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8 January 2018
Former University of the Nations CFO Sentenced to 115 Months in Prison for Wire FraudRead the Press Release
HONOLULU – Pablo M. Rivera, age 42, formerly a resident of Colorado and Hawaii, was sentenced today to 115 months in federal prison for committing a wire fraud offense by which he obtained approximately $3,096,241 from the University of the Nations (UOFN) on the island of Hawaii.
Kenji M. Price, United States Attorney for the District of Hawaii, said that according to documents filed in this case and information presented in court, Rivera served as Chief Financial Officer for UOFN from July 2014 to January 2017. During that time, UOFN had construction projects on its campus, and invoices were sent to Rivera for his approval. According to the Criminal Information, Rivera created a scheme under which he persuaded a contractor to allow him to have signatory authority over its account. Rivera then created and submitted false invoices to UOFN, approved them, and took money from the contractor’s account once funds were transferred by UOFN. Rivera pled guilty to wire fraud in May 2017.
At today’s sentencing, Senior U.S. District Judge Susan Oki Mollway found that Rivera abused a position of trust, and took advantage of others to steal millions from UOFN. Judge Mollway noted that Rivera did not need to defraud UOFN to make ends meet, and had used the fraud proceeds to buy a gold mine in Africa, stocks and diamonds, and to pay for spa treatments. Judge Mollway also found that, when the government suggested he was hiding diamonds, Rivera submitted a fraudulent and altered email to the Court, which constituted an attempt to obstruct justice. Citing the need to protect the public from Rivera’s future crimes, Judge Mollway sentenced him to 115 months in jail, which will be followed by a 36-month term of supervised release. Rivera was also ordered to pay UOFN $3,128,194 in restitution, which included the university’s losses, and costs of investigation. Rivera will also be ordered to forfeit various assets and accounts traceable to his fraud scheme.
Rivera has been in custody at the Federal Detention Center in Honolulu since December 2017, and remains there pending designation of a facility on the mainland.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by by Assistant U.S. Attorney Michael Nammar.
Former U.S. Postal Service Employee Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former postal employee pleaded guilty today to embezzling over $22,000 from the U.S. Postal Service (USPS).
Dennis Reis, 37, of Taunton, pleaded guilty to one count of embezzlement and theft of public money, property or records before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for April 25, 2018.
Reis had been employed by the USPS since approximately 2000, and was the Lead Sales & Service Associate at the East Taunton Post Office since 2014. In that capacity, Reis sold stamps to customers and maintained accountability for the funds and stamp stock. From January 2015 to March 2017, Reis engaged in a scheme to embezzle funds by voiding cash transaction sales of stamps so that the system did not account for the cash paid by customers. Reis then entered a “no sale” transaction into the system, causing the cash drawer to open and taking the cash paid by customers for his own use. Through this scheme, Reis embezzled at least $22,773 from the USPS.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Former Treasurer of Teays Valley Volunteer Fire Department pleads guilty for embezzlementRead the Press Release
HUNTINGTON, W.Va. – A Hurricane woman pleaded guilty today for embezzling over $75,000 from the Teays Valley Volunteer Fire Department, announced United States Attorney Carol Casto. Kathy Sue Gwinn, 52, entered her guilty plea to theft from a program receiving federal funds.
Gwinn formerly served as the Treasurer of the Teays Valley Volunteer Fire Department. As Treasurer, she generated payroll checks for firefighters and signed the payroll checks on a fire department bank account. Gwinn admitted that she volunteered for the fire department, and had no authority to write herself checks, nor was she entitled to wages, salary, or compensation for her role as Treasurer. She further admitted that beginning in October 2014, and continuing through March 2017, she printed and wrote herself unauthorized checks from the fire department’s payroll account, noting on the memo line of the checks that the checks were for payroll, overtime, or tax preparation. She admitted that she moved money from one fire department bank account into the bank account primarily used for payroll, and when she transferred those funds, she inflated the amount of the transfer to include enough to cover the unauthorized checks she planned to write to herself. Over the course of her scheme, she embezzled $75,356.70. As part of her plea agreement, Gwinn has agreed to pay this amount in restitution.
During the period Gwinn embezzled funds, the Teays Valley Volunteer Fire Department received grants from the Federal Emergency Management Agency, an agency of the United States Department of Homeland Security. These grants allowed the fire department to pay firefighters and to purchase and maintain equipment.
Gwinn faces up to 10 years in federal prison when she is sentenced on April 9, 2018.
The Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Office of Inspector General for the U.S. Department of Homeland Security, and the West Virginia Commission on Special Investigations conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Former Teacher Extradited from United Kingdom to Face Charges He Sexually Abused StudentsRead the Press Release
WASHINGTON - Robert Wilson Leach, 33, of Silver Spring, Md., has been extradited from the United Kingdom on charges alleging that he sexually abused his female middle school students while working as a math teacher at a public charter school in Northwest Washington.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department, and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Leach was arrested in July 2015 in the United Kingdom, and has been incarcerated since that time while he contested extradition to the United States for 2 ½ years. Leach was brought to the United States on Jan. 5, 2018, and made his first appearance in the Superior Court of the District of Columbia. He was ordered detained pending a detention hearing set for Jan. 10, 2018, before the Honorable Judge Milton C. Lee.
The indictment charges Leach with multiple sexual offenses against two children: two counts of first-degree sexual abuse with aggravating circumstances, one count of second-degree child sexual abuse with aggravating circumstances, four counts of enticing a child with aggravating circumstances, and sexual performance of a minor. The indictment also charged Leach with assault as to a third child victim, but that charge was not extraditable.
According to the government’s evidence, the sexual abuse of Leach’s students began in 2011, when his first victim was 12 years old and in the defendant’s seventh-grade math class at Meridian Public Charter School. The abuse allegedly continued until Dec. 31, 2013, when another victim’s mother discovered the abuse and threatened to report Leach to the police. The defendant, a United States citizen, departed the Washington, D.C. area the same day and flew to the Grand Cayman Islands. He never returned to work at the middle school, and subsequently moved to the United Arab Emirates to work as a teacher.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the Metropolitan Police Department. The Department of Justice’s Office of International Affairs and the U.S. Department of State provided substantial assistance in securing extradition.
Assistance has been provided by the United States Marshals Service, INTERPOL Washington, the United States Department of State’s Diplomatic Security Service, and the United Kingdom’s Metropolitan Police Service.
The case is being prosecuted by Assistant U.S. Attorneys John L. Hill and Julianne Johnston of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Angelina Slagle and Jessica Moffatt and Victim/Witness Advocate Elsa Maltese.
Former HCC Trustee Sent to Prison for Bribery ConvictionRead the Press Release
HOUSTON – A former trustee with Houston Community College (HCC) has been ordered to federal prison following his conviction of bribery of a public official concerning programs receiving federal funds, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI. Chris Oliver, 53, of Houston, pleaded guilty May 15, 2017.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Oliver a 70-month sentence. At the hearing, additional testimony was presented including the fact that Oliver had maintained a position of trust as an elected official, but nonetheless, chose to engage in this criminal activity. It was also noted that the bribes took place over an extended period of time, beginning in 2009 and continuing through 2016. Oliver was further ordered to pay a $12,000 in forfeiture to the FBI and will be required to serve a one-year-term of supervised release following completion of the prison term. In handing down the sentence, Judge Gilmore noted that Oliver had been on the board of trustees for approximately 21 years and that the sentence was necessary to take into account the number and amount of bribes Oliver had received, to reflect the seriousness of the offense, to promote respect for the law and provide adequate deterrence.
“Public officials who use their position for private gain undermine the integrity of government and erode the public's trust in the very framework of our democracy. Today's sentence sends a strong message of the consequences of such actions,” said Turner. “The FBI stands firm with local, state and federal partners in an unwavering commitment to combat public corruption and hold accountable those who choose to abuse the privilege of serving the American people. We rely heavily on the public's help in investigating these crimes and urge anyone with information related to public corruption to report it to the FBI.”
At the time of his guilty plea, Oliver admitted he accepted bribes in exchange for the promise of official actions related to his duties as a member of the HCC board of trustees. It was revealed in open court at the plea hearing that Oliver met with another individual on several occasions at various restaurants and coffee shops in Houston where he accepted cash payments in exchange for promising to use his position to help that person secure contracts with HCC.
Oliver later resigned from his position
Oliver 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 FBI conducted the investigation with assistance from the Department of Education - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Julie Searle are prosecuting the case.
If you have information regarding public corruption in the Houston area, please contact the FBI helpline at 713-693-5000.
Former Ellis County Sherriff’s Office Employee Sentenced for Stealing and Selling FirearmsRead the Press Release
DALLAS —Philip Gary Slaughter, 42, of Mesquite, Texas, was sentenced last week by U.S. District Judge Sidney A. Fitzwater to 15 months in federal prison, following his guilty plea in May 2017 to one count of possession or sale of stolen firearms, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Thomas Glen Smith, 50, was charged in a separate but related case and also pleaded guilty to his role. Smith is scheduled to be sentenced on January 18, 2018 by U.S. District Judge Jane J. Boyle.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff’s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey, Joseph Magliolo, and Errin Martin prosecuted.
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Florida man sentenced for tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA –Herbert V. Tremble, II, 49, of Florida, was sentenced today to six months incarceration, to be followed by six months of home detention, for tax and bank fraud, United States Attorney Bill Powell announced.
Tremble pled guilty to one count of “Corrupt Endeavor to Obstruct and Impede the Due Administration of Internal Revenue Laws” on September 6, 2017. Tremble did not file partnership tax returns and corporate tax returns for his multiple businesses in Morgantown, West Virginia between 2008 and 2012. He also failed to file or pay personal income taxes from 2004 through 2012.
Tremble was also ordered to pay $58,504.38 in restitution.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Senior U.S. District Judge Irene M. Keeley presided.
Florida Man Sentenced to 2 Years in Prison for Money LaunderingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On January 5, 2018, United States District Judge George L. Russell III sentenced Eugenio Labra, age 33, of Miami, Florida to two years in prison, followed by three years of supervised release, for his participation in a nationwide scheme to steal nearly $9 million from individuals nationwide by impersonating Internal Revenue Service (IRS) agents and other confidence scams. Judge Russell also ordered Labra to pay restitution in the amount of $28,671.32.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the plea agreement, from August 2015 until November 2015, Labra and his co-conspirators engaged in various fraud schemes, including a scheme in which they purported to be employees of the IRS and would call and threaten victims with legal action, arrest, and imprisonment for a supposed debt owed to the IRS. The callers made these threats and used other methods of intimidation to persuade the victims to wire money through MoneyGram and other money transmitters.
On November 17, 2015, the Maryland State Police (MSP) stopped Labra as part of a routine traffic stop. After a canine alerted positive for the presence of narcotics in the vehicle, MSP searched the vehicle and recovered two fake Florida driver's licenses in the names of Lavern Torres Baldi and Jack Torres, and two fake social security cards in the names of Jack Torres and Johnny Lopez. Investigators later determined that Labra used these identities, as well as his own identity, to collect from MoneyGram over $550,000 of the proceeds from his co-conspirators’ fraud. He then deposited the stolen money into bank accounts to help launder it.
In addition to Maryland, investigators located wire transfer collections as part of the scheme in the following states: Florida, Kansas, Illinois, South Carolina, North Carolina, Virginia, Pennsylvania, Massachusetts, and Washington, D.C. Labra pleaded guilty to one count of money laundering in connection with his activities.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore and IRS- CI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Dana J. Brusca and Jefferson M. Gray, who prosecuted the case.
Felon from Carlsbad Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ricardo Javier Garza, 41, of Carlsbad, N.M., pled guilty this morning in Las Cruces, N.M., federal court to violating the federal firearms laws by unlawfully possessing a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Garza on May 4, 2017, on a criminal complaint charging him with being a felon in possession of a firearm on March 5, 2014, in Eddy County, N.M. According to the complaint, law enforcement officers found a firearm and multiple rounds of ammunition in Garza’s residence after receiving a tip from Eddy County Crime Stoppers that Garza, a convicted felon, was in possession of stolen firearms.
Garza subsequently was indicted on Sept. 13, 2017, and was charged with being a felon in possession of a firearm and ammunition on March 5, 2014, in Eddy County. According to the indictment, Garza was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated burglary, larceny with a firearm, and receiving stolen property.
During today’s proceedings, Garza entered a guilty plea to the indictment without the benefit of a plea agreement. At sentencing, Garza faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Feds charge Cobb County man with murder for hireRead the Press Release
ATLANTA - Michael McEarchern has been arraigned on federal charges for attempting to use the U.S. mail and telephone communications to hire someone to kill his ex-wife. McEarchern was indicted by a federal grand jury on January 3, 2018.
“This defendant’s alleged actions indicate that he was serious about having his ex-wife murdered,” said U.S. Attorney Byung J. “BJay” Pak. “By providing an address and up-front money for the would-be assassin, McEarchern left little doubt that if the threat had not been discovered he may have found someone to carry out the heinous deed.”
“This case is another example of the lengths the FBI will go, to protect the citizens of this country,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The arrest demonstrates how law enforcement, working together with concerned citizens, can hold criminals accountable and prevent violence from happening in our communities.”
According to U.S. Attorney Pak, the charges, and other information presented in court: McEarchern was an inmate at the jail in Bartow County, Georgia, having been arrested on drugs charges in October 2017. While incarcerated, McEarchern reached out to several individuals trying to find someone who could arrange for the murder of his ex-wife, who lived in Cobb County. One individual told a friend of McEarchern’s desire to kill his ex-wife, and that person reported the crime to the FBI. To ensure that McEarchern was serious about seeking someone to carry out the murder, the FBI waited for McEarchern to reach out to the informant, which he did.
Believing that he was setting up the killing of his ex-wife, McEarchern agreed to pay $10,000 in cash and two tickets to an Atlanta Hawks basketball game in payment. Additionally, to show that he was serious, he had $800 in cash mailed to the assassin. Jail recordings captured McEarchern providing the address to the person who he asked to mail the money for him. The FBI retrieved an envelope containing the $800 with a return address of the person who sent the money on McEarchern’s instruction. The defendant also provided an address where the assassin could find the ex-wife.
Michael McEarchern, 29, of Acworth, Ga., was arraigned before U.S. Magistrate Judge Walter E. Johnson. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, with help from the Bartow County Sheriff’s Office.
Assistant U.S. Attorney Kim S. Dammers is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal, State, and Local Law Enforcement Agencies Unite to Combat Human TraffickingRead the Press Release
Tampa, FL – In recognition of National Slavery and Human Trafficking Prevention Month, U.S. Attorney Maria Chapa Lopez, Deputy Attorney General Rod Rosenstein, and various Middle District of Florida (MDFL) law enforcement executives highlighted recent human trafficking prosecutions in the MDFL during a presentation in Tampa today.
In 2017, the United States Attorney’s Office, in partnership with numerous federal, state, and local agencies, brought charges against individuals for human trafficking where victims, including minors, have been forced to commit commercial sex acts and engage in sex tourism.
“Investigating and prosecuting human trafficking remains a priority for our district,” stated U.S. Attorney Chapa Lopez. “In order to tackle this problem, we must continue to collaborate with our law enforcement and other partners to bring human traffickers to justice and assist trafficking survivors.”
MDFL Human Trafficking Case Highlights
U.S. v. Rowy Vasquez – Vasquez (27, Altamonte Springs) provided a 14-year-old girl, who had run away from home, with a cellphone so that she could post advertisements for prostitution services online and communicate with potential customers. He also set the prices for her sex acts and kept all of the proceeds. Vasquez pleaded guilty to sex trafficking a minor and was sentenced to 30 years in federal prison.
U.S. v. Abdhullah Hamidullah – Hamidullah (44) lured a young woman to travel to Florida on false pretenses, then forced her to engage in commercial sex acts with multiple customers a day for several months, and provide him the proceeds. He isolated her in his apartment, took away her money and phone, and installed an alarm without providing her the code. He also assaulted her, showed her his handgun, and branded her with a tattoo in the course of compelling her to prostitute for his profit. Hamidullah pleaded guilty to sex trafficking and to enticing and transporting individuals for prostitution. He was sentenced to 40 years and 2 months in federal prison. He was also ordered to pay $1.179 million in restitution to his victims.
U.S. v. Gary Paul Moorman – Moorman (35, Cincinnati, OH) systematically and violently abused multiple victims and induced them, against their wills, to travel between Florida, Ohio, and elsewhere to commit acts of prostitution. He took provocative photos of the victims and posted prostitution advertisements online. After the victims were forced to provide the sex acts, Moorman demanded and took all of the proceeds for himself. Moorman pleaded guilty to inducement to travel to engage in criminal sexual activity and was sentenced to 20 years in federal prison.
U.S. v. Michael Gallon, U.S. v. Kavin Carter, U.S. v. Thomas Carr – Gallon (52, Lakeland) recruited minor and adult women to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. Gallon partnered with Carter (42, Lake City), who co-hosted parties at his home, and they charged the women to use the “VIP” rooms and kept most of the money the women had earned. Carr (50, Jacksonville) was identified as one of Gallon’s regular customers. Gallon would call Carr when he had girls available and the two would meet so that Carr could select girls to take back to his home. Gallon pleaded guilty to sex trafficking a minor and distributing child pornography and was sentenced to 33 years and 9 months in federal prison. Carter pleaded guilty to sex trafficking and was sentenced to 16 years in federal prison. A federal jury in Jacksonville found Carr guilty of using underage girls to engage in sexually explicit conduct for the purpose of producing child pornography. He is scheduled to be sentenced on January 23, 2018.
U.S. v. Xavier Villanueva, Jose Carmona, Ashley Barnett, and Keith Romby – Orlando residents Villanueva (28), Carmona (24), Barnett (28), and Romby (27) agreed to recruit and entice a 14-year-old girl to engage in commercial sex acts. Over a period of nine days, they used drugs, intimidation, and physical restraint to cause the minor to engage in prostitution with customers they solicited online. The minor ultimately escaped from the house where she was being held captive. Villanueva, Carmona, and Romby were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. A federal jury found Villanueva, Carmona, and Barnett guilty of conspiracy to commit sex trafficking of a minor. Carmona and Barnett were also found guilty of aiding and abetting each other in the commission of the offense. Romby pleaded guilty to both charges. Villanueva was sentenced to 19 years and 7 months in federal prison; Carmona was sentenced to a term of 12 years and 6 months; Barnett was sentenced to 10 years’ imprisonment; and Romby was sentenced to 8 years and 4 months in federal prison.
U.S. v. Maurice Williams and Antawan Hudson – Tampa brothers Williams (32) and Hudson (27) worked together to post online prostitution ads for underage females and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments. Hudson pleaded guilty to sex trafficking minors on the first day of trial and was sentenced to 30 years in federal prison. A federal jury found Williams guilty of child sex trafficking and possessing child pornography; he was sentenced to 40 years in federal prison.
U.S. v. Kennedy Harris, Jr. – Harris (24, Cocoa) took in a 16-year girl, after she ran away from home. He took sexually suggestive photographs of the girl and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the teen had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the girl crack cocaine nearly every day. The victim was recovered by the Cocoa Police Department. A federal jury found Kennedy guilty of sex trafficking a child and producing child pornography. In May 2017, he was sentenced to 30 years in federal prison.
U.S. v. Alysia Algere – Algere, a/k/a “Coco” (30, Tampa), recruited two boys and a girl, who were between 14 and 16 years of age, to engage in commercial sex acts. She took sexually explicit photos of the teens and posted advertisements on online, selling them for sex. After pleading guilty, she was sentenced to 15 years in federal prison for sex trafficking.
U.S. v. Devin Pemberton – Pemberton (40, Tampa) recruited adult and minor women, via the Internet, to work for his “escort” business. Law enforcement identified multiple women, including at least three minors that he had trafficked. Pemberton recruited his victims and took photographs of them in sexually explicit clothing. He posted the photos online, scheduled clients for them to meet with, and provided housing and hotel rooms for the sex acts. He then took the proceeds from the sex acts. Pemberton was sentenced to 17 years and 6 months in federal prison.
U.S. v. Nathan Madsen – Madsen (37, Tampa), a music professor at the University of Tampa, was sentenced to nearly 18 years in federal prison for enticing a child to produce child pornography, and for possessing child pornography. Madsen responded to an online ad for prostitution services posted by Homeland Security Investigations. He requested and negotiated the price to have sex with a 14-year-old-girl. In an attempt to verify the existence of the minor, Madsen asked for her picture, spoke to her on the phone, withdrew money from the ATM, drove to the designated location, and met with an undercover special agent. Madsen paid the agent $140 to have sex with the teen. After his arrest, law enforcement determined that Madsen had engaged in a series of sexually explicit online conversations with a 16-year-old girl and had persuaded her to produce explicit images and videos for his personal benefit. At the time of his arrest, Madsen had 61 images and 14 videos of the girl, at least some of which depicted violence.
Farmington Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Alexis Tarango, 22, of Farmington, N.M., pled guilty last week in federal court in Santa Fe, N.M., to a methamphetamine trafficking charge.
Tarango was arrested on July 13, 2017, on indictment charging him with possession of more than 50 grams of methamphetamine with intent to distribute on Jan. 30, 2016, in San Juan County, N.M. On Jan. 5, 2018, Tarango entered a guilty plea to the indictment without the benefit of a plea agreement.
At sentencing, Tarango faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison.
This case was investigated by the Farmington office of the FBI and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Margaret M. Vierbuchen is prosecuting the case.
Essex County, New Jersey, Man Pleads Guilty to Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing a TD bank in Newark in May 2017, U.S. Attorney Craig Carpenito announced.
Tyrone Anderson, 46, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of bank robbery.
According to the documents filed in this case and statements made in court:
Anderson admitted that during the May 26, 2017 bank robbery, he handed a teller a hand-written note demanding cash and threatening the teller to “make it quick.” Anderson then took cash from the teller and fled. Fingerprints recovered from the scene of the robbery led to Anderson’s arrest several days later.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Anderson’s sentencing is scheduled for April 16, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark
District Woman Sentenced to 45 Years in Prison for Beating Death of Three-Year-Old SonRead the Press Release
WASHINGTON – Francis Lyles, 29, of Washington, D.C., was sentenced today to 45 years in prison on charges of felony murder and first-degree cruelty to children in the beating death of her three-year-old son in June 2014, U.S. Attorney Jessie K. Liu announced.
Lyles was found guilty by a jury in November 2017, following a trial in the Superior Court of the District of Columbia. She was sentenced by the Honorable Zoe Bush. Following her prison term, Lyles will be placed on five years of supervised release.
According to the government’s evidence, on June 18, 2014, Lyles beat her three-year-old son, Xavier, for upsetting her newborn’s bouncer seat. On June 23, 2014, at about 8:30 p.m., Lyles became upset again with her son, who had been running through their apartment in Southeast Washington. She repeatedly beat him with her hands and/or fists, causing multiple bruises and a lacerated liver. She used so much force that the child’s kidney avulsed from the urethral casing. Xavier lost approximately one third of his blood from internal bleeding. He vomited and was left unattended without food, water or medical treatment for about 15 hours.
At about 11 a.m. on June 24, 2014, Lyles entered the child’s room and tried to wake him. He was not moving or breathing. Lyles first called her cousin and then called 911 for an ambulance. The District of Columbia Department of Fire and Emergency Medical Services came to the residence, and Xavier was pronounced dead in the ambulance. The District of Columbia’s Office of the Chief Medical Examiner determined that Xavier died from multiple blunt force injuries and the cause of death was homicide.
Initially, Lyles led law enforcement to believe that her boyfriend had beaten the child when she left Xavier in his care. The boyfriend lived with Lyles and her children in the apartment. For weeks, law enforcement followed her information and leads. As the investigation continued, however, the prosecution learned that, contrary to her statements, Lyles was responsible for the death of her son. Lyles’s cousin had an app which recorded all of their incoming and outgoing phone calls. Several calls were found in which the defendant admitted to having “whooped “her son on several occasions. According to the medical examiner’s office, the child had more than 70 injuries.
Lyles was arrested on Sept. 16, 2014, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu expressed appreciation for the work the Metropolitan Police Department, the U.S. Marshal’s Service, and the U.S. Secret Service. She also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences.
U.S. Attorney Liu acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Laura R. Bach, Michelle D. Jackson, Lindsey Merikas, Chrisellen Kolb, and John Mannarino; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocates Marcia Rinker, Jennifer Clark, Karen Giannakoulias, and Tracy Owusu; Liaison and Operations Manager Linda McDonald; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Kelly Blakeney, Mia Beamon, Alesha Matthews, Meridith McGarrity, Stephanie Gilbert, and Lornce Applewhite; Criminal Investigators Durand Odom, Tommy Miller, John Marsh, Melissa Matthew, Nelson Rhone, Mark Crawford, Shannon Alexis, Sharon Johnson, and Zachary McMenamin, and Litigation Technology Specialists Anisha Bhatia, Paul Howell, Jeannie Latimore-Brown, Joshua Ellen, and Leif Hickling.
Finally, she expressed appreciation for the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
Corpus Christi Man Heads to Prison for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 53-year-old resident of Corpus Christi has been ordered to prison after admitting he attempted to meet two underage girls for the purpose of sex, announced U.S. Attorney Ryan K. Patrick. Jesse Hernandez pleaded guilty Oct. 5, 2017.
Today, Senior U.S. District Judge Janis Graham Jack handed Hernandez a 210-month sentence. He was further ordered to serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Hernandez was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Hernandez admitted he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of a cellular telephone, on which a forensic examination resulted in the discovery of 26 images of child pornography.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force conducted the investigation as part of Operation Hidden Predator, a joint investigation targeting individuals involved in online solicitation of minors.
Hernandez was arrested on the federal charges in July 2017 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorney Hugo R. Martinez prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Carroll County Business Owner Sentenced on Federal Tax ChargesRead the Press Release
Abingdon, VIRGINIA – A Carroll County business owner, who paid some of his employees in cash to avoid paying taxes to the Internal Revenue Service and later lied in a bankruptcy proceeding, was sentenced today in federal court in Abingdon, United States Attorney Rick A. Mountcastle announced.
Jones Keith Andrews, 62, of Galax, Va., was sentenced today to imprisonment for a term of 24 months and was ordered to pay the Internal Revenue Service restitution in the amount of $609,604. Andrews previously pleaded guilty without the benefit of a plea agreement to one count of conspiracy to defraud the United States by impeding, impairing, obstructing and defeating the lawful function of the Internal Revenue Service, 17 counts of failure to pay or collect tax, and one count of bankruptcy fraud.
Between 2009 and March 2015, Andrews, and others, executed a scheme in which a portion of the wages paid to employees of Andrews Farming was paid via paycheck and the remainder was paid in cash. For each quarter from 2009 through 2014, the conspirators caused IRS Forms 941 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms 941 only listed the wages paid to employees via paycheck and did not include the amounts paid via cash.
In addition, for each year from 2009 through 2014, the conspirators caused Forms W2 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms W2 listed only wages paid via paycheck and not the wages paid in cash.
The cash paid to employees was obtained by cashing of personal and company checks. Over $1 million in cash was obtained by the cashing of those checks.
In addition, Andrews knowingly made a false statement, under oath, during a bankruptcy hearing in May 2016. Andrews claimed at a May 5, 2016, bankruptcy hearing that Andrews Farming had lost approximately $1.3 million due to “embezzlement of employee, Robert Donald Morgan, III,” when in fact Andrews knew that was not true and correct. Andrews knew that a significant portion of the amounts he attributed to embezzlement by Morgan were, in fact, used to pay cash wages.
Robert Donald “Donnie” Morgan previously pleaded guilty for his role in the criminal activity and was sentenced to imprisonment for a term of six months on March 29, 2016.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The Blacksburg, Virginia, Police Department provided valuable assistance in forensically analyzing the computers seized in the case. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
California Man Sentenced for Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A California man was sentenced today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Vira Yuth Chao, 41, of Temecula, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 86 months in prison and three years of supervised release. In March 2017, Chao pleaded guilty to conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Chao and co-conspirator Ratanack Oung, of Allentown, Penn., were charged and arrested. In December 2017, Oung was sentenced to four years in prison.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks along the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or individuals associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Criminal Division prosecuted the case.
Buffalo Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Butler, 43, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to 120 months in prison and 20 years supervised release by U.S. District Judge Lawrence J. Vilardo. The defendant must also pay $3,000 in restitution to victims.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on April 13, 2016, Butler was convicted in state court of one count of promoting a sexual performance by a child, and subsequently sentenced to 10 years probation. On July 19, 2016, an Erie County Probation Officer searched Butler’s residence and recovered two cellular phones with internet capabilities. As a condition of his probation, Butler was prohibited from possessing such devices. A forensic examination determined that one phone contained over 300 images of child pornography, some of which depicted children under the age of 12, as well as images of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Brooklyn Man Pleads Guilty to Scaming Lowe’s Out of Millions of Dollars and Failing to File Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Kenneth Cassidy, 51, of Brooklyn, NY, pleaded guilty to conspiracy to commit wire fraud and willful failure to file an income tax return before Senior U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between June 12, 2012, and December 20, 2016, the defendant opened approximately 173 fraudulent Lowe's Accounts Receivable (LAR) accounts throughout the United States using counterfeit checks. Once an account was opened, Cassidy made fraudulent purchases of goods at Lowe’s until the funds were depleted or Lowe’s closed the account. Of the 173 accounts, four were opened at stores in the Western District of New York and purchases were made at stores throughout the Buffalo and Rochester areas. In total, the defendant and others used the fraudulent accounts to make approximately $2,652,391.17 in purchases from Lowe’s.
Additionally, for the tax years 2012 to 2015, Cassidy received gross income in excess of $10,000 from criminal activity, but willfully failed to file federal income tax returns for those years.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James Robnett, Special Agent in Charge, New York Field Office; the New York State Police, Special Investigations Unit, under the direction of Major George Nohai; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for April 18, 2018, at 9:00 a.m. before Judge Skretny.
Bristol, Virginia Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Bristol man who maintained a residence used for drug distribution and was the sight of at least two acts of violence, pleaded guilty last week in federal court in Abingdon to related federal charges, United States Attorney Rick A. Mountcastle announced.
John James Lapis, 39, waived his right to be indicted last week and pleaded guilty on Friday, January 5, 2018 to a one-count Information charging him with maintaining a place for the distribution of controlled substances. At sentencing, scheduled for April 9, 2018, at 2:30 p.m., Lapis faces a maximum statutory penalty of up to 20 years in prison and/or a fine up to $500,000.
Lapis admitted to being a drug user who maintained a residence on Safari Drive in Bristol, Virginia for the purpose of allowing others to buy and sell controlled substances. In exchange for use of the residence, Lapis received drugs for his own use.
According to information presented at the guilty plea hearing by Assistant United Attorney Randy Ramseyer, between January 2016 and June 2017, the Washington County Sheriff’s Office responded to over 50 complaints at the residence, including over 100 calls/texts concerning activity at the residence. These calls and texts included complaints of heavy traffic in and out of the residence. In response, law enforcement conducted traffic stops of vehicles leaving the Safari Drive residence. During some of these stops, narcotics were found. During one attempted traffic stop, a driver did not follow the officers’ directions and a police chase took place. After apprehending the driver, officers found a large amount of methamphetamine and a firearm in the vehicle. In June 2017, a search warrant was executed at the residence, and a small amount of methamphetamine was found.
In October 2016, a drug trafficker was shot and killed at the residence. Through numerous interviews by law enforcement, it was determined that the victim was killed, at least in part, due to a drug debt. In February 2017, another shooting took place at the residence, over a drug debt.
The investigation of the case was conducted by the Town of Abingdon Police Department, Bristol Police Department, Washington County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Armed Robber Sentenced to 27 Years in Federal PrisonRead the Press Release
Tampa, Florida – Chief U.S. District Judge Steven D. Merryday today sentenced Patrick D. Cummings (43, Pinellas County) to 27 years in federal prison for interference with commerce by robbery and brandishing a firearm during a crime of violence. He pleaded guilty to the robbery count on July 26, 2017. Following a bench trial on November 28, 2017, Chief Judge Merryday found him guilty of the firearm offense.
According to court documents, at approximately 4:09 a.m. on March 24, 2017, Cummings entered a Walgreens in St. Petersburg. He pressed a black handgun against a cashier’s back, demanded all of the money from her register, and repeatedly threatened to shoot her. He then stole approximately $374 and fled. Investigators traced fingerprints left at the scene to Cummings.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives as part of the St. Petersburg Violent Crime Reduction Initiative. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Alex G. Tse Acting United States Attorney for the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – This morning, upon Brian Stretch’s resignation, Alex G. Tse became the Acting United States Attorney for the Northern District of California in accordance with the Vacancy Reform Act. Mr. Tse formerly served as the First Assistant United States Attorney under Brian Stretch and the Chief of the Office’s Civil Division from 2012 – 2015. Previously, Mr. Tse served as an Assistant United States Attorney in the Northern District of California from 1994 – 2006. Between 2006 and 2012 Mr. Tse worked for the San Francisco City Attorney’s Office.
Albion Man Sentenced for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Ridder, 46, of Albion, NY, who was convicted of receipt of child pornography, was sentenced to 132 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in January 2017, after exchanging messages with an undercover law enforcement agent, the defendant was found in possession of over 600 images of child pornography, some depicting prepubescent minors and some depicting violent conduct.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Medina Police Department, under the direction of Chief Chad Kenward.
Albion Man Sentenced for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Ridder, 46, of Albion, NY, who was convicted of receipt of child pornography, was sentenced to 132 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in January 2017, after exchanging messages with an undercover law enforcement agent, the defendant was found in possession of over 600 images of child pornography, some depicting prepubescent minors and some depicting violent conduct.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Medina Police Department, under the direction of Chief Chad Kenward.
5 January 2018
Uniontown Man Sentenced to Prison for Conspiring to Distribute Cocaine and HeroinRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been sentenced in federal court to 70 months’ incarceration, followed by four years of supervised release, on his conviction of violating the federal narcotic laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Rodney Harris, 45, of Uniontown, Pennsylvania.
According to information presented to the court, from in and around January 2010, and continuing thereafter to in and around June 2015, Harris conspired with others to distribute and possess with intent to distribute more than five but less than 15 kilograms of cocaine, and more than one but less than three kilograms of heroin.
Assistant United States Attorneys Heidi M. Grogan and Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation who led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Harris.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney Kurt Alme Issues Statement Regarding Marijuana Prosecutions in MontanaRead the Press Release
BILLINGS – U.S. Attorney Kurt Alme of the District of Montana has issued the following statement regarding marijuana prosecutions: “Yesterday, the Attorney General rescinded the Cole Memo on marijuana prosecutions and directed that federal marijuana prosecution decisions be governed by the same principles that govern all federal prosecution decisions. The United States Attorney’s Office in Montana is guided by these principles in marijuana prosecutions -- focusing in particular on identifying and prosecuting those who create the greatest safety threats to our citizens and communities. Consistent with the Attorney General’s latest guidance, we will continue to take this approach in all of our work with our law enforcement partners throughout Montana.”
U.S. Attorney Bill Powell applauds the Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
MARTINSBURG, WV –The U.S. Attorney’s office in the Northern District of West Virginia is committed to revitalizing Project Safe Neighborhoods and reducing violent crimes, United States Attorney Bill Powell announced.
“I look forward to working with our state and local law enforcement leaders to develop an effective strategy to deal with violent crime. Assistant United States Attorney David Perri has been appointed coordinator of this project. We will do all we can to identify the most violent individuals and organizations, and then prosecute them. I have already met with many law enforcement leaders and county prosecutors. I look forward to our partnership to make our communities safer,” said Powell.
Attorney General Jeff Sessions has announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
In a statement on the program, the Attorney General said:
"According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.
“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.
“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.
“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies. The Fairmont Police Department was the recipient of a $250,000 COPS Hiring Program award, which will allow funding for hiring two additional officers.
-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
Truck Driver Guilty of Alien Smuggling Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Weslaco man has admitted to human smuggling which resulted in the death of an undocumented alien trapped inside a toolbox, announced Acting U.S. Attorney Abe Martinez.
Juan Enrique Escobedo-Moreno appeared before U.S. Magistrate Judge Jason B. Libby and admitted to smuggling the victim in his tractor trailer. He died after being trapped in a toolbox measuring only 30 inches long, 26 inches wide and 16 inches deep.
According to the facts presented to the court during guilty plea today, Escobedo-Moreno drove his 2002 Kenworth tractor-trailer into the primary inspection area of the Falfurrias Border Patrol checkpoint shortly after midnight on Oct. 3, 2017. He claimed to be a hauling a load of watermelons from Edinburg to Houston and that no one else was with him. Upon inspection, authorities discovered one Mexican national hidden inside a small closet directly behind the driver’s seat. Escobedo-Moreno and that undocumented alien made no mention of anyone else in the vehicle.
Authorities later discovered the remains of an individual concealed in a tool compartment under the sleeper berth. When in the down position, the bed was secured with an exterior latch that would be inaccessible from inside the tool storage compartment under the bed and prevent anyone from freeing themselves. According to information presented in court, Escobedo-Moreno specifically instructed the victim to pull the bed down hard to make sure it would latch and stay closed.
Sentencing has been set for April 9, 2018, before Senior U.S. District Judge Janis Graham Jack. At that time, Escobedo-Moreno faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation with the assistance of the Brooks County Sheriff’s Office Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Three Sentenced for Their Roles in A $4.5 Million ConspiracyRead the Press Release
Jacksonville, FL – United States District Judge Brian Davis today sentenced Justin Pennington (30, St. John’s County), Marcelene M. Keesbury (54, Ft. Wayne, Indiana), and Charles M. French (50, Ft. Wayne, Indiana) for their roles in a multi-million dollar conspiracy. Pennington was sentenced to five years and five months in federal prison and ordered to pay $4,075,000 in restitution. Keesbury and French were both sentenced to three years and five months’ imprisonment and were also ordered to pay $4,075,000 in restitution. A federal jury found Pennington guilty in April 2017. Keesbury and French pleaded guilty in October 2016.
According to evidence presented at trial, while Pennington was employed as an Information Technology Director at The Wholesale House, an Ohio-based company with offices in Jacksonville, he and his co-conspirators created a fraudulent company, 3 Kings, LLC. 3 Kings was incorporated in Delaware in an attempt to conceal the identity of the owners who purchased products from The Wholesale House at or near cost and then resold those products to consumers and retailers. Unbeknownst to the owners of The Wholesale House, 3 Kings illegally competed with The Wholesale House’s customers and thereby caused significant financial difficulties for the company’s legitimate customers. In all, 3 Kings purchased nearly $40 million of products from The Wholesale House and never paid the entirety of its bills owed to them. Instead, Pennington and his co-conspirators spent tens of thousands of dollars themselves, with Pennington incurring credit card balances of up to $100,000 per month, while owing his employer millions of dollars.
During the trial, Pennington’s co-conspirators testified that he was the mastermind of the scheme, created detailed proposals, named the corporation, incorporated the company, and controlled the corporation’s bank accounts. Further, The Wholesale House owners testified that they had personally infused more than $7 million into the company to ensure its survival and to protect the jobs of the company’s more than 60 employees.
"The subjects in this case developed a sophisticated scheme to deceive a local business owner using a competing business," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. "Incidents of fraud, like this, are not victimless crimes. The FBI is dedicated to working closely with government and private entities to track down and stop scams in an effort to protect the business community."
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Mark Devereaux.
Texas Man Sentenced for Conspiring to Distribute Drugs and Launder MoneyRead the Press Release
On January 5, 2018, Acting United States Attorney Robert C. Stuart announced that Juan Zuniga Gloria, 40, of Alamo, Texas, was sentenced to 14 years (168 months) in prison for conspiracy to distribute methamphetamine and cocaine and 14 years (168 months) for conspiracy to money launder. Those sentences are to run concurrently, (i.e., at the same time). Zuniga Gloria was ordered to serve five years on supervised release following the prison term. However, he is a citizen of Mexico and will likely be deported after serving his prison sentence.
Zuniga Gloria was arrested on April 24, 2017 after approximately a one-year investigation regarding shipments of methamphetamine and cocaine brought from south Texas to Lincoln for distribution. The proceeds of drug sales were sent back to Texas via cash deposits made into accounts opened at local banks. Evidence obtained as a result of this investigation indicated Zuniga Gloria was responsible for the distribution of at least 150 grams (approximately 5 ¼ ounces) of actual (pure) methamphetamine, at least 1.5 kilograms (approximately three pounds) of methamphetamine mixture and at least 2 kilograms (approximately 4 ½ pounds) of cocaine between May of 2014 and April of 2017. At the time of his arrest, Zuniga Gloria’s Lincoln apartment was searched. More than one ounce of methamphetamine, 1 ¾ pounds of cocaine, over $6,000 in cash and items commonly used in drug distribution were found. Records for three bank accounts in Gloria’s name over the time-frame of the conspiracy showed cash deposits of more than $248,000, many of which occurred in Lincoln and cash withdrawals of more than $158,000, occurring mostly in south Texas.
This case was investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Lincoln/Lancaster County Narcotics Task Force, and the Nebraska State Patrol.
Sylvania man indicted for having more than 27,000 images and 1,300 videos depicting child sexual exploitation, including toddlers being rapedRead the Press Release
A Sylvania man was indicted on child pornography charges after investigators found him with more than 27,000 images of child sexual exploitation and more than 1,300 videos, said U.S. Attorney Justin E. Herdman.
Mark Koltz, 27, was indicted on one count of receipt and distribution of child pornography.
Investigators determined that a series of downloads of child pornography originated from a home on Hawthorne drive in Sylvania. A search and forensic examination of computers seized at the home identified approximately 27,682 images of child sexual exploitation and approximately 1,306 videos, including images and videos of bestiality and toddlers being raped by adults, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Secret Service. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stamford Man Pleads Guilty to Marijuana Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REYES, also known as “Big Head,” 36, of Stamford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to possess with intent to distribute marijuana.
According to court documents and statements made in court, in the summer of 2017, REYES and John Koukouras utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. The investigation revealed that REYES was also being supplied by an individual in New York City with large quantities of marijuana. In July 2017, the marijuana supplier delivered approximately 40 pounds of marijuana to REYES in exchange for approximately $80,000.
REYES was arrested on July 26, 2017. On that date, investigators conducted court-authorized searches of REYES’ Stamford residence and the Lagrangeville residence. A search of the Stamford residence revealed approximately 18 kilograms of marijuana, paraphernalia associated with narcotics distribution, and $71,004 in cash, and a search of the Lagrangeville residence revealed 140 marijuana plants and related equipment.
Judge Arterton scheduled sentencing for March 30, 2018, at which time REYES faces a maximum term of imprisonment of five years. REYES also has agreed to forfeit his interest in both the $71,004 in cash seized from his residence, and a 2012 Toyota Camry.
REYES has been detained since his arrest.
Koukouras, of Eugene, Oregon, pleaded guilty to the same charge on November 15, 2017, and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
St. Lawrence County Man Sentenced to 95 Years for Child Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK -Stacey J. LaPorte, Jr., age 27, of Massena, New York, was sentenced yesterday to 95 years in federal prison, following his convictions for sexually exploiting four children including two babies, and receiving pornography, announced United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II, and Resident Agent in Charge Russell Linstad, Homeland Security Investigations, Massena, New York.
Following a June 2017 trial, a jury in United States District Court in Utica, New York, found LaPorte guilty of conspiring with Mackenzie Bailey, age 22, of Massena, to sexually exploit a child from the time the child was an infant until age two, and with using that child to produce sexually explicit images on two specific occasions. He was also convicted of conspiring with Hillary Trimm, age 26, also of Massena, to sexually exploit another child, who had not yet turned one, and a twelve-year-old boy and his sixteen-year-old sister whom he coerced to have sexual contact so that he could create images. Finally, he was convicted of receiving child pornography from another user via a computer-messaging program.
“There are few crimes as evil as the prolonged sexual abuse of infants. LaPorte did that, produced sexually explicit images of the abuse, sexually exploited siblings, and received child pornography. His sentence to imprisonment for 95 years should ensure that no other children are victimized by this perverse predator. We will continue to work with federal, state, and local law enforcement agencies to hold child predators accountable for their abominable actions,” said United States Attorney Grant C. Jaquith.
New York State Police Superintendent George P. Beach II said, “The State Police and our law enforcement partners have zero tolerance for those who prey on children, and this sentence reflects the severity of the crimes and our commitment to finding justice for the victims. We want to thank the agencies involved for their determination in holding this individual accountable for his reprehensible actions.”
"Investigations involving the sexual exploitation of innocent children are by far the most heinous crimes we encounter," said HSI Resident Agent in Charge Russell Linstad. "This significant sentencing ensures that Mr. Laporte will never again have access to children and should serve as a stark warning of the severe consequences that await those involved in these depraved acts."
Both Mackenzie Bailey and Hillary Trimm pled guilty to the crimes they committed with LaPorte, testified at his trial, and will each be sentenced later this month.
In addition to the term of incarceration, if LaPorte is ever released from prison, he will be placed on supervised release for life, and will have to register as a sex offender.
LaPorte’s case was investigated by the New York State Police, the Massena Police Department, and the Department of Homeland Security, Homeland Security Investigations, and prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Sahar L. Amandolare.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
South Carolina Man Pleads Guilty to Conspiracy to Distribute Marijuana and Identity TheftRead the Press Release
SAN FRANCISCO – Peyton Erwin Eidson pleaded guilty in federal court in San Francisco today to aggravated identity theft and conspiracy to distribute marijuana, announced United States Attorney Brian J. Stretch, Special Agent in Charge Matthew Perlman of the U.S. State Department’s Diplomatic Security Service (DSS) San Francisco Field Office, and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The plea was accepted by the Honorable Susan Illston, U.S. District Judge.
In pleading guilty, Eidson, 73, of Aiken, S.C., admitted that he had conspired with others to import thousands of pounds of marijuana from Thailand into the United States in the mid-80s, and then to distribute that marijuana once it arrived. Eidson further admitted that, after he and his co-conspirators were caught, he obtained a passport using another person’s identity and then fled the country. Eidson was a fugitive for 32 years. The State Department identified and located Eidson in 2011, and in 2017, he was returned to the United States to face the pending drug and passport fraud charges.
“Criminals who travel far and hide for a long time will not be shielded from prosecution,” said U.S. Attorney Stretch. “We commend the steadfast work of our federal law enforcement partners whose hard work has brought this criminal to justice.”
“The successful return and prosecution of this longtime fugitive from halfway around the world are a clear demonstration of both the investigative diligence and global reach of the Diplomatic Security Service,” said DSS Special Agent in Charge Perlman. DEA Special Agent in Charge Martin agreed: “This case demonstrates that DEA remains willing and able to support the prosecution of those who violate our nation’s drug laws, even when they manage to evade capture for three decades.”
Eidson was indicted by a federal grand jury on January 14, 1985. He was charged with conspiracy to import marijuana, in violation 21 U.S.C. § 963; conspiracy to distribute marijuana, in violation of 21 U.S.C. § 846; and two counts of distribution and possession of marijuana with intent to distribute it, in violation of 21 U.S.C. § 841. Under today’s agreement, Eidson pleaded guilty to the conspiracy to distribute marijuana charge. A federal grand jury also indicted Eidson on September 15, 2017, in a second case charging him with two counts of passport fraud, in violation of 18 U.S.C. § 1542; two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of conspiracy to commit passport fraud, in violation of 18 U.S.C. § 371. Under today’s plea agreement, Eidson pleaded guilty to one count of aggravated identity theft.
Eidson remains in custody pending sentencing. Judge Illston scheduled his sentencing hearing for April 27, 2018. The maximum statutory penalty for the drug charge is 15 years in prison, followed by 3 years of parole, and a $125,000 fine. The penalty for the passport fraud case is two years in prison consecutive to any other sentence, a $250,000 fine, and one year of supervised release. However, any sentence will be imposed by the court only after consideration of and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Sex traffickers will target Atlanta during National Championship game weekendRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia, along with our law enforcement partners, are encouraging both citizens and visitors to be aware of the possibility of sex trafficking during the festivities happening in and around Atlanta this weekend and into next week. In short, if you believe it might be, tell someone.
“Sex traffickers are despicable people, and they use events like the National Championship game to ply their trade,” said U.S. Attorney Byung J. “BJay” Pak. “These types of events draw large crowds of revelers, and sex traffickers often seek to exploit these types of opportunities. We need everyone’s help in identifying those being trafficked for sex, and in bringing the traffickers to justice.”
Many times those who are being trafficked are homeless, runaway, or abandoned children, but it is not limited to these groups. Traffickers also seek out at-risk individuals, i.e. those individuals suffering from sexual/physical abuse, or dependency, while also exploiting women and children from other countries – typically from impoverished nations.
There are some signs that people should be aware of which may indicate someone is being held against their will and trafficked for sex:
- They do not hold their own identity or travel documents;
- They appear to suffer from verbal or psychological abuse designed to intimidate, degrade and frighten the individual;
- They have a trafficker or pimp who controls all their money – the victim will have very little or no pocket money;
- They are extremely nervous, especially if the victim’s “translator” is their trafficker; and
- They are not allowed to move about by themselves and have little understanding of where they are.
Victims may also lack personal items, possessions, or luggage. They may not have a cell phone or calling card. Most may also lack private space – a trafficker or an enforcer is always present. They most likely will not possess financial records or identification documents, or have any knowledge about how to get around in a community.The penalties for sex-trafficking are substantial, but can only be enforced with the help of aware citizens. If you wish to report a potential sex-trafficking incident please contact the FBI at (770) 216-3000.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Scott Tucker Sentenced to More Than 16 Years in Prison for Running $3.5 Billion Unlawful Internet Payday Lending EnterpriseRead the Press Release
Joan Loughnane, the Acting Deputy United States Attorney for the Southern District of New York, announced today that SCOTT TUCKER was sentenced to 200 months in prison for operating a nationwide internet payday lending enterprise that systematically evaded state laws for more than 15 years in order to charge illegal interest rates as high as 1,000 percent on loans. TUCKER’s co-defendant, TIMOTHY MUIR, an attorney, was also sentenced, to 84 months in prison, for his participation in the scheme. In addition to their willful violation of state usury laws across the country, TUCKER and MUIR lied to millions of customers regarding the true cost of their loans to defraud them out of hundreds, and in some cases, thousands of dollars. Further, as part of their multi-year effort to evade law enforcement, the defendants formed sham relationships with Native American tribes and laundered the billions of dollars they took from their customers through nominally tribal bank accounts to hide Tucker’s ownership and control of the business.
After a five-week jury trial, TUCKER and MUIR were found guilty on October 13, 2017, on all 14 counts against them, including racketeering, wire fraud, money laundering, and Truth-In-Lending Act (“TILA”) offenses. U.S. District Judge P. Kevin Castel presided over the trial and imposed today’s sentences.
Acting Deputy U.S. Attorney Joan Loughnane said: “For more than 15 years, Scott Tucker and Timothy Muir made billions of dollars exploiting struggling, everyday Americans through payday loans carrying interest rates as high as 1,000 percent. And to hide their criminal scheme, they tried to claim their business was owned and operated by Native American tribes. But now Tucker and Muir’s predatory business is closed and they have been sentenced to significant time in prison for their deceptive practices.”
According to the allegations contained in the Superseding Indictment, and evidence presented at trial:
The Racketeering Influenced Corrupt Organizations (“RICO”) Crimes
From at least 1997 until 2013, TUCKER engaged in the business of making small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet. TUCKER’s lending enterprise, which had up to 1,500 employees based in Overland Park, Kansas, did business as Ameriloan, f/k/a Cash Advance; OneClickCash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”). TUCKER, working with MUIR, the general counsel for TUCKER’s payday lending businesses since 2006, routinely charged interest rates of 600 percent or 700 percent, and sometimes higher than 1,000 percent. These loans were issued to more than 4.5 million working people in all 50 states, including more than 250,000 people in New York, many of whom were struggling to pay basic living expenses. Many of these loans were issued in states, including New York, with laws that expressly forbid lending at the exorbitant interest rates TUCKER charged. Evidence at trial established that TUCKER and MUIR were fully aware of the illegal nature of the loans charged and, in fact, prepared scripts to be used by call center employees to deal with complaints by customers that their loans were illegal.
Fraudulent Loan Disclosures
TILA is a federal statute intended to ensure that credit terms are disclosed to consumers in a clear and meaningful way, both to protect customers against inaccurate and unfair credit practices, and to enable them to compare credit terms readily and knowledgeably. Among other things, TILA and its implementing regulations require lenders, including payday lenders like the Tucker Payday Lenders, to disclose accurately, clearly, and conspicuously, before any credit is extended, the finance charge, the annual percentage rate, and the total of payments that reflect the legal obligation between the parties to the loan.
The Tucker Payday Lenders purported to inform prospective borrowers, in clear and simple terms, as required by TILA, of the cost of the loan (the “TILA Box”). For example, for a loan of $500, the TILA Box provided that the “finance charge – meaning the ‘dollar amount the credit will cost you’” – would be $150, and that the “total of payments” would be $650. Thus, in substance, the TILA Box stated that a $500 loan to the customer would cost $650 to repay. While the amounts set forth in the Tucker Payday Lenders’ TILA Box varied according to the terms of particular customers’ loans, they reflected, in substance, that the borrower would pay $30 in interest for every $100 borrowed.
In fact, through at least 2012, TUCKER and MUIR structured the repayment schedule of the loans such that, on the borrower’s payday, the Tucker Payday Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Tucker Payday Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. With TUCKER and MUIR’s approval, the Tucker Payday Lenders proceeded automatically to withdraw such “finance charges” payday after payday (typically every two weeks), applying none of the money toward repayment of principal, until at least the fifth payday, when they began to withdraw an additional $50 per payday to apply to the principal balance of the loan. Even then, the Tucker Payday Lenders continued to assess and automatically withdraw the entire interest payment calculated on the remaining principal balance until the entire principal amount was repaid. Accordingly, as TUCKER and MUIR well knew, the Tucker Payday Lenders’ TILA box materially understated the amount the loan would cost, including the total of payments that would be taken from the borrower’s bank account. Specifically, for a customer who borrowed $500, contrary to the TILA Box disclosure stating that the total payment by the borrower would be $650, in fact, and as TUCKER and MUIR well knew, the finance charge was $1,425, for a total payment of $1,925 by the borrower.
The Sham Tribal Ownership of the Business
In response to complaints that the Tucker Payday Lenders were extending abusive loans in violation of their usury laws, several states began to investigate the Tucker Payday Lenders. To thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes. Beginning in 2003, TUCKER entered into agreements with several Native American tribes (the “Tribes”), including the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, and the Modoc Tribe of Oklahoma. The purpose of these agreements was to cause the Tribes to claim they owned and operated parts of TUCKER’s payday lending enterprise, so that when states sought to enforce laws prohibiting TUCKER’s loans, TUCKER’s lending businesses would claim to be protected by sovereign immunity. In return, the Tribes received payments from TUCKER, typically one percent of the revenues from the portion of TUCKER’s payday lending business that the Tribes purported to own.
In order to create the illusion that the Tribes owned and controlled TUCKER’s payday lending business, TUCKER and MUIR engaged in a series of lies and deceptions. Among other things:
- MUIR and other counsel for TUCKER prepared false factual declarations from tribal representatives that were submitted to state courts, falsely claiming, among other things, that tribal corporations substantively owned, controlled, and managed the portions of TUCKER’s business targeted by state enforcement actions.
- TUCKER opened bank accounts to operate and receive the profits of the payday lending enterprise, which were nominally held by tribally owned corporations, but which were, in fact, owned and controlled by TUCKER. TUCKER received over $380 million from these accounts on lavish personal expenses, some of which was spent on a fleet of Ferraris and Porsches, the expenses of a professional auto racing team, a private jet, a luxury home in Aspen, Colorado, and his personal taxes.
- In order to deceive borrowers into believing that they were dealing with Native American tribes, employees of TUCKER making payday loans over the phone told borrowers, using scripts directed and approved by TUCKER and MUIR, that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating at TUCKER’s corporate headquarters in Kansas.
These deceptions succeeded for a time, and several state courts dismissed enforcement actions against TUCKER’s payday lending businesses based on claims that they were protected by sovereign immunity. In reality, the Tribes neither owned nor operated any part of TUCKER’s payday lending business. The Tribes made no payment to TUCKER to acquire the portions of the business they purported to own. TUCKER continued to operate his lending business from a corporate headquarters in Kansas, and TUCKER continued to reap the profits of the payday lending businesses, which generated over $3.5 billion in revenue from just 2008 to June 2013 – in substantial part by charging struggling borrowers high interest rates expressly forbidden by state laws.
* * *
In addition to their prison terms, TUCKER, 55, of Leawood, Kansas, and MUIR, 46, of Overland Park, Kansas, were each sentenced to three years of supervised release. Judge Castel ordered the defendants to forfeit the proceeds of their crimes. TUCKER was remanded into custody.
In pronouncing sentence, Judge Castel described the crimes as “a scheme to extract money from people in desperate circumstances” that “created heartbreak and sorrow . . . not just a financial loss.”
Mrs. Loughnane praised the outstanding investigative work of the St. Louis Field Office of the IRS-CI. Mrs. Loughnane also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the Federal Trade Commission for their assistance with the case.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor, Hagan Scotten, and Sagar Ravi are in charge of the prosecution.
Salinas Gang Member Pleads Guilty to Multiple Bank RobberiesRead the Press Release
SAN FRANCISCO – Francisco Javier Marmolejo, aka “Blindy,” pleaded guilty today in federal court to robbing three San Francisco Bay Area banks announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Lucy H. Koh, United States District Judge.
According to today’s plea agreement, Marmolejo, 36, of Salinas admitted robbing Bay Area banks on three occasions between November of 2011 and January of 2012. Marmolejo admitted that on November 9, 2011, together with others, he robbed a bank in Pacific Grove, Calif. Marmolejo admitted that at least one of the robbers brandished a firearm and that he was the getaway driver while his fellow robbers went inside the bank to rob it. On that occasion, Marmolejo and his fellow robbers stole approximately $18,383.00 from the bank. Further, on December 2, 2011, Marmolejo, together with others, robbed a bank in Seaside, Calif. Marmolejo acknowledged that on that occasion, he brandished a firearm during the robbery. Finally, on January 19, 2012, Marmolejo, together with others, robbed a bank in Salinas, Calif., during which one of the robbers brandished a gun.
In addition to the three robberies in which Marmolejo admitted he participated, he also admitted that in March of 2012, he possessed three semi-automatic handguns, bear repellant, three ballistic vests, three ski masks, and other items all of which were used and intended to be used during the commission of bank robberies and to avoid detection by law enforcement.
On January 3, 2017, Marmolejo was charged by superseding information with one count of conspiracy to commit armed bank robbery, in violation of 18 U.S.C. § § 2113(a) and (d), and 371; one count of armed bank robbery, in violation of 18 U.S.C. § § 2113(a) and (2) and 2; and one count of use or possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § § 924(c)(1)(A) and 2. Pursuant to today’s plea agreement, Marmolejo pleaded guilty to all counts in the superseding information. Marmolejo was originally indicted on some of these charges on November 8, 2016. Marmolejo’s co-defendant Jorge Lopez, aka “Cowboy,” pleaded guilty to the same charges on December 18, 2017.
The defendant is currently in custody pending sentencing. Judge Koh scheduled Marmolejo’s sentencing hearing for May 9, 2018. Co-defendant Lopez is scheduled to be sentenced on April 11, 2018. The maximum statutory penalty for conspiracy to commit bank robbery is five years’ imprisonment and a fine of $250,000. The maximum penalty for armed bank robbery is 25 years’ imprisonment and a fine of $250,000. The maximum statutory penalty for using or possessing a firearm in furtherance of a crime of violence is seven years’ imprisonment and a fine of $250,000. Further, additional terms of supervised release, penalties, and restitution may be ordered upon conviction. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney Claudia A. Quiroz with the assistance of paralegal Jessica Meegan and legal assistant Lance Libatique. The prosecution is the result of an investigation by the FBI.
Rochester Man Charged with Bank Robberies in Brighton and Webster and with an Attempted Bank Robbery in RochesterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derrick Stubbs, age 52, of Rochester, New York, was arrested and charged by Criminal Complaint with bank robbery and attempted bank robbery, all in violation of Title 18, United States Code, Section 2113(a). These charges each carry a maximum penalty of up to 20 years imprisonment and up to a $250,000 fine.
Assistant U.S. Attorney Sean Eldridge, who is handling the case, stated that the Criminal Complaint alleges that on December 5, 2017, Stubbs attempted to rob the Chase Bank located at 560 Monroe Avenue, Rochester, New York, and on that same date, robbed the Summit Federal Credit Union at 1660 Monroe Avenue, Brighton, New York. The Criminal Complaint further alleges that on December 7, 2017, Stubbs robbed the Chase Bank located at 920 Holt Road, Webster, New York.
The Criminal Complaint alleges that during these robberies, Stubbs handed a note to a bank employee demanding money. The notes also contained statements to the teller such as “make it fast and don’t try nothing,” “don’t try anything funny,” or “no die pack and no games.” Stubbs stole approximately $800, on December 5, 2017, from Summit Federal Credit Union robbery in Brighton, and approximately $2,425, two days later, from the Chase Bank in Webster.
The defendant made an initial appearance on January 4, 2018, before United States Magistrate Judge Jonathan W. Feldman and has been held in custody pending a further status conference scheduled for February 5, 2018, before United States Magistrate Judge Marian W. Payson.
The Criminal Complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Brighton Police Department, under the direction of Mark Henderson; and the Webster Police Department, under the direction of Chief Joseph Rieger.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Pinellas County Inmate Sentenced to 65 Years’ Imprisonment for Plot to Murder WitnessesRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Priscilla Ellis (51, Killeen, Texas) to 65 years in federal prison for murder-for-hire, witness retaliation, and securities counterfeiting. A federal jury found her guilty of these offenses on March 9, 2017. The judge ordered the 65-year sentence to run consecutive to a 40-year sentence previously imposed following a prior federal conviction.
According to court documents, following a three-week trial in October 2016, Ellis and her two co-defendants were convicted of conspiracies to commit international money laundering and mail and wire fraud and were remanded to federal custody. After arriving at the Pinellas County Jail, Ellis immediately began soliciting other inmates to assist her in finding a hitman to murder one of the witnesses who had testified during her trial, as well as the mother of a second trial witness. Meanwhile, she directed coconspirators in Nigeria and Texas to create electronic images of counterfeit cashier’s checks with face values totaling hundreds of thousands of dollars that were to be cashed and used to pay for the murders.
Over the course of the next week, Ellis “hired” an undercover FBI agent posing as a hitman and provided explicit instructions on how she wanted her targets killed. On October 28, 2016, a family member acting at Ellis’s direction provided a down payment on the murder contracts to the undercover agent posing as the hitman in Texas, with the remainder to be paid only after the intended victims were killed.
This case was investigated by the Federal Bureau of Investigation and the City of Austin (Texas) Police Department. It was prosecuted by Assistant United States Attorneys Eric K. Gerard and Patrick D. Scruggs, both of whom tried the prior case as well.
Pierce County Woman Sentenced to Five Years in Prison for Bombing Car Belonging to Person She Considered a Police ‘Snitch’Read the Press Release
A Tacoma, Washington woman was sentenced today in U.S. District Court in Tacoma to 60 months in prison for unlawful possession of a destructive device, announced U.S. Attorney Annette L. Hayes. KENNI JO BENNETT, 41, of Tacoma, and an accomplice, placed the explosive device under a Kia Forte sedan parked outside a Tacoma home occupied by a family, including several children. The device exploded, blasting a hole in the trunk area of the car and scattering debris around the area, including the lawns of homes across the street. No one was injured. At the sentencing hearing, U.S. District Judge Ronald B. Leighton described the crime as a “very, very dangerous offense,” and told BENNETT that her conduct showed she was a “renegade” who sought “rough justice [on] her terms.”
“This defendant tried to keep the truth about her drug dealing and other crimes from coming out,” said U.S. Attorney Annette L. Hayes. “Not only did she not succeed, she will now serve five years in a federal prison for her actions. I commend the Bureau of Alcohol, Tobacco and Firearms and the Tacoma Police Department for their work on this case, and am grateful that the small children sleeping in a room near the explosion were not injured in this attack.”
According to the plea agreement, between August and October 2016, BENNETT became convinced that the victim was providing information to law enforcement concerning BENNETT’s drug trafficking activities. BENNETT recruited an accomplice to help her blow up the victim’s car. BENNETT purchased an explosive device about the size of a soda can from someone she knew on the Puyallup Indian Reservation. In the early morning hours of October 13, 2016, BENNETT cruised the victim’s neighborhood and saw his car parked in the driveway of his home. She texted her accomplice, picked him up, and brought him back to the target vehicle. BENNETT used a lit cigarette to ignite the fuse of the device and instructed her accomplice where to place it. BENNETT used her smart phone to record the explosion. The two then left the area.
BENNETT was arrested by Tacoma Police and charged in state court in November 2016. A forensic review of BENNETT’s phone revealed multiple text messages in which she bragged about the bombing and joked with her friends about it. While in custody, BENNETT asked other people to intimidate witnesses or attempt to erase electronic evidence. In May 2017, BENNETT was charged federally and has remained in federal custody.
BENNETT pleaded guilty in October 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tacoma Police Department. The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
Northwest Arkansas Man Pleads Guilty to Money Laundering and Filing A False Tax ReturnRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, Tracey D. Montaño, Special Agent in Charge for IRS Criminal Investigation, and Diane Upchurch, Special Agent in Charge for the Federal Bureau of Investigation announced today that Darrell Rosen, age 59, formerly of Fayetteville, Arkansas, has pleaded guilty to one count of Money Laundering and one count of Filing a False Income Tax Return. The Honorable Timothy L. Brooks accepted the plea in the United States District Court in Fayetteville.
According to court records, from October 2010 through August 2014, Rosen solicited individuals in Arkansas, Texas, and elsewhere to invest in a business centered on training dogs. Rosen represented that he had contracts with governmental entities as well as some private companies that would allow him to train and then sell dogs to the government for profit. Rosen intentionally made false promises that he would invest the money in the dog training business when, in fact, he used much of the money on his personal expenses. In addition, Rosen caused his 2013 Federal Income Tax Return to be filed with false information by both failing to report income he received from investors and also claiming Schedule A deductions for which he was not entitled.
“IRS Criminal Investigation’s primary mission is investigating and prosecuting individuals that attempt to defraud the tax system, but we also play a role in investigating various financial fraud schemes,” said Tracey D. Montaño, Special Agent in Charge. “Today’s plea demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. With tax season approaching, I hope this case will also serve as a reminder that all income is taxable, regardless of the source.”
The defendant’s sentence will be determined by the court. In this case, Rosen faces a maximum sentence of ten years in prison for the money laundering charge and a maximum sentence of three years in prison for filing a false tax return.
The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Brice R. White prosecuted the case for the United States.
New Jersey Real Estate Broker Pleads Guilty to Role in Foreign Bribery Scheme Involving $800 Million International Real Estate DealRead the Press Release
A New Jersey-based real estate broker pleaded guilty today to foreign bribery charges in connection with his role in a scheme to bribe a foreign official in the Middle East to secure a real estate deal for a South Korean construction company, Keangnam Enterprises Co. Ltd. (Keangnam).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Joo Hyun Bahn, aka Dennis Bahn, 39, of Tenafly, New Jersey, pleaded guilty in federal court in Manhattan to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Edgardo Ramos of the Southern District of New York accepted the guilty plea. Sentencing is scheduled for June 29 at 11 am.
Bahn was charged alongside his father, Ban Ki Sang (Ban), and Malcolm Harris in December 2016. Ban was a senior executive at Keangnam. Harris, an arts and fashion consultant and blogger, held himself out as an agent of a foreign official.
“Bribery and corruption undermine fair competition and the rule of law,” said Acting Assistant Attorney General Cronan. “The fact that Joo Hyun Bahn’s intended scheme was thwarted by the greed and deception of one of his codefendants does not change the fact that he sought to steer an $800 million real estate deal by paying hundreds of thousands of dollars in bribes. The Department is committed to prosecuting those like Bahn who seek to corruptly tilt the playing field to their advantage.”
“As he has now admitted, Joo Hyun Bahn schemed to bribe a foreign official to close an $800 million real estate deal for a skyscraper in Vietnam -- a deal that would have earned him a multimillion-dollar commission and much needed capital for his client, Keangnam Enterprises,” said Manhattan U.S. Attorney Berman. “As Bahn’s conviction demonstrates, federal law enforcement stands ready to root out commercial bribery wherever it is found.”
According to admissions made in connection with Bahn’s plea, from between February 2014 and May 2015, Bahn joined a scheme to pay bribes to a foreign official in a country in the Middle East in order to facilitate the sale by Keangnam of a commercial building known as Landmark 72 in Hanoi, Vietnam, to the Middle Eastern country’s sovereign wealth fund. In particular, Bahn, Ban and others agreed to pay $500,000 upfront to the foreign official, who he believed made decisions about the acquisition of assets for the Middle Eastern country’s sovereign wealth fund, in order to corruptly influence him to cause the sovereign wealth fund to purchase Landmark 72. In furtherance of the scheme, Bahn and Ban transferred $500,000 to Harris for him to pass on to the foreign official. In related proceedings, codefendant Harris admitted that he double-crossed his codefendants, and simply stole the $500,000 bribe.
Harris pleaded guilty to his role in the scheme on June 21, 2017, and was sentenced to 42 months in prison. Ban is still awaiting trial. All defendants are presumed innocent unless convicted beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in New York City investigated the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel S. Noble of the Southern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
New Jersey Real Estate Broker Pleads Guilty to Role in Foreign Bribery Scheme Involving $800 Million International Real Estate DealRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that JOO HYUN BAHN, a/k/a “Dennis Bahn” (“BAHN”) pled guilty today to one count of conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”) and one count of violating the FCPA. BAHN pled guilty before U.S. District Judge Edgardo Ramos, and is scheduled to sentence BAHN on June 29, 2018.
Manhattan U.S. Attorney Geoffrey Berman said: “As he has now admitted, Joo Hyun Bahn schemed to bribe a foreign official to close an $800 million real estate deal for a skyscraper in Vietnam -- a deal that would have earned him a multimillion-dollar commission and much needed capital for his client, Keangnam Enterprises. As Bahn’s conviction demonstrates, federal law enforcement stands ready to root out commercial bribery wherever it is found.”
Acting Assistant Attorney General Cronan said: “Bribery and corruption undermine fair competition and the rule of law. The fact that Joo Hyun Bahn’s intended scheme was thwarted by the greed and deception of one of his codefendants does not change the fact that he sought to steer an $800 million real estate deal by paying hundreds of thousands of dollars in bribes. The Department is committed to prosecuting those like Bahn who seek to corruptly tilt the playing field to their advantage.”
According to the allegations contained in the Indictment to which BAHN pled guilty, and statements made during the plea and other court proceedings:
Between February 2014 and May 2015, BAHN engaged in a scheme to pay bribes to a foreign official in a country in the Middle East in order to facilitate the sale of Landmark 72 in Hanoi, Vietnam, to the Middle Eastern country’s sovereign wealth fund. In particular, BAHN, his father Ban Ki Sang, and others agreed to pay $500,000 upfront to the foreign official, whom BAHN believed made decisions about the acquisition of assets for the Middle Eastern country’s sovereign wealth fund, in order to corruptly influence him to cause the sovereign wealth fund to purchase Landmark 72. In furtherance of the scheme, BAHN and Ban transferred $500,000 to an intermediary in New York, Malcolm Harris, which BAHN believed Harris would pass on to the foreign official. In related proceedings, Harris admitted that he double-crossed his codefendants, and simply stole the $500,000 bribe.
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BAHN, 39, of Tenafly, New Jersey, pled guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only as any sentencing of the defendant will be determined by the judge.
On June 21, 2017, Harris pled guilty to one count of wire fraud and one count of conducting monetary transactions in illicit funds. On October 5, 2017, Judge Ramos sentenced Harris to 42 months in prison.
The case against Ban, 70, of Seoul, South Korea, is still pending. Ban is presumed innocent unless convicted beyond a reasonable doubt in a court of law.
Mr. Berman and Mr. Cronan praised the outstanding investigative work of the International Corruption Squad of the Federal Bureau of Investigation’s New York Field Office. Mr. Berman also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
New Jersey Man Admits Encouraging and Inducing Illegal EntryRead the Press Release
ALBANY, NEW YORK – Patricio Murillo Sandoval, age 40, of Newark, New Jersey, pled guilty yesterday to encouraging and inducing an alien to illegally enter the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Steve Bronson, Area Port Director, United States Customs and Border Protection (CBP).
As part of his guilty plea, Murillo Sandoval, a U.S. citizen, admitted that he attempted to enter the United States with Wendy Fletcher Alvarez, a citizen of Ecuador and Spain, on September 17, 2017 at the Niagara Falls Port of Entry, New York. She was denied admission, and CBP officers explained to both Sandaval and Alvarez that she could not enter the United States without obtaining permission. Murillo-Sandoval also admitted that on September 19, 2017, he dropped off Alvarez at a remote location so that she could walk across the border and avoid immigration inspection. He planned to pick her up and take her to New Jersey, but when he attempted to enter the United States at the Mooers Port of Entry, he was referred for further inspection leading to the discovery that he planned to pick her up.
United States District Judge Mae A. D’Agostino is scheduled to sentence Murillo Sandoval on May 3, 2018. He faces up to 5 years in prison and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute to defendant is charged with violating, the U.S. Sentencing guidelines and other factors.
The smuggled alien, Fletcher Alvarez, age 40, of Ecuador, was sentenced on October 5, 2017 to 25 days in jail.
This case was investigated by the CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Morgantown CPA sentenced for tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gregory N. Cason, 45, of Morgantown, West Virginia, was sentenced today to 15 months incarceration for tax fraud, United States Attorney Bill Powell announced.
A federal jury found Cason guilty of two counts of "Aid and Assist in the Preparation and Filing of False Tax Form" in May 2017. He was acquitted of one count of "Conspiracy to Defraud the Internal Revenue Service and to Aid and Assist in the Preparation and Filing of False Tax Forms."
Cason, a Certified Public Accountant, prepared tax returns for AKA Enterprises, Inc., a business entity operating several business in Morgantown, including a bar and restaurant facility. Cason knowingly underreported income, failed to report expenses paid in cash, and failed to report periodic cash payments to employees.
Cason was also ordered to pay a $10,000 fine.
Assistant U.S. Attorneys Robert H. McWilliams and Sarah E. Wagner prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigation investigated the case.
Senior U.S. District Judge Irene M. Keeley presided.
Mission Man Sentenced for Criminal ContemptRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man charged with Criminal Contempt pled guilty to and was sentenced on January 3, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Clint Roubideaux, age 33, was sentenced to 1 year of probation and ordered to serve 100 hours of community service. He was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $10.
The conviction stemmed from an incident that occurred in February 2017, wherein Roubideaux, who had been subpoenaed to testify as a witness, failed to appear at the U.S. Courthouse in Pierre, South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Manhattan U.S. Attorney Announces the Appointment of Deputy U.S. AttorneyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, today announced the selection of Robert Khuzami as Deputy U.S. Attorney.
Mr. Khuzami will return to the Office from the law firm of Kirkland & Ellis, where he is a partner in the Government & Internal Investigations Practice Group. Mr. Khuzami was an Assistant U.S. Attorney in the Office for 12 years, from 1990 to 2002, and for three of those years, he served as Chief of the Office’s Securities and Commodities Fraud Task Force. Mr. Khuzami was a 1996 recipient of the Attorney General’s Award for Exceptional Service for his work in the prosecution of Omar Abdel Rahman and nine co-defendants for an international terrorist conspiracy targeting New York City landmarks. From 2009 to 2013, Mr. Khuzami was the Director of Enforcement for the U.S. Securities and Exchange Commission. Mr. Khuzami graduated magna cum laude from the University of Rochester in 1979, where he was a member of Phi Beta Kappa, and from Boston University School of Law in 1983.
In making the appointment, Manhattan U.S Attorney Geoffrey S. Berman said: “I am extremely pleased that Rob Khuzami will be returning to public service as Deputy U.S. Attorney. Rob was an outstanding AUSA during his prior tenure in the Office, and he has since distinguished himself in further public service and in the private sector. I am confident that with his intelligence, experience, and judgment, Rob will be an outstanding Deputy U.S. Attorney. I welcome Rob’s return, and I thank Joan Loughnane for her exceptional work as the Deputy U.S. Attorney for the last 10 months. She will resume her role as Chief Counsel upon Rob’s arrival.”
Manager of Camden, New Jersey, Drug Trafficking Organization Sentenced to Five Years in Prison for Drug and Firearm ChargesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 60 months in prison for conspiring to sell crack cocaine and possess a firearm in furtherance of a drug conspiracy operating in Camden, U.S. Attorney Craig Carpenito announced.
Preston J. Thomas, a/k/a “Boo,” 31, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Thomas admitted that he sold, and directed others to sell, crack cocaine on and around the 1100 block of Lansdowne Avenue in Camden. Thomas also admitted that he provided crack cocaine to other members of the conspiracy, collected proceeds from the sales, and conspired with members of the conspiracy to possess a firearm in furtherance of its drug trafficking activities.
Thomas, Jason Boyd, Joseph Boyd, Tony Wilson, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson were originally charged by complaint on Sept. 9, 2016 following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered several firearms that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by members of the conspiracy.
In addition to the prison term, Judge Simandle sentenced Thomas to four years of supervised release.
Jason Boyd, Joseph Boyd, Wilson, Stallworth, Nafeez Griffin, and Julian Dickerson pleaded guilty to related drug and firearm offenses and have been sentenced to prison. Whitaker is charged in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. The charges against Whitaker are still pending.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie F. Moy Esq., Assistant Federal Public Defender
Man Sentenced to 90 Days in Prison for Assaulting Sleeping Girl on AirplaneRead the Press Release
NEWARK, N.J. – An Indian national who admitted that he assaulted a girl on a flight from Seattle, Washington, to Newark Liberty International Airport, was sentenced today to 90 days in prison, U.S. Attorney Craig Carpenito announced.
Vijaykumar Krishnappa, 29, pleaded guilty Nov. 8, 2017, before U.S. Magistrate Judge James B. Clark in Newark federal court to a superseding information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, while on a United Airlines flight from Seattle to Newark on July 23, 2017, Krishnappa intentionally assaulted a girl who was unknown to him and seated next to him on the flight. Krishnappa admitted that while the victim was asleep, he intentionally touched her near her groin over her leggings without her consent.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Criminal Division in Newark.
Man Sentenced for Smuggling Liquid Methamphetamine to KansasRead the Press Release
KANSAS CITY, KAN. B A Mexican man was sentenced Thursday to 46 months in federal prison for his role in smuggling more than 1,000 pounds of liquid methamphetamine into Kansas City, Kan., U.S. Attorney Tom Beall said.
Yoan Alejandro Castillo-Zamora, 31, a citizen of Mexico, pleaded guilty to one count of conspiracy to distribute methamphetamine. He was arrested Jan. 13, 2017. Federal agents watched him and others at a business in Kansas City, Kan., unload liquid methamphetamine from a fuel tank on a semi-truck into five-gallon buckets. They loaded the buckets into a white Dodge Caravan.
Beall commended the Drug Enforcement Administration, the Kansas City DEA Special Response Team, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Greg Hough for their work the case.