office, Snohomish County Regional Drug & Gang Task Force, Mt. Vernon Police Department, Washington State Patrol, Whatcom County Sheriff’s Office, Skagit County Sheriff’s Office, Everett Police Department and Seattle Police Department. Additional assistance was provided by HSI; CBP, and Royal Canadian Mounted Police.
The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Steven Masada.
If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website (link is external). If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (866-833-6546) to talk to a teen volunteer.
Law Enforcement Officers Join Students for a Day of LearningRead the Press Release
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, the Franklin County Sheriff’s Office, and Franklin County School will present a BLAST Program event on Thursday to approximately 50 students.
Event: BLAST Program
Location: Franklin County School
1250 Hwy 98
Eastpoint, Florida 32328Date: Thursday, January 18, 2018
Time: 9:00 a.m. – 1:00 p.m. EST
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students with media permissions will be identified.)
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media and public, and videography and photography is permitted.
- Domestic Violence: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to law enforcement.
This session is open to the media and public, and videography and photography is permitted.
- Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media and public, and videography and photography is permitted.
- Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
- United States Attorney’s Office, Northern District of Florida
- Franklin County Sheriff’s Office
- Franklin County School
- Bureau of Alcohol, Tobacco, Firearms & Explosives
- Homeland Security Investigations
- United States Postal Inspection Service
- Florida Highway Patrol
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.