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17 January 2018
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
- Follow us on Twitter: SDWVNews
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.
- Follow us on Twitter: SDWVNews
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.
Myrtle Beach Men Plead Guilty to Drug Trafficking ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Chris Anthony Bellamy, age 34, and Andre Matrel Rogers, age 40, both of Myrtle Beach, pled guilty in federal court in Florence to possession with intent to distribute and distribution of cocaine base, in violation of Title 21, United States Code, Section 841(a)(1) and 841(b)(1)(C). United States District Judge R. Bryan Harwell of Florence, accepted the guilty pleas and will impose sentence after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that, pursuant to a joint federal and state drug trafficking investigation in the Myrtle Beach area, law enforcement officers made a controlled purchase of cocaine base from Bellamy on August 20, 2015. Investigators later made a controlled purchase of cocaine base from Rogers on September 18, 2015.
Both men both face enhanced penalties on the drug charges based on prior state convictions for drug trafficking crimes. Bellamy and Rogers each face a maximum of 30 years imprisonment, a fine of $2,000,000 and a term of supervised release of at least 6 years on the drug charges.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Fifteenth Circuit Drug Enforcement Unit (DEU). Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
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Muskogee Man Sentenced to 180 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Blake Alan Miller, age 34, of Muskogee, Oklahoma, was sentenced to 180 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment, which arose from an investigation by the Muskogee Police Department, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, alleged that on or about March 7, 2017, within the Eastern District of Oklahoma, Miller knowingly and intentionally possessed, with intent to distribute, in excess of 50 grams of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Dangerous drugs, including methamphetamine, are ruining lives, destroying families, and crippling communities. Drug dealers profit while the rest of society suffers as a result of their poison pedaling businesses. This multi-agency investigation prevented hundreds of dosage units from entering our community and untold hundreds or thousands more because of the disruption of Miller’s operation. I commend the law enforcement professionals that participated in the investigation.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Montgomery Woman Sentenced to 54 Months in Prison for Her Role in Identity Theft and Tax Fraud SchemeRead the Press Release
Montgomery, Alabama – On Wednesday, January 10, 2018, Kidiamond Sharagnes Pearson, 25, of Montgomery, Alabama received a sentence of 54 months in prison for her participation in a scheme to steal identities and then file fraudulent tax returns, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
Through her job position, Pearson had access to identifying information of individuals who applied for jobs with her employer. The identifying information included names, dates of birth, and Social Security numbers. Pearson would steal paperwork containing the identifying information from her employer, and give the documents to a co-conspirator, James Vernon Battle. Battle, also from Montgomery, then used the stolen information to file fraudulent federal income tax returns claiming more than $400,000 in undue tax refunds.
After committing her offense, Pearson pled guilty to wire fraud and aggravated identity theft. James Battle was previously sentenced to 61 months in November of 2016 for his role in the scheme.
This case was investigated by the Internal Revenue Service’s Criminal Investigation Division, with assistance from the United States Secret Service. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
Mexican National Sentenced to 20 Years in Prison for Drug Trafficking and Firearms ViolationsRead the Press Release
A Mexican national was sentenced today by United States District Judge Beth Bloom to 20 years in prison, to be followed by 10 years of supervised release for drug trafficking and firearms violations.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Michael W. Meade, Acting Field Officer Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO), Miami Field Office, Matthew A. Zetts, Chief Patrol Agent, United States Border Patrol, and Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, made the announcement.
Felipe Benitez Aguilar, 44, of West Palm Beach, previously pled guilty to possession with intent to distribute over 5 kilograms of cocaine, felon in possession of a firearm, and alien in possession of a firearm.
On September 19, 2017, a West Palm Beach Grand Jury returned a five-count indictment charging Aguilar with possession with intent to distribute over 5 kilograms of cocaine, felon in possession of a firearm, alien in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and illegal re-entry after deportation or removal. According to court documents, Aguilar was found in possession of over 30 kilogram-sized packages of cocaine, an UZI rifle, a revolver, and multiple rounds of ammunition. Aguilar had been previously removed from the United States in February 2004 and again in July 2012. Aguilar’s July 2012 removal followed his 37-month federal sentence for conspiracy to possess with intent to distribute over 500 grams of cocaine.
Judge Bloom sentenced Aguilar to the mandatory-minimum term of 20 years in prison for the drug count, and concurrent terms of 10 years in prison on each firearms count.
Mr. Greenberg commended the investigative efforts of the DEA, ICE-ERO, Border Patrol, and ATF. This case was prosecuted by Assistant United States Attorney Rinku Tribuiani.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.
Mexican National Sentenced to 16 Months in Prison for Unlawfully Entering the United StatesRead the Press Release
Vicente Santiago-Castro, 40, a citizen of Mexico, was sentenced today in United States District Court in Benton to a term of 16 months in prison for being illegally present in the United States after having previously been removed by immigration officials, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Santiago-Castro was charged by a Federal Grand Jury on September 6, 2017, with being an illegal alien unlawfully present in the United States and pled guilty to that offense on October 26. Santiago-Castro was arrested by Immigration agents on September 2, 2017, in Harrisburg, Illinois.
Evidence supporting the guilty plea and sentence showed that Santiago-Castro had previously been removed or deported from the United States on seven prior occasions.
In addition to the 16-month term of imprisonment, Vasquez-Santelis was ordered to pay a $100 special assessment. After serving his term of imprisonment, Santiago-Castro will be removed or deported to Mexico by immigration officials.
Following his sentencing, Santiago-Castro was returned to the custody of the United States Marshal pending his designation to a facility by the Federal Bureau of Prisons.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
McAlester Inmate Pleads Guilty to Possessing Contraband in PrisonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kelly Ray Potter Jr., age 41, of McAlester, Oklahoma pled guilty to Possessing Contraband In Prison, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(3) and 1791(d)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about October 24, 2017, in the Eastern District of Oklahoma, the Defendant, Kelly Ray Potter Jr., an inmate of a prison, did knowingly possess a prohibited object, to-wit: a knife-like object approximately ten (10) inches in length made from plexiglass material wrapped with a blue cloth as a handle, designed and intended to be used as a weapon.
The charge arose from an investigation by the U.S. Marshals Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
MS-13 Member Sentenced to Six Years in Federal Prison for RICO ConspiracyRead the Press Release
BOSTON – A leader of MS-13’s Hollywood Loco Salvatrucha (HLS) clique was sentenced today in federal court in Boston for racketeering conspiracy.
Henry Santos Gomez, a/k/a “Renegado,” 32, a Salvadoran national who previously resided in Revere, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to six years in prison and three years of supervised release. Santos Gomez will be subject to deportation upon completion of his sentence. In October 2017, Santos Gomez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
After a multi-year investigation, Santos Gomez was one of 61 individuals named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13. The investigation revealed that Santos Gomez was a leader and “homeboy,” or full member, of the HLS clique. A search warrant executed at Santos Gomez’s residence resulted in the seizure of MS-13 paraphernalia and weapons.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
MEDIA ADVISORY - HSI Special Agent in Charge and U.S. Attorney to Present Forfeiture Proceeds to Law Enforcement AgenciesRead the Press Release
Maria Chapa Lopez
United States Attorney
Middle District of Florida
James C. Spero
Special Agent in Charge
U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations
Participating Agencies
Florida National Guard, Jacksonville Sheriff’s Office, Nassau County Sheriff’s Office
WHAT:
Agencies to receive forfeiture proceeds
WHEN:
WEDNESDAY, January 17, 2018
2:00 P.M. EST
WHERE:
Department of Homeland Security/U.S. Immigration & Customs Enforcement
13077 Veveras Drive
Jacksonville, Florida 32258
OPEN PRESS
NOTE:
All media must have government-issued photo I.D. (e.g. Driver’s License), as well as valid media credentials. Media may begin arriving at 1:30 P.M. for security clearance. Please RSVP to [email protected] by 10:00 a.m. on Wednesday, January 17th.
Kansas City, Kan., Man Sentenced on Project Safe Neighborhoods Firearm ChargeRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was sentenced Tuesday to 92 months in federal prison for unlawful possession of a 9 mm handgun that was used in a robbery, U.S. Attorney Tom Beall said.
Joshua J. Flaugher, 32, Kansas City, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon. In his plea, Flaugher admitted that investigators seized a loaded 9 mm handgun with a 30-round extended magazine from his residence. Flaugher was arrested at his aunt’s home in the 2400 block of Everett Avenue. Because he had a prior felony conviction in Wyandotte County District Court on a charge of aggravated battery, he was prohibited by federal law from possessing a firearm.
Beall commended the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Sheri Catania and Assistant U.S. Attorney Terra Morehead for their work on the case.
This prosecution was brought under Project Safe Neighborhoods (PSN), a Justice Department program aimed at prosecuting convicted felons who violate a federal ban on possession of firearms. Attorney General Jeff Sessions has directed U.S. Attorney’s Offices nationwide to emphasize PSN prosecutions as part of a national strategy to reduce violent crime.
Justice Department Files Notice to Appeal and Intends to Petition for Immediate Supreme Court Review in DACA LawsuitRead the Press Release
The Department of Justice today filed a notice of appeal in The Regents of the University of California and Janet Napolitano v. U.S. Department of Homeland Security and Elaine Duke seeking review before the U.S. Court of Appeals for the Ninth Circuit. The Department also intends later this week to take the rare step of filing a petition for a writ of certiorari before judgment, seeking direct review in the Supreme Court.
“It defies both law and common sense for DACA—an entirely discretionary non-enforcement policy that was implemented unilaterally by the last administration after Congress rejected similar legislative proposals and courts invalidated the similar DAPA policy—to somehow be mandated nationwide by a single district court in San Francisco,” said Attorney General Jeff Sessions. “It is clear that Acting Secretary Duke acted within her discretion to rescind this policy with an orderly wind down. This was done both to give Congress an opportunity to act on this issue and in light of ongoing litigation in which the injunction against DAPA had already been affirmed by the Supreme Court. We are now taking the rare step of requesting direct review on the merits of this injunction by the Supreme Court so that this issue may be resolved quickly and fairly for all the parties involved.”Justice Department Defends Archdiocese of Washington’s Religious LibertyRead the Press Release
The Department of Justice today filed an amicus brief supporting reversal of the D.C. District Court’s decision denying the Archdiocese of Washington’s motion for preliminary injunction against Washington Area Metropolitan Transit Authority (WMATA).
In November, the Archdiocese of Washington requested to purchase an advertisement on WMATA buses as part of its “Find the Perfect Gift” Christmas charitable campaign. WMATA denied this request, claiming that the advertisement violated WMATA’s policies banning ads that “promote or oppose any religion, religious practice or belief.” WMATA’s sole basis for rejecting the advertisement—which conveys the implicit message that viewers should “seek spiritual gifts,” make charitable donations, attend church services, and pursue “public service opportunities”—was that the advertisement “seeks to promote religion.” WMATA accepts advertisements that contain non-religious Christmas messages from charitable and commercial viewpoints.
In the amicus brief, the department asserts that WMATA’s rejection of the advertisement constitutes viewpoint discrimination and is a violation of the Archdiocese of Washington’s First Amendment right of free speech.
"As the Supreme Court has made clear, the First Amendment prohibits the government from discriminating against religious viewpoints," said Associate Attorney General Rachel Brand. "By rejecting the Archdiocese’s advertisement while allowing other Christmas advertisements, WMATA engaged in unconstitutional viewpoint discrimination."
The Justice Department, under Attorney General Jeff Sessions’ leadership, has shown a commitment to religious liberty and free speech protections, highlighted by the Government’s amicus brief in Masterpiece Cakeshop and its briefs in support of free speech on college campuses.Note: The amicus brief can be found here.
Jury Convicts Spartanburg Brothers in Federal Court of Drug and Money Laundering ChargesRead the Press Release
Columbia, South Carolina------United States Attorney, Beth Drake, announced today Soeuth Ath, 45 and Sean Ath 53, of Spartanburg, South Carolina, were convicted of conspiracy to distribute and distribution of methamphetamine and marijuana and conspiracy to launder drug proceeds, violations of Title 21, United States Code, Sections 841(a)(1), 846 and Title 18, United States Code Section 1956(h), in federal court in Anderson, South Carolina, following a week-long trial. The indictment also alleges the brothers used the United States Mail to facilitate a felony drug trafficking crime, a violation of Title 21, United States Code, Section 843(b) and felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). Soeuth Ath and Sean Ath each face a mandatory minimum sentence of ten years and maximum sentence of life in prison. Both men are await sentencing.
In September 2016, federal, state and local law enforcement executed multiple search and arrest warrants in Spartanburg County, Greenville County, and in Bakersfield, California, which led to the arrests of sixteen individuals, including six South Carolina Department of Corrections (SCDC) inmates, for their roles in the wide-ranging drug and money laundering conspiracy that stretched from South Carolina to Los Angeles, Fresno and Bakersfield, California. In September 2017, after a week-long trial, two Department of Corrections inmates, Sok Bun, 28, and James Robert Peterson, 29, were found guilty of conspiring to distribute and distribution of methamphetamine following a week-long trial in federal court. In that case, the defendants also used the mail to facilitate felony drug offenses. The Ath brothers are the last two defendants to be convicted. All other defendants pleaded guilty and are awaiting sentencing.
The convictions are a result of a multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Service, Internal Revenue Service-Criminal Investigations, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Spartanburg County Sheriff’s Office, Spartanburg City Police Department, Cherokee County Sheriff’s Office, Oconee County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenville County Sheriff’s Office and ICE - Homeland Security Investigations, Drug Enforcement Administration and the United States Marshals Service. Assistant United States Attorney Leesa Washington and Jeanne Howard, of the Greenville office, are prosecuting the case.
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Honduran National Sentenced to Five Months in Prison for Unlawfully Entering the United StatesRead the Press Release
Jose Donaldo Vasquez-Santelis, 33, a citizen of Honduras, was sentenced today in United States District Court in Benton to a term of five months in prison for being illegally present in the United States after having previously been removed by immigration officials, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Vasquez-Santelis was charged by a Federal Grand Jury on September 6, 2017, with being an illegal alien unlawfully present in the United States and pled guilty to that offense on October 26. Vasquez-Santelis was arrested by Immigration agents on August 7, 2017, in Marion, Illinois.
Evidence supporting the guilty plea and sentence showed that Vasquez-Santelis had previously been removed or deported from the United States on two prior occasions. Vasquez-Santelis claimed that he last re-entered the country illegally in 2010.
In addition to the five-month term of imprisonment, Vasquez-Santelis was ordered to pay a $100 special assessment. After serving his term of imprisonment, Vasquez-Santelis will be removed or deported to Honduras by immigration officials.
Following his sentencing, Vasquez-Santelis was returned to the custody of the United States Marshal who will hold him until Immigration agents take him into their custody.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Hartford Man Guilty of Multiple Narcotics OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on January 12, a federal jury in New Haven found STANLEY REDDICK, 34, of Hartford, guilty of multiple drug offenses.
According to the evidence introduced during a two-day trial before U.S. District Judge Jeffrey A. Meyer, on two occasions in April 2017, investigators made controlled purchases of a total of approximately 110 grams of crack cocaine from REDDICK.
REDDICK was arrested on May 3, 2017. On that date, a search of REDDICK’s Ashford Street residence and his person revealed approximately 32 grams of crack, 42 grams of heroin, nine grams of a mixture of heroin, fentanyl, and cocaine, and items used to process and package narcotics for street sale. Investigators also found a key to an inoperative vehicle that was parked behind the residence, a subsequent search of which revealed a 9mm firearm and approximately 28 grams of fentanyl.
The jury found REDDICK guilty of two counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base (“crack”), one count of possession with intent to distribute heroin, one count of possession with intent to distribute cocaine base, and one count of possession with intent to distribute fentanyl. The jury found REDDICK not guilty of one count of possession of a firearm in furtherance of a drug trafficking crime.
A sentencing date is not scheduled.
REDDICK has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the Hartford Police Department’s Focused Violence Reduction Team. The case is being prosecuted by Assistant U.S. Attorneys Marc H. Silverman and Michael J. Gustafson.
Greer Woman Pleads Guilty to Mail theft ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Donna Arledge, age 43, of Greer, pled guilty in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce H. Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Arledge and others stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks, or simply alter legitimate checks taken from the mail, and negotiate them to obtain money.
The conspirators opened bank accounts in the names of others and used the accounts to deposit and withdraw stolen money.
Ms. Drake stated the maximum penalty Arledge can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the United States Postal Inspection Service and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Greenland Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONCORD, N.H. - Jason Stone, 39, of Greenland, New Hampshire, pleaded guilty in federal court to possessing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, law enforcement officers executed a search warrant at the defendant's residence in October 2016. A review of various electronic devices found in the residences showed that they contained more than 100 images and videos of child pornography.
Stone is scheduled to be sentenced on May 1, 2018.
“Child pornography crimes jeopardize the innocence of young people,” said Acting U.S. Attorney Farley. “Through the Project Safe Childhood initiative, the U.S. Attorney’s Office works closely with our law enforcement partners to identify and prosecute those who possess child pornography, as well as those who produce or distribute this material.”
This matter was investigated by the Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Four Lexington Men Sentenced for Heroin / Fentanyl and Gun CrimesRead the Press Release
LEXINGTON, Ky. – Three Lexington men, Arian L. Brown, Marion L. Brown, III, and Steven D. Harvey, were sentenced for their involvement in separate heroin and fentanyl distribution crimes. A fourth Lexington man, Christopher D. Washington, was sentenced for being a convicted felon in possession of a firearm. Each was formally sentenced by U.S. District Judge Danny C. Reeves, on Friday, January 12, 2018.
Arian L. Brown, 34, was sentenced to 30 years in prison for possession with intent to distribute 40 grams or more of fentanyl and heroin.
Arian Brown previously admitted that, in August 2016, he possessed 57 grams of fentanyl and 67 grams of heroin that he intended to distribute. Arian Brown had also previously been convicted, in 2010, of attempting to possess with the intent to distribute 500 grams or more of cocaine. Arian Brown pleaded guilty to the heroin and fentanyl charges in September of 2017.
Marion L. Brown, III, 29, was sentenced to 40 years in prison and 4 years of supervised release for distributing fentanyl resulting in serious bodily injury and being a convicted felon in possession of firearms.
In April 2017, Marion Brown acknowledged selling a quantity of fentanyl that resulted in a non-fatal overdose. Law enforcement officers executed a search warrant at Brown’s residence and discovered drug trafficking paraphernalia, two pistols, and a rifle. Marion Brown admitted that he had previously been convicted of trafficking in heroin. Marion Brown pleaded guilty in July 2017.
Steven D. Harvey, 33, was sentenced to over 18 years (220 months) in prison and 8 years of supervised release for possession with intent to distribute 100 grams or more of heroin. According to court records, in June 2017, Harvey was found in possession of 798 grams of heroin, which was intended for distribution. Harvey pleaded guilty in September 2017.
Christopher D. Washington, 23, was sentenced to 33 months in prison and 3 years supervised release for being a convicted felon in possession of a firearm. Washington previously admitted that, in June 2017, while in the company of Steven D. Harvey, Washington unlawfully possessed a .40 caliber semiautomatic pistol. Washington pleaded guilty in September 2017.
Under federal law, each must serve 85 percent of his prison sentence.
“Combatting the opiate and opioid epidemic and reducing the potential for violent crime, by removing firearms from convicted felons, are top priorities for the Department of Justice,” said United States Attorney Robert M. Duncan, Jr. “The sentences imposed should serve as a deterrent and send a strong message that such conduct is not tolerated in the Eastern District of Kentucky. I want to commend the investigative agencies involved in each of these cases. As a result of the hard work of dedicated law enforcement professionals, dangerous drugs were removed from our streets, firearms were seized from those who were illegally possessing them, and lives were potentially saved.”
United States Attorney Duncan and Darrell Christopher Evans, Special Agent in Charge, DEA Louisville, jointly announced the sentences.
The investigations were conducted by the DEA Lexington Task Force and the Lexington Police Department. The United States was represented by Assistant United States Attorney Cynthia T. Rieker, in the Arian Brown case, and by Assistant United States Attorney Gary Todd Bradbury, in the Marion L. Brown, III, Steven D. Harvey, and Christopher Washington cases.
These cases were prosecuted 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.
Former Upstate Attorney Pleads Guilty to Defrauding ClientsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Philip E. Williams, age 57, of Williamston, pled guilty in federal court in Greenville, to mail fraud, a violation of Title 18, United States Code, Section 1341. United States District Judge Bruce H. Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that prior to his disbarment, Williams was an attorney practicing in the upstate of South Carolina. A large part of his practice was the probate of estates. Records indicate that he used money in his trust account to pay for living and personal expenses rather than to pay devisees and others for estates that he was handling. To try to hide his wrongdoing, he would wait for another estate’s funds to be deposited and then try to pay off the devisees from the first estate. This happened with at least four or five estates and snowballed into something of a pyramid scheme where he depended on estates from new clients to pay off the devisees of previous clients.
For example, on October 24, 2012, Williams mailed in an accounting of an estate wherein he reported to the probate court that his trust account was flush with client money. This was false because he had taken most of the money to pay personal living expenses. In fact, what money he did have in the account came from another estate that had nothing to do with the estate he was reporting on.
Ms. Drake stated the maximum penalty Williams can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Former Paralegal Sentenced to Federal Prison for Embezzlement from Two Law FirmsRead the Press Release
Greensboro, N.C. – A North Carolina resident was sentenced Friday to 65 months in federal prison on charges of wire fraud and aggravated identity theft, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Penny S. DAVIS, 57, of Cary, North Carolina, was sentenced on January 12, 2018, by the Honorable Catherine C. Eagles, United States District Judge for the Middle District of North Carolina. DAVIS pled guilty to one count of mail fraud and one count of aggravated identity theft on May 17, 2017.
Court documents and the testimony of witnesses at the sentencing hearing reveal that DAVIS worked as a paralegal with an expertise in estate work. In this capacity, she worked at a Chapel Hill law firm on estate and guardianship cases. After resigning her position, a Durham law firm hired her to do similar work. DAVIS used her position at both firms to embezzle money from estates in probate in which the firms represented the executor of the estate. The court determined that DAVIS stole over $250,000 from multiple estates. This money was used by DAVIS in part to pay off bills she ran-up using credit cards belonging to the deceased whose estates were in probate or to disabled persons in guardianship. DAVIS used the funds to pay for trips to see Broadway shows and to keep horses among other things. In so doing, DAVIS illegally used the identifying information of the executor of one of the estates to carry out her scheme.
At the sentencing hearing, the District Court found that DAVIS targeted certain estates as being particularly vulnerable due to the absence of family members to oversee local probate proceedings. DAVIS also specifically targeted a retired North Carolina judge who had been rendered incompetent by dementia and age. DAVIS exploited the fact that her firm served as legal guardian for the retired judge to use a credit card in the judge’s name for her own benefit.
DAVIS also used sophisticated means to carry out and conceal her theft. Evidence at the sentencing hearing established that DAVIS used her extensive knowledge of the North Carolina probate system to falsify court documents to conceal her theft. DAVIS transferred money from estate to estate to cover her misappropriation of estate funds.
DAVIS successfully concealed her theft from both law firms despite the fact she worked for experienced trust and estate lawyers. In fact, the law firms did not discover her actions until after she had left the employ of the Durham law firm.
In addition to a 65-month term of imprisonment, Judge Eagles sentenced DAVIS to three years of supervised release and ordered her to pay $180,827.55 in restitution.
This case was investigated by the United States Department of Treasury Office of Inspector General Task Force and the Durham Police Department. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank Joseph Chut, Jr. prosecuted the case.
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Former Lake County Sheriff SentencedRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that John Buncich, age 72, of Crown Point, Indiana was sentenced before District Court Senior Judge James T. Moody. Buncich was sentenced to 188 months imprisonment, 2 years of supervised release and ordered to pay $800 in restitution along with a $250,000 fine.
In August of 2017, following a 14-day jury trial, Buncich was convicted of all 6 counts of a superseding indictment.
According to documents in this case, John Buncich, Timothy Downs and William Szarmach were indicted in November 2016 on multiple federal charges. Buncich, then the current Lake County Sheriff, served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Timothy Downs, formerly the Chief in the Lake County Sheriff’s Department, was the second person in command at that Department; Downs was appointed to that position by Buncich. William Szarmach owns and operates CSA Towing in Lake Station, Indiana.
Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine who would do vehicle towing as required by the sheriff’s department. From February 2014 continuing into October 2016, Buncich devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The trial evidence established that a number of checks and cash payments, often collected by Downs, from Szarmach and Scott Jurgensen were exchanged for Buncich awarding them county towing business and towing in the City of Gary for ordinance violations. Mr. Jurgenson, a former Merrillville Police Officer, is the owner of Sampson Relocation and Towing. Mr. Jurgenson provided significant assistance to the United States during the course of this investigation.
Tthe jury convicted Buncich of 5 counts of Honest Services Wire Fraud in connection with this scheme. The jury also convicted Buncich of a charged violation of the federal bribery statute in connection with corruptly soliciting, demanding, and receiving over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
Both Szarmach and Downs, who both testified at trial, await sentencing on their guilty pleas to the following charges in the indictment: Timothy Downs entered a plea of guilty to one count of Honest Services Wire Fraud and; William Szarmach entered a plea of guilty to three counts of Honest Services Wire Fraud, Bribery and Failure to File a Tax Return.
United States Attorney Thomas L. Kirsch II states, “Today’s sentence sends a strong message that betrayal of public trust will not be tolerated. All citizens deserve public officials who act honestly and who work for the public interest and not their own interest. My Office will continue to vigorously pursue public officials who use there office as a means for illicit personal gain.”
"Today’s sentencing emphasizes that public officials who abuse their positions for personal financial gain at the expense of taxpayers will not be tolerated,” said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI and our federal, state, and local partners will continue to aggressively pursue those across Indiana who corrupt their office for self-serving motives."
Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge stated, "Taxpayers expect their elected officials to protect and improve their communities. Rather than serve his community Buncich abused his position and devised a pay-to-play towing scheme that benefited him and few others financially. We hope today’s sentence will dissuade others who hold these positions which hinge on the public’s trust from engaging in similar criminal activity.”
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Maria N. Lerner.
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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.
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 Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Alex G. Tse of the Northern District of California and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) made the announcement.
Robert 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.
“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.
The investigation is being conducted by the FDIC’s Office of Inspector General. Assistant Chief Brian Young and Trial Attorney Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case. The U.S. Attorney’s Office for the Northern District of California provided substantial assistance in this matter.
Former EMT and Volunteer Firefighter Admits Enticing Child to Produce Sexually Explicit ImagesRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man who worked as an emergency medical technician and volunteer firefighter today admitted enticing a child to produce sexually explicit images, U.S. Attorney Craig Carpenito announced.
Zachary Motta, 23, of Iselin, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of online enticement of a minor to engage in criminal sexual activity.
According to documents filed in this case and statements made in court:
Beginning in October 2016, Motta communicated with an underage boy who told Motta he was 12 years old. Motta used a computer and internet connection to ask the victim to send a picture of himself nude, which he did.
The count to which Motta pleaded guilty carries a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense. Sentencing is scheduled for May 10, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Newark Special Agent in Charge Timothy Gallagher, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Former CIA Officer Arrested for Retaining Classified InformationRead the Press Release
Jerry Chun Shing Lee, aka Zhen Cheng Li, 53, a former Central Intelligence Agency (CIA) officer, was arrested last night on charges of unlawful retention of national defense information.
Dana J. Boente, Acting Assistant Attorney General for National Security and U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Lee was arrested after arriving at John F. Kennedy International Airport in Queens, New York. Lee is a naturalized U.S. citizen, currently residing in Hong Kong, China. According to court documents, Lee began working for the CIA as a case officer in 1994, maintained a Top Secret clearance and signed numerous non-disclosure agreements during his tenure at CIA.
According to court documents, in August 2012, Lee and his family left Hong Kong to return to the United States to live in northern Virginia. While traveling back to the United States, Lee and his family had hotel stays in Hawaii and Virginia. During each of the hotel stays, FBI agents conducted court-authorized searches of Lee’s room and luggage, and found that Lee was in unauthorized possession of materials relating to the national defense. Specifically, agents found two small books containing handwritten notes that contained classified information, including but not limited to, true names and phone numbers of assets and covert CIA employees, operational notes from asset meetings, operational meeting locations and locations of covert facilities.
Lee made his initial appearance this afternoon in the Eastern District of New York. He is charged with unlawful retention of national defense information and faces a maximum penalty of 10 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Assistant U.S. Attorney Neil Hammerstrom of the Eastern District of Virginia and Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Former CIA Officer Arrested for Retaining Classified InformationRead the Press Release
ALEXANDRIA, Va. – A former Central Intelligence Agency (CIA) officer was arrested last night on charges of unlawful retention of national defense information.
Jerry Chun Shing Lee, aka “Zhen Cheng Li”, 53, was arrested after arriving at John F. Kennedy International Airport in Queens, New York. Lee, who is a naturalized United States citizen, currently resides in Hong Kong, China. According to court documents, Lee began working for the CIA as a case officer in 1994, maintained a Top Secret clearance, and signed numerous non-disclosure agreements during his tenure at CIA.
According to court documents, in August 2012, Lee and his family left Hong Kong to return to the United States to live in northern Virginia. While traveling back to the United States, Lee and his family had hotel stays in Hawaii and Virginia. During each of the hotel stays, FBI agents conducted court-authorized searches of Lee’s room and luggage, and found that Lee was in unauthorized possession of materials relating to the national defense. Specifically, agents found two small books containing handwritten notes that contained classified information, including but not limited to, true names and phone numbers of assets and covert CIA employees, operational notes from asset meetings, operational meeting locations and locations of covert facilities.
Lee made his initial appearance this afternoon in the Eastern District of New York. He is charged with unlawful retention of national defense information and faces a maximum penalty of 10 years in prison, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, Acting Assistant Attorney General for National Security and U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Neil Hammerstrom and Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-18.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Berkeley County School District CFO Pleads Guilty to Embezzlement, Money Laundering and Public CorruptionRead the Press Release
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Brantley Thomas, 61, of Hanahan, South Carolina, pled guilty to a total of twenty federal charges involving Embezzlement, Money Laundering and Public Corruption. Evidence provided at the guilty plea established that Thomas, as the Berkeley County School District (BCSD) CFO, was responsible for paying BCSD vendors. When payment was due to certain vendors, Thomas would intentionally overpay the vendors so that a refund check would be issued back to BCSD by the vendor. Thomas then converted the refund checks issued to BCSD to his own use. Thomas’ scheme involved sometimes depositing the refund checks into a personal bank account, and other times converting the checks into money orders, which he would then deposit into a personal account. Thomas converted approximately $450,000.00 of School District money this way, spending the money on things such as travel and private club memberships.
Thomas also pleaded guilty to ten counts of Public Corruption. Thomas admitted to taking sixteen kickbacks of $2,000.00 each, for a total of $32,000.00, from an insurance vendor in exchange for BCSD business.
The Embezzlement and Money Laundering counts each carry up to ten years imprisonment. The Public Corruption charges each carry up to twenty years imprisonment. United States District Court Judge David C. Norton took the plea. A sentencing date has not yet been set.
The charges are the result of an investigation conducted by the Federal Bureau of Investigations and South Carolina Law Enforcement Division. Assistant United States Attorney Nathan Williams and Assistant Attorney General Creighton Waters are prosecuting the case.
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Eye care provider convicted of Medicare and Medicaid fraudRead the Press Release
GAINESVILLE, Ga. - Matilda Lynn Prince has been convicted by a federal jury of twenty-nine counts of health care fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program for optometry and ophthalmology services that were never provided to patients.
“Prince stole hundreds of thousands of dollars from the Medicare and Medicaid programs by submitting fraudulent claims for services that were not performed,” said U.S. Attorney Byung J. “BJay” Pak. “Through our partnership with the Georgia Attorney General’s office, we will continue to fight the costly effects of healthcare fraud in this state that divert critical resources away from citizens who truly need these services.”
“When Matilda Lynn Prince launched her audacious million-dollar fraud scheme by billing Medicare and Medicaid for services she and her associates never provided, she threatened the integrity of these important health care programs and fraudulently pocketed taxpayer funds,” said Special Agent in Charge Derrick L. Jackson of the HHS Office of Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their scams.”
“The Medicaid Program is designed to provide benefits to some of the most vulnerable members of our community and depends on the integrity and honesty of those providers who bill Medicaid. When a provider bills Medicaid for services they did not provide, they victimize and take advantage of the people who need it the most. Our office will continue to work hand-in-hand with our federal and state partners to investigate these kinds of egregious cases,” said Georgia Attorney General Christopher M. Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: Prince owned Pickens Eye Clinic in Jasper, Georgia, and operated Eye Gallery 20/20 in Calhoun, Georgia. From September 2011 to February 2014, Prince submitted false claims to Medicare and Medicaid for optometry and ophthalmology services that were never provided to patients.
Despite being previously excluded from the Medicare and Medicaid programs in September 2011, and informed of her ineligibility to be employed or involved with any entity that receives Medicare or Medicaid funds, Prince operated under a new eye service company named Eye Gallery 20/20 to bill Medicare and Medicaid for services that were not rendered. As part of the scheme, Prince targeted her advertising towards senior citizens and disabled populations in housing complexes and community centers, offering on-site eye exams and prescription glasses at no charge to patients on Medicare and Medicaid. Prince contracted with two licensed optometrists to provide basic eye exams. The optometrists would sometimes travel with Prince to perform these exams.
Although the patients received only basic eye exams and measurements for prescription glasses, Prince often billed for complex ophthalmological procedures involving the surgical insertion of medical devices called “punctal plugs” into patients' tear ducts to treat dry eye conditions. Prince then used the identities of these two optometrists to bill Medicare and Medicaid repeatedly for this procedure. On some occasions, she billed for the same patient as many as seven times on the same claimed date of service, even though the procedures were never performed. Prince fraudulently submitted over $1.2 million in insurance claims to Medicare and Medicaid for services never rendered.
On January 9, 2018, after a jury trial, Matilda Lynn Prince, 41, of Mineral Bluff, Georgia, was convicted of twenty-nine counts of health care fraud. A sentencing date for Prince has not yet been set.
This case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General and the Georgia Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Bernita B. Malloy and Nekia S. Hackworth prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ecuadorian National Sentenced to Prison for Passport FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL ANTONIO GUAMAN, 34, a citizen of Ecuador last residing in Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment and three years of supervised release for passport fraud.
According to court documents and statements made in court, GUAMAN is a native and citizen of Ecuador. On or about August 2, 2006, he submitted in person an application for a U.S. passport, in the name of another individual, at a U.S. Post Office in Waterbury. Claiming to be this individual, GUAMAN presented to the passport acceptance agent a Puerto Rican birth certificate and a Connecticut identity card. Neither the birth certificate nor the identity card reflected the defendant’s true identity. GUAMAN signed the passport application under oath claiming to be this other individual. This passport was issued and used by GUAMAN to travel between the U.S. and Ecuador in 2012.
On October 23, 2014, GUAMAN submitted a passport renewal application, and provided the previous passport as proof of his identity and U.S. citizenship. On December 31, 2015, after conducting an investigation, law enforcement interviewed GUAMAN while he was incarcerated in a Connecticut Department of Correction facility. GUAMAN admitted that he had signed and submitted the above-referenced passport renewal application, and that he was not the person whom he had claimed to be in the application.
On July 11, 2017, GUAMAN pleaded guilty to one count of use of a passport secured by false statement and one count of making a false statement in a passport application.
GUAMAN is currently serving a state sentence for assault in the first degree. He will be removed to Ecuador after serving his state and federal prison terms.
This case was investigated by the U.S. Department of State, Bureau of Diplomatic Security. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
East St. Louis Man Sentenced to Prison for Firearm OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that on January 11, 2018, Leon Johnson, 28, of Granite City, Illinois, was sentenced after being convicted of one count of felon in possession of a firearm. At the time of his arrest, Johnson was on supervised release in a prior federal case involving a conviction for felon in possession of a firearm. A petition to revoke his supervised release was filed in that case after Johnson’s arrest. Pursuant to a sentencing agreement, the Honorable Nancy J. Rosenstengel sentenced Johnson to a total of 37 months in federal prison on the new conviction as well as the supervised release revocation case. Johnson’s prison sentence is to be followed by three years of supervised release and a $100 special assessment. Johnson also agreed to forfeit the illegal firearm that he possessed.
Court proceedings revealed that on November 9, 2016, East St. Louis police officers responded to a call regarding shots being fired in the Norman E. Owens Housing Projects. Officers discovered Johnson sitting on a park bench with a loaded pistol on the ground at his feet. A Housing Authority officer identified Johnson as the individual who had been firing the pistol in the air moments earlier.
The case was investigated by the East St. Louis Police Department and prosecuted by Assistant United States Attorney Christopher Hoell.
Dunbar felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Dunbar felon who possessed a firearm in February 2017 was sentenced today to three years and four months in federal prison, announced United States Attorney Mike Stuart. Amanda Renee Taylor, 40, previously pleaded guilty to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigation of the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Putnam County Sheriff’s Office.
On February 7, 2017, Taylor possessed two firearms, a Lorcin .380 caliber pistol and a High Standard .22 caliber revolver, when she was arrested for stealing mail. Taylor admitted that she stole the mail and possessed methamphetamine and counterfeit United States currency found when she was arrested. Taylor was prohibited from possessing any firearms under federal law because of a 2009 felony drug conviction in Kanawha County Circuit Court.
Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Dorchester Man Sentenced for Role in $4 Million Bank Fraud ConspiracyRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston in connection with a $4 million bank fraud scheme.
Charles Washington, 44, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 126 months in prison, five years of supervised release, and ordered to pay restitution of $1,836,819 and a fine of $30,000. In August 2017, Washington pleaded guilty to one count of bank fraud conspiracy and four counts of bank fraud for his role in coordinating unauthorized withdrawals from federally insured banks.
Washington obtained bank account information, personally identifiable information, and sample signatures from bank customers with high balances. He then recruited runners to impersonate the account holders in order to make unauthorized withdrawals by obtaining and distributing fake driver’s licenses to the runners that bore the runners’ photographs with the account holders’ personal information. Washington instructed the runners on how to forge the victims’ signatures. To avoid detection, runners withdrew money from victims’ accounts at several different bank branches.
Washington and others also recruited runners to open bank accounts (known as drop accounts) in the name of non-existent businesses (known as shell business). The shell businesses were registered and named as if they were title companies, property management companies, contracting businesses, and other businesses for which incoming large-dollar wire transfers would not be unusual. Washington provided the shell businesses’ information to co-conspirators who made unauthorized wire transfers in the hundreds of thousands of dollars into the drop accounts. Once the drop accounts were funded with unauthorized wire transfers, Washington and the co-conspirators accompanied runners to bank branches to withdraw the money -- in cash, by check, or by wire transfers to other drop accounts -- before the victims of the unauthorized wire transfers realized that their accounts had been compromised.
Washington and the co-conspirators gained unauthorized access to approximately $4 million - either in bank accounts that they took over, or in proceeds unlawfully wired to drop accounts for withdrawal - and successfully withdrew approximately $2 million.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Seth B. Kosto of Lelling’s Cybercrime Unit prosecuted the case.
Dominican National Sentenced to 12 Years in Prison for Distributing Fentanyl and over One Kilo of HeroinRead the Press Release
BOSTON – A Dominican national, who led a large-scale heroin and fentanyl trafficking organization in southeastern Massachusetts, was sentenced today in federal court in Boston.
Dedwin Cruz-Rivera, 41, a Dominican national residing in Fall River, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 12 years in prison and five years of supervised release. Cruz-Rivera will be subject to deportation upon completion of his sentence. In July 2017, Cruz-Rivera pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin and 40 grams or more of fentanyl.
In October 2015, Cruz-Rivera was arrested and charged, along with 24 others, for leading a heroin and fentanyl trafficking organization in southeastern Massachusetts. Cruz-Rivera obtained large quantities of heroin and fentanyl from local drug suppliers, including his brother Manuel Romero-Gonsalez, and Eric Matos, who distributed in and around Fall River and Providence, R.I. Cruz-Rivera used co-defendant Cristian Sostre as a courier and stash house operator in order to decrease the likelihood that he would be detected by law enforcement. During the course of their investigation, federal agents seized 295 grams of fentanyl that were en route to Cruz-Rivera.
An April 2016 superseding indictment brought the total number of defendants charged in the case to 26. All of the 26 defendants charged in the case have pleaded guilty, and 23 have been sentenced, including Romero-Gonsalez and Matos, who are serving 66 months and 121 months in federal prison, respectively.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit, Karen Beausey, Katherine Ferguson and Ann Taylor of Lelling’s Narcotics and Money Laundering Unit are prosecuting the cases.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced today in federal court in Boston for an immigration crime.
Manolo Sosa-Nieves, 45, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year and one day in prison and three years of supervised release. Sosa-Nieves will face deportation proceedings upon completion of his sentence. In August 2017, Sosa-Nieves pleaded guilty to one count of illegal reentry after deportation.
On April 14, 2017, Sosa-Nieves was arrested in Lawrence on unrelated state charges and determined to be unlawfully present in the United States; he had previously been deported on Aug. 21, 2002.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling's Major Crimes Unit prosecuted the case.