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17 January 2018
Kansas City, Kan., Man Sold Six to Ten Kilos of Meth a WeekRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was sentenced Wednesday to 15 years in federal prison after admitting he distributed six to 10 kilos of methamphetamine a week, U.S. Attorney Tom Beall said.
Luis Enrique Martinez-Rosales, 25, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count possession with intent to distribute. In his plea, he admitted the Kansas Highway Patrol found two kilograms of methamphetamine and almost $50,000 in cash when they stopped his car on I-70 in Wyandotte County, Kan. He received methamphetamine in loads smuggled into the United States in tractor-trailers and wired payment to Mexico.
Beall commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Tris Hunt for their work on the case.
Investigation Leads to Arrest of Three Men for Cocaine TraffickingRead the Press Release
BOSTON – Three Worcester men were arrested and charged yesterday evening following a joint federal and state investigation targeting narcotics trafficking in central Massachusetts.
Deibby Garcia, 36, his brother, Japhet Garcia, 33, and Erick Cruz, 28, all of Worcester, were charged with conspiring to distribute and possess with the intent to distribute in excess of 500 grams of cocaine, possession with the intent to distribute in excess of 500 grams of cocaine, and use of a telecommunications facility (cellphones) in furtherance of narcotics trafficking. The defendants will appear in federal court in Worcester for a detention hearing on Friday, Jan.19, 2018.
According to court documents, in early December 2017, Japhet Garcia and another individual, entered a Worcester Postal Facility and attempted to retrieve a package shipped from Puerto Rico that had been found to contain approximately three kilograms of cocaine.
Subsequent to those events, a court-authorized wiretap of a phone belonging to Deibby Garcia revealed discussions between Deibby Garcia and an unidentified individual concerning the delivery of two packages from Puerto Rico on Jan. 16, 2017. The intercepts further revealed that Deibby Garcia made arrangements with Erick Cruz, a U.S. Postal Service letter carrier, to have the packages picked up once they had arrived in Massachusetts.
As alleged in court documents, during the course of communications between Jan. 9, 2018, and Jan. 13, 2018, Cruz texted Deibby Garcia two addresses, both of which were on Cruz’s assigned route as a letter carrier. Deibby Garcia, in turn, forwarded the addresses to what authorities believed to be his cocaine source in Puerto Rico. On Jan. 12, 2018, two packages were sent from Puerto Rico to the addresses provided by Cruz and Deibby Garcia. On Monday, Jan. 15, 2018, one package was searched pursuant to a federal search warrant and was found to contain three kilograms of cocaine. The following day, federal agents permitted the second package to be provided to Cruz for delivery.
Agents thereafter intercepted discussions between Cruz and Deibby Garcia in which they discussed arrangements for Deibby Garcia to have the second package picked up, and discussed what had happened to the package that had been seized and searched. Soon after, the men were arrested and the second package was recovered.
The charge of conspiring to distribute in excess of 500 grams of cocaine provides for a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of use of a telecommunications device in furtherance of a violent felony provides for a sentence of no greater than four years in prison, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the United States Postal Inspection Service; Massachusetts Attorney General Maura Healey; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent; made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hazleton Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Antonio Perez, age 45, of Hazleton, Pennsylvania, pleaded guilty on January 16, 2018, before U.S. Magistrate Judge Karoline Mehalchick, to distribution of heroin.
According to United States Attorney David J. Freed, Perez admitted to selling heroin to another person on July 2, 2014, in Hazleton. Perez sold slightly less than 100 grams of heroin, which is equivalent to just under 4,000 retail bags of heroin.
Judge Mehalchick ordered a pre-sentence investigation, and noted that Senior U.S. District Court Judge Richard P. Conaboy will schedule a date for sentencing.
Perez was indicted by a grand jury in October 2014, following an investigation by special agents of the Federal Bureau of Investigation and Scranton Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former P&G Employee Sentenced for Defrauding CompanyRead the Press Release
CINCINNATI – Susan M. Ruhe, 54, of Cincinnati, was sentenced in U.S. District Court to 21 months in prison and four years of supervised release for one count of bank fraud. Ruhe defrauded her former employer, Procter & Gamble, of more than $454,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Ruhe was employed by Procter & Gamble, the multinational consumer goods company headquartered in Cincinnati, from July 1989 through June 2013. Her last job title was Executive Assistant in the Global Beauty Care Business Development Group. In that capacity, her primary job duties were executive travel planning, expense reporting, calendar management and the scheduling of team meetings and events.
From November 2007 through the end of her employment, Ruhe defrauded the company by requesting that the payment department issue corporate checks to be used to pay for expenses that Procter & Gamble had incurred in the ordinary course of business. In reality, she used the corporate checks to make payments on her personal credit card accounts. Both accounts were through Citibank.
To conceal her scheme, Ruhe used the email of an executive without consent to approve her requests for corporate checks. She would then designate an unwitting third party from whom she would retrieve the checks in accordance with company policy. In total, she obtained 40 fraudulent corporate checks through this scheme.
Ruhe pleaded guilty in June 2017, and as part of the plea agreement, agreed to pay $454,116.47 in restitution to Procter & Gamble.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.
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Former Owner of Springfield, Tennessee-Based Smart Data Solutions, LLC Pleads Guilty to Multi-Million Dollar Healthcare Benefits SchemeRead the Press Release
Bart Sidney Posey, Sr., 50, a Springfield, Tenn. resident and former owner of the Springfield-based companies American Trade Association (ATA) and Smart Data Solutions (SDS), pleaded guilty yesterday before United States District Judge Aleta A. Trauger, to leading a multi-million dollar insurance fraud scheme that harmed thousands of victims across the country, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to court documents, from January 2008 through March 2010, Posey and his co-conspirators engaged in a widespread fraud designed to defraud consumers looking for health insurance. Through ATA and SDS, Posey sold and caused others to sell bogus health insurance products to unsuspecting consumers. Posey admitted that he duped consumers by denying legitimate health insurance claims, selling an insurance product that was not backed by a legitimate underwriter, and embezzling millions of dollars of insurance premiums paid to his company by victims. Posey used those premium payments to buy, among other things, a Harley Davidson motorcycle, a sports car, college football tickets, and to pay off a $500,000 personal mortgage.
Posey operated his companies much like a Ponzi scheme – paying off some insurance claims with new premiums to create the appearance of a legitimate insurance carrier and to keep the scheme going. Posey admitted that some of his victims had pre-existing conditions and were stuck with thousands of dollars of unpaid medical bills due to his fraud.
As part of his plea agreement, Posey pleaded guilty to mail fraud and to embezzling health care fraud premium payments. He faces up to twenty years in prison on the mail fraud conviction and up to ten years for the embezzlement conviction. Posey also agreed to forfeit over $6 million. He will be sentenced on April 30, 2018.
This case was investigated by the FBI; the United States Postal Inspection Service; the United States Department of Labor Employee Benefits Security Administration and Office of Inspector General; the United States Secret Service; and the IRS-Criminal Investigation. Assistant United States Attorneys Ryan R. Raybould, Henry C. Leventis and Thomas J. Jaworski are prosecuting the case.
Former Head of Barclays New York Foreign Exchange Operation Indicted for Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
Update: On March 4, 2019, Senior U.S. District Court Judge Charles Roberts Breyer of the Northern District of California granted the Rule 29 motion and granted an acquittal. Mr. Bogucki was acquitted on all charges.
SAN FRANCISCO – Robert Bogucki, the former head of Barclays Capital Inc.’s (Barclays) New York foreign exchange trading operation was charged yesterday in an indictment for his alleged role in a scheme to defraud a client of Barclays through a method commonly referred to as “front-running.” The charges relate to the manipulation of foreign exchange options in advance of an exceptionally large trade by the Palo Alto, California-based Hewlett-Packard Company (HP) in 2011.
Acting U.S. Attorney Alex G. Tse of the Northern District of California, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) made the announcement.
Bogucki, 45, of East Setauket, New York, was charged in an indictment filed in the Northern District of California on Jan. 16, with one count of conspiracy to commit wire fraud and six counts of wire fraud. Bogucki will make his initial appearance on Wednesday, Jan. 17, at 2:00pm in Brooklyn, New York, before U.S. Magistrate Judge Cheryl L. Pollak of the Eastern District of New York.
“The indictment filed in this case alleges Bogucki and others corruptly manipulated the foreign exchange market for the benefit of his bank and his own pocket,” said Acting U.S. Attorney Tse. “This Office will continue to investigate and prosecute those who attempt to enrich themselves by corrupting our markets.”
“Robert Bogucki and others allegedly not only betrayed his client’s confidences, but also risked undermining public trust in the foreign exchange options market,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners remain committed to protecting American interests by investigating and prosecuting sophisticated schemes such as the one alleged in this indictment.”
“The indictment returned today charges a fraudulent manipulation scheme where the defendant betrayed Barclays’ client by lying and misusing the client information, and then masked the activities,” said Inspector General Lerner. “We are pleased to work with our law enforcement partners in investigating these matters and protecting the integrity of the banking system against such alleged abuses.”
According to the indictment, in September and October 2011, Bogucki misused information provided to him by HP, which had hired Barclays to execute a foreign exchange transaction related to the planned acquisition of a UK-based company. Barclays was selected to execute the foreign exchange transaction – which required the sale of 6 billion British pounds worth of options – in September 2011. The defendant and other Barclays employees assured HP and its employees that they understood the need to keep the planned transaction, which was exceptionally large, and therefore “market-moving,” confidential. Instead, Bogucki and other Barclays employees allegedly used the confidential information they received to manipulate the price of “volatility,” a metric that affects the value of foreign exchange options. During conversations with Bogucki, one Barclays trader stated that he and other traders would “bash the sh*t out of” and “spank the market” to depress the price of volatility. Other Barclays traders also discussed “hammer[ing] the market lower” in order to decrease the value of the HP’s options.
The indictment alleges that, as part of the scheme, Bogucki made misrepresentations to HP and its employees about Barclays’ activities and the state of the options market that concealed the self-serving nature of Barclays’ actions. Specifically, the indictment alleges that Bogucki directed options trading in a way that was designed to depress the price of volatility, to the benefit of Barclays and at HP’s expense.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. This is the second indictment brought against the head of a foreign exchange desk of a global financial institution related to the Criminal Division’s ongoing investigation of fraud and manipulation in the foreign exchange markets.
Assistant U.S. Attorney Robert Leach, Assistant Chief Brian Young of the Criminal Division’s Fraud Section, and Department of Justice Trial Attorney Justin Weitz are prosecuting the case. The investigation is being conducted by the FDIC’s Office of Inspector General.
Former El Dorado Hills Resident Pleads Guilty to Theft of VA BenefitsRead the Press Release
SACRAMENTO, Calif. — Julia A. Wilbert, 53, of San Juan Capistrano, pleaded guilty today to theft of government benefits, United States Attorney McGregor W. Scott announced.
According to court documents, from June 2007 through March 2015, Wilbert stole approximately $112,275 in federal government benefit payments intended for her aunt, who died in June 2007. Wilbert’s aunt was an eligible recipient of Dependency and Indemnity Compensation benefits paid by the United States Department of Veterans Affairs. Wilbert had exclusive access to her deceased aunt’s bank account, was the individual who reported her aunt’s death, and proceeded to perform periodic transfers of thousands of dollars of VA benefit money from that account to her own bank account. When confronted, Wilbert admitted that she had been acting out of “personal greed.” Wilbert has agreed to pay back the full amount to the government as a part of her plea agreement.
This case is the product of an investigation by the Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Wilbert is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 18, 2018. Wilbert faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Boston Police Sergeant Detective Sentenced for Making False Statements and Unlawfully Entering Secure Airport AreaRead the Press Release
BOSTON – A former Boston Police Sergeant Detective was sentenced today in federal court in Boston for repeatedly making false statements so that he could fly armed on personal trips and enable a friend to fly with him without being screened by security personnel at Boston’s Logan International Airport.
Bruce E. Smith, 53, of Randolph, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year of probation and ordered to pay a fine of $7,500. In September 2017, Smith agreed to plead guilty to three counts of making false statements to the Transportation Security Administration (TSA) and the Department of Homeland Security and one count of unlawfully entering a secure airport area with intent to evade security requirements. Smith also agreed to resign from the Boston Police Department.
Beginning in 1989, Smith was employed by the Boston Police Department and most recently served as a Sergeant Detective assigned to District E-13, Jamaica Plain, as a district detective supervisor. Between May 2011 and April 2017, Smith flew armed on approximately 28 separate trips departing from Logan Airport even though he was not on official business, which is a violation of federal law. On each of those trips, he falsely claimed that he had obtained supervisor approval for his travel. On at least two of the trips, Smith also escorted or attempted to escort a friend through Logan Airport without security screening. Smith falsely claimed that his friend was a “dignitary” under Smith’s official police escort. When questioned by TSA security personnel as to what type of dignitary his friend was, Smith falsely replied, “I am not at liberty to divulge that information.” In fact, Smith’s friend, who has a criminal record, is not a dignitary, but a mobile clinic operator.
United States Attorney Andrew E. Lelling; Boston Police Commissioner William Evans; and Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement today. The investigation was conducted jointly by BPD’s Anti-Corruption Division and DHS-OIG. Assistant U.S. Attorney Zachary R. Hafer of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Former Baruch College Basketball Coach and Athletics Official Pleads Guilty to Embezzling over $700,000Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of MACHLI JOSEPH in connection with his embezzlement of over $700,000 in funds intended for Baruch College for the rental of their athletic facilities. JOSEPH pled guilty before U.S. District Judge Paul A. Crotty to conversion and misapplication of money from a program receiving federal funds.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Machli Joseph, Baruch College’s former basketball coach, stole hundreds of thousands of dollars meant for Baruch that he instead spent largely on himself. This Office is committed to ensuring that our city’s schools are not taken advantage of by the very individuals meant to support them.”
According to the Information and Complaint filed in this case, and statements made during the plea proceeding:
MACHLI JOSEPH served as an athletic department official at Baruch College between 2002 and 2016. He served as Baruch’s women’s basketball head coach between 2004 and 2014, its men’s basketball coach in 2002, as assistant athletic director from 2003 to 2011, and as associate athletic director from 2011 until August 2016. At times when the Baruch College gym was not being used by the school’s athletic teams, it could be rented out to outside parties. In his administrative capacity, JOSEPH had control over those gym rentals and their scheduling.
On numerous occasions between 2010 and 2016, JOSEPH rented the gym to outside parties, ostensibly on behalf of Baruch College. In instructing the renting parties on how to provide payment, however, JOSEPH directed that payment be made to entities that were not, in fact, connected to Baruch College. Instead, they were entities with bank accounts over which JOSEPH had personal control, some of which merely sounded like Baruch-affiliated entities. On several occasions, JOSEPH simply directed that payment be made directly to him or individual associates of his. Many of these funds were ultimately spent on personal expenses and items for JOSEPH and his family, including renovations to his home in New Jersey. All told, the scheme improperly diverted over $700,000 of payments intended for Baruch College.
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JOSEPH, 43, of Elizabeth, New Jersey, pled guilty to one count of embezzlement and misapplication concerning a program receiving federal funds. The charge carries a maximum term of 10 years in prison. JOSEPH is scheduled to be sentenced by Judge Crotty on April 17, 2018. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Department of Education – Office of the Inspector General and the New York State Inspector General’s Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Catherine E. Geddes and Martin S. Bell are in charge of the prosecution.
Florida Man Sentenced to Prison for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
U.S. District Judge Marcia G. Cooke sentenced a Miami-area man to 12 months and one day in prison and three years’ supervised release for threatening to shoot members of a mosque in Miami Gardens, Florida, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
Gerald Wallace, 35, pleaded guilty in October 2017 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call. During the plea hearing, Wallace admitted that on the evening of Feb. 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida. The defendant admitted leaving a hate-filled and profanity-laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, “I’m gonna shoot all ya’ll.” He further admitted that by leaving this threatening message, he obstructed congregants who worship at the Islamic Center from freely exercising their religious beliefs.
“Our Constitution and laws guarantee all people – regardless of where they worship – the right to live free from violence and discrimination,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute those who commit violent acts of hate by threat or action.”
“Hate crimes violate our country’s most fundamental principles,” said U.S. Attorney Benjamin G. Greenberg. “Today, Wallace was sentenced for depriving the Islamic Center’s congregants of the right to freely exercise their religion. This office will continue to aggressively prosecute hate crimes in order to protect those in our community who would otherwise fall victim to discriminatory violence.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Florida Investor who Made More Than $250,000 from Insider Trading Scheme Sentenced to One Year in PrisonRead the Press Release
TRENTON, N.J. B A Florida man who admitted trading on material, nonpublic information concerning Gilead Sciences Inc.’s $11 billion acquisition of New Jersey-based Pharmasset Inc. was sentenced today to 12 months and one day in prison, U.S. Attorney Craig Carpenito announced.
Jay Fung of Delray Beach, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with conspiracy to commit securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2011, a conspirator who worked at a global wealth management firm learned that Pharmasset was going to be sold for a significant profit per share. On Nov. 18, 2011, the conspirator passed the inside information to Fung, who then purchased call options and shares of Pharmasset.
On Nov. 21, 2011, Gilead publicly announced that it had entered into an agreement to acquire Pharmasset for approximately $11 billion, or $137 per share in cash. The purchase price represented an approximately 89 percent premium over Pharmasset’s closing price of $72.67 on Nov. 18, 2011.
Following the public announcement of Gilead’s acquisition of Pharmasset, Fung sold the Pharmasset shares and options he had purchased on Nov. 18, 2011, for total illegal profits of more than $250,000.
In addition to the prison term, Judge Thompson sentenced Fung to three years of supervised release. He has already forfeited $345,245.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone and Robert Cohen, and its Philadelphia Regional Office, under the direction of Sharon Binger.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Today’s sentencing is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed more than18, 000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Five indicted for firearms violationsRead the Press Release
Five people were indicted for firearms violations, U.S. Attorney Justin E. Herdman said.
Indicted are: Marriece L. Ellis, 25, and Warren J. McCray, Jr., 23, both of Akron; Shauntare Davis, 31, of Warren; Frank Arthur Thompson, III, 45, of Conneaut, and James D. Butler, 55, of Mansfield.
Ellis and McCray were charged with being felons in possession of firearm. They were arrested by Akron police officers investigating a report of shots fired on Oct. 22, 2018. Ellis was found to have a loaded Glock 9mm pistol despite a prior conviction for having a weapon while under disability. McCray was found to have a Wesson Arms .44-caliber pistol despite prior convictions for tampering with evidence and carrying concealed weapons, according to court records.
Davis is charged with being a felon in possession of a firearm. He was arrested by Warren Police Department after officers responded to a call of armed man making threats on Oct. 21, 2017. He was found to have shotgun ammunition despite prior convictions for aggravated robbery and felonious assault, according to court records.
Thompson is charged with being a felon in possession of a firearm. He possessed a Mossberg .22-caliber rifle and 592 rounds of ammunition in August 2017 despite a prior conviction for possession of marijuana with intent to distribute, according to the indictment.
Butler is charged with being a felon in possession of a firearm. Butler, on Aug. 24, 2017, possessed a Walther 9 mm pistol and ammunition despite prior convictions for robbery and burglary, according to the indictment.
Butler was arrested after the owner of Madison Sporting Arms in Mansfield complained Butler stole the firearm from his store and showed a police officer video surveillance that recorded the theft, according to court documents.
These cases are being prosecuted by Assistant U.S. Attorneys David M. Toepfer, Mark S. Bennett and Aaron P. Howell following investigations by the Bureau of Alcohol, Tobacco and Firearms and Akron Police Department (Ellis and McCray), Warren Police Department and Ohio Adult Parole Authority (Davis), North Kingsville Police Department (Thompson) and the Mansfield Police Department (Butler).
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
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.
Felon Sentenced for Possessing a FirearmRead the Press Release
HELENA—Jeremy Michael Sullivan, 44, of Boulder, Montana, was sentenced to 30 months in prison, 3 years’ supervised release, and a $100 surcharge by United States District Court Judge Sam E. Haddon on Wednesday, January 17, 2018 for possessing a firearm as a prohibited felon. Sullivan was arrested after being investigated for selling a stolen handgun. Sullivan was previously convicted of felony theft in Utah.
The charge against Sullivan is the result of an investigation by the Boulder Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Tom Bartleson prosecuted the case.
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.
Federal Jury Convicts Elmira Man of Drug Trafficking and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Devaughn Salazar, a/k/a “Snake,” 41, of Elmira, NY, of knowingly possessing with intent to distribute and distributing cocaine, possessing a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm. The charges carry a maximum penalty of life in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Sean Eldridge and Charles Moynihan, who handled the prosecution of the case, stated that on October 21, 2012, members of the Elmira Police Department recovered a Taurus .40 caliber pistol during a robbery investigation. Further investigation revealed that, in June of 2012, the owner of the handgun reported it stolen to the Addison Police Department. Agents from the Bureau of Alcohol Tobacco, Firearms and Explosives followed up and determined that the defendant acquired the handgun from Kevin Krowiak, the person who stole it, by trading cocaine for the gun. After acquiring the gun but prior to its recovery by the Elmira Police Department, defendant sold the gun to a third person.
The defendant, having been previously convicted on May 6, 2009, in Steuben County Court of a felony offense, was legally prohibited from possessing any firearm.
The trial verdict is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge, Ashan Benedict; as well as members of the Elmira Police Department, under the direction of Chief Joseph Kane.
Sentencing is scheduled for March 27, 2018, at 9:15 a.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
Farmington Woman Sentenced on an Illegal Gambling OperationRead the Press Release
St. Louis, MO – Carol Jean Hazer was sentenced to 12 months and one day in prison after pleading guilty to running an illegal gambling business and filing false tax returns that failed to list her income from the gambling business.
According to court documents, Hazer organized and ran an illegal high stakes sports betting operation, in part by utilizing internet websites. She engaged in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes. Hazer also filed false tax returns trying to conceal the income from the illegal gambling business. The gambling business accrued nearly $500,000 in revenue during its operation.
On January 16, 2017, Samuel Douglas Hazer, Carol Hazer’s ex-husband, was sentenced to 12 months and one day in prison following a plea of guilty to multiple counts of running an illegal gambling business and money laundering.
Hazer, 60, of Farmington, pled guilty in October to one felony count of illegal gambling business; one felony count of interstate activity in furtherance of gambling; one felony count of money laundering; and four counts of filing a false tax return. She appeared today for sentencing in front of U.S. District Court Judge Henry E. Autrey.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
El Paso, Texas Man Sentenced to 63 Months for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Christopher Joshua Cortes, 33, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 63 months in prison for his conviction on a methamphetamine trafficking charge. Cortes will be on supervised release for three years after completing his prison sentence.
Cortes was arrested on April 17, 2017, on an indictment charging him with conspiring to distribute methamphetamine from March 2016 through June 2016, and distributing methamphetamine on June 6, 2016. According to the indictment, Cortes committed the offenses in Dona Ana County, N.M. The indictment included forfeiture provisions requiring Cortes to forfeit $6,500, the money involved in the drug transaction, to the United States.
On Aug. 2, 2017, Cortes pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute, and admitted that he voluntarily agreed with others to distribute methamphetamine in Dona Ana County from about March 13, 2016 through June 6, 2016. Cortes further admitted distributing approximately 407 grams of pure methamphetamine to an undercover law enforcement agent on June 6, 2016.
This case was investigated by Homeland Security Investigations and was prosecuted by Special Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office.
Dominican National Sentenced on Heroin and Cocaine ChargesRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for his role in a heroin distribution conspiracy operating in and around Waltham.
Richard R. Fernandez, 23, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge Dennis Saylor IV to time served and one year of supervised release. In September 2018, Fernandez pleaded guilty to eight counts of distribution and possession with intent to distribute heroin and cocaine. In March 2017, Fernandez was arrested along with three others, Jose C. Torres, Angel G. Rivera Serrano, and Luis Humberto Arias Lara.
Fernandez and his co-defendants distributed heroin in and around Waltham over the course of several months. Each of the defendants sold drugs to an undercover investigator. On March 30, 2016, law enforcement executed federal search warrants at two residences and two alleged stash houses where they seized approximately $200,000 in cash and approximately 1.5 kilograms of narcotics.
In August 2017, Arias Lara was sentenced to five months in prison. In September 2017, Rivera Serrano was sentenced to 10 months in prison. Torres pleaded guilty and is awaiting sentencing.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistance was provided by members of the Suburban Middlesex County Drug Task Force, which is comprised of the Waltham, Watertown, Newton, Arlington, Belmont, Weston and Lexington Police Departments. Assistant U.S. Attorney Miranda Hooker of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
District Man Found Guilty of Charges in Shooting at Columbia Heights Metro StationRead the Press Release
WASHINGTON – Cesar Morales, 23, of Washington, D.C., was found guilty by a jury today of charges stemming from a shooting that took place last summer at the Columbia Heights Metro station in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Morales was found guilty of assault with a dangerous weapon, possession of a firearm during a crime of violence, and related firearm offenses. The verdict followed a one-week trial in the Superior Court of the District of Columbia. The Honorable Jennifer A. Di Toro scheduled sentencing for April 4, 2018.
According to the government’s evidence, on Aug. 25, 2017 at approximately 12:20 p.m., Morales chased the victim around the Columbia Heights Metro station. As they reached the top of the escalators on the west entrance, Morales fired one shot with a .22-caliber Ruger towards the victim. Luckily, the victim was able to run away and get through the station unharmed. At the time of the shooting, dozens of people were in and around the station.
Morales fled westbound on Irving Street NW, making a right on Hyatt Place and then a left onto Park Road NW. Within minutes, officers with the Metropolitan Police Department (MPD) were able to contact and attempted to stop the defendant and another individual. When officers asked to see Morales’s hands, the defendant reached in his waistband and fled from the officers. Officers observed Morales toss a firearm. Morales was able to get away.
Video surveillance captured the shooting outside the Metro station and the victim running inside the station. Body-worn camera of the officers captured the stop minutes after the shooting. MPD released video and an investigation led to Morales’s arrest on Aug. 31, 2017. He has been in custody ever since. A casing was recovered from the Metro station stairs that was determined to have been fired by the firearm recovered in defendant’s flight path.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from Metropolitan Police Department and Metro Transit Police Department. She expressed appreciation for the assistance provided by the Forensic Science Laboratory of the District of Columbia Department of Forensic Sciences. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialist Tiffany Fogle, Litigation Technology Specialist Anisha Bhatia, and Assistant U.S. Attorney Jennifer Kerkhoff. Finally, she acknowledged the efforts of Assistant U.S. Attorney Monica Trigoso, who investigated and prosecuted the case.
Delaware Man Sentenced to over 12 Years’ Imprisonment for Distributing Heroin in Dauphin and Lycoming CountiesRead the Press Release
HARRISBURG-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Rowe, age 55, of Wilmington, Delaware, was sentenced on January 16, 2018, to 151 months’ imprisonment by United States District Court Judge Sylvia H. Rambo for distributing heroin in Dauphin and Lycoming counties.
According to United States Attorney David J. Freed, Rowe was found guilty by a jury on March 16, 2017. The evidence showed that Rowe travelled from Philadelphia to Dauphin and Lycoming Counties between February and June 2016, and distributed over 10 kilograms of heroin. Ten kilograms of heroin is approximately equal to 400,000 retail bags of heroin.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Dauphin County Drug Task Force. Assistant United States Attorneys Daryl F. Bloom and Chelsea Schinnour prosecuted the case.
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Crack Dealer Charged with Illegally Possessing Glock Handgun and AmmunitionRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on January 16, named Kedren Broadus, 34, of Pittsburgh, Pennsylvania.
According to the indictment, on or about November 13, 2017, Broadus, an individual with a prior felony conviction for Possession with Intent to Distribute Cocaine Base, did knowingly and unlawfully possess a .40 caliber Glock 23 handgun and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
For Broadus’s offense, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $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 of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Colombian National Sentenced to Prison for Conspiracy to Bribe Federal Agent to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A Colombian national was sentenced today to 27 months in prison for his participation in a conspiracy and bribery scheme that resulted in the dismissal of a drug trafficking indictment filed against a Colombia-based drug kingpin, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
According to admissions in his plea agreement, Juan Carlos Velasco Cano, 49, acted as an intermediary between U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations Special Agent Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, and Colombian national Jose Bayron Piedrahita Ceballos, 58, to use Ciccione’s official position to cause a drug trafficking indictment against Piedrahita to be dismissed and to obtain official authorization for Piedrahita to enter the United States.
Velasco admitted that Piedrahita gave Ciccione approximately $20,000 in cash, dinner, drinks and prostitution during an extended hotel stay in Bogota, Colombia in exchange for Ciccione using his official position to obtain the dismissal of the indictment against Piedrahita. In furtherance of the scheme, Velasco arranged for a meeting of the conspirators in Bogota; facilitated communications between Piedrahita and Ciccione; and received confidential law enforcement information from Ciccione about himself and others, including the names of a confidential source and cooperating witnesses.
Velasco was sentenced by U.S. District Judge Robert N. Scola, Jr. of the Southern District of Florida. Ciccione will be sentenced on Feb. 9 and Piedrahita is currently incarcerated in the Republic of Colombia.
The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE’s Office of Professional Responsibility, the Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Department of Justice’s Office of International Affairs, the Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation. The Colombian Attorney General’s Office also provided invaluable support. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.
Clayton Real Estate Developer Pleads GuiltyRead the Press Release
St. Louis, MO – Michael Litz, 63, of Ladue, pled guilty today to assisting in an unlawful insider loan scheme at Excel Bank. He appeared before United States District Judge Audrey G. Fleissig. Sentencing is scheduled for April 25, 2018.
Litz is the third person to plead guilty in a criminal investigation following the failure of Excel Bank in 2012. Litz and Shaun Hayes were indicted on bank fraud and related charges involving a series of insider loans and straw party loans at Excel Bank. Hayes was the controlling shareholder in that bank which had main offices in Sedalia, Missouri and a loan production office in Clayton. Litz was a principal in Bellington Realty and Eighteen Investments which managed over 1,000 residential and commercial rental properties in the area and bought and sold hundreds of residential properties each year. In 2009, Eighteen Investments was delinquent on over $100,000,000.00 in loans at banks throughout the area. Litz and Hayes were also partners in a number of real estate development projects. One of those was McKnight Man I which involved the development of the property at the intersection of Manchester and McKnight Roads in Rock Hill. Litz and Hayes were guarantors on a McKnight Man loan at Centrue Bank in the amount of $900,000.00. That loan was delinquent in July, 2009. At the same time Eighteen Investments was delinquent on $3,600,000.00 in loans at Centrue Bank.
Litz admitted that he recruited a close friend, identified in the court papers as LS, to sign on to a $3,300,000.00 loan at Excel Bank to assist Litz in his business. LS was assured that he would not be held liable on the note and that the loan would be taken care of. The LS loan was secured on paper by a list of Eighteen Investments loans which were not performing and were substandard. Litz provided no details to LS on the specifics of the loan. According to court papers, LS was simply assisting Litz as a friend. The loan proceeds were used to pay off Litz’s and Hayes’s McKnight Man debt at Centrue Bank as well as the Eighteen Investments debt at that bank. Since Hayes was a principal at Excel Bank, the use of the LS loan funds to pay off the Hayes-Litz liability at Centrue Bank constituted unlawful self-dealing. Litz admitted that he participated in that transaction and directly benefitted from it.
According to court papers, Litz and Hayes set up other straw party loans at Excel Bank to cover millions of dollars in other delinquent loans of Eighteen Investments.
"Michael Litz used his connections to banker Shaun Hayes to commit fraud. The two men worked together to enrich themselves at the expense of Excel Bank," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "This type of self-dealing and fraud violates the integrity of our banking system and undermines consumer confidence."
“These convictions are an important step in the fight against fraud that hurt a TARP bank which lost $4 million in TARP funds,” said Christy Goldsmith Romero, Special Inspector General for TARP. “Banker Shaun Hayes, as the majority shareholder of Excel Bank, controlled the bank’s lending. He directed former executive vice president Tim Murphy to increase dramatically the bank’s commercial and real estate lending. So called “friends of Shaun” loans were approved absent Excel Bank’s normal underwriting safeguards such as appraisals—putting the bank at risk. Hayes also made the bank issue millions of dollars in loans to straw borrowers, concealing that the loans personally benefited himself and his business partner, Michael Litz. I commend the Office of the U.S. Attorney for the Eastern District of Missouri for its commitment to bringing justice to bankers who break the law.”
Bank regulators closed Excel Bank in October, 2012, and Simmons Bank succeeded it.
Hayes pled guilty on January 3 to one count of bank fraud and one count of misapplication of Excel Bank funds and is scheduled for sentencing on April 13.
Murphy, former Executive Vice President at Excel Bank, pled guilty on January 11 to bank fraud and sentencing is scheduled for April 24.
This case has been investigated by the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Criminal Chief James E. Crowe, Jr. and Assistant United States Attorney Gilbert Sison are handling the case for the U.S. Attorney’s Office.
Camden County, New Jersey, Man Sentenced to 20 Years in Prison for Conspiracy to Sexually Exploit ChildrenRead the Press Release
CAMDEN, N.J. – A Collingswood, New Jersey, man was sentenced today to 240 months in prison for conspiring with his former girlfriend to produce sexually explicit images of two children, U.S. Attorney Craig Carpenito announced.
Alexander Capasso, 44, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of an indictment charging him with conspiring with Janine Kelley, 36, of Audubon, New Jersey, to engage in the sexual exploitation of children. Judge Simandle imposed the sentence today in Camden federal court. Capasso has been in federal custody since his July 20, 2015 arrest.
According to documents filed in this case and statements made in court:
Capasso began a sexual relationship with Kelley in 2010. During that relationship, Capasso took, or allowed Kelley to take, recorded images of Capasso engaged in sexually explicit conduct with a child. Capasso also took, or allowed Kelley to take, recorded images of Kelley engaged in sexually explicit conduct with two children.
In addition to the prison term, Judge Simandle sentenced Capasso to a lifetime of supervised release.
Kelley has also pleaded guilty to her role in the conspiracy and is scheduled to be sentenced Jan. 19, 2018.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the FBI Washington D.C., Field Office, under the direction of Assistant Director in Charge Andrew Vale, with the investigation.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Sara Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Terri Lodge Esq., Cinnaminson, New JerseyBureau of Prisons Tests Micro-Jamming Technology in Federal Prison to Prevent Contraband Cell PhonesRead the Press Release
On January 17, 2018, the Federal Bureau of Prisons (BOP), in collaboration with the National Telecommunications and Information Administration (NTIA) and the Federal Communications Commission, conducted a test of micro-jamming technology at the Federal Correctional Institution at Cumberland, Maryland. The test was conducted to determine if micro-jamming could prevent wireless communication by an inmate using a contraband device at the individual cell housing unit level.
Prior to this test, the BOP had conducted a limited cellphone jamming demonstration with NTIA in 2010, at the same field site in Cumberland supporting NTIA’s congressionally-mandated study of cellphone interdiction technologies.
As part of the Jan. 17 test, NTIA conducted an independent evaluation of micro-jamming technology to determine its efficacy and interference potential with Radio Frequency communications. The BOP and NTIA will review the data and analysis results from both BOP’s and NTIA’s testing and develop recommendations for strategic planning and possible acquisition.
“Contraband cell phones in prisons pose a major and growing security threat to correctional officers, law enforcement officials, and the general public,” said Assistant Attorney General Beth Williams of the Justice Department’s Office of Legal Policy. “As criminals increase their technological capacity to further criminal activity from within prisons, we must also explore technologies to prevent this from happening. This test is part of our ongoing efforts to find a solution.”
Contraband cellphones have been an ongoing correctional security and public safety concern for the BOP as well as for state and local correctional agencies across the country. Contraband phones are used to further ongoing criminal activity, including threats to public officials, intimidation of witnesses, and continuance of criminal enterprises.
The BOP will continue to evaluate cell phone detection technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael V. Secchiaroli, 32, of Buffalo, NY, pleaded guilty, before U.S. District Judge Richard J. Arcara, to possession of child pornography involving a prepubescent minor. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on March 29, 2016, the defendant possessed images of child pornography which were obtained over the internet and stored on a laptop computer. On December 28, 2015, a Special Agent with the FBI, acting in an undercover capacity, logged onto a peer-to-peer file-sharing program and downloaded seven images of child pornography from an individual sharing those images from particular IP address. Further investigation revealed that the IP address was associated with the Secchiaroli’s residence. The defendant admitted that he had been using publicly available peer-to-peer software to download, possess, and view child pornography. Secchiaroli’s electronic devices were found to contain 31 images of child pornography, some of which depicted pre-pubescent children and violence.
The plea is the result of an investigation by agents of the Federal Bureau of Investigation, at the direction of Adam S. Cohen, Special Agent-in-Charge.
Sentencing is scheduled for May 1, 2018, at 12:30 p.m. before Judge Arcara.
Buffalo Man Pleads Guilty to Fentanyl DistributionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Clark, 33, of Buffalo, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to distribution of 40 grams or more of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that as part of an undercover operation by the Drug Enforcement Administration, controlled purchases of “heroin” were made from Clark on three occasions during March and April of 2017. On two of those occasions, the “heroin” turned out to contain fentanyl only and no heroin. During the three transactions, defendant distributed approximately 70 grams of powder containing fentanyl.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for April 30, 2018, at 9:30 a.m. before Judge Vilardo.
Bridgeport Man Sentenced to 30 Months in Prison for Stolen Postal Money Order and Check Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BERNARD HARRIS, 33, of Bridgeport, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for participating in two fraud schemes.
According to court documents and statements made in court, the first scheme involved the theft of postal money orders. Marc Anthony Alexander, formerly of Stratford and Oxford, and his wife, Rachael Alexander, also known as Rachael Vierling, devised a scheme to steal blocks of blank postal money orders from the U.S. Post Office in Old Greenwich. The Alexanders and others then imprinted the money orders with various denominations using a computer font designed to make them appear to be authentic. The Alexanders recruited HARRIS into the scheme to organize others to cash the money orders, or deposit them into numerous bank accounts, either at an ATM or at a teller window. HARRIS recruited at least five individuals and paid them a portion of the proceeds. He then turned the bulk of the money over to the Alexanders. The Alexanders compensated HARRIS by giving him additional money orders that he cashed and converted to his own use.
The loss from this scheme was $313,570.
HARRIS, Marc Alexander and Rachael Alexander were charged by indictment and arrested on April 26, 2016. On September 8, 2016, HARRIS pleaded guilty to one count of conspiracy to commit wire fraud.
On December 30, 2016, while he was released on bond, HARRIS went to a Waterbury check cashing business and presented a $3860 check that was allegedly issued by the Connecticut Department of Children and Families. HARRIS provided his driver’s license as identification and provided two references, including the name of his federal pretrial services officer and his federal public defender. He also cashed a second check from DCF.
On May 8, 2017, HARRIS pleaded guilty to one count of wire fraud stemming from the fraudulent check scheme and was remanded into custody.
Marc and Rachael Alexander pleaded guilty to charges related to the postal money order scheme and a separate scheme that involved the fraudulent sale of financed vehicles. On April 11, 2017, Marc Alexander was sentenced to 96 months of imprisonment. Rachael Alexander awaits sentencing.
This investigation has been conducted by the Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Alleged Al Qaeda Associate Charged with Conspiring to Kill Americans and Other Terrorism OffensesRead the Press Release
A Superseding Indictment charging Christian Ganczarski, aka Abu Mohamed, aka Abu Mohamed al Amani, aka Ibrahim, aka Ibrahim the German (Ganczarski), 51, with conspiracy to kill U.S. nationals, providing and conspiring to provide material support and resources to terrorists, and conspiring to provide material support and resources to al Qaeda, a designated foreign terrorist organization, was unsealed today in the Southern District of New York. The United States is seeking Ganczarski’s extradition from France.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Office and Police Commissioner James P. O’Neill of the NYPD made the announcement.
“According to the superseding indictment, between 1999 and 2001, Ganczarski regularly interacted with members of al Qaeda leadership who were responsible for terrorist operations, and provided them with the knowledge and technology to carry out attacks against the U.S. military and its allies,” said Acting Assistant Attorney General Boente. “This case demonstrates the National Security Division’s resolve to find and bring to justice, terrorists who target U.S. interests in any part of the world. I want to thank all of the prosecutors, agents and analysts who made this result possible.”
“Christian Ganczarski, a German national, allegedly provided critical support to the most prolific terrorists of our time,” said U.S. Attorney Berman. “Today we publicly announce charges against Ganczarski alleging that he participated in the planning of plots to kill Americans with high-level al Qaeda terrorists Khaled Shaikh Mohammad, Usama bin Laden and others. The unsealing of the indictment exemplifies this Office’s commitment to the relentless pursuit and prosecution of those who seek to harm Americans.”
“As alleged, Ganczarski willingly supported the goals of al Qaeda, immersing himself in social circles that included the likes of Usama bin Laden and one of the future hijackers in the September 11 attacks, among others,” said Assistant Director Sweeney. “He allegedly participated in efforts to kill Americans by providing technological support and guidance, and arranged meetings between senior officials in the organization and other like-minded individuals bent on future attacks against U.S. interests. While he’s spent the past fifteen years behind bars in France, we haven’t forgotten his allegiance to those who have threatened our interests both at home and abroad. We will continue to work with our international partners to mitigate the threat of global terrorism, bringing to justice everyone who participates in or materially supports this crime.”
“As alleged, Christian Ganczarski worked for al-Qaeda, lived in its camps and guest houses,” said Police Commissioner O’Neill. “He rubbed shoulders with Osama Bin Laden and the men who planned and executed plots from the bombing of U.S. embassies in East Africa that killed 225 people, to the 9-11 attacks that cost 3000 lives, most of them here in New York City. Ganczarski allegedly provided al-Qaeda with expertise in logistics, computers, radio communications and the maintenance of weapons systems that would be used against Americans soldiers after the 9/11 attacks. This case is another example of the work of the FBI agents and NYPD detectives of the Joint Terrorism Task Force. There is no time too long, or place to far, or suspect out of reach when it comes to bringing terrorists, or those who aid them to justice.”
As alleged in the Superseding Indictment unsealed in federal court:
Al Qaeda is an international terrorist organization dedicated to opposing non-Islamic governments with force and violence. The organization was founded by Usama bin Laden and Muhammad Atef, aka Abu Hafs el Masri (Abu Hafs el Masri), and was headquartered in Afghanistan since approximately 1996. Bin Laden served as the leader or “emir” of al Qaeda until his death on or about May 2, 2011.
Al Qaeda has a command control structure that included a majlis al shura (or consultation council) that discussed and approved major undertakings, including terrorist operations. Bin Laden and Abu Hafs el Masri sat on the majlis al shura of al Qaeda, as did others, including Saif al Adel. Khaled Shaikh Mohammad, aka Mukhtar, devised, planned, and facilitated terrorist operations for al Qaeda, and he also assisted in the preparation of promotional media used by al Qaeda to advertise its terrorist agenda and attract recruits.
Ganczarski, a German citizen born in Poland, traveled from Germany to Pakistan and Afghanistan on at least five separate occasions between 1999 and 2001. During these trips, Ganczarski became associated with al Qaeda and developed personal relationships with bin Laden, Abu Hafs el Masri, al Adel and Mohammad. Ganczarski lived at times with his family at al Qaeda’s fortified compound near Kandahar, Afghanistan. At other times, Ganczarski lived in guest houses and other facilities operated by al Qaeda in Afghanistan. Ganczarski participated in al Qaeda’s efforts to kill Americans in a number of ways, such as providing al Adel and other al Qaeda members with technological guidance and hardware, including computers, radios and other communications equipment.
In approximately January 2000, Ganczarski attended a speech delivered by bin Laden at al Qaeda’s headquarters in Kandahar. The January 2000 speech was attended by at least 100 men, including, among others, many significant al Qaeda leaders and terrorists, such as at least one of the plotters in the August 1998 bombings of the U.S. Embassies in East Africa, and one of the future hijackers in the Sept. 11, 2001, attacks on the United States (the September 11 Attacks). During the speech, Ganczarski sat in the front row with al Adel’s son in his lap.
In approximately March 2000, Ganczarski attended a meeting in Karachi, Pakistan, between Mohammad and a member of Jamaah Islamiyah (CC-1), a Southeast Asia terrorist organization, at which U.S. and Israeli targets for terrorist attacks were discussed. Following the meeting, Ganczarski helped transport CC-1 and a written communication from Mohammad to al Qaeda’s fortified compound in Kandahar, where Ganczarski spoke to bin Laden and took CC-1 to meetings with al Adel and Abu Hafs el Masri at which potential attacks on U.S. and Israeli interests were further discussed.
Ganczarski was in Germany at the time of the September 11 Attacks, and he indicated after the attacks that he had been aware that a significant event was about to occur. In approximately early October 2001, Ganczarski returned to Afghanistan and met with other members of al Qaeda, including al Adel. In approximately November 2001, Ganczarski and others attempted to repair anti-aircraft missiles controlled by al Qaeda that were not functioning, so that the missiles could be fired at U.S. military aircraft flying in the area at the time.
Ganczarski was arrested in France in 2003, and subsequently convicted of offenses under French law relating to a 2002 al Qaeda attack on a synagogue in Djerba, Tunisia. Ganczarski has been incarcerated in France since being convicted.
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The Superseding Indictment charges Ganczarski, with four counts: one count of conspiracy to kill U.S. nationals which carries a maximum sentence of life in prison; two counts of conspiracy to provide material support and resources to terrorists, and provision of material support and resources to terrorists, which carry a maximum sentence of 15 years in prison on each count; and one count of conspiracy to provide material support and resources to a designated foreign terrorist organization (al Qaeda) which carries a maximum sentence of 15 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. The charges contained in the Superseding Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Boente and Mr. Berman praised the extraordinary investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD – for the critical role they played and continue to play in the investigation of Ganczarski and his co-conspirators. In addition, Mr. Berman thanked the Department of Justice’s National Security Division and Office of International Affairs.
Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney David Smith of the National Security Division’s Counterterrorism Section.
Alleged Al Qaeda Associate Charged with Conspiring to Kill Americans and Other Terrorism OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), announced today that Christian Ganczarski, a/k/a “Abu Mohamed,” a/k/a “Abu Mohamed al Amani,” a/k/a “Ibrahim,” a/k/a “Ibrahim the German” (“Ganczarski”), has been charged in a Superseding Indictment unsealed in the Southern District of New York with conspiracy to kill United States nationals, providing and conspiring to provide material support and resources to terrorists, and conspiring to provide material support and resources to al Qaeda. The United States is seeking GANCZARSKI’s extradition from France.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Christian Ganczarski, a German national, allegedly provided critical support to the most prolific terrorists of our time. Today we publicly announce charges against Ganczarski alleging that he participated in the planning of plots to kill Americans with high-level al Qaeda terrorists Khaled Shaikh Mohammad, Usama bin Laden, and others. The unsealing of the indictment exemplifies this Office’s commitment to the relentless pursuit and prosecution of those who seek to harm Americans.”
Acting Assistant Attorney General Dana J. Boente said: “According to the superseding indictment, between 1999 and 2001, Ganczarski regularly interacted with members of al Qaeda leadership who were responsible for terrorist operations, and provided them with the knowledge and technology to carry out attacks against the U.S. military and its allies. This case demonstrates the National Security Division’s resolve to find and bring to justice, terrorists who target U.S. interests in any part of the world. I want to thank all of the prosecutors, agents and analysts who made this result possible.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Ganczarski willingly supported the goals of al Qaeda, immersing himself in social circles that included the likes of Usama bin Laden and one of the future hijackers in the September 11 attacks, among others. He allegedly participated in efforts to kill Americans by providing technological support and guidance, and arranged meetings between senior officials in the organization and other like-minded individuals bent on future attacks against U.S. interests. While he’s spent the past fifteen years behind bars in France, we haven’t forgotten his allegiance to those who have threatened our interests both at home and abroad. We will continue to work with our international partners to mitigate the threat of global terrorism, bringing to justice everyone who participates in or materially supports this crime.”
NYPD Commissioner James P. O’Neill said: “As alleged, Christian Ganczarski worked for al-Qaeda, lived in its camps and guest houses. He rubbed shoulders with Osama Bin Laden and the men who planned and executed plots from the bombing of US embassies in East Africa that killed 225 people, to the 9-11 attacks that cost 3000 lives, most of them here in New York City. Ganczarksi allegedly provided al-Qaeda with expertise in logistics, computers, radio communications and the maintenance of weapons systems that would be used against Americans soldiers after the 9/11 attacks. This case is another example of the work of the FBI agents and NYPD detectives of the Joint Terrorism Task Force. There is no time too long, or place to far, or suspect out of reach when it comes to bringing terrorists, or those who aid them to justice.”
As alleged in the Superseding Indictment unsealed in federal court:[1]
Al Qaeda is an international terrorist organization dedicated to opposing non-Islamic governments with force and violence. The organization was founded by Usama bin Laden and Muhammad Atef, a/k/a “Abu Hafs el Masri” (“Abu Hafs el Masri”), and was headquartered in Afghanistan since approximately 1996. Bin Laden served as the leader or “emir” of al Qaeda until his death on or about May 2, 2011.
Al Qaeda has a command control structure that included a majlis al shura (or consultation council) that discussed and approved major undertakings, including terrorist operations. Bin Laden and Abu Hafs el Masri sat on the majlis al shura of al Qaeda, as did others, including Saif al Adel. Khaled Shaikh Mohammad, a/k/a “Mukhtar,” devised, planned, and facilitated terrorist operations for al Qaeda, and he also assisted in the preparation of promotional media used by al Qaeda to advertise its terrorist agenda and attract recruits.
Ganczarski, a German citizen born in Poland, traveled from Germany to Pakistan and Afghanistan on at least five separate occasions between 1999 and 2001. During these trips, GANCZARSKI became associated with al Qaeda and developed personal relationships with bin Laden, Abu Hafs el Masri, al Adel, and Mohammad. GANCZARSKI lived at times with his family at al Qaeda’s fortified compound near Kandahar, Afghanistan. At other times, GANCZARSKI lived in guest houses and other facilities operated by al Qaeda in Afghanistan. GANCZARSKI participated in al Qaeda’s efforts to kill Americans in a number of ways, such as providing al Adel and other al Qaeda members with technological guidance and hardware, including computers, radios, and other communications equipment.
In approximately January 2000, GANCZARSKI attended a speech delivered by bin Laden at al Qaeda’s headquarters in Kandahar. The January 2000 speech was attended by at least 100 men, including, among others, many significant al Qaeda leaders and terrorists, such as at least one of the plotters in the August 1998 bombings of the U.S. Embassies in East Africa, and one of the future hijackers in the September 11, 2001, attacks on the United States (the “September 11 Attacks”). During the speech, GANCZARSKI sat in the front row with al Adel’s son in his lap.
In approximately March 2000, GANCZARSKI attended a meeting in Karachi, Pakistan, between Mohammad and a member of Jamaah Islamiyah (“CC-1”), a Southeast Asia terrorist organization, at which U.S. and Israeli targets for terrorist attacks were discussed. Following the meeting, GANCZARSKI helped transport CC-1 and a written communication from Mohammad to al Qaeda’s fortified compound in Kandahar, where GANCZARSKI spoke to bin Laden and took CC-1 to meetings with al Adel and Abu Hafs el Masri at which potential attacks on U.S. and Israeli interests were further discussed.
GANCZARSKI was in Germany at the time of the September 11 Attacks, and he indicated after the attacks that he had been aware that a significant event was about to occur. In approximately early October 2001, GANCZARSKI returned to Afghanistan and met with other members of al Qaeda, including al Adel. In approximately November 2001, GANCZARSKI and others attempted to repair anti-aircraft missiles controlled by al Qaeda that were not functioning, so that the missiles could be fired at U.S. military aircraft flying in the area at the time.
GANCZARSKI was arrested in France in 2003, and subsequently convicted of offenses under French law relating to a 2002 al Qaeda attack on a synagogue in Djerba, Tunisia. GANCZARSKI has been incarcerated in France since being convicted.
* * *
The Superseding Indictment charges GANCZARSKI, 51, with four counts. A chart containing a description of the charges and their maximum penalties is attached. If convicted on all counts, GANCZARSKI would face a maximum sentence of life in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman and Mr. Boente praised the extraordinary investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – for the critical role they played and continue to play in the investigation of GANCZARSKI and his co-conspirators. In addition, Mr. Berman thanked the Department of Justice’s National Security Division and Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle are in charge of the prosecution, with assistance from Trial Attorney David Smith of the National Security Division’s Counterterrorism Section.
The charges contained in the Superseding Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Statute (Title 18)
Counts
Description
Maximum Penalties
Section 2332(b)
Count 1
Conspiracy to kill United States nationals
Maximum sentence of life in prison
Section 2339A
Counts 2 and 3
Conspiracy to provide material support and resources to terrorists, and provision of material support and resources to terrorists
Maximum sentence of 15 years in prison on each count
Section 2339B
Count 4
Conspiracy to provide material support and resources to a designated foreign terrorist organization (al Qaeda)
Maximum sentence of 15 years in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Superseding Indictment, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Albuquerque Man Sentenced to 135 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Luciano Garcia, 42, of Albuquerque, N.M., was sentenced yesterday in federal court to 135 months in prison for his conviction on a methamphetamine trafficking charge. Garcia will be on supervised release for five years after completing his prison sentence.
Garcia and co-defendants Antonio Marco Bustillos, 43, and Jason Ulibarri, 43, both of Albuquerque, were arrested in Aug. 2017, on a criminal complaint charging them with methamphetamine trafficking and firearms offenses. According to the complaint, Garcia, Bustillos and Ulibarri were arrested after attempting to sell approximately 1.03 kilograms (2.27 pounds) of methamphetamine contained in two bundles to another individual. Incident to his arrest, a fully loaded firearm was allegedly recovered from Bustillos’ rear pocket.
The co-defendants were subsequently charged in a three-count indictment on Aug. 22, 2017. Garcia, Bustillos and Ulibarri were charged with possession of methamphetamine with intent to distribute on Aug. 10, 2017, in Bernalillo County, N.M. Bustillos was charged individually with being a felon in possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime on Aug. 10, 2017, in Bernalillo County. Bustillos was prohibited from possessing firearms of ammunition because he previously had been convicted of robbery.
On Sept. 14, 2017, Garcia pled guilty to Count 1 of the indictment charging him with possession of more than 500 grams of methamphetamine with intent to distribute without the benefit of a plea agreement.
Bustillos and Ulibarri have both entered pleas of not guilty to the charges against them. Charges in complaint and indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Accenture Pays $1.7 Million to Settle Overcharged Government ContractRead the Press Release
ALEXANDRIA, Va. – Accenture Federal Services LLC (Accenture), located in Reston, agreed to pay $1,744,559 to settle overcharges billed to a General Services Administration multiple award schedule contract.
The resolution follows from a disclosure by the company to the U.S. Army Contracting Command, which arose out of an internal investigation conducted by Accenture. Accenture reported to the government that overcharges had been caused by unauthorized purchases of copy toner that had been surreptitiously made by a subcontractor on the contract. The disclosure by Accenture to the Army was made pursuant to the Contractor Code of Business Ethics and Conduct under the Federal Acquisition Regulations (FAR). Accenture provided assistance during the government’s investigation.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the Army Criminal Investigation Command. The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
57th Defendant Sentenced on Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 84 of these defendants have been convicted, including 83 who have entered guilty pleas, and 57 of them have been sentenced.
The investigation was undertaken in support of 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 collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Today, Albuquerque, N.M., resident, Felix Ulibarri, 39, was sentenced to 84 months in prison followed by six years of supervised release for his conviction on a methamphetamine trafficking charge.
Ulibarri was indicted on July 28, 2016, and was charged with distributing methamphetamine on July 11, 2016. The indictment subsequently was superseded on Aug. 9, 2016, to add Leo Lopez, 29, Joseph Sena, 40, and Jennifer Padilla, 39. The superseding indictment charged Ulibarri and Padilla with participating in a conspiracy to distribute methamphetamine in July 2016; Lopez, Sena and Padilla with participating in a different conspiracy to distribute methamphetamine in July 2016; Ulibarri with distributing methamphetamine on July 11, 2016; and Sena with distributing methamphetamine on July 26, 2016. According to the indictment, the defendants committed the crimes in Bernalillo County. On Aug. 22, 2017, Ulibarri pled guilty to one count of distributing methamphetamine and admitted that on July 11, 2016, he distributed more than 50 grams of methamphetamine to an undercover law enforcement agent.
Ulibarri’s three co-defendants have entered guilty pleas. Padilla pled guilty on Sept. 22, 2017, and was sentenced to 24 months in prison followed by three years of supervised release on Jan. 3, 2018. Lopez pled guilty on March 20, 2017, and was sentenced to 60 months in prison followed by four years of supervised release on June 19, 2017. Sena pled guilty on May 5, 2017, and is pending sentencing.
Sixteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
This case was investigated by the Albuquerque office of ATF and is being prosecuted by Assistant U.S. Attorney Eva Fontanez.
11 Members of New York Drug Trafficking Organization Charged with Distributing Potent Heroin and FentanylRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael E. McMahon, the District Attorney for Richmond County, James J. Hunt, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging MEDIN KOSIC, a/k/a “Dino,” JASMIN CEJOVIC, a/k/a “Min,” PAUL VAN MANEN, MIRSAD BOGDANOVIC, a/k/a “Mike,” SHAUN SULLIVAN, THEODORE BANASKY, a/k/a “Freddy,” a/k/a “Eduardo,” ANTHONY FRANCESE, ALEXANDER BUCCI, JOSEPH CUCCINIELLO, a/k/a “Cuch,” KENNETH CHARLTON, and JENNIFER BOGDANOVIC with conspiracy to distribute heroin and fentanyl. Eight defendants were arrested on these charges this morning. VAN MANEN and SULLIVAN, who were in custody on state charges, were transferred to federal custody today. The defendants are expected to be arraigned before United States Magistrate Henry Pitman in Manhattan federal court later today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants created a network spanning New York City and into New Jersey for the distribution of highly addictive and dangerous drugs. Even after they realized the potency of the drugs they were distributing and selling – and the overdose risk those drugs posed – the defendants allegedly continued to sell their poison and to fuel the opioid epidemic plaguing our nation. Today’s arrests are part of our continued commitment, along with our law enforcement partners, to stop the flow of heroin and fentanyl into and out of New York.”
District Attorney Michael E. McMahon said: “With the drug epidemic intensifying in Staten Island and other hard-hit parts of the City, these defendants continued to flood our streets with heroin and fentanyl, peddling poison that led to several overdoses. Our mission to investigate every overdose through the Overdose Response Initiative has helped law enforcement hold drug dealers accountable for the lives they have destroyed, and today’s indictments are a direct result of these ongoing efforts. The prosecutors in my office’s Narcotics-Investigations Bureau will continue working together with the NYPD and our federal partners to ensure that we attack the drug epidemic on all fronts.”
DEA Special Agent in Charge James J. Hunt said: “Every day, heroin users put their lives in the hands of mad scientists. This organization’s trial and error chemistry resulted in unregulated potency and unnecessary overdoses. The Strike Force and our partners pooled resources in order to dismantle this organization and shut down a major opioid source of supply in Brooklyn, Staten Island and New Jersey.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Those charged today are alleged to have packaged highly addictive drugs in Brooklyn and Staten Island, and sell them on our city streets. Our agency is committed to working with our law enforcement partners to seek out and arrest those criminals who choose to bring heroin and fentanyl into our neighborhoods.”
NYSP Superintendent George P. Beach II said: “Once again through partnership and good police work between our law enforcement partners, we were able to dismantle a dangerous heroin/fentanyl drug trafficking operation. For years, these individuals distributed large amounts of these toxic substances throughout the New York City and New Jersey area, never once concerned about the deadly effects of these drugs on these communities. These arrests should send a strong message that we will continue to do all we can to prevent these drugs from making it to our neighborhoods. I commend our members and our law enforcement partners for their hard work in uncovering this operation and the arrests.”
Police Commissioner O’Neill said: “The eleven defendants in this case are accused of operating a heroin and fentanyl distribution ring in Staten Island and other parts of our City. As alleged, they continued to peddle the deadly product even after one of the defendants overdosed himself. When I spoke recently about the reduction in overdoses on Staten Island in the year 2017, I spoke about the NYPD’s continued commitment to fighting the opioid epidemic. The charges in this case come as a result of the kind of precision policing that’s one part of the cure.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
The defendants were members of a drug trafficking organization (the “DTO”) that operated in Manhattan, Brooklyn, Staten Island, and New Jersey. The DTO obtained heroin and fentanyl from a supplier, which was then stored and packaged in Staten Island or Brooklyn, and resold in Brooklyn, Staten Island, and New Jersey, among other places. Certain defendants also arranged to sell narcotics while in Manhattan.
Between 2015 and January 2018, the DTO was responsible for distributing large quantities of heroin, including heroin laced with fentanyl, in New York City and other locations. During the course of the conspiracy, DTO members became aware of the risk posed by the drugs that they sold. In October 2017, defendant SHAUN SULLIVAN overdosed from heroin supplied by the DTO, but was revived with naloxone. Members of the DTO knew of SULLIVAN’s overdose and the potency of the narcotics they were distributing. Even after SULLIVAN overdosed, the DTO continued to distribute heroin and fentanyl to customers in New York City.
* * *
A chart setting forth the names, ages, residences, and maximum penalties for the defendants, each charged with one count of conspiracy to distribute narcotics, is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
The arrest was the result of a long-term investigation by the Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative and part of the Organized Crime Drug Enforcement Task Force program. Mr. Berman thanked the Richmond County District Attorney’s Office, the Overdose Response Initiative, and the NYPD Overdose Task Force. Mr. Berman noted that the investigation is ongoing.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Catherine Geddes and Stephanie Lake are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Medin Kosic et al.
DEFENDANT
AGE
RESIDENCE
MAXIMUM PENALTY
MEDIN KOSIC
30
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
JASMIN CEJOVIC
25
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
PAUL VAN MANEN
50
South Amboy, NJ
Life in prison with a mandatory minimum of 10 years in prison
MIRSAD BOGDANOVIC
41
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
SHAUN SULLIVAN
36
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
THEODORE BANASKY
44
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
ANTHONY FRANCESE
48
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
ALEXANDER BUCCI
22
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
JOSEPH CUCCINIELLO
23
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
KENNETH CHARLTON
46
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
JENNIFER BOGDANOVIC
33
Staten Island
Life in prison with a mandatory minimum of 10 years in prison
[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.
16 January 2018
Wilmington, Delaware, Restaurateur Admits Giving IRS Officer $30,000Read the Press Release
WILMINGTON, Del. – A New Castle County, Delaware, man admitted today that he paid an illegal gratuity to an IRS official, U.S. Attorney Craig Carpenito, District of New Jersey, announced.
Domenico Procope, 48, of Hockessin, Delaware, pleaded guilty before Chief U.S. District Judge Leonard P. Stark in Wilmington federal court to a superseding information charging him with one count of providing something of value to a government official in exchange for an official act.
According to documents filed in this case and statements made in court:
Procope is the owner of several restaurants in Wilmington and Bear, Delaware. Beginning in 2010, he began accumulating significant business-related and personal income tax liability, and by February 2016, the IRS sought to collect more than $400,000 from him. In an attempt to alleviate his tax liabilities, Procope offered to pay an IRS officer assigned to his tax case to resolve the majority of his tax liability. During multiple recorded conversations with the officer, Procope offered the officer $30,000 in exchange for a reduction in his tax liability. On Feb. 25, 2016, Procope gave the officer $30,000 in cash.
The count of giving an illegal gratuity to a public official carries a maximum potential penalty of two years in prison and a fine of up to $250,000. Sentencing is scheduled for April 25, 2018.
U.S. Attorney Craig Carpenito credited the U.S. Department of Treasury, Treasury Inspector General for Tax Administration, under the direction of Inspector General J. Russell George, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Karen D. Stringer, District of New Jersey. The U.S. Attorney for the District of New Jersey is handling the case because of the recusal of the U.S. Attorney’s Office for the District of Delaware.
Upshur County man admits to his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A French Creek, West Virginia man has admitted today to distributing methamphetamines and a firearms charge, United States Attorney Bill Powell announced.
Thunderbolt Dean Whaley, age 40, pled guilty to one count of “Conspiracy to Distribute More than 50 grams of Methamphetamine,” and one count of “Carrying a Firearm During a Drug Trafficking Crime.” He admitted to conspiring with others in distributing methamphetamines in Upshur County and elsewhere from March 2016 to September 2017. Whaley also admitted to carrying a .38 special revolver during a drug crime in Lewis County in July 2017.
Whaley face ups to life incarceration and a fine of up to $10,000,000 for the conspiracy count and faces up to five years incarceration and a fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Union County, New Jersey, Man Admits Robbing Four BanksRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man today admitted robbing four banks in January 2017, including a TD Bank in Bergen County, New Jersey, U.S. Attorney Craig Carpenito announced today.
Israel Cosme, 36, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with four counts of bank robbery. Cosme was originally arrested Jan. 24, 2017 in connection with two of the bank robberies committed in Maryland.According to documents filed in this case and statements made in court:
Cosme admitted that on Jan. 15, 2017, he robbed a TD Bank in Little Ferry, New Jersey. During the robbery, Cosme verbally demanded money and told a teller that he would shoot her if she didn’t comply.
Cosme also admitted robbing a TD Bank in New York on Jan. 12, 2017; a TD Bank in Essex, Maryland, on Jan. 22, 2017; and a TD Bank in Baltimore, Maryland, on Jan. 23, 2017. During all three of these robberies, Cosme handed tellers a note demanding money and stating that he had a gun.
Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 7, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Little Ferry Police Department, under the direction of Chief Ralph Verdi, for its assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
U.S. Attorney Mike Stuart to meet with officials at Lily's Place in HuntingtonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart will visit Lily’s Place tomorrow for a tour of the facility and to meet with officials administering the specialized care provided by this organization. Lily’s Place provides treatment for newborns suffering from Neonatal Abstinence Syndrome (NAS). NAS is a group of problems that occurs in a newborn after being exposed to illegal drugs and/or the misuse of prescription drugs while in the mother’s womb. Lily’s Place offers observational, therapeutic, and pharmacological care to infants with prenatal drug exposure.
While the U.S. Attorney’s Office is focused on confronting the drug epidemic through aggressive prosecution of drug dealers and suppliers, it is understood that prosecution is only part of the comprehensive approach. Treatment for addicts is an important aspect of fighting the drug epidemic, and treatment for newborns, the most vulnerable in our communities, is essential to combat the scourge of drug abuse.
“Lily’s Place is on the front lines of the epidemic. My heart bleeds for every innocent newborn suffering from the scourge of drugs,” said U.S. Attorney Stuart. “No one sees the devastation of drug abuse first-hand like the professionals who staff that facility. Their work caring for newborns is critical, and I look forward to meeting with the treatment team.”
WHO:
- United States Attorney Mike Stuart
- Lily’s Place Executive Director Rebecca Crowder
- Officials and staff from Lilly’s Place
WHAT:
- Meeting with Lilly’s Place officials and tour of facility
WHEN:
- Wednesday, January 17, 2018, at 3:00 p.m.
WHERE:
- Lily’s Place
- 1320 7th Avenue
- Huntington, WV 25701
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Two defendants plead guilty to federal drug chargesRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty today to federal drug crimes, announced United States Attorney Mike Stuart. Debra Martin, 34, of Parkersburg, pleaded guilty to conspiracy to distribute 100 grams of more of heroin. In a separate prosecution, Schauwne Martin, 36, of Dunbar, pleaded guilty to possession with intent to distribute methamphetamine. U.S. Attorney Stuart commended the collaborative investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Parkersburg Drug Task Force, the West Virginia State Police, the Wood County Sheriff’s Department, and the Police Departments of the cities of Parkersburg, Vienna, and Williamstown for the Debra Martin case. U.S. Attorney Stuart also commended the Drug Enforcement Administration Task Force for the investigation of Schauwne Martin.
Debra Martin admitted that from December 2016 until her arrest in November 2017, she was involved with several individuals in distributing heroin at various locations throughout the Parkersburg area. In addition, Debra Martin admitted to selling heroin to a confidential informant working with the Parkersburg Drug Task Force and the Federal Bureau of Investigation on numerous occasions. Debra Martin and her co-conspirators were involved in the distribution of a total of between one and three kilograms of heroin. Debra Martin faces at least five and up to 40 years in federal prison when she is sentenced on April 5, 2018.
In a separate prosecution, Schauwne Martin admitted that on February 28, 2017, law enforcement found a loaded .380 caliber, semiautomatic handgun, approximately 94 grams of pure methamphetamine, and digital scales in his kitchen in Dunbar. Martin, who has previously been convicted for conspiracy to distribute cocaine in Kanawha County, also admitted that he possessed another handgun, and that he had sold methamphetamine to informants on seven other occasions. Martin faces at least 10 years and up to life in federal prison when he is sentenced on April 5, 2018.
Assistant United States Attorney John Frail is in charge of the Debra Martin prosecution. Assistant United States Attorney Eric Bacaj is responsible for the prosecution of Schauwne Martin. United States District Judge Joseph R. Goodwin is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Detroit men plead guilty to federal heroin crimesRead the Press Release
HUNTINGTON, W.Va. – Two Detroit men pleaded guilty today to federal drug charges, announced United States Attorney Mike Stuart. JaJuan Thrasher, 30, pleaded guilty to possession with intent to distribute heroin. In a separate prosecution, Charles Duncan Pippins, 30, pleaded guilty to distributing heroin and possession with intent to distribute heroin. U.S. Attorney Mike Stuart commended the investigation of the Huntington FBI Drug Task Force for the Thrasher case, and also commended the Cabell County Sheriff’s Department for the investigation of Pippins.
On September 14, 2015, members of the Huntington FBI Drug Task Force executed a search warrant at 2317 Lincoln Avenue in Huntington. When investigators executed the warrant, they located Thrasher and two additional individuals inside the residence. Investigators subsequently seized approximately 18 grams of heroin that was packaged for distribution from Thrasher’s pocket. Thrasher admitted that he had been distributing heroin in the Huntington area. As part of his plea, Thrasher also admitted that he and others used the Lincoln Avenue apartment to distribute heroin between the summer of 2015 and September 14, 2015. Thrasher faces up to 20 years in federal prison when he is sentenced on April 16, 2018.
In a separate prosecution, on September 12, 2016, deputies with the Cabell County Sheriff’s Department used a confidential informant to make a controlled purchase of heroin from Pippins. The informant traveled to the Days Inn Hotel located on U.S. Route 60 in Huntington, where Pippins distributed heroin to the informant. Deputies executed a search warrant on his room, and as agents entered, Pippins flushed heroin down the toilet. During the search of the room, deputies seized approximately 6 grams of heroin that Pippins admitted he intended to sell. An analyst with the West Virginia State Police Forensic Laboratory confirmed that the heroin was mixed with fentanyl, a powerful opiate painkiller. Pippins faces up to 20 years in federal prison when he is sentenced on April 30, 2018.
Assistant United States Attorney Joseph F. Adams is handling these prosecutions. United States District Judge Robert C. Chambers presided over the plea hearings.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Texas man sentenced for firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - Corey Letroit Joseph Riggs, of Houston, Texas was sentenced today to 46 months incarceration for an illegal firearm charge, United States Attorney Bill Powell announced.
Riggs, age 41, pled guilty to one count of “Unlawful Possession of a Firearm” in September 2017. Riggs, who was previously convicted of felonies in the Circuit Court of Harris County, Texas, was in possession of .40 caliber Glock pistol. The crime occurred April 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Texas Man Pleads Guilty to Violating Federal Drug Trafficking and Firearms Laws in New MexicoRead the Press Release
ALBUQUERQUE – Nicolas Robert Muniz, 26, of Monahans, Tex., pled guilty this afternoon in federal court in Las Cruces, N.M., to violating federal drug trafficking and firearms laws under a plea agreement with the U.S. Attorney’s Office.
Muniz was charged by criminal complaint on June 5, 2017, after law enforcement officers seized approximately 504 grams of methamphetamine, 50 grams of marijuana, and firearms and ammunition from Muniz’s vehicle following a routine traffic stop. During the traffic stop, Muniz allegedly acted suspicious and nervous causing the officers to deploy a drug detection canine on the vehicle, and the canine allegedly alerted the officers to the presence of controlled substances in the vehicle.
Muniz and his codefendant Michael Dwain Samples, 26, also of Monahans, Tex., were subsequently charged in a six-count indictment on Sept. 13, 2017. Muniz and Samples were charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. Muniz was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. Samples was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. According to the indictment, the offenses took place on May 16, 2017, in Lea County, N.M. Samples was prohibited from possessing firearms or ammunition because he was previously convicted of possession of a controlled substance. Muniz was prohibited from possessing firearms or ammunition because he was previously convicted of theft of property.
During today’s proceedings, Muniz pled guilty to a four-count felony information charging him with conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, being a felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Muniz admitted that on May 16, 2017, he agreed to drive Samples from Monahans, Texas to Carlsbad, N.M., to purchase approximately 469 grams of methamphetamine. Muniz further admitted that there was a firearm loaded with several rounds of ammunition under Muniz’s seat in the vehicle Muniz was driving. Muniz admitted that he possessed the firearm and ammunition despite his status as a convicted felon on May 16, 2017, for protection and in furtherance of his drug trafficking activities.
On Oct. 31, 2017, Samples pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Samples admitted that on May 16, 2017, he traveled from Monahans, Texas, to Carlsbad, to purchase approximately 469 grams of methamphetamine with the intention of distributing the methamphetamine to other people in exchange for money. Samples further admitted that on May 16, 2017, he was in possession of a firearm and ammunition despite his status as a convicted felon.
At sentencing, Muniz faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison and a mandatory penalty of five years in federal prison which must be serviced consecutive to any other sentence imposed. Samples faces a statutory minimum penalty of ten years and a maximum of life in federal prison. Muniz and Samples remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorneys Brock E. Taylor and Joni L. Autrey of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Springfield Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
BOSTON – A Springfield man was sentenced today to 10 years in prison for possession of child pornography. The defendant faced a mandatory minimum sentence due to a prior state conviction for statutory rape.
Alex Germaine, 30, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 years in prison and 10 years of supervised release. In September 2017, Germaine pleaded guilty to one count of possession of child pornography.
After Germaine accessed a Russian child pornography website, law enforcement executed a search warrant on July 29, 2016, and seized Germaine’s cell phone, which revealed multiple images of child pornography, including one involving a sex act perpetrated by an adult male against a prepubescent female. A subsequent search warrant was executed on Nov. 10, 2016, at Germaine’s residence in Springfield, where law enforcement seized computer discs containing child pornography.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Senior MARTA executive sentenced to federal prison for causing MARTA to pay $500,000 for work never performedRead the Press Release
ATLANTA - Former MARTA Senior Director of Operations Joseph J. Erves has been sentenced to two years, nine months in federal prison for orchestrating a false invoicing scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for then funneling most of that money into his personal bank accounts.
“Given his executive management position, it is clear that MARTA placed great trust and faith in Erves,” said U.S. Attorney Byung J. “BJay” Pak. “Unfortunately, instead of serving the public interest and taking his civic duty seriously, Erves chose to indulge his desire for money and a fancy car. His quest for personal enrichment has earned him this sentence and time to reflect on his dishonesty.”
“The vast majority of public servants are honest and dedicated people who strive to do the right thing for their constituents and their communities. Unfortunately there are a few, like Mr. Erves, who are only concerned about themselves,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “His actions hit at the heart of government and erode public confidence. That’s why the FBI makes public corruption our top criminal priority.”
“Mr. Erves dishonored his position and violated the trust of the Authority and the communities we serve,” said MARTA Police Chief Wanda Dunham. “This sentence is proof that no one is above the law. The MARTA Police Department continues to take these types of crimes seriously and we will aggressively pursue criminal prosecution.”
According to U.S. Attorney Pak, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.
From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all MARTA buses and rail cars and had the authority to approve payments of up to $10,000 to vendors for work performed on behalf of MARTA.
Beginning in 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.
Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.
After receiving payment, the three vendors funneled most of the money they received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no work was actually performed.
Joseph J. Erves, 53, of Lithonia, Georgia, has been sentenced to two years, nine months in federal prison, and ordered to pay $522,825.45 in restitution. On August 24, 2017, Erves pleaded guilty to one count of Federal Program Theft.
The Federal Bureau of Investigation and the MARTA Police Department are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Putnam County Man Pleads Guilty to Downloading Child Sex Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Ryan Elton Devore (31, Satsuma) has pleaded guilty to receiving child sexual abuse videos over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. A sentencing date has not yet been set.
According to court documents, on July 18, 2017, federal agents and local officers executed a search warrant at Devore’s home in connection with an online child exploitation investigation. When the agents asked Devore if he had come across pornography involving children under the age of 12, he responded, “Well, yeah, I was gonna say, I know, I, I probably have before, yeah.” Forensic analyses of Devore’s custom-built computer tower and a cellphone revealed that the devices contained numerous depictions of child pornography, including at least 400 videos of children being sexually abused.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Gainesville (FL) Police Department, and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Protecting Houses of Worship Training Held Today in CaryRead the Press Release
RALEIGH – Today, the United States Attorney’s Office for the Eastern District of North Carolina joined law enforcement and local area houses of worship in presenting training to security personnel from diverse faith communities on protecting religious institutions and houses of worship from violence. This one-day Protecting Houses of Worship Seminar was held at Colonial Baptist Church in Cary, North Carolina and was attended by nearly 450 people representing local churches, synagogues, temples, and mosques.
United States Attorney Robert J. Higdon, Jr. opened the training remarking, “Faith leaders typically have limited contact with local law enforcement agencies. Yet establishing a partnership before an emergency arises is a key component of a security plan. We are fortunate in that all across the Eastern District of North Carolina we have well trained and experienced law enforcement who want to help you. They want to ensure that you have the opportunity to worship and to do the work of your faith without fear of violence, without any difficulty and in complete safety. They want to partner with you.”
Through presentations and panel discussions, participants learned about security awareness for places of worship, as well as the various means by which law enforcement provides support to protecting houses of worship. Attendees heard from members of the North Carolina State Bureau of Investigation, Apex Police Department, Wake County Sheriff’s Office, and Cary Police Department during this training. In order to foster continued discussion among the attendees, representatives of local area houses of worship participated in a panel during which they discussed their particular experiences managing security for their respective house of worship.
This training was designed to support one of the Attorney General’s priorities to ensure that all Americans feel free to worship in a place of their choosing without the fear of violence or intimidation.
The United States Attorney’s Office plans to hold additional such trainings in the future throughout the Eastern District of North Carolina.
Pontoon Beach Man Sentenced to Prison for Firearm OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that on January 12, 2018, Marc Biggs, 34, of Pontoon Beach, Illinois, was sentenced for felon in possession of a firearm. The Honorable Nancy J. Rosenstengel sentenced Biggs to 30 months in federal prison, to be followed by three years of supervised release and a $100 special assessment. Biggs also agreed to forfeit the illegal firearm that he possessed.
Court proceedings revealed that officers with the Madison Police Department responded to an apartment building in reference to a call about removing squatters from an apartment. During a search of the apartment officers found Biggs, a previously convicted felon, hiding in a bedroom. Officers also discovered a rifle in the same bedroom.
The case was investigated by the Madison Police Department and prosecuted by Assistant United States Attorney Christopher Hoell.
Philadelphia Man Charged with Illegal Re-entry After DeportationRead the Press Release
Marco Antonio D’Argnt Reategui, a/k/a “Francisco D'Argent,” a/k/a “Jorge Ortiz,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about December 13, 2017, D’Argnt Reategui, an alien, and native and citizen of Peru, was found in the United States after having been deported from the United States on or about September 4, 2012.
If convicted, the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Palmetto man sentenced to prison for running methamphetamine “superlab” out of homeRead the Press Release
NEWNAN, Ga. - Ramiro Hermosillo-Salazar has been sentenced to 30 years in prison for violations of federal drug and firearm laws. Law enforcement uncovered a methamphetamine “superlab” containing approximately 400 pounds of crystal and liquid methamphetamine at Hermosillo’s residence in Palmetto, Georgia, along with several loaded firearms.
“Methamphetamine is the most trafficked illegal drug in Georgia, and it has devastated the lives of many of our fellow citizens,” said U.S. Attorney Byung J. “BJay” Pak. “Hermosillo produced hundreds of pounds of the drug in a ‘superlab’ in his home where his young children resided. Thanks to the efforts of the DEA and local law enforcement partners, this cache of drugs is off our streets. Our effort to aggressively confront the methamphetamine problem continues, and we will seek lengthy sentences for those who peddle this poison.”
“The dangers associated with meth remain one of the most significant drug threats facing our community,” said DEA Atlanta Field Division Special Agent in Charge Robert J. Murphy. “In that regard, DEA Atlanta will continue to work with our law enforcement partners fighting drug trafficking organizations such as this to keep this poison off our streets.”
“The dangers this lab presented to those children that had to live in this and also to the surrounding community was without a doubt a senseless, selfish
criminal act by someone who has no conscious for anyone and flaunts the law. I am proud of the officers, both local and federal, for the tremendous job they did getting this person and the poison he produced off the streets and out of our neighborhoods. Our job is to provide security and safety to our citizens and this was a job done well,” said Coweta County Sheriff Mike Yeager.
According to U.S. Attorney Pak, the charges and other information presented in court: Following a multi-month DEA investigation, agents identified Ramiro Hermosillo-Salazar as a likely member of a methamphetamine trafficking organization. On June 15, 2017, DEA agents, aided by the Coweta County Sheriff’s Office S.W.A.T. team, executed a federal search warrant at Hermosillo’s residence in Palmetto. Law enforcement encountered the defendant in the residence and arrested him. They discovered that Hermosillo was also living at the residence with his three minor children, ages five, eight, and nine.
During the search, agents discovered a methamphetamine “superlab” in a separate building several yards from the house. The lab contained approximately 300 pounds of highly pure crystal methamphetamine, as well as several gallons of liquid methamphetamine that, if converted to its crystal form, would have yielded an additional 100 pounds of the drug.
Inside the residence, agents also found a second, smaller methamphetamine lab in a room next to the kitchen. There they discovered several more kilograms of crystal methamphetamine, and over $12,000 in U.S. currency. Hermosillo had placed three loaded rifles at points throughout the home, one of which was equipped with a high-capacity magazine.
Other evidence of Hermosillo’s drug trafficking included a bulletproof vest and a video surveillance system to monitor the property. A search of the stored surveillance video revealed that Hermosillo had been operating the “superlab” for at least several months.
On October 4, 2017, Hermosillo pleaded guilty to the following charges: conspiracy to possess methamphetamine with intent to distribute; possession of methamphetamine with intent to distribute; possession of methamphetamine with intent to distribute on premises where minor children resided; and possession of firearms in furtherance of drug trafficking crimes.
U.S District Judge Timothy C. Batten, Sr., sentenced Ramiro Hermosillo-Salazar, 30, of Palmetto, Georgia, to 30 years in prison to be followed by five years of supervised release. Hermosillo was also ordered to pay restitution to the government for the cost of dismantling the superlab. Following his term of imprisonment, Hermosillo, a citizen of Mexico, will be deported from the United States.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New Hampshire Man Pleads Guilty to False Tax Refund ClaimRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Robert E. DeAngelis, 38, of Newington, New Hampshire, pled guilty to filing a false claim for a federal income tax refund for the 2014 tax year.
According to the charging document and evidence introduced at the plea hearing, DeAngelis filed a federal tax return claiming a refund of $31,615 to which he was not entitled, and the Internal Revenue Service issued a tax refund in that amount.
DeAngelis faces imprisonment of up to five years and a fine of up to $250,000, and payment of full restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Criminal Investigation division of the Internal Revenue Service.
Nampa Man Pleads Guilty to Federal Gun ChargeRead the Press Release
BOISE – Anthony Allen Bernal, 28, of Nampa, Idaho, pleaded guilty today to unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Bernal on September 14, 2017. The indictment alleged that Bernal possessed a firearm after previously being convicted of a felony crime.
According to court records, in June 2017, law enforcement was searching for Bernal due to a failure to appear warrant on an unrelated state case. An officer observed Bernal in the passenger seat of a vehicle driving in Nampa. The officer stopped the vehicle and arrested Bernal. Inside, where Bernal had been seated, officers located a 9mm caliber pistol and a .45 caliber pistol.
Sentencing is set for April 17, 2018, before U.S. District Court Judge David C. Nye at the federal courthouse in Boise.
Unlawful possession of a firearm is punishable by up to ten years imprisonment, three years of supervised release, and a $250,000 fine.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
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.