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Thursday 16 November 2017
Six More Defendants Charged in International "Tech Support Scam"Read the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that federal fraud charges were filed this week against six additional individuals for their participation in an international "Tech Support Scam." In a Tech Support Scam, the scammer attempts to convince the victim that he or she has a serious computer problem, and then tries to sell the victim unnecessary products and services.
The federal indictments returned on November 14, 2017, allege that all six individuals worked at a business in Boynton Beach, FL, known as Client Care Experts, LLC ("Client Care"). Client Care was formerly known as First Choice Tech Support, LLC ("First Choice"), and was formerly located in Pompano Beach, FL. With the cases filed this week, the number of former Client Care employees who have been charged with federal fraud violations now stands at fourteen – charges against the previous eight defendants were filed this spring.
According to the indictments, the conspiracy and scheme to defraud operated from approximately November 12, 2013, through at least June 29, 2016. During this period, Client Care/First Choice victimized over 40,000 people and defrauded these individuals out of more than $25,000,000. The victims were located in all fifty of the United States, the District of Columbia,
Puerto Rico, several U.S. territories, all ten Canadian provinces, the United Kingdom, and several other foreign countries. At least fifty-seven victims of the scam were located in twenty-two counties within the Southern District of Illinois, with multiple victims in both St. Clair and Madison Counties.
According to the indictments, Client Care/First Choice purchased pop-up advertisements, which appeared without warning on the victims’ computer screens and locked up their browsers. These pop-ups falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. The pop-ups also usually warned the victims that they were at serious risk of losing their data and informed them to call a toll-free number. When the victims called the numbers shown on their screens, they were connected to Client Care/First Choice salespersons.
The indictments further allege that the salespersons convinced the victims to allow them to have remote access to their computers. Once they accessed the victims’ computers, the indictments charge, the salespersons examined routine computer functions and processes and then tried to convince the victims that these functions and processes were evidence of problems. In addition, the salespersons also ran a system analyzer program on the victims’ computers. However, regardless of what this system analyzer showed, the salespersons allegedly still tried to convince the customers that their computers had serious problems. According to the indictment, the salespersons also concealed from the victims: (1) that they could make the pop-ups go away by unplugging or rebooting their computers; and (2) that Client Care/First Choice paid for the pop-up ads which had frozen their computer browsers.
The indictments allege that the salespersons usually charged the victims $250 for a computer system "tune up," and then also sold them an anti-virus protection software for $400. The salespersons worked on commission.
The six additional individuals charged this week are: Cory Steven Bachman, 25, of Boynton Beach, FL; Tatum Elyse Espenshade, 26, of West Palm Beach, FL; Robert Thomas McCart, 32, of Boynton Beach, FL; Timothy James Miller, II, 27, of Schwenksville, PA; Jonathan Matthew Richardson, 27, of Lake Worth, FL; and Grant Clark Wasik, 35, of Boynton Beach, FL. According to the indictments, Bachman, Espenshade, and Miller all worked as salespersons. With regard to Richardson and McCart, the indictments allege that they both worked as Team Leaders, supervising groups of salespersons. Wasik is alleged to have been the Vice President of Client Care/First Choice. Arraignment hearings for all six of these defendants will be conducted later this month and in early December.
The eight individuals who were previously charged are: Joseph Ralph Aievoli, IV, 25, of Boynton Beach, FL; Andrew Douglas Broad, 26, of Boynton Beach, FL; Ryan Stocker Carr, 23, of Mount Laurel, NJ; Joshua Dennis Cortez, 37, of Lake Worth, FL; Nicholas James Davidson, 26, of Boynton Beach, FL; Patrick M. Dougherty, 35, of Boynton Beach, FL; Eric M. Iannaccone, 32, of Monroe Township, NJ; and Anthony Vincent Ludena, 29, of Boca Raton, FL. The indictments allege that Aievoli, Davidson, Dougherty, and Ludena worked as salespersons for Client Care/First Choice. It is alleged that both Broad and Cortez held the position of Director of Recruiting and Training. Carr is charged with working as a Team Leader. Iannaccone is alleged to have been the company’s Sales Manager.
Aievoli, Broad, Carr, Davidson, Dougherty, Iannaccone, and Ludena have all pled guilty and are awaiting sentencing. Cortez’s trial date has been set for January 23, 2017. Trial dates for Bachman, Espenshade, McCart, Miller, Richardson, and Wasik will be set in the near future.
All fourteen of the defendants are charged with conspiracy to commit wire fraud. Under the SCAMS Act, because it is alleged that the crimes took place in connection with telemarketing, and victimized ten or more persons over the age of 55, the maximum penalty is 30 years of imprisonment. The defendants can also be ordered to serve up to five years of supervised release
after any term of imprisonment, can be fined up to $250,000, and can be ordered to pay restitution to the victims.
These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The cases are being prosecuted by Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump.
The Florida Attorney General’s Office is cooperating with the federal investigation. In addition, the Florida Attorney General’s Office brought a civil enforcement action against Client Care/First Choice for the purpose of ending the fraudulent activities at that business.
The Federal Trade Commission has also been working to shut down illegal tech support scams. For more information about the FTC’s "Operation Tech Trap," please go to https://www.ftc.gov/news-events/press-releases/2017/05/ftc-federal-state-international-partnersannounce-major-crackdown.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Sentencings for November 13 - November 15, 2017Read the Press Release
Kenneth Thomas Minow, 60, of Miles City, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 15, 2017, for conspiracy to distribute methamphetamine. Minow was arrested in Miles City, Montana. He received time served, to be followed by three years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Jose Nain Sanchez-Aburto, 31, of Apizaco, Tlaxcala, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 14, 2017, for illegal re-entry of a previously deported alien into the United States. Sanchez-Aburto was arrested in Teton County, Wyoming. He received time served, plus ten days, was order to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Roberto Maya-Tzompa, 26, of Mexico City, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on November 13, 2017, for illegal re-entry of a previously deported alien into the United States. Maya-Tzompa was arrested in Teton County, Wyoming. He received time served, plus ten days, was order to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
David Michael Hogan, 64, of Chesapeake, Virginia, was sentenced by Federal District Court Judge Alan B. Johnson on November 13, 2017, for being a felon in possession of a firearm and for transportation of a stolen vehicle. Hogan received 60 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay $20,069.85 in restitution and a $200.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second Florida Resident Sentenced for Using Fake Credit Cards at Western PA StoresRead the Press Release
PITTSBURGH - A resident of the state of Florida has been sentenced in federal court to three years probation, two months of which shall be served at a Community Corrections Center and four months of which shall be served on home detention, restitution in the amount of $14,992.96, jointly and severally with her co-defendant, Gean Carlos Del Valle-Barquin, on her conviction of conspiracy, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jeisy Camejo-Escandell, 31, of Miami, FL.
According to the information presented to the court, Camejo-Escandell and her conspirator Gean Carlos Del Valle-Barquin arrived in Pittsburgh on June 25, 2015 for the purpose of using counterfeit credit cards to make purchases of merchandise at the outlet stores in Washington and Grove City on June 26, 2015.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Inspectors from the United States Postal Inspection Service along with agents from Homeland Security who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Camejo-Escandell. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
San Diego Nursing Homes Owned by L.A.-Based Brius Management to Pay up to $6.9 Million to Resolve Kickback and Fraud AllegationsRead the Press Release
LOS ANGELES – Four San Diego-area nursing homes owned by Los Angeles-based Brius Management Co. have agreed to pay as much as $6.9 million to resolve civil allegations that their employees paid kickbacks for patient referrals and submitted fraudulent bills to government health care programs.
The settlement with the four nursing homes resolves an investigation into allegations that their employees paid kickbacks to discharge planners at Scripps Mercy Hospital San Diego to induce patient referrals to the nursing homes in violation of the federal Anti-Kickback Statute.
The investigation examined additional allegations made in a “whistleblower” lawsuit that the nursing homes submitted false claims to Medicare and Medi-Cal for services provided to patients referred from Scripps Mercy Hospital. Bills submitted for patients referred as a result of illegal kickbacks would constitute fraud against the United States and the State of California.
The four nursing homes involved in the settlement are: Point Loma Convalescent Hospital, Brighton Place – San Diego, Brighton Place – Spring Valley, and Amaya Springs Health Care Center in Spring Valley.
These same four nursing homes entered into Deferred Prosecution Agreements (DPAs) with the United States Attorney’s Office in San Diego in 2016. In the DPAs, the four entities admitted that nursing home employees conspired to pay kickbacks without the knowledge of Brius Management Co. The nursing homes admitted that their employees used corporate credit cards to pay for gift cards, massages, tickets to sporting events, and a cruise on the Inspiration Hornblower that were given to planners at Scripps Mercy Hospital as kickbacks.
“Kickbacks for patient referrals are illegal under federal law because of the corrupting influence on our nation’s healthcare system,” said Acting United States Attorney Sandra R. Brown. “This settlement demonstrates our resolve to combat fraud that compromises the care provided to patients served by a government healthcare plan. This case further shows the power of whistleblowers to shine a light on corrupt activities and obtain significant recoveries on behalf of United States taxpayers.”
The settlement calls for guaranteed payments of $1,785,967 to the United States, to be paid in three annual installments, and a $240,950 lump sum payment to the State of California. The nursing homes paid the first installment to the United States on November 6, and California received its payment on November 10.
The hospitals also agreed to pay up to $4.9 million to the United States if certain operational contingencies are met, making the total settlement worth up to $6,926,917.
The four nursing homes have also entered into Corporate Integrity Agreements with the Department of Health and Human Services.
“Skilled nursing facilities that pay kickbacks in order to boost profits will be held accountable for their improper conduct,” said Christian J. Schrank, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to crack down on kickback arrangements, which can corrupt medical decision-making and undermine the public’s trust in the health care system.”
Eric S. Birnbaum, Special Agent in Charge of the San Diego Division of the Federal Bureau of Investigation, stated, “The FBI will continue to bring our resources to bear in support of False Claims Act investigations to protect the integrity of the Medicare Trust Fund.”
The settlement resolves a lawsuit brought by a former employee of one of the nursing homes under the qui tam – or whistleblower – provisions of the federal and state False Claims Acts, which allow private citizens to file lawsuits on behalf of the United States and California and share in any recovery. The whistleblower, Viki Bell-Manako, will receive 20 percent of each settlement payment. Pursuant to the settlement, United States District Judge John F. Walter today dismissed the lawsuit, United States of America, State of California ex rel. Bell-Manako v. Brius Management Co., et al., CV11-2036-JFW.
The settlement with the four nursing homes was negotiated by the Civil Fraud Section of the United States Attorney’s Office following an investigation by the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation.
Saint Louis Park Man Pleads Guilty to Impersonating an FBI OfficerRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of ARON AVRAM SHAMILOV, 24, for impersonating a federal officer. SHAMILOV, who was indicted on September 19, pleaded guilty on November 13, 2017, before United States District Judge Susan Richard Nelson in Saint Paul, Minn. A sentencing hearing is scheduled for March 16, 2018.
According to his guilty plea and documents filed in court, on March 29, 2017, SHAMILOV submitted to an apartment leasing office a letter purportedly authored by a Special Agent of the FBI in support of the defendant’s attempt to lease an apartment. The letter, which was intended to explain SHAMILOV’S low credit score, falsely stated that SHAMILOV was the victim of identity theft. The fabricated letter included the FBI seal and was purportedly authored by a Special Agent of the Minneapolis Division of the FBI, and falsely stated that the Special Agent had been assigned to investigate SHAMILOV’S identity theft case. On May 2, 2017, the property manager of the apartment complex contacted the FBI Minneapolis Division to verify the validity of the letter. After reviewing the letter, the FBI informed the property manager that the letter was not genuine.
This case is the result of an investigation conducted by the FBI.
Assistant United States Attorneys Charles J. Kovats and Timothy C. Rank are prosecuting the case.
Defendant Information:
ARON AVRAM SHAMILOV, 24
St. Louis Park, Minn.
Convicted:
- Impersonation of an Officer or Employee of the United States, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
- Impersonation of an Officer or Employee of the United States, 1 count
Quincy Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A Quincy man was sentenced today in federal court in Boston for possession of child pornography.
Nicholas Oslander, 68, was sentenced by U.S. District Court Judge William G. Young to 10 years in prison and five years of supervised release. In July 2017, Oslander pleaded guilty to one count of possession of child pornography.
Following an investigation into the online trade of child pornography through peer to peer networks, a federal search warrant was executed at Oslander’s home in Quincy on Dec. 30, 2016. Forensic analysis of digital devices seized during the search revealed hundreds of images of child pornography.
In 2000, Oslander pleaded guilty in federal court in Boston to possession of child pornography and was sentenced to 30 months in prison.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is 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 U.S. Attorneys’ Offices and the 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/.
Prison Sentence for Man Convicted of Endangering Human Life by Manufacturing Hash OilRead the Press Release
MEDFORD, Ore. – On Thursday, November 16, 2017, United States District Judge Michael J. McShane sentenced Brian Keith Sunkenberg, 53, to 45 months in prison after he pleaded guilty to endangering human life by manufacturing marijuana in the form of hash oil. Judge McShane ordered Sunkenberg to pay $27,671 in restitution.
According to court documents, Sunkenberg conspired with others to manufacture hash oil at a trailer park in Grants Pass, Oregon. On February 14, 2016, Sunkenberg went to a convenience store and purchased multiple large cans of butane, a highly flammable liquid used to manufacture hash oil. Later that day, while two children and another adult were present inside Sunkenberg’s trailer, the butane ignited, causing a massive explosion and fire. The fire destroyed the trailer, damaged a neighbor’s trailer, and resulted in second and third degree burns to the two children and Sunkenberg. In the trailer, investigators found twenty six 300 ml canisters of butane and an additional ten empty canisters that had apparently exploded in the fire.
After the incident, Sunkenberg and two friends went to the hospital where one of the minors was undergoing treatment for their injuries. Sunkenberg confronted the parents visiting their child and threatened “consequences” if the minor talked to investigators.
DEA Special Agent in Charge Keith Weis said, “Justice has been served to this reckless individual whose selfish criminal actions put our citizens lives in jeopardy, to include almost killing innocent children.”
“This activity is not just illegal, it poses a significant danger to the community and in this case to the children and another adult nearby,” said US Attorney Billy J Williams. “The purchase of large quantities of canned butane should raise the alarm about the illicit manufacturing of butane hash oil. Despite recent Oregon laws increasing the penalties for persons causing explosions related to these illegal manufacturing activities, illegal hash oil production is on the rise with explosions this year resulting in the deaths of three people and severe injuries to others.”
This case was investigated by agents from the U.S. Drug Enforcement Administration (DEA) and the Grants Pass Department of Public Safety, and was prosecuted by Assistant U.S. Attorney William “Bud” Fitzgerald.
Phillips 66 Store Clerk Indicted on Gun ChargesRead the Press Release
St. Louis, MO – Taleb Jawher was charged today in an Indictment with being an illegal alien in possession of a firearm.
The charge results from events that occurred on September 26, 2017. Jawher, a clerk at the Phillips 66 store at 2800 N. Florissant, was involved in an altercation with a customer he wrongly suspected of shoplifting. Jawher retrieved a handgun and in a scuffle the customer was shot and killed. Jawher was previously charged by the St. Louis Circuit Attorney’s Office with first degree murder and armed criminal action due to the death of the customer.
Jawher, 39, of St. Louis, Missouri, was indicted by a federal grand jury today on one felony count of being an illegal alien possessing the firearm involved.
If convicted, Jawher faces up to 10 years imprisonment, a fine of $250,000 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department and Immigration and Customs Enforcement. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Palmer Man Pleads Guilty to Conspiring to Import Prescription Drugs from PakistanRead the Press Release
BOSTON – A Palmer man pleaded guilty today in federal court in Springfield to his role in a conspiracy to import prescription drugs from Pakistan.
Harry Aliengena, 64, pleaded guilty to one count of conspiracy to import controlled substances, two counts of felony introduction of misbranded drugs with intent to defraud or mislead, and one count of misdemeanor introduction of misbranded drugs. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 14, 2018.
Between July 2011 and June 2012, Aliengena, acting as a middle man between a Pakistani drug company and customers based in the United States, conspired to import prescription drugs from Pakistan into the United States and, on three occasions in February and April 2012, he distributed misbranded drugs to U.S. customers. Aliengena communicated regularly with the Pakistani company and ordered various drugs, including Ritalin, Percocet, Hydrocodone, Adderall, and Restoril - all of which are designated controlled substances in the United States - and then reshipped a portion of these drugs to customers in the United States on behalf of the Pakistani company in return for payments and discounts on drugs for his personal use.
The charge of conspiracy to import controlled substances provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of introduction of misbranded drugs with intent to defraud or mislead provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of introduction of misbranded drugs provides for a sentence of no greater than one year in prison, one year of supervised release and a fine of $1,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Weinreb’s Springfield Office is prosecuting the case.
Owners of Miami Export Business Found Guilty of Operating an Unlicensed Money Transmitting Business and International Money LaunderingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that LUIS DIAZ JR. and LUIS JAVIER DIAZ were found guilty yesterday in Manhattan federal court of operating an unlicensed money transmitting business and international money laundering in connection with their transmission of over $100 million from foreign businesses into and through the United States financial system. DIAZ JR. was additionally convicted of conspiracies to operate an unlicensed money transmitting business and engage in international money laundering. DIAZ JR. and JAVIER DIAZ were convicted following a two-week trial before U.S. District Judge William H. Pauley III.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a jury has now found, Luis Diaz Jr. and Luis Javier Diaz operated an illegal shadow bank outside the legitimate financial system to move more than $100 million into and through the United States. Financial institutions must serve as the first line of defense against money laundering and financial crime, and this Office is committed to rooting out those who evade these controls and serve as a back channel for dirty money.”
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
THE ILLEGAL MONEY TRANSMITTING SCHEME
Between at least 2010 and 2016, LUIS DIAZ JR. and LUIS JAVIER DIAZ used Miami Equipment and Export Company (“Miami Equipment”), a company they owned in Doral, Florida, to effect the transmission of at least $100 million from entities outside the United States, mostly located in Venezuela, to bank accounts in the United States and elsewhere, in exchange for a fee. During this time, the Company was not registered with the state of Florida or the Financial Crimes Enforcement Network (FinCEN), a component of the United States Department of the Treasury, as required by both state and federal laws applicable to money transmitting businesses.
Utilizing unlicensed money transmitting businesses like Miami Equipment enables entities and individuals to move money into and through the U.S. financial system while avoiding licensed U.S. financial institutions, which monitor for suspicious activity and report it to U.S. authorities, including through suspicious activity reports, or SARs. Instead, by going through unlicensed entities like Miami Equipment, foreign businesses ensure that suspicious patterns of transmissions will not be detected and reported as potential money laundering activity or other financial crime.
THE DEFENDANTS ILLEGALY TRANSMITTED MONEY
ON BEHALF OF NUMEROUS FOREIGN ENTITIES
Through their unlicensed money transmitting business, LUIS DIAZ JR. and LUIS JAVIER DIAZ enabled a number of foreign businesses to move money into and around the United States. For instance, the defendants used Miami Equipment to transmit over $100 million into the United States on behalf of KCT, a large Venezuelan consortium of construction companies. After they received this money from the Venezuelan Company, the defendants received instructions about where to send the money as well as fake invoices and contracts purporting to set forth a valid business reason for these payments. In this manner, the defendants sent money on behalf of KCT to U.S. and foreign bank accounts of shell companies located around the world, Venezuelan government officials, KCT employees in Venezuela, and others who had no relationship with Miami Equipment. For all of these transmitting activities, the Company received over $1 million in fees from KCT. In addition to KCT, DIAZ JR. and JAVIER DIAZ used Miami Equipment to effect transfers into and around the United States on behalf of other companies, mainly located in Venezuela and other South American countries.
In connection with these transfers, LUIS DIAZ JR. and LUIS JAVIER DIAZ often maintained false invoices purporting to be from the recipients of the funds to make it appear as if the payments were for actual goods or services rendered to Miami Equipment when, in truth, the money was intended for beneficiaries in the United States and abroad with no business relationship to Miami Equipment. The invoices had the effect of insulating the transmissions from scrutiny by providing a pretextual explanation for the many millions of dollars’ worth of payments. Through this conduct, the defendants and Miami Equipment functioned as an unregulated financial institution allowing foreign entities to move funds into and through the U.S. without any scrutiny, including being subject to the filing of SARs that licensed transmitting businesses are required to file.
* * *
DIAZ JR., 75, and JAVIER DIAZ, 50, both of Doral, Florida, were each convicted of one count of operation of an unlicensed money transmitting business and one count of international money laundering, which carry maximum prison sentences of five years in prison and 20 years in prison, respectively. DIAZ JR. was also convicted of conspiracy to operate an unlicensed money transmitting business and conspiracy to commit international money laundering, which carry maximum prison sentences of five years in prison and 20 years in prison, respectively. DIAZ JR. and JAVIER DIAZ are scheduled to be sentenced by Judge Pauley on March 2, 2018, at 3:00 p.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of HSI, DEA, the Englewood, New Jersey, Police Department, and the Border Enforcement Security Task Force.
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Edward B. Diskant, Daniel M. Tracer, and Benet J. Kearney are in charge of the prosecution.
Owner of Defunct Food Distribution Business Sentenced to 3 Years in Prison for Defrauding Restaurant GroupsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on November 14, MARK BERLIN, 64, of Boca Raton, Florida, was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for defrauding three restaurant groups of millions of dollars.
According to court documents and statements made in court, BERLIN owned and operated Fairfield Food Services, LLC, a Bridgeport-based food distribution business that bought meat, fish and other foods from wholesale vendors and then sold the items to restaurants and retail food distributors (“retail victims”). On a routine basis, BERLIN met with representatives for the retail victims to pitch them specific sales opportunities. Between April 2012 and April 2015, BERLIN made various misrepresentations to secure the sales, including claiming that he had arrangements with wholesale suppliers to obtain “futures contracts” from the wholesalers, and that the retail victims could “lock in” low prices if they paid for products in advance with delivery at a later date. BERLIN regularly told the retail victims that he had a “great deal” on particular products and the customers had to pay him fast in order to obtain the deals. BERLIN provided the retail victims with “Bill and Hold” invoices purportedly reflecting specific monies to be paid to the wholesale suppliers for products at the prices indicated. The retail victims then paid the “Bill and Hold” invoices in full with an understanding that the products or the futures contracts for products were being purchased from the suppliers.
The investigation revealed that BERLIN did not have “locked in” prices or “futures contracts” with wholesale suppliers, and BERLIN frequently used retail victims’ payments simply to cover his business’s immediate cash flow needs. In fact, instead of paying wholesalers before products were delivered, BERLIN typically did not pay the wholesalers for 30 or 60 days after products were delivered.
By April 2015, BERLIN was unable to keep the scheme afloat and stopped providing products to the retail victims. Shortly thereafter, Fairfield Food Services declared bankruptcy and closed its business. The Fairfield Food Services’ bankruptcy filing lists a total of approximately $5.3 million owed to three restaurant groups that paid BERLIN in advance for products, and hundreds of thousands of dollars owed to wholesale suppliers for products for which Fairfield Food Services had already taken delivery.
BERLIN contends that not all of the approximately $5.3 million owed to his retail victims was obtained by fraud. The government’s position is that BERLIN obtained at least $3.9 million and as much as $5.3 million by fraud.
Judge Underhill ordered BERLIN to pay restitution in the total amount of $5.3 million
On May 31, 2017, BERLIN pleaded guilty to one count of wire fraud.
Judge Underhill ordered BERLIN, who is released on bond, to report to prison on June 8, 2018.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Osage Beach Woman Sentenced for Stolen Mail, Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Osage Beach, Mo., woman was sentenced in federal court today for a scheme to use stolen mail and stolen identities to cash fraudulent checks at area banks.
Chrystal Lynn Bernstein, 27, of Osage Beach, was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Bernstein to pay $13,101 in restitution to her victims.
On May 9, 2017, Bernstein pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Bernstein admitted that she engaged in a scheme to obtain stolen mail (including checks), then use stolen identities to cash and deposit the checks at several banks in Boone and Camden Counties from December 2016 to Feb. 16, 2017.
Bernstein opened accounts at Central Bank of the Lake of the Ozarks and at Landmark Bank in the names of persons whose names and Social Security numbers she obtained without their permission or knowledge. Bernstein admitted she altered the payee on some of the stolen checks she obtained in order to cash them in the names of a mother and daughter in California whose identities she had stolen. She also admitted that she deposited a stolen check into a fraudulent bank account that was opened under another person’s name. Bernstein also passed a bad check for $826 at a Columbia, Mo., business using a stolen identity.
Bernstein was arrested during a traffic stop on Feb. 1, 2017, in Lake Ozark. She was in possession of a driver’s license, Social Security card and credit card bearing another person’s name. Bernstein was able to bond out and was released.
On Feb. 16, 2017, Bernstein attempted to cash a check at Central Bank. Bernstein was arrested as she returned to her residence, driving a vehicle with a reported stolen license plate. Law enforcement officers searched the vehicle and found checks and money orders in the trunk that had been stolen from two additional victims.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Postal Inspection Service, the Columbia, Mo., Police Department, the Lake Ozark, Mo., Police Department, the Osage Beach, Mo., Police Department, the Camdenton, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Ohio man sentenced for trafficking heroin and cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Daryl “Malik” Walter Hall, of Youngstown, Ohio, was sentenced today to 100 months incarceration for trafficking heroin and cocaine, United States Attorney Bill Powell announced.
Hall, age 31, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base” in September 2017. The crime occurred between August 2016 to April 2017 in Hancock County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick R. Stamp, Jr., presided.North Carolina Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A former Durham, North Carolina, tax return preparer was sentenced to 24 months in prison today for aiding and assisting in the preparation of fraudulent income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Maria Streater worked for KEF Professional Tax Services, a tax preparation business located in Durham. From 2012 through 2014, Streater prepared fraudulent income tax returns for clients by creating false sources of income in order to maximize the earned income tax credit and obtain refunds to which her clients were not entitled. Streater agreed that she caused a tax loss of $274,090.
In addition to the term of prison imposed, U.S. District Court Judge Catherine C. Eagles ordered Streater to serve one year of supervised release and to pay $83,083 in restitution to the Internal Revenue Service (IRS).
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to Prison for Tax and Bankruptcy FraudRead the Press Release
A Greensboro, North Carolina, resident was sentenced today to 37 months in prison for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), filing a fraudulent tax return, and bankruptcy fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents and information provided to the court, during 2008 and 2009, Hassie Demond Nowlin, aka Demond Nowlin and Brilliant Knowlin, 44, filed several fraudulent tax returns with the IRS that included fake income and withholding taxes and sought more than $750,000 in fraudulent refunds. Nowlin also filed documents with the Guilford County Register of Deeds purporting to renounce his United States citizenship and proclaiming to be a sovereign citizen. Between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to the fraudulent returns. After being notified of the assessments, Nowlin began concealing his assets and placing them in the names of nominee entities.
Nowlin also admitted that between 2011 and 2017, he earned hundreds of thousands of dollars operating a tax preparation business. Nowlin filed hundreds of tax returns for clients that claimed phony business and education expenses, sought refunds to which the clients were not entitled and did not identify him as the paid preparer. Nowlin caused the fees he earned to be deposited into nominee bank accounts that he controlled. Nowlin also admitted that he made false statements to IRS agents, including that he did not prepare tax returns for clients.
In addition to the tax-related charges, Nowlin also admitted to attempting to cheat his creditors by filing fraudulent personal bankruptcy petitions. Along with these petitions, Nowlin also submitted false financial statements on which he did not fully disclose his income and assets.
In addition to his term of imprisonment, U.S. District Court Judge Catherine C. Eagles ordered Nowlin to serve three years of supervised release and to pay restitution to the IRS in the amount of $188,001.89. Nowlin pleaded guilty in August to obstructing the internal revenue laws, filing a fraudulent tax return, and bankruptcy fraud.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand P. Ramaswamy of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to Prison for Tax and Bankruptcy FraudRead the Press Release
WASHINGTON – A Greensboro, North Carolina, resident was sentenced today to 37 months in prison for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), filing a fraudulent tax return, and bankruptcy fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents and information provided to the court, during 2008 and 2009, Hassie Demond Nowlin, aka Demond Nowlin and Brilliant Knowlin, 44, filed several fraudulent tax returns with the IRS that included fake income and withholding taxes and sought more than $750,000 in fraudulent refunds. Nowlin also filed documents with the Guilford County Register of Deeds purporting to renounce his United States citizenship and proclaiming to be a sovereign citizen. Between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to the fraudulent returns. After being notified of the assessments, Nowlin began concealing his assets and placing them in the names of nominee entities.
Nowlin also admitted that between 2011 and 2017, he earned hundreds of thousands of dollars operating a tax preparation business. Nowlin filed hundreds of tax returns for clients that claimed phony business and education expenses, sought refunds to which the clients were not entitled and did not identify him as the paid preparer. Nowlin caused the fees he earned to be deposited into nominee bank accounts that he controlled. Nowlin also admitted that he made false statements to IRS agents, including that he did not prepare tax returns for clients.
In addition to the tax-related charges, Nowlin also admitted to attempting to cheat his creditors by filing fraudulent personal bankruptcy petitions. Along with these petitions, Nowlin also submitted false financial statements on which he did not fully disclose his income and assets.
In addition to his term of imprisonment, U.S. District Court Judge Catherine C. Eagles ordered Nowlin to serve three years of supervised release and to pay restitution to the IRS in the amount of $188,001.89. Nowlin pleaded guilty in August to obstructing the internal revenue laws, filing a fraudulent tax return, and bankruptcy fraud.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the
investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand P. Ramaswamy of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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North Carolina Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – A former Durham, North Carolina, tax return preparer was sentenced to 24 months in prison today for aiding and assisting in the preparation of fraudulent income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Maria Streater worked for KEF Professional Tax Services, a tax preparation business located in Durham. From 2012 through 2014, Streater prepared fraudulent income tax returns for clients by creating false sources of income in order to maximize the earned income tax credit and obtain refunds to which her clients were not entitled. Streater agreed that she caused a tax loss of $274,090.
In addition to the term of prison imposed, U.S. District Court Judge Catherine C. Eagles ordered Streater to serve one year of supervised release and to pay $83,083 in restitution to the Internal Revenue Service (IRS).
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Nigerian Nationals Detained in Elaborate Bank Fraud, Counterfeit Passport SchemeRead the Press Release
PROVIDENCE, RI – Two Nigerian nationals have been detained in federal custody in Rhode Island on charges they allegedly participated in a large-scale counterfeit bank fraud and passport scheme, with an intended loss of more than $850,000.
Acting United States Attorney Stephen G. Dambruch and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations for New England, announced the arrest today of Olugboyega Akinloye Fasanya, 35, of Woonsocket, and Anthony Chidozie Ezike, 35, of Pawtucket, on a federal criminal complaint charging them with conspiracy to commit bank fraud and use of counterfeit passports. Fasanya and Ezike made initial appearances in U.S. District Court in Providence today and were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond.
According to an affidavit in support of the criminal complaint, it is alleged that beginning in June 2015, Fasanya orchestrated a scheme that defrauded more than ten banks in Rhode Island, Massachusetts and elsewhere by acquiring and altering originally lawfully passed checks between commercial entities. The checks were altered to be made out to aliases used by Fasanya, Ezike and others, and deposited into bank accounts opened using the aliases. In many instances, the funds were removed from the accounts prior to the fraud being detected by the financial institutions.
It is also alleged that the scheme involved the sending of unauthorized wire transfers into accounts opened using the false identities, followed by rapid withdrawals. It is alleged that the defendants used counterfeit passports from Nigeria, Ghana and South Africa as forms of identification when opening various bank accounts used to execute the scheme.
According to the affidavit, it is alleged that participants in the scheme deposited fraudulent checks and wires totaling approximately $853,000 and successfully obtained approximately $368,000 through withdrawals and debit purchases.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations with the assistance of U.S. Customs and Border Protection, and the Woonsocket, Pawtucket and Warwick Police Departments.
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New Orleans Man Sentenced in Cocaine and Firearm ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced yesterday’s sentencing of ANTONIO NEVEAUX, age 42, of New Orleans, following the August 2017 trial.
U.S. District Judge Susie Morgan sentenced NEVEAUX to 138 months imprisonment, followed by 4 years of supervised release.
On August 8, 2017, a federal jury found NEVEAUX guilty of conspiracy to distribute 28 grams or more of cocaine base, conspiracy to obstruct justice, possession with intent to distribute 28 grams or more of cocaine base, and possession of a firearm in furtherance of a drug-trafficking crime.
Co-defendant ANTHONY B. WASHINGTON pleaded guilty to conspiracy to obstruct an official proceeding and sentencing is scheduled for December 19, 2017. Co-defendant TERRANCE SMITH pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and sentencing is scheduled for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosive and the Housing Authority of New Orleans Police Department in investigating this matter. Assistant U.S. Attorneys Michael McMahon, David Sinkman and Jeff Sandman were in charge of the prosecution.
New Orleans Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TIM NALL, age 62, of New Orleans, pled guilty today to a one-count Bill of Information charging him with receipt of images and videos depicting the sexual exploitation of children.
According to court documents, law enforcement officials executed a search warrant at NALL’s residence on July 25, 2017, during which time they seized numerous electronic items including one desktop computer and numerous loose storage media, such as CDs and DVDs which contained images and videos depicting the sexual victimization of children. A forensic examination of the device revealed that NALL used the devices to search for, download, and save images and videos of children younger than two-years old engaging in sexually explicit conduct. The forensic examination located approximately 2,080 images and 2 videos of prepubescent children engaging in sexually explicit on NALL’s digital devices.
NALL faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of 20 years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender. Sentencing before Judge Barbier has been scheduled for February 22, 2018.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of prosecution.
New Orleans Man Charged with Production of Child PornographyRead the Press Release
Acting United States Attorney Duane A. Evans announced today that JON C. BALLAY, age 58, of New Orleans, was charged in a three-count Indictment with production of images and videos depicting the sexual exploitation of a fourteen-year-old girl.
If convicted, BALLAY faces a mandatory minimum term of imprisonment of 15 years and a maximum term of 30 years per count, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Acting United States Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and specifically the FBI New Orleans Violent Crimes Against Children Task Force, which includes members of the Jefferson Parish Sheriff’s Office, the Kenner Police Department, and the Louisiana State Police. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
New Indictment in Federal RICO Case Targeting Crips Gang Adds Murder Charge Related to Previously Unsolved HomicideRead the Press Release
LOS ANGELES – A federal grand jury has returned a new indictment in a racketeering case targeting the Five Deuce Broadway Gangster Crips (BGC) street gang that adds a murder charge stemming from a previously unsolved 2012 homicide, Acting United States Attorney Sandra R. Brown announced today.
The “second superseding indictment” charges BGC member Joshua Perez, also known as “Tiny Ange,” in the murder of 37-year-old William Sherman, who was killed after BGC gangsters mistakenly identified him as being part of a group that were members of a rival gang.
The new indictment also alleges that co-defendant Marquis Shaw, also known as “T-Loon,” participated in the attack that resulted in Sherman’s murder. Shaw also faces charges previously filed in the BGC case that allege he committed a 2003 murder of a non-gang member outside of the House of Blues in West Hollywood.
Perez, 26, and Shaw, 43, allegedly are prominent members of a BGC clique known as the Gremlin Riderz, a violent enforcement arm that acts as the gang’s hit squad, which includes enforcing discipline among the gang’s members and carrying out acts of retaliation against rival gangs.
The new charges in the indictment accuse Perez of committing murder in aid of racketeering and using a firearm in relation to a crime of violence that caused death. Each of these offenses carries a mandatory sentence of life without parole in federal prison.
The indictment alleges that Sherman was murdered during a May 10, 2012 incident in which BGC members were retaliating against a rival gang for the murder of a BGC member. BGC members traveled in a multi-vehicle convoy to a party being held by the rival gang, and fired at least 40 shots into a group of men who were walking to the party. Sherman was killed and two others were injured in the shooting. The victims were not members of the rival gang targeted by BGC. Prior to the second superseding indictment, no one had been charged in the killing.
The second superseding indictment returned by a federal grand jury on November 9 charges Perez, Shaw and five other BGC members with participating in a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. Members of the conspiracy allegedly engaged in murders, robberies, witness and informant intimidation, and narcotics sales.
The new indictment is the latest development in a case originally filed in 2014 against 72 members and associates of the BGC, a violent and primarily African-American gang that controls parts of South Los Angeles and downtown Los Angeles. Out of the 72 defendants originally charged in a 213-page RICO indictment, 64 defendants have pleaded guilty and one was convicted at trial. Many of those convicted have received lengthy prison sentences – including the leader of the BGC, who was sentenced to nearly 22 years in federal prison – and those defendants have been banned from living in BGC territory after they complete their prison terms.
After the filing of the original indictment in this case, federal and local law enforcement authorities continued to investigate the BGC, which included reexamining the 2012 attack that led to Sherman’s murder and developing new witnesses to that incident.
The seven defendants named in the second superseding indictment – the only defendants remaining in the BGC case – are scheduled to go on trial on February 6, 2018 before United States District Judge S. James Otero. Perez and Shaw each face mandatory terms of life in prison if convicted of the murder charges alleged in the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The investigation into the BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Mack Jenkins, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorneys Max Shiner and Wilson Park of the Violent and Organized Crime Section; and Assistant United States Attorney Sheila Nagaraj of the Public Corruption and Civil Rights Section.
New Haven Man Pleads Guilty to Illegally Possessing Firearm, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN SINGH, 39, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a previously convicted felon. SINGH also admitted to violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on June 14, 2017, the FBI executed a search warrant at SINGH’s resident on Hallock Street in New Haven and seized approximately five grams of crack cocaine, narcotics paraphernalia, and a Taurus 9mm semi-automatic pistol containing a magazine loaded with 10 rounds of ammunition.
SINGH has three prior federal convictions. In June 2011, he was sentenced in Bridgeport federal court to 24 months of imprisonment and five years of supervised release for distributing crack cocaine and, in July 2015, he was sentenced to 38 months of imprisonment and three years of supervised release for illegally possessing ammunition and violating the conditions of his supervised release imposed when he was sentenced in 2011. He was released from prison in March 2016.
SINGH has been detained since his arrest on June 14, 2017. When he is sentenced, SINGH faces a maximum term of imprisonment of 10 years for the firearm offense, and a maximum term of imprisonment of two years for violating his supervised release. A sentencing date has not been scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Nationwide Identity Theft and IRS Tax Fraud Scheme Results in Federal Prison SentenceRead the Press Release
EUGENE, Ore.—On Wednesday, November 15, 2017, United States District Court Judge Ann Aiken sentenced Lateef Aina Animawun, 37, a Nigerian citizen and recent resident of the Atlanta, Georgia area, to federal prison for 65 months for his role in committing conspiracy to commit mail and wire fraud, aggravated identity theft and mail and wire fraud. He was also ordered to pay $2,304,044.92 in restitution. Animawun will be subject to deportation upon completion of his prison sentence.
According to court documents, in May 2013, a Medford victim notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth.
An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendant and other co-conspirators to further their fraudulent scheme. Agents seized prepaid debit cards with fraudulent tax refunds still on them, approximately $79,000 worth of money orders, over $14,000 in cash and electronic devices. The IRS determined that the co-conspirators obtained the stolen PII of more than 250,000 victims. This included stolen identities from the database of an Oregon company purchased from sources in Vietnam by one of the co-conspirators. Additionally, the co-conspirators gained access to the IRS “Get Transcript” system where they obtained sensitive taxpayer information on their identity theft victims and used it to file fraudulent tax returns.
Agents found thousands of stolen identities in Animawun’s email accounts many of them originating from co-defendant Emmanuel Kazeem. Animawun directly accessed victim IRS taxpayer transcripts, he used prepaid debit cards set up with the stolen identities to file numerous fraudulent tax returns and wired fraudulent tax refunds to Nigeria.
Last August, a federal jury in Medford convicted Emmanuel Kazeem of 19 counts of mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud. Based on evidence presented at the trial, Emmanuel Kazeem purchased over 91,000 of the stolen taxpayer identities from a Vietnamese hacker. These stolen identities originated from the Oregon Company database and most of them belonged to victims living in Oregon and Washington. His sentencing is currently set for March 22, 2018. The sentencing for Oluwamuyiwa Olawoye is scheduled for April 19, 2018 for his role in the offenses. Three other co-defendants, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo and Michael Kazeem have been sentenced.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration; the U.S. Postal Inspection Service; the U.S. Department of State; and, the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement and Removal Operations. Byron Chatfield and Gavin Bruce, Assistant United States Attorneys, are prosecuting the case for the District of Oregon.
Monroe County Man Sentenced to 17 ½ Years in Prison for Heroin and Sex TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Velazquez, age 27, was sentenced to 17 ½ years in prison yesterday by U.S. District Court Judge Malachy E. Mannion, for participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine, and forcing or coercing women into engage in prostitution in northeastern Pennsylvania.
According to United States Attorney Bruce D. Brandler, Velazquez, who used the street name “Sev,” previously pleaded guilty to conspiring with others to distribute more than 100 grams of heroin (which is approximately equivalent to 4000 retail bags of heroin) and to sex trafficking an adult female between 2012 and 2014, using force and coercion.
Velazquez was originally indicted along with six other people by a federal grand jury in September 2015. In October 2016, Velazquez was charged in a superseding indictment with drug trafficking and sex trafficking crimes.
Velazquez’s conviction and sentence resulted from an investigation into the activities of a street gang known as the Black P-Stones. The superseding indictment alleged that male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang. The superseding indictment further alleged that members of the Black P-Stones obtained heroin in New York and distributed the heroin in Stroudsburg and locations in the state of Maine. According to the superseding indictment, couriers were used to transport heroin from New York to Maine.
The superseding indictment further alleged that females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various are hotels/motels to work as prostitutes. Male gang members used threats, force, drugs, and intimidation to coerce females to engage in prostitution.
Judge Mannion also ordered the defendant to serve five years of supervised release following his prison sentence. Velazquez must also comply with sex offender registration and notification requirements.
The case was investigated by agents of the Federal Bureau of Investigation, members of the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Mobile County Man Found Guilty of Possession of a Firearm After Being Convicted of FelonyRead the Press Release
The United States Attorney, Richard W. Moore, announces that David Tyler Nelson, a 22 year old, resident of Coden, Alabama was found guilty of possession of a firearm after conviction of a felony.
The evidence produced at trial showed that on May 13, 2017, Mobile County, Alabama deputies conducted a traffic stop of a GMC Arcadia that belonged to Nelson’s father. The vehicle was stopped because of an expired tag and turning without giving a signal. Nelson was observed in the front passenger seat sleeping with a hand gun protruding from his waistband. The firearm was immediately seized from Nelson’s person and determined to be a .25 caliber Beretta pistol. Deputies awakened Nelson. They asked why he had the firearm. Nelson responded, “I bought it for a couple bills and took it across the bay.” Nelson was then asked his name and he replied, “Tyler Perry,” and gave his dated of birth as “January 1, 1995”. A records check on the scene did not produce an identity or any information based on what Nelson provided. Inside the vehicle, deputies found a work ID for Nelson that had his picture and correct name. Deputies then confronted Nelson with the photo ID and he stated that his name was “David Tyler Nelson” and gave his true date of birth. A records check of the accurate information revealed that Nelson had been convicted of Unlawful Possession or Receipt of a Controlled Substance on June 30, 2016.
Mr. Nelson will be sentenced on February 21, 2018, before the Honorable Callie V. S. Granade.
The Federal Bureau of Investigation along with the Mobile County Sheriff’s Office investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutors assigned to the case was Assistant United States Attorneys, Erica Hilliard, Lawrence Bullard and Gina S. Vann.
Mississippi Skilled Nursing Facility, Related Companies, and Executives Agree to Pay $1.25 Million to Settle False Claims Act Allegations of Grossly Substandard Care to Facility ResidentsRead the Press Release
WASHINGTON – The Department of Justice announced today that Hyperion Foundation, a Georgia not-for-profit entity (Hyperion), Julie Mittleider, a resident of Georgia and Hyperion’s former President, AltaCare Corporation, a Georgia corporation engaged in nursing home management (AltaCare), Douglas Mittleider, AltaCare’s Chief Executive Officer, and related companies, Long Term Care Services Inc. and Sentry Healthcare Acquirors Inc., have agreed to pay the United States a total of $1.25 million to resolve allegations of false claims to Medicare and the Mississippi Medicaid program for providing grossly substandard care to residents at the Oxford Health and Rehabilitation nursing home in Lumberton, Mississippi, from late 2005 through mid-2012, when it was operated by AltaCare, under a contract with Hyperion.
“Residents of nursing homes are some of our most vulnerable citizens,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Nursing home operators who bill Medicare and Medicaid for providing their residents with grossly deficient services will be held accountable.”
The government alleged that from October 2005 to May 2012, Hyperion made claims to Medicare and Medicaid for providing effectively worthless services to residents at the Lumberton, Mississippi facility, while the facility was managed by AltaCare. For example, the United States alleged that Hyperion failed to meet the nutritional needs of residents, failed to administer medications to residents as prescribed by their physicians, overmedicated residents, hired insufficient staff to care for them, and diverted Medicare and Medicaid funds to other entities affiliated with Douglas or Julie Mittleider, leaving the facility unable to pay for its basic operations, including food, heat, air conditioning, pest control, and cleaning. These failures, the United States alleged, caused the facility’s residents to suffer pressure ulcers, falls, dehydration, and malnutrition, among other physical, mental and emotional harms. As a result, Hyperion allegedly submitted false claims for grossly substandard care, and Douglas Mittleider, AltaCare and certain related companies allegedly caused such false claims.
“When operators of nursing homes harm our most vulnerable citizens and break the law by defrauding our government for grossly substandard or worthless services, we will bring to bear all the resources of the Federal Government in order to rectify these terrible actions,” said D. Michael Hurst, Jr., U.S. Attorney for the Southern District of Mississippi. “I commend our attorneys and investigators for resolving this travesty with one of the largest healthcare fraud settlements involving a single nursing home. We will continue the Department of Justice’s long-standing commitment to protecting the elderly.”
“It’s troubling when a nursing home company and its executives accept Medicare and Medicaid money to care for vulnerable nursing home residents and provide grossly deficient care, as alleged in this case,” said Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold nursing homes accountable to ensure residents receive quality healthcare and are provided safe living conditions.”
The settlement resolves allegations filed in a lawsuit by Academy Health Center Inc., the owner and landlord of the Lumberton, Mississippi skilled nursing facility. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and share in any recovery. The False Claims Act authorizes the United States to intervene and take over primary responsibility for the action, as it did in this case. The amount to be recovered by the private whistleblower has not been determined.
The case is captioned United States ex rel. Academy Health Center, Inc. v. Hyperion Foundation, Inc., et al., 3:10-cv-552-CWR-LRA (S.D. Miss.). It was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Mississippi Skilled Nursing Facility, Related Companies, and Executives Agree to Pay $1.25 Million to Settle False Claims Act Allegations of Grossly Substandard Care to Facility ResidentsRead the Press Release
The Department of Justice announced today that Hyperion Foundation, a Georgia not-for-profit entity (Hyperion), Julie Mittleider, a resident of Georgia and Hyperion’s former President, AltaCare Corporation, a Georgia corporation engaged in nursing home management (AltaCare), Douglas Mittleider, AltaCare’s Chief Executive Officer, and related companies, Long Term Care Services Inc. and Sentry Healthcare Acquirors Inc., have agreed to pay the United States a total of $1.25 million to resolve allegations of false claims to Medicare and the Mississippi Medicaid program for providing grossly substandard care to residents at the Oxford Health and Rehabilitation nursing home in Lumberton, Mississippi, from late 2005 through mid-2012, when it was operated by AltaCare, under a contract with Hyperion.
“Residents of nursing homes are some of our most vulnerable citizens,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Nursing home operators who bill Medicare and Medicaid for providing their residents with grossly deficient services will be held accountable.”
The government alleged that from October 2005 to May 2012, Hyperion made claims to Medicare and Medicaid for providing effectively worthless services to residents at the Lumberton, Mississippi facility, while the facility was managed by AltaCare. For example, the United States alleged that Hyperion failed to meet the nutritional needs of residents, failed to administer medications to residents as prescribed by their physicians, overmedicated residents, hired insufficient staff to care for them, and diverted Medicare and Medicaid funds to other entities affiliated with Douglas or Julie Mittleider, leaving the facility unable to pay for its basic operations, including food, heat, air conditioning, pest control, and cleaning. These failures, the United States alleged, caused the facility’s residents to suffer pressure ulcers, falls, dehydration, and malnutrition, among other physical, mental and emotional harms. As a result, Hyperion allegedly submitted false claims for grossly substandard care, and Douglas Mittleider, AltaCare and certain related companies allegedly caused such false claims.
“When operators of nursing homes harm our most vulnerable citizens and break the law by defrauding our government for grossly substandard or worthless services, we will bring to bear all the resources of the Federal Government in order to rectify these terrible actions,” said D. Michael Hurst, Jr., U.S. Attorney for the Southern District of Mississippi. “I commend our attorneys and investigators for resolving this travesty with one of the largest healthcare fraud settlements involving a single nursing home. We will continue the Department of Justice’s long-standing commitment to protecting the elderly.”
“It’s troubling when a nursing home company and its executives accept Medicare and Medicaid money to care for vulnerable nursing home residents and provide grossly deficient care, as alleged in this case,” said Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold nursing homes accountable to ensure residents receive quality healthcare and are provided safe living conditions.”
The settlement resolves allegations filed in a lawsuit by Academy Health Center Inc., the owner and landlord of the Lumberton, Mississippi skilled nursing facility. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and share in any recovery. The False Claims Act authorizes the United States to intervene and take over primary responsibility for the action, as it did in this case. The amount to be recovered by the private whistleblower has not been determined.
The case is captioned United States ex rel. Academy Health Center, Inc. v. Hyperion Foundation, Inc., et al., 3:10-cv-552-CWR-LRA (S.D. Miss.). It was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Mexican National Charged with Illegal ReentryRead the Press Release
BOSTON – Carlos Lucera-Mejia, 28, was charged today in federal court in Boston with one count of unlawful reentry of a deported alien.
According to the indictment, law enforcement in Chelsea encountered Lucera-Mejia in October 2017 and determined him to be illegally present in the United States. Lucera-Mejia was previously deported in April 2016.
The charge provides for a sentence of no greater than two years in prison, one year of supervised released, and a fine of up to $250,000. Lucera-Mejia will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Reynaldo Cristobal Jimenez Jimenez, age 25, and a citizen of Mexico, was sentenced today to time served (22 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Jimenez Jimenez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on September 16, 2012.
On October 25, 2017, ICE Officers arrested Jimenez Jimenez in Queensbury, New York.
Following the sentencing, Jimenez Jimenez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Malden Man Charged with Illegal Possession of a FirearmRead the Press Release
BOSTON – Trey Miller, 18, of Malden, was indicted today in federal court on charges of being a felon in possession of a weapon and ammunition.
According to the indictment, on Oct. 31, 2017, Miller, having previously been convicted of a felony, possessed a Smith & Wesson .45 caliber pistol and 10 rounds of .45 caliber ammunition.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Malden Police Chief Kevin Molis made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Tax Return Preparer Sent to Prison for Fraudulent Refund SchemeRead the Press Release
HOUSTON – A tax return preparer who operated a local business under various names has been ordered to federal prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced acting U.S. Attorney Abe Martinez. Albert Bobby Daniels Jr. pleaded guilty Aug, 3, 2017.
Today, U.S. District Judge Alfred H. Bennett handed Daniels a 21-month sentence to be immediately followed by a year of supervised release. He was further ordered to pay $257,590 in restitution to the IRS.
According to the criminal information and plea agreement filed in the record of the case, Daniels was in the business of preparing income tax returns and operated that business under various names including Home Based Business Tax Services in Houston. Daniels admitted he willfully added numerous false deductions and credits to 45 client income tax returns without their knowledge in order to inflate refunds by approximately $257,590.
The sentencing hearing today revealed that his motive was to develop a reputation for getting large client refunds, which could generate more fees.
Daniels was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Austin office of IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Leader of Black P-Stones Gang Sentenced for Racketeering Conspiracy and Murder ChargesRead the Press Release
A Newport News, Virginia man was sentenced today in Norfolk, Virginia, to two life terms as well as 25 years in prison, to be served concurrently, after being convicted of Racketeering Conspiracy - including acts of murder; attempted murder; robbery; obstruction of justice and narcotics distribution; Murder in Aid of Racketeering; Conspiracy and Attempted Murder in Aid of Racketeering; Conspiracy and Possession to Distribute Marijuana; and Possession of a Firearm in Furtherance of a Crime of Violence.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, and Special Agent in Charge Martin W. Culbreth of the FBI’s Norfolk Field Office, made the announcement.
According to the evidence at trial, Michael Hopson, aka “Hop” and “Big Homie,” 39, was a member of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, which operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green and Woodview neighborhoods in the Denbigh area of Newport News. The evidence at trial established that the Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking and obstruction of justice.
According to the evidence at trial, Hopson was the founding member and leader (“OG”) of the Black P-Stones/Cobra Stones set of the Denbigh area, Newport News. The defendant was a security officer at Denbigh High School, in Newport News where he met and recruited Denbigh High School students and others into the P-Stones. According to the government’s evidence, in addition to Hopson recruiting at Denbigh High School, he also sold narcotics while acting in his capacity as a school resource officer. As the “OG,” Hopson approved, directed, planned, and participated in criminal activities, including robbery and attempted robberies, narcotics distribution, murders and attempted murders. He recruited members, associates and non-members, including minors, to conduct criminal activities for the gang. Further, Hopson collected monthly dues from all P-Stone members; carried out violations; ordered violations; ordered and presided over meetings; and possessed, distributed and discharged firearms. Additionally, he distributed marijuana, to other P-Stone members to sell for the purpose of obtaining money for the gang and collected proceeds from marijuana trafficking from all P-Stone members.
The government put forth evidence at trial that demonstrated that on Oct. 31, 2007, Hopson, acting in his leadership capacity, ordered P-Stone members to seek robbery targets for the purpose of obtaining money and property for the gang. After the order, P-Stones, armed with firearms, sought robbery targets in the Beechmont area. Further, the defendant approved the murder of A.J., member of Thug Relations, a rival of the P-Stones. While A.J. did not come out of his house, at Hopson’s direction, the P-Stones members arrived at A.J.’s home, armed with firearms, and attempted to lure him from the home.
On Nov. 6, 2007, a P-Stone member, acting on Hopson’s orders, lured E.S., a 17-year-old P-Stone member, to a location in Newport News, for the purpose of killing him. Hopson had previously given him the “green light” for the killing of E.S. due to E.S. being friends with members of Thug Relations. Once E.S. arrived at the location, E.S was shot and killed. As a result of the murder, Hopson rewarded the P-Stone member with a promotion.
On Dec. 10, 2008 Hopson authorized the murder of J.W., a Crip who had been disrespectful to members of the P-Stones. Acting on those orders, two P-Stone members went to the home of J.W. and fired multiple rounds into the home. J.W.’s father, who was sitting in the living room when the shooting occurred, was hit with debris from the bullet shrapnel and suffered injury to his eye.
On March 9, 2009, Hopson ordered the murder of two members of 10-1 Mafia Crips, a rival of the P-Stones. Hopson authorized the murder after the two were responsible for the beating of a P-Stone member. Acting on Hopson’s orders, two P-Stone members shot multiple times into the home of the two 10-1 Mafia Crips.
On April 17, 2009, Hopson ordered two P-Stones to fire multiple rounds into a home he knew to be occupied because the individuals inside the home were disrespectful to him.
Hopson ordered the murder of A.J., a Thug Relations member who was responsible for the murder of a P-Stone member. On June 12, 2009, A P-Stone member acting on Hopson’s orders shot at A.J.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Trial Attorney Marianne Shelvey of the Organized Crime and Gang Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia prosecuted the case.
Lawrence Man Sentenced to Life in Prison for KidnappingRead the Press Release
BOSTON – The leader of a Lawrence-based kidnapping crew was sentenced today to life in federal prison for his role in a 2012 kidnapping.
U.S. District Court Judge Richard G. Stearns sentenced Danny Veloz, 41, of Lawrence, Mass., to life in prison today for his role in leading a violent, sophisticated crew that targeted drug dealers for kidnappings.
Veloz was arrested following a wide-ranging investigation that targeted kidnapping and home invasion crews operating in the City of Lawrence. The majority of these kidnappings were carried out by organized, armed, violent crews often referred to as Joloperros (loosely translated as “Stick-up Guys”). Veloz’s crew consisted of four other Lawrence men, Jose Guzman, a/k/a “Cano”; Gadiel Romero, a/k/a “TC”; Jose Matos, a/k/a “Boyca”; and Luis Reynoso, a/k/a “Prieto”; as well as Henry Maldonado, of Manchester, N.H.; and Thomas Wallace of Raymond, N.H.
On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H., and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement. The kidnapping was one of several kidnappings or attempted kidnappings committed by Veloz’s crew in 2012. During trial, several individuals testified that in addition to the July 23, 2012, kidnapping, Veloz and his crew also attempted kidnappings on May 8, 2012, and July 8, 2012.
A search of Veloz’s home resulted in the seizure of two laptop computers containing information about GPS tracking devices used to commit the kidnappings, as well as cell phones used by Veloz to communicate with his associates.
Since the investigation began in 2012, more than 20 people have been convicted of either kidnapping-related offenses or being associated with members of Lawrence-based kidnapping or home invasion crews. Romero, Wallace, and Matos were sentenced to 23 years, 13 years, and 12 years in prison, respectively. Maldonado, Guzman, and Reynoso are scheduled to be sentenced on November 21 and 22, 2017.
The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Kerry A Gilpin, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Lawrence Police Chief James X. Fitzpatrick; Manchester (N.H.) Police Chief Nick Willard; and Essex County Sheriff Kevin F. Coppinger made the announcement today. Assistant U.S. Attorney Christopher Pohl of Weinreb’s Organized Crime and Gang Task Force prosecuted the case.
LaPorte County Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Timothy Bennitt, age 27, of Rolling Prairie, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for robbery and brandishing a firearm during a crime of violence.
Bennitt was sentenced to 180 months imprisonment followed by 2 years of supervised release.
According to documents in this case, Bennitt committed 6 armed robberies in St. Joseph and LaPorte County restaurants and businesses. During his January 2017 crime spree, Bennitt used a handgun during these armed robberies. In addition, during 4 of the robberies, Bennitt was assisted by co-defendant Nathan Kellogg, who drove and provided the car. Bennitt and Kellogg used the money from the robberies on food, lodging and drugs. Bennitt’s accomplice, Kellogg pled guilty to 4 of the robberies and is scheduled for sentencing November 21, 2017.
This case is being investigated by the Federal Bureau of Investigation with the assistance of LaPorte County Sheriff’s Department, Mishawaka Police Department, South Bend Police Department and the St. Joseph County Police Department. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
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Justice Department Settles Immigration-Related Discrimination Claim Against Pasco, Washington, Vegetable Processing PlantRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Washington Potato Company, which operates the Freeze Pack vegetable processing plant located in Pasco, Washington. The agreement resolves the department’s investigation into whether Washington Potato discriminated against work-authorized immigrants when verifying their employment authorization, in violation of the Immigration and Nationality Act (INA).
The department’s investigation revealed that Washington Potato routinely requested that work-authorized non-U.S. citizens present specific documents to confirm their citizenship status, such as Permanent Resident Cards or Employment Authorization Documents, while verifying their authorization to work at the Freeze Pack plant, but did not subject U.S. citizens to such requests. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status, or national origin.
Under the settlement, Washington Potato will pay a civil penalty of $100,000 to the United States, train its staff, post notices informing workers about their rights under the INA’s antidiscrimination provision, and be subject to departmental monitoring and reporting requirements. An earlier settlement between the department and Washington Potato Company in May 2017 resolved litigation concerning similar discriminatory conduct by Washington Potato in its management of another facility located in Pasco, Washington.
“Employers must ensure that they do not impose unnecessary and unlawful barriers to employment based on citizenship status,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We look forward to working with Washington Potato Company to fulfill the terms of this agreement and ensure compliance with the law at all the facilities it operates.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Jamaican Resident Sentenced to over Five Years in Prison for Role in Fake Lottery ScamRead the Press Release
NEWARK, N.J. – A resident of Jamaica, West Indies, was sentenced today to 63 months in prison for swindling elderly residents of the United States by falsely telling them they had won millions of dollars in Jamaican lotteries, Acting U.S. Attorney William E. Fitzpatrick announced.
Ricardo Reid, 32, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of conspiracy to commit mail and wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2011 to 2016, Reid purchased mailing lists that contained addresses and other information of elderly individuals and then solicited these individuals by tricking them into believing they had won millions in lotteries and sweepstakes. He also told the elderly individuals that in order to redeem these fictitious winnings, they had to pay registration fees and other fees and taxes. Reid told the victims that the calls were from officials of the United States, such as the IRS, and from lottery or bank officials.
Reid admitted that he used aliases like “Robert Gates,” “Mr. Bogohazian,” and “Damien Boswel,” and used call forwarding and Voice Over Internet Protocol services to make and receive calls, all while masking his phone number and location.
In addition to the prison term, Judge Wigenton sentenced Reid to three years of supervised release and ordered him to pay restitution of $577,703.78.
Anyone with information regarding possible victims of this activity is urged to contact the U.S. Postal Inspectors in Newark at 973-693-5400.
Acting U.S. Attorney Fitzpatrick credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin, and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Illegal Alien Sentenced to Prison for Possession of a FirearmRead the Press Release
Gulfport, Miss. – On Wednesday, November 15, 2017, Rodrigo Hernandez-Garcia, 32, an illegal alien living in Bay St. Louis, Mississippi, was sentenced by Senior U.S. District Judge Louis Guirola, Jr., to 8 months in federal prison for possession of a firearm by an illegal alien, announced U. S. Attorney Mike Hurst and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement, Homeland Security Investigations, in New Orleans.
Hernandez-Garcia was ordered to be turned over to Immigration officials for deportation to Mexico upon completion of his sentence.
This case was investigated by Immigration Customs Enforcement, Homeland Security Investigations, and prosecuted by Assistant U.S. Attorney Annette Williams.
Illegal Alien Sentenced to Prison for Possessing FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Efrain Cordoba Carrera (30, Plant City) to two years in federal prison for being an illegal alien in possession of a firearm. He pleaded guilty on August 17, 2017.
According to court documents, law enforcement officers executed a search warrant at a residence in Plant City based on evidence that Fausto Beltran Sedano and Lazaro Sandobal Gonzalez were counterfeiting identity documents, such as lawful permanent resident alien cards (also known as green cards) and social security cards, to allow undocumented individuals to unlawfully obtain employment and continue their unlawful presence in the United States. During the execution of the warrant, an arsenal of weapons was found in Carrera’s bedroom, including 11 firearms and hundreds of rounds of ammunition. Two of the firearms had high-capacity magazines and the serial number on one of them was obliterated. Carrera was prohibited from possessing the firearms and ammunition because he was unlawfully present in the United States.
"This criminal not only violated our nation's immigration laws, but also illegally possessed more than 10 weapons," said HSI Tampa Special Agent in Charge James C. Spero. "Our communities are safer today because of the hard work of our HSI special agents."
In July 2017, Lazaro Sandobal Gonzalez was sentenced to eight months’ imprisonment for transferring a false identification document knowing that it had been produced without lawful authority. In September 2017, Fausto Beltran Sedano was sentenced to 15 months’ imprisonment on the same charge.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Adam M. Saltzman.
INTERPOL Washington Attends 2017 IPR Center SymposiumRead the Press Release
On November 15, 2017, INTERPOL Washington—the U.S. National Central Bureau--staff members participated in the 2017 Intellectual Property Rights (IPR) Center Symposium, “Solving the E-Commerce Puzzle.” Held at the National IPR Coordination Center in Arlington, Virginia, the symposium brought together over 150 business, industry, government and law enforcement leaders to explore the challenges in combatting e-commerce crime.
Harrison County man sentenced for firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Matthew E. Boone, of Clarksburg, West Virginia, was sentenced today to 46 months incarceration for unlawful possession of a firearm, United States Attorney Bill Powell announced.
Boone, age 32, pled guilty to one count of “Unlawful Possession of a Firearm” in June 2017. Boone, having previously been convicted of heroin distribution in United States District Court, and five felonies in Harrison County Circuit Court, admitted to having a 9mm pistol in his possession. The crime occurred in January 2017 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.Hamden Man Pleads Guilty to Distributing Fentanyl Disguised as OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that AGUSTIN CIRINO, 29, of Hamden, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to distributing fentanyl disguised as oxycodone.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 9, 2017, the Hamden Police Department and emergency medical personnel responded to a Hamden residence where a 30-year-old male was found deceased. At the scene, investigators seized drug and non-drug evidence, including three suspected oxycodone tablets and the victim’s cellphone. The investigation revealed that the victim arranged to purchase oxycodone tablets from CIRINO on March 7 and March 8.
The DEA Northeast Laboratory subsequently determined that the seized tablets contained fentanyl, acetaminophen and dipyrone, not oxycodone. The Office of the Chief Medical Examiner also determined that the victim died as a result of “acute fentanyl toxicity, clonazepam, duloxetine use.”
CIRINO was arrested on May 9, 2017. Today, he pleaded guilty to one count of possession with intent to distribute, and distribution of fentanyl, an offense that carries a maximum term of imprisonment of 20 years. Chief Judge Hall scheduled sentencing for March 1, 2018.
CIRINO is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hamden Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Guns Purchased for Oregon Felon Found in CaliforniaRead the Press Release
PORTLAND, Ore. – Sylis Terrance Thomas, 25, of Salem, Oregon, and Lakisha Berry, 25, also of Salem, Oregon, were sentenced today by U.S. District Court Judge Anna J. Brown for conspiring to make false statements to two Salem-area gun retailers during the purchase of 11 firearms. Both defendants previously entered guilty pleas and have been out of custody since their arrest on federal charges. Thomas received a sentence of 24 months imprisonment and Berry received a sentence of 12 months imprisonment. Both will serve three years of supervised release following the completion of their prison sentences.
This investigation began when Salem Police notified the Bureau of Alcohol, Tobacco and Firearms of Thomas’s October 1, 2015 purchase of 9 handguns from The Pawn Shop and two handguns from the Sportsman’s Warehouse, both Federal Firearms Licensees in Salem. ATF Agents subsequently obtained video footage of Berry inside the gun shop with another individual who appeared to be selecting the guns while Berry stood nearby. At the conclusion of both sales, Berry signed federally required sales documents, in which she declared that she was the actual buyer and that the weapons were not purchased on behalf of another. Agents were able to identify the other person as Sylis Terrance Thomas, a convicted felon, prohibited by law from possessing firearms. Agents learned that two weeks after Berry bought the guns, one of the handguns was recovered in Oakland, California, during the course of an investigation into an attempted murder and robbery. Oakland Police did not get any information about the gun except that it was bought on the street for $450.
On October 23, 2015, agents served a federal search warrant at defendant Thomas’s residence. During the search warrant, Thomas told agents that he gave Berry most of the money to buy the guns and that he wanted the firearms for protection. He stated that he was “highly aware” that he was not allowed to purchase or possess firearms, so he asked defendant Berry to buy him the guns. Although Thomas stated that Berry knew he could not have firearms, she agreed to purchase them.
Using the defendant’s cell phone records and other investigative tools, Agents determined that both Berry and Thomas left the Salem area immediately following their purchases, travelling south on I-5 to the Oakland, California, area. Thomas later admitted that he and Berry sold the guns for cash to people he knew in Sacramento.
On November 27, 2015, the California Highway Patrol recovered a Sig Sauer pistol from a driver during a routine traffic stop. That gun had also purchased by Berry. To date, the whereabouts of the other 9 firearms is unknown.
This case was investigated by the Salem Police, and the ATF and was prosecuted by Assistant U.S. Attorney Greg Nyhus.
Gunman sentenced to 32 years in prison for serial commercial robbery spreeRead the Press Release
ATLANTA - Deanthony Foster has been sentenced to 32 years in prison for participating in armed robberies of seven commercial businesses in the Atlanta area, including Wal-Mart Stores and Citgo Stores. Foster carried a gun in all of the robberies, pointed the gun at employees, and actually shot into the floor at one of the Wal-Mart robberies while demanding money. He coordinated with other individuals who acted as lookouts by cell phone.
“Foster cared nothing for people or their safety while he sought to enrich himself at the end of a gun,” said U. S. Attorney Byung J. “BJay” Pak. “He seriously injured one individual and terrorized many others, including employees and members of the public by displaying a firearm, and in one instance, discharging a firearm. His sentence is lengthy and reflective of the seriousness of his crime.”
“Mr. Foster was responsible for a violent crime spree where others were seriously hurt. As a result of much hard work by many law enforcement agencies working together with federal prosecutors, this sentencing in federal court to a lengthy prison sentence will not only hold him accountable but will make our community a safer place for all,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the charges and other information presented in court: From May 15, 2015 to October 26, 2015, Deanthony Foster and others carried out a series of armed robberies before they were identified by the FBI and other law enforcement agencies. Six of the robberies targeted Wal-Mart Stores. The defendants researched the locations of the stores in Fulton, DeKalb, Gwinnett and Cobb Counties, and then conducted surveillance before and during the robberies. They communicated by cell phone before and after each robbery, always with one or two of them acting as getaway drivers waiting in the parking lot. The lookouts were captured on in-store videos while talking on their cell phones and casing the stores.
In each robbery, Foster, also captured on video, entered the stores wearing a surgical mask, with a gun in his hand, and demanded money from employees who were emptying cash registers. In the last robbery of this series, Foster discharged his gun into the floor near the employees when they did not immediately meet his demands for money.
After the indictment, law enforcement agents found that the defendant had participated in another commercial robbery in Cobb County where he shot an employee in the leg when the victim struggled with him.
Deanthony Foster, 28, of Atlanta, Georgia, has been sentenced to 32 years in prison to be followed by three years of supervised release, ordered to pay restitution in the amount of $24,791.00, and a special assessment of $200. Foster was convicted on these charges on August 11, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, the Police Departments of Cobb County, DeKalb County, Gwinnett County, Hapeville, Roswell, Riverdale, Dunwoody, and the Forsyth County Sheriff's Office.
Assistant U.S. Attorneys Katherine M. Hoffer and Jessica C. Morris 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.
Gulfport Man Pleads Guilty to Two Charges of Possession of Firearms by a FelonRead the Press Release
Gulfport, Miss. – On Tuesday, November 14, 2017, Cornell Lamar Abram, 38, of Gulfport, pled guilty before Senior U.S. District Judge Louis Guirola, Jr., to two separate indictments charging him with possession of a firearm by a convicted felon and possession of ammunition by a convicted felon, announced U.S. Attorney Mike Hurst.
The first indictment was filed in the Southern District of Mississippi in 2015. The case was investigated by the Gulfport Police Department and the Drug Enforcement Administration.
The second indictment was filed in the Northern District of Alabama in 2017. That case was investigated by the Birmingham, Alabama, Police Department and transferred to the Southern District of Mississippi. The cases are being prosecuted by Assistant U.S. Attorney Annette Williams.
Abram will be sentenced on February 15, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine in each case.
Guatemalan National Sentenced for Illegally Re-entryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that VENACIO ORTIZ-LEON age 29, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced ORTIZ-LEON to time served and a $100 special assessment. ORTIZ-LEON will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about June 3, 2017, ORTIZ-LEON was found in the United States after having been officially deported and removed on or about January 27, 2011.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Cecilio Castro-Zacarias, 38, pleaded guilty to one count of one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 15, 2018.
In September 2017, law enforcement in New Bedford encountered Castro-Zacarias and determined him to be unlawfully present in the United States. Castro-Zacarias was previously deported on Aug. 12, 2005.
Castro-Zacarias faces up to two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Guatemalan National Charged with Illegal ReentryRead the Press Release
BOSTON – Gilberto Ramirez-Ramirez, 27, was charged today in federal court in Boston with one count of unlawful reentry of a deported alien.
According to the indictment, law enforcement in Lynn encountered Ramirez-Ramirez in April 2017 and determined him to be illegally present in the United States. Ramirez-Ramirez was previously deported in March 2016.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Ramirez-Ramirez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Georgia Man Sentenced for Cyber Crime That Cost Sedgwick County $566,000+Read the Press Release
WICHITA, KAN. - A Georgia man was sentenced Wednesday to 27 months in federal prison for his part in an e-mail spoofing scheme that cost Sedgwick County more than $566,000, U.S. Attorney Tom Beall said.
George S. James, 49, Brookhaven, Ga., pleaded guilty to one count of wire fraud.
In his plea, James admitted that on Oct. 7, 2016, Sedgwick County sent approximately $566,088 to his bank account at a Wells Fargo bank in Georgia. James transferred part of the money he received from Sedgwick County to a bank account in Shanghai, China, and part of the money to an account at Deutsche Bank in Bremen, Germany. James also spent some of the money.
In his plea, James denied that the fraud scheme was his idea. He said that on Sept. 23, 2016, he was contacted by a person identified in court records as A.H., who asked to deposit some money into James’ account at Wells Fargo. James said he knew A.H. was engaged in fraud, but James denied knowing that Sedgwick County was the victim.
In his plea, James said it was A.H. – or someone working with A.H. – who sent an email to Sedgwick County on Sept. 23, 2016, purporting to be from Cornejo and Sons, LLC, and requesting the county send future payments to a new account number at Wells Fargo. On Oct. 7, 2016, the county sent $566,088 to James’ account at Wells Fargo. The county learned later that Cornejo did not request the change of account and did not receive the payment.
Beall commended the FBI, the Sedgwick County Sheriff’s Office, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Fourteen with ties to violent YNB Stretch Gang indicted for drug and firearm offensesRead the Press Release
DALLAS — Fourteen defendants have been charged in a federal indictment, unsealed yesterday, with felony offenses stemming from their role in a Dallas–based criminal street gang known as “YNB Stretch Gang” and a drug distribution group known as “2600 Money Block,” announced U.S. Attorney John Parker of the Northern District of Texas.
“These violent, drug-dealing gangs should be on notice,” said U.S. Attorney Parker. “We’re going after them wherever they are.”
Ten defendants, mostly from Dallas, were arrested earlier last week and one is in custody on state charges. Those arrested made their initial appearances in federal court and were detained. Three remain fugitives.
In connection with the takedown, law enforcement seized quantities of cocaine, crack cocaine, PCP, prescription pills, marijuana and multiple firearms, including an assault rifle.
The 26-count indictment charges the following: Nykees Earl Campbell, aka “#1,” “NaNa,” “Ny-Nizzle,” 19; Avery Wayne Davis, aka “AD,” 36; Demond Lynn, aka “Slime,” 36; Kearwon Dmargo Magee, 23; Rodney Eugene Roquemore, aka “Turbo,” 31; Lawrence Williams, aka “One Eye”; Kris Landon Greene, aka “#5,” 20; Bryson Deontae Bright, 24; Ralph Earl Campbell III, 22; Garry Dewayne Newton, aka “#4,” 20; Stacy Moore, aka “Jay,” 23; Marcus Jackson, aka “Marty-Mar,” 23; Mitchell Holmes; Cedric Charles Witcher, 22.
The indictment alleges, beginning in January 2016, the defendants used an area in Dallas referred to as “2600 Money Block” to cut, package and distribute cocaine, crack cocaine, marijuana, methamphetamine and ecstasy/OxyContin pills to numerous customers. The proceeds from the sale of drugs were used to produce music videos glorifying acts of violence and promoting the lifestyle of YNB Stretch Gang members and associates.
Prosecutors are seeking to forfeit several things used as part of or as a result of the criminal conspiracy, including multiple firearms.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
This indictment is the result of an investigation by the Bureau of Alcohol Tobacco and Firearms, United States Marshal’s Service, Dallas Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert.
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