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Monday 13 November 2017
Athens County Man Convicted for Killing Migratory BirdRead the Press Release
COLUMBUS, Ohio – Rick Kesterson, 37, of Glouster, Ohio was sentenced in U.S. District Court for unlawfully killing an Osprey in violation of the Migratory Bird Treaty Act. Under the Migratory Bird Treaty Act, it is unlawful to kill any migratory bird except as allowed by regulation.
Kesterson was sentenced to two years of probation. He was also ordered to pay $500 in restitution to the Ohio Department of Natural Resources, forfeit his hunting license, complete 52 hours of community service at Burr Oak State Park and be subject to random house inspections and drug testing.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and officials with the United States Fish and Wildlife Service, Office of Law Enforcement, and Ohio Department of Natural Resources (ODNR), Division of Wildlife and Franklin County Prosecutor Ron O’Brien announced the sentence handed down last week by U.S. District Judge Algenon L. Marbley.
According to court documents, Kesterson was observed striking an Osprey with a pipe after the Osprey was shot out of the air with a shotgun.
In April 2015, ODNR Division of Wildlife received a complaint on the Turn in a Poacher (TIP) hotline reporting the shooting of an Osprey. Eyewitnesses stated they were watching the bird with binoculars when they heard two shots and saw the Osprey fall from the air into a pond.
Kesterson was seen using a fishing line to retrieve the Osprey from the water. Kesterson then struck the Osprey with a stick or pipe and carried it down a dirt road into the woods.
Investigators found the Osprey partially submerged in a creek in the woods.
The following day, during the execution of a search warrant, investigators approached a residence belonging to Kesterson’s parents, in which Kesterson resides in the basement. Despite Kesterson’s mother telling authorities she was the only person home, investigators found Kesterson hiding in his bedroom, lying on the floor between two beds.
The residence was filled heavily with smoke that smelled like marijuana and it was later determined Kesterson saw the officers coming up the driveway and he attempted to burn a handful of marijuana in a wood burning stove with a propane torch. Investigators also found live marijuana plants, a large amount of marijuana drying and grow lights throughout the residence.
The Athens County Sheriff’s Office, Major Crimes Unit, obtained a separate search warrant for the narcotics and handled that aspect of this matter.
Kesterson was charged by criminal complaint in January 2017 and indicted by a federal grand jury in May 2017. He pleaded no contest to the charge today in federal court, and Judge Marbley found him guilty.
“This case came to fruition thanks to a call to 1-800-POACHER,” U.S Attorney Glassman said. “We encourage residents of the Southern District of Ohio to continue to report the illegal killing of wildlife so that we may hold individuals like Kesterson accountable for their actions.”
U.S. Attorney Glassman commended the cooperative investigation by U.S. Fish and Wildlife and Ohio Department of Natural Resources, as well as Assistant United States Attorney J. Michael Marous and Special Assistant United States Attorney Heather Robinson who represented the United States in this case.
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10 Defendants Indicted on Federal Drug Trafficking ChargesRead the Press Release
Memphis, TN – Ten residents of the greater Memphis area have been indicted for conspiring to distribute large quantities of methamphetamine, cocaine, and marijuana throughoutWest Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
On November 2, 2017, a federal grand jury returned a superseding indictment, which remained sealed until the defendants’ arrest. On Tuesday, November 7, 2017, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
The indictments follow a six-month investigation involving agents of the FBI as well as other federal and state agencies in this joint operation. The defendants have been charged with conspiracy to distribute and possess with the intent to distribute more than 500 grams of methamphetamine, more than 5 kilograms of cocaine, and more than 100 kilograms of marijuana. The defendants are:
• Daniel Castelo, 42, Memphis, Tennessee
• Lorenzo Castelo, 39, Memphis, Tennessee
• Carlos Crump, 33, Memphis, Tennessee
• Julio Ceasar Garcia, 37, Memphis, Tennessee
• Josue Gonzalez, 28, Memphis, Tennessee
• Jesus Gutierrez, 40, Memphis, Tennessee
• Albert Hall, 33, Memphis, Tennessee
• Roy Lee Johnson, 59, West Memphis, Arkansas
• Roy Lee Johnson Jr., 27,West Memphis, Arkansas
• Victor Torrez, 19, Memphis, TennesseeU.S. Attorney D. Michael Dunavant said, "This indictment and takedown represents another great example of law enforcement working together to remove criminals from the Western District of Tennessee. We will not tolerate illegal drug activity disrupting our daily lives. Each day, we are driven with all due haste to go after those who do not abide by our laws of justice and who distribute poison in our community. We are coming after you. Making our communities safer for our citizens is our priority and mission."
Count 1 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Jesus Gutierrez, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., and Victor Torrez with conspiracy to possess with intent to distribute 5 kilograms of Cocaine.
Count 2, 3, and 4 charges Lorenzo Castelo with possession with intent to distribute and distribute in excess of 50 grams of Methamphetamine.
Count 5 charges Lorenzo Castelo, Daniel Castelo, Julio Ceasar Garcia, Josue Gonzalez, and Victor Torrez, with possession with intent to distribute and to distribute in excess of 500 grams of Methamphetamine.
Count 6 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Albert Hall, Roy Lee Johnson and Victor Torrez with possession with intent to distribute and to distribute in excess of 100 kilograms of Marijuana.
Count 7 charges Lorenzo Castelo, Daniel Castelo and Victor Torrez with possession with intent to distribute in excess of 500 grams of Methamphetamine.
The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Lorenzo Castelo, Daniel Castelo, Victor Torrez, Julio Ceasar Garcia, Carlos Crump, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., Jesus Gutierrez and Josue Gonzalez.
"Illegal drugs are related violence are serious threats to our communities and these arrests demonstrate the importance of cooperation between state, local and federal law enforcement in the Investigation and prosecution of drug trafficking organizations," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the FBI. "The FBI will continue to combat these issues to protect our community from the lethal combination of narcotics and firearms, and to disrupt and dismantle the drug networks that threaten our neighborhoods."
During this investigation, agents seized approximately $345,000 in U.S. currency and 16 pounds of meth. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The FBI and Homeland Security Investigations ("ICE") investigated this case, along with the FBI Safe Streets Task Force, which includes agents from the Memphis Police Department, Shelby County Sheriff’s Office, Bartlett Police Department, Germantown Police Department, and Desoto County, Mississippi Sheriff’s Department, who also participated in this investigation. Assistant U.S. Attorney Jerry Kitchen is prosecuting the case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Saturday 11 November 2017
Former Partner at International Law Firm Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WALTER C. LITTLE, a/k/a “Chet,” a former partner at an international law firm (the “Firm”), pled guilty yesterday to conspiracy to commit securities fraud. Between February 2015 and May 2016, LITTLE used his position at the Firm to learn nonpublic information about certain of the Firms’ clients, including sensitive information regarding expected mergers and earnings. LITTLE used that information to place securities trades and passed that information to Andrew M. Berke, who allegedly also traded on it. LITTLE and Berke allegedly made approximately $1 million in illegal profits through their trading. LITTLE pled guilty earlier today before the Honorable Katherine Polk Failla. The charges against Berke remain pending.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Walter Little, while a law firm partner, accessed confidential information about firm clients, and then traded on it. He violated the terms of his employment, the canons of his profession, and federal securities laws. Now Walter Little awaits sentencing for his crime.”
According to allegations in a Complaint and Indictment[1] filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
LITTLE began working for the Firm in 2005, eventually becoming a partner. The Firm provided legal services to a wide variety of corporations in connection with financial transactions and regulatory issues, among other things. Clients regularly entrusted the Firm with nonpublic information when using its services, and the Firm consequently enacted policies requiring its employees to respect the confidences of such information. LITTLE, however, failed to abide by the Firm’s internal policies prohibiting the improper use of its clients’ confidential information. Even though he did not perform any billable work for the associated clients, LITTLE used the Firm’s document management system to view numerous documents relating to seven different companies. These documents contained material nonpublic information about, among other things, an anticipated delisting from the NASDAQ stock exchange, clients’ involvement in mergers and acquisitions, clients’ anticipated earnings announcements, and a planned securities offering. All of these events would have predictable impacts on the associated stocks’ prices, and, between February 2015 and May 2016, LITTLE traded stocks and options based on the information contained in these documents, making hundreds of thousands of dollars in profits. In addition to trading on the information himself, LITTLE also provided the information to BERKE, his business associate and friend, who also traded on it and made hundreds of thousands of dollars in illegal gains as well.
LITTLE has agreed to forfeit the illegal profits that he made through his trading as part of his plea agreement with the Government.
* * *
LITTLE pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. LITTLE will be sentenced February 22, 2018, by Judge Failla.
BERKE is charged in the Indictment with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; six counts of securities fraud, each of which carries a maximum penalty of 20 years in prison; and one count of conspiracy to commit wire fraud, which also carries a maximum penalty of 20 years in prison. These charges also have a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
The charges against BERKE are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment, and the descriptions of the Complaint and Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Friday 10 November 2017
Louisville Business Owner Convicted of Defrauding A United States Department of Agriculture ProgramRead the Press Release
Owner of the Meat Store convicted of Food Stamp Fraud
LOUISVILLE, Ky. – The former owner of a Louisville specialty food store was convicted in United States District Court yesterday, before Senior Judge Thomas B. Russell, of Food Stamp fraud, following a four day jury trial announced United States Attorney Russell M. Coleman.
Elias Estephane was the owner of the Meat Store located at 1066 South 28th Street and the Meat Store 2 located at 4835 Poplar Level Road. Both were specialty food stores focusing on meats and both were accepted as Supplemental Nutrition Assistance Program (SNAP), or Food Stamp retailers. SNAP is a program administered by the United States Department of Agriculture (USDA) to provide food-purchasing assistance to low-income individuals through the issue of (EBT) cards to recipients. Evidence at trial showed that on multiple occasions Estephane traded cash for SNAP benefits, in violation of program rules that only permit benefits to be exchanged for eligible food items. Estephane generally paid customers fifty cents on the dollar for their benefits.
In 2015, the USDA and the Federal Bureau of Investigation (FBI) began investigating the Meat Store’s redemption of SNAP benefits. They targeted the Meat Store because it had a significantly higher level of redemption of SNAP benefits compared to similar stores in the area. Specifically, the Meat Store’s month-to-month SNAP redemptions in 2015 were around 20 times the average redemptions from similar stores in the same geographic area.
During the course of the investigation, USDA and FBI sent two undercovers into the Meat Store to attempt to sell SNAP benefits for cash. Between September 1, 2015, and July 12, 2016, the two undercovers exchanged SNAP benefits for cash with defendant Estephane at the Meat Store on nine different occasions, eight of which were captured on video. Sometimes the undercovers would present multiple SNAP EBT cards in different names and request cash from all of them.
During the trial, the United States submitted surveillance video of the Meat Store from four different days then compared transaction data with the video, flagging instances in which people spent $100 or more but left the store holding only one bag. Further the United States had five customer witnesses and one former employee testify.
Sentencing is scheduled before Senior Judge Russell in February 2018. Estephane faces up to five years in prison, three years of supervised release, restitution and a fine of up to $10,000.
The case was prosecuted by Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl, with the assistance of paralegal Mary Kennedy, and was investigated by U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation (FBI).
Dual U.S.-Irish Citizen Extradited from Ireland to Face Mortgage Fraud ChargesRead the Press Release
BOSTON – A dual U.S.-Irish citizen was arraigned late yesterday in federal court in Boston on charges of mortgage fraud and identity theft after being extradited from Ireland. It was Ireland’s first extradition to the United States since 2012.
Patrick Lee, 44, a dual U.S.-Irish citizen formerly residing in Canton and Easton, Mass., was indicted in 2011 on 29 counts of wire fraud, six counts of unlawful monetary transactions, and 16 counts of aggravated identity theft. Lee had been living in Ireland since 2007.
It is alleged that Lee participated in a mortgage fraud scheme from 2005-2007, shortly before the real estate bubble burst. According to the indictment, Lee and others bought multi-family properties in Dorchester and South Boston and converted them into condominiums. Straw buyers were recruited and paid a fee to sign the purchase documents, although the straw buyers had no intention of living in the condominiums. Lee and others then engaged mortgage brokers to prepare false mortgage loan applications to be signed by the straw buyers, and then Lee, who was not a licensed real estate appraiser, prepared appraisals for the properties using the name and license number of an actual licensed appraiser. It is further alleged that Lee arranged with certain real estate attorneys to conduct closings for the transactions by using false and misleading documents, and then loan applications were sent to mortgage lenders, who funded the loans based on the false appraisals and other misrepresentations. The loan proceeds were paid to Lee and the other sellers, and the straw buyers never moved into the properties or paid the mortgage loans. Eventually, the properties went into foreclosure, and the lenders lost their money.
It is further alleged that some closing documents represented that Lee would receive a certain portion of the loan proceeds as the seller, but in fact he received more. The indictment also charges that Lee prepared appraisals for certain properties that he himself bought or sold, but the appraisals falsely represented that the appraiser, who was represented to be someone other than Lee, was independent and not related to the seller or the buyer.
For some of the wire fraud counts, the charging statute provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The remaining wire fraud counts provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charging statute for unlawful monetary transactions provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000; and the charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. The U.S. Department of Justice’s Office of International Affairs provided assistance in securing Lee’s extradition to the United States. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Thursday 9 November 2017
Wood County man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Wood County man who stole mail in November 2016 pleaded guilty today, announced United States Attorney Carol Casto. Richard Thomas Morris, Jr., 38, of Washington, entered his guilty plea to possession of stolen mail.
Morris was a relief driver for a United States Postal Service contractor whose job it was to collect outgoing mail from post offices along a rural route between Ravenswood and Parkersburg. On November 17, 2016, Morris was stopped at the Belleville Post Office by law enforcement officials with the United States Postal Inspection Service. Morris consented to a search of the truck he was driving, and the search turned up a piece of mail addressed to a home in St. Mary’s. The mail had been opened and contained a greeting card. Morris had stolen the greeting card, as well as $50.00 in cash that had been put inside the card by the sender.
Morris faces up to five years in federal prison and $250,000 in fines when he is sentenced on January 22, 2018.
The United States Postal Inspection Service and the United States Postal Service, Office of Inspector General, conducted the investigation. Assistant United States Attorneys Eumi L. Choi and R. Gregory McVey are handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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Wisconsin Man Indicted on Charges Related to the Illegal Importation and Sale of Prescription DrugsRead the Press Release
PITTSBURGH - A resident of Oak Creek, Wisconsin was indicted by a federal grand jury in Pittsburgh on charges of conspiracy, use of a false name and address to conduct an unlawful business by means of the Postal Service, and two charges of introduction into interstate commerce, with the intent to defraud, misbranded drugs, Acting United States Attorney Soo C. Song announced today.
The four-count indictment named Rashid Mohammad Khan, 57, as the sole defendant.
According to the indictment presented to the court, the defendant participated in a conspiracy that involved the illegal importation of prescription drugs and the illegal sale of those drugs to consumers in the United States. The importation and sale of prescription medication is regulated by the Food and Drug Administration pursuant to the Federal Food, Drug and Cosmetic Act. Federal law and regulation require that certain drugs, particularly dangerous drugs, contain certain warnings and only be administered under a doctor's care pursuant to a doctor's prescription. A drug is considered "misbranded" if, for example, the drug is sold without a prescription, if it fails to include the approved warnings, if the drug was not approved by the FDA, or if the drug ismanufactured in a facility not approved by the FDA.
Through various websites, members of the conspiracy advertised for sale to consumers in the United States various dangerous drugs that were sold without a prescription, were not administrated under the care of a doctor, did not provide the appropriate warnings, and were not manufactured in facilities approved by the FDA. Some of these misbranded drugs were sent through the Postal Service to the defendant, who then arranged to send themisbranded drugs through the Postal Service to consumers, including consumers in the Western District of Pennsylvania. To conceal his illegal conduct, the defendant used fictitious names and addresses.
The law provides for a maximum total sentence of 16 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration - Office of Criminal Investigations, HomelandSecurity Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven
guilty.
Whitehall Felon Sentenced for Gun PossessionRead the Press Release
HELENA - The United States Attorney’s Office announced today that 67-year old William Kent Ross of Whitehall was sentenced to 15 months in prison, three years of supervised release, and a $100 special assessment. U.S. District Judge Charles C. Lovell presided over the hearing.
In August 2016, Ross possessed six firearms at his Whitehall, Montana residence. Local law enforcement notified ATF of Ross’s firearm possession after their early August encounter at his residence when he refused to provide a DNA sample in compliance with this sex offender registration requirements. The officer noticed two rifles in a gun cabinet with glass doors and the keys dangling from the lock. The officer noticed a second gun cabinet inside the residence. The six firearms included two revolvers (one was loaded), three rifles (one was loaded), and one shotgun. Ross has an extensive criminal history that includes prior sex crimes involving children and absconding from supervision.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Vermont Felon Sentenced for Escaping Albany Halfway HouseRead the Press Release
ALBANY, NEW YORK – Keisha Richards, age 24, of Fair Haven, Vermont, was sentenced today to 8 months in jail for escaping from a federal halfway house.
The announcement was made by Acting United States Attorney Grant C. Jaquith and United States Marshal David L. McNulty.
Richards was ordered by the federal Bureau of Prisons to reside at the Horizon House Residential Reentry Center, a halfway house in Albany, as part of her sentence for a federal drug conviction in Vermont. As part of her August 16, 2017 guilty plea, Richards admitted that she left the halfway house without permission on February 27, 2017, and did not return. On April 11, 2017, Richards was arrested by the U.S. Marshals at a residence in Albany.
Richards will also serve a 3-year term of supervised release, to begin after her release from jail.
This case was investigated by the United States Marshals Service and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Two North Texas men sentenced for roles in a $6.4 million diamond investment fraud schemeRead the Press Release
DALLAS — Craig Allen Otteson, 65, of McKinney, Texas, and Jay Bruce Heimburger, 59, of Dallas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a diamond investment scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Otteson and Heimburger both pleaded guilty in July 2017 to one count of mail fraud. Judge Fitzwater sentenced Otteson to 121 months in federal prison and ordered him to pay $4,704,784 in restitution. Heimburger was sentenced to 97 months in federal prison and ordered him to pay $4,707,794 in restitution.
Co-defendant Christopher Arnold Jiongo, 57, of Houston, pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 21, 2017.
According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.
The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.
According to the plea documents signed by Otteson, during the period from February 2012 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises. In plea papers filed with the court, Otteson admitted that he and Heimburger engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. Otteson also admitted that as part of the scheme to defraud investors, Otteson and Heimburger caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.
The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors. During the sentencing hearing, witnesses testified that in June 2011 Otteson and Heimburger caused letters to be sent to the Texas State Securities Board and to ASR which contained false statements.
This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative (BFI), United States Attorney’s Office, Northern District of Texas. These prosecutions were the result of criminal referrals made by the United States Trustee’s Office in Dallas, Texas. Since 2013, as a result of the BFI, 23 defendants have been convicted and 2 defendants are pending trial.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Two Executives Plead Guilty to Role in Foreign Bribery SchemeRead the Press Release
HOUSTON – Two former executives at a Dutch oil and gas services company, Anthony “Tony” Mace and Robert Zubiate, pleaded guilty this week to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) for their roles in a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Mace, 65, of the United Kingdom, was the Oil Services Company’s CEO from 2008 to 2011 and a former board member of one of its wholly-owned Houston subsidiaries. Zubiate, 66, of California, was a former Texas and California-based sales and marketing executive at the same subsidiary.
U.S. District Judge David Hittner of the Southern District of Texas accepted Mace’s guilty plea on Nov. 9 and Zubiate’s guilty plea on Nov. 6. Sentencing for Mace is scheduled for Feb. 2, and Zubiate for Jan. 31, 2018.
As part of his guilty plea, Mace admitted that prior to becoming CEO, other employees of the Oil Services Company entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras), Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol) and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace further admitted he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
Mace admitted he maintained a spreadsheet reflecting payments to five individuals. Even though he was aware there was a high risk those individuals were Equatorial Guinean officials or persons receiving money on behalf or at the direction of those officials, he nevertheless authorized Oil Services Company to make more than $16 million in payments to those individuals. Mace further admitted he continued a practice that was instituted before he became CEO by splitting payments to Oil Services Company’s Brazilian intermediary - paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace admitted he deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials.
As part of his plea, Zubiate’s admitted that between 1996 and 2012, he and his co-conspirators used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting the Oil Services Company and its U.S. subsidiary with winning bids. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for the Oil Services Company and its U.S. subsidiary.
ICE-HSI investigated the case. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case along with Trial Attorney Dennis R. Kihm and Assistant Chief Tarek Helou of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands’ Openbaar Ministerie and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Criminal Division’s 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.
Two Executives Plead Guilty to Role in Foreign Bribery SchemeRead the Press Release
Two former executives at a Dutch oil and gas services company (the “Oil Services Company”), Anthony “Tony” Mace and Robert Zubiate, pleaded guilty this week to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) for their roles in a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Mace, 65, of the United Kingdom, was the Oil Services Company’s CEO from 2008 to 2011, and a former board member of one of its wholly-owned Houston subsidiaries. Zubiate, 66, of California, was a former Texas and California-based sales and marketing executive at the same subsidiary.
U.S. District Judge David Hittner of the Southern District of Texas accepted Mace’s guilty plea on Nov. 9 and Zubiate’s guilty plea on Nov. 6. Sentencing for Mace is scheduled for Feb. 2, 2018, and Zubiate for Jan. 31, 2018.
As part of his guilty plea, Mace admitted that prior to becoming CEO, other employees of the Oil Services Company entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras), Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol) and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace further admitted that he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
Mace admitted that he maintained a spreadsheet reflecting payments to five individuals and that even though he was aware there was a high risk those individuals were Equatorial Guinean officials or persons receiving money on behalf or at the direction of those officials, he nevertheless authorized Oil Services Company to make over $16 million in payments to those individuals. Mace further admitted that he continued a practice that was instituted before he became CEO by splitting payments to Oil Services Company’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace admitted that he deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials.
As part of his plea, Zubiate’s admitted that between 1996 and 2012, he and his co-conspirators used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting the Oil Services Company and its U.S. subsidiary with winning bids. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for the Oil Services Company and its U.S. subsidiary.
ICE-HSI investigated the case. Trial Attorney Dennis R. Kihm and Assistant Chief Tarek Helou of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands’ Openbaar Ministerie and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Criminal Division’s 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.
Transportation Recruiter Charged with Defrauding Employers out of Half Million DollarsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged John E. Kelly, 62, of Columbus, with defrauding two employers out of approximately half a million dollars in an indictment returned here last week that was unsealed today.
Kelly was arrested yesterday in North Carolina by federal agents and will be transported to Columbus for future court proceedings.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Angela L. Byers, Federal Bureau of Investigation (FBI), Cincinnati Division and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the charges.
The indictment alleges that Kelly created and maintained a pair of sham business entities for the purpose of billing fake advertising invoices.
Beginning in February 2014, Kelly was employed as the Director of Driver Recruiting for CEVA Logistics, a supply chain company headquartered in Houston, Texas. The next year, he was employed in a similar role as Director of Fleet Recruitment for Container Port Group, Inc., headquartered in Cleveland. In both roles, Kelly was able to set up new advertising vendors for payment through his direct-report employees.
While employed at CEVA, Kelly allegedly had an employee add one of his fake businesses as an approved advertising vendor in CEVA’s accounting system. Kelly also allegedly created a fictitious alias – “Jess” – on behalf of the bogus advertising business.
“The indictment alleges that Kelly sent fraudulent advertising invoices from Jess’s email address to his own CEVA email address for advertising that did not exist,” U.S. Attorney Glassman said. “He’d then have CEVA mail the payment checks to a mailbox he established at a Pak Mail Store in Lewis Center.”
In total, Kelly allegedly created and submitted roughly 65 fraudulent advertising invoices to CEVA, tallying nearly $488,000.
Once employed at Container Port Group, it is alleged that Kelly continued the scheme by having an employee add a second sham business venture as an approved advertising vendor in the company’s accounting system.
He allegedly created a second alias – “Linda Rowe” – to communicate with himself and create fictitious advertising invoices.
Kelly allegedly created 13 false invoices through the scheme at Container Port Group and billed the business approximately $35,500. According to the indictment, he instructed his house cleaner to establish a pair of mailboxes on behalf of the second sham business at a UPS store in Delaware, Ohio.
Kelly also allegedly attempted to conceal his true and accurate income from the IRS in calendar years 2014 and 2015. It is calculated that Kelly owes more than $155,000 in taxes.
Kelly is charged with eight counts of mail fraud, eight counts of money laundering and two counts of tax evasion. Mail fraud is a crime punishable by up to 20 years in prison; money laundering carries a potential maximum sentence of 10 years in prison and tax evasion is a crime punishable by up to five years in prison.
“John Kelly held very important positions in businesses that placed their trust in him, and he allegedly abused their trust by creating fake business and lining his own pockets with stolen advertising dollars,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation, the FBI and USPIS, as well as Assistant United States Attorney Noah Litton, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Three Luzerne County Residents Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Roberto Torner, age 44 and Liza Robles, age 33, both of Freeland, Pennsylvania, and David Alzugaray-Lugones, age 48, of Weatherly, Pennsylvania, were charged on November 7, 2017, by a federal grand jury with various drug trafficking and firearms offenses in Luzerne County.
According to United States Attorney Bruce D. Brandler, Torner, Robles and Lugones-Alzugaray conspired to distribute heroin from June 2, 2015 to June 8, 2015, in Luzerne County. All three individuals also were charged with distributing heroin on June 8, 2015.
Torner and Robles were charged with conspiring, from May 12, 2012 to August 28, 2017, to provide firearms and ammunition to a convicted felon and to possess firearms and ammunition as a convicted felon. The indictment alleges that Robles purchased six firearms from various federal firearms licensees and other unnamed individuals, including two assault rifles, and provided them to Torner, a convicted felon prohibited from purchasing firearms. The indictment also alleges that Torner purchased a shotgun from an unnamed individual.
Robles also was charged with providing firearms and ammunition to Torner, despite knowing of his status as a felon. Torner also was charged with being a felon in possession of firearms and ammunition. Alzugaray-Lugones also was charged with being an illegal alien in possession of a firearm and ammunition.
The indictment seeks forfeiture of $4,000, over 1,500 rounds of ammunition, and various firearms seized during the investigation. The firearms are:
- Magnum Research 1911U .45acp;
- Hi-Point JHP .45acp;
- Stag Arms STAG-15, .223 cal. (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg 500 12-gauge shotgun; and
- Norinco MAC90 (a semiautomatic firearm that is capable of accepting a large capacity magazine); and a
- Tikka T3, 30.06 rifle.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious narcotics charges are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalties under federal law for the most serious firearms charges are 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Indicted for Health Care Fraud at Houston ClinicRead the Press Release
HOUSTON – Two Houston clinic owners are expected in federal court following the return of a 27-count indictment alleging a conspiracy to commit wire fraud, kickbacks and money laundering, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Scott Pierce of the U.S. Postal Service (USPS) Office of Inspector General (OIG) - Contract Fraud Investigations Division and Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL)-OIG.
A grand jury returned the indictment Nov. 2, 2017, against Anukul Dass aka Andy Dass, 41, and his sister Anurag Dass aka Anna Dass, 46, both of Houston, along with Stephen Vincent Hunt, 67, formerly of Houston and now of Waxahachie. The Dass siblings are expected to make their appearances before U.S. Magistrate Nancy Johnson today at 10:00 a.m. Hunt turned himself in and made his initial appearance earlier this week.
Anukul and Anurag Dass operated A&A Pain and Wellness Center Inc. at 6600 Harwin Drive in Southwest Houston. From 2010 to 2017, the indictment alleges they filed false claims the Office of Worker Compensation Programs (OWCP) for patients that Hunt directed to the clinic. Hunt was allegedly a former injured employee with the U.S. Postal Service (USPS) who filed his own injury claim with OWCP.
The Dass siblings allegedly conspired with Hunt for him to direct injured federal workers to A&A Pain and Wellness Center for medical treatment and health care services. In return, the indictment alleges Hunt would receive a fee as payment from the center for each claim OWCP paid. Hunt also allegedly charged injured federal workers he referred a fee for his representation and services through a company he controlled under the name “Zentec.”
Anna Dass was the manager of Clinical Operations at A&A, while Anukul Dass was the director, according to the indictment. Anna Dass allegedly filed false claims for services which were not performed or were “upcoded” and billed at a higher rate than services actually performed. From 2010 to 2017, A&A billed OWCP for more than $9.1 million. OWCP allegedly paid $7.2 million for those claims according to the allegations.
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting patient safety and overall program costs,” said Pierce. “Along with our law enforcement partners, the USPS-OIG will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
“An important mission of DOL-OIG is to investigate allegations of medical provider fraud in the OWCP,” said Grell. “We will continue to work with our law enforcement partners to investigate these types of allegations.”
If convicted of the conspiracy or the kickback allegations, each faces a penalty of up to five years in prison. The wire fraud carries a possible 20-year maximum sentence, while a conviction for money laundering could result in as much as 10 years imprisonment. All of the charges also carry a possible fine of $250,000.
USPS-OIG and DOL-OIG conducted the investigation. Assistant U.S. Attorney Cedric L. Joubert is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Three Austinites Plead Guilty to Federal Fraud and Tax ChargesRead the Press Release
Three Austinites face federal prison terms and millions in restitution after pleading guilty to defrauding Dell, Inc. and the Internal Revenue Service announced United States Attorney Richard Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Special Agent in Charge William Cotter, San Antonio.
Appearing before U.S. Magistrate Judge Andrew Austin this morning, 50-year-old Kelly Burton Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return. Yesterday afternoon, Kelly’s wife, 47-year-old Tobie R. Nunn, pleaded guilty to the tax charge and a third defendant in this case, 55-year-old Bryan Dale Wallace, pleaded guilty to the conspiracy charge. The conspiracy charge calls for up to five years in federal prison; the tax charge, up to three years in federal prison. The defendants are also subject to a yet-to-be determined amount of restitution in this case. Sentencing, before U.S. District Judge Sparks, has yet to be scheduled.
According to court records, Kelly Nunn and Bryan Wallace conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell, Inc. (Dell), by charging Dell for services Dell did not receive or excessive amounts for services that Dell did receive. Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services (Bison) for computer-aided-design services related to management of Dell’s business locations. The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled. Wallace subsequently paid over $1 million to Nunn during the course of their scheme.
By pleading guilty, Kelly and Tobie Nunn admitted that in April 2011, they intentionally filed electronically a fraudulent 2010 Individual Income Tax Return with the IRS that substantially understated their actual income.
FBI agents and IRS-Criminal Investigation agents investigated this case. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.
Thirteen Indicted in Methamphetamine Drug Trafficking RingRead the Press Release
TULSA, Okla.—Today, United States Attorney R. Trent Shores announced that a grand jury handed down an indictment against thirteen defendants, charging them with Conspiracy to Possess with the Intent to Distribute Methamphetamine, Distribution of Methamphetamine and Unlawful Use of a Communication Facility. The defendants charged are Keni Patricio Garcia-Soberanis, a/k/a “Danny”, Antonio Soberanis-Garcia, a/k/a “Carlos Garcia”, Jose Angel Garcia, a/k/a “Chino”, Jose Acosta-Soberanis, Madeline Pearl Lavalley a/k/a “Maddie”, Latasha Jo Thompson, Deborah Renee Burns a/k/a “Debbie Burns”, Baley Lynn Enloe a/k/a “Bailey Enloe”, Deborah Renee Enloe, Clayton Lambert, Nickolas Allen Lollis, Justin Daniel Jordan, and James Christopher Martin, a/k/a “Too Tall”.
The indictment alleges the drug conspiracy began in December 2015 and continued through September 2017. According to the indictment, Keni Garcia-Soberanis was a source of supply for methamphetamine distributed by multiple mid-level and street level dealers. Soberanis relied on Thompson, Lavalley, Jose Angel Garcia, and Antonio Soberanis-Garcia who, on numerous occasions, delivered distribution amounts of methamphetamine to Burns, Baley Enloe, Deborah Enloe, Lambert, Lollis, Jordan, and Martin. The indictment further alleges that Keni Garcia-Soberanis, Antonio Soberanis-Garcia and Jose Acosta-Soberanis stored bulk quantities of methamphetamine and drug proceeds at two different locations.
At this time, Keni Patricio Garcia-Soberanis, Antonio Soberanis-Garcia, Jose Angel Garcia, Jose Acosta-Soberanis, Madeline Pearl Lavalley, and Deborah Renee Enloe remain at-large.
“The United States Attorney’s Office continues to work with the Tulsa Police Department and FBI to keep methamphetamine out of our community. We want to reduce its availability, drive up its price, and reduce its purity and addictiveness.” USA Shores said. “Drug traffickers who peddle their wares in the Northern District of Oklahoma should be on notice that they will be prosecuted in a federal court of law.”
Tulsa Police Chief Chuck Jordan commented upon the partnership between federal and local authorities and stated, “Investigations and prosecutions such as these would not be possible without the strong partnership between the Tulsa Police Department and the United States Attorney’s Office. We appreciate the opportunity to be able to collaborate with them on this investigation.”
The Indictment is part of Operation “Cloverfield,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. The Federal Bureau of Investigation (FBI) and Tulsa Police Department (TPD) conducted the joint investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Task Force Officers assigned to the FBI-Safe Streets Task Force. Assistant United States Attorney Joel-lyn A. McCormick is prosecuting the case.
The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Ted L. McBride Receives Lifetime Achievement AwardRead the Press Release
Longtime federal prosecutor, Ted L. McBride, was awarded the Lifetime Achievement Award by the South Dakota State’s Attorneys Association, at an event in Sioux Falls on Wednesday evening, November 8, 2017. Presenting the award to McBride was former colleague, and current Pennington County State’s Attorney, Mark Vargo. This is only the second Lifetime Achievement Award ever bestowed by the association.
McBride, an Assistant U.S. Attorney for the District of South Dakota, has also announced his retirement as of November 11, 2017, following a storied career in federal service that spanned almost 28 years. McBride’s tenure with the U.S. Attorney’s office included two stints as Interim U.S. Attorney, as well as First Assistant U.S. Attorney. In 1998, he was honored with the Director’s Award for Superior Performance from the Executive Office for U.S. Attorneys.
“Ted McBride is the epitome of a tried-and-true federal prosecutor. His courtroom presence was unequaled and his prosecutorial skills were envied by many,” said U.S. Attorney Randolph J. Seiler. “Ted has run the gamut on the cases he masterfully handled, from homicides, sexual assaults, and burglaries, to corruption, fraud, and drug cases. It has been my honor and privilege to work alongside Ted for the better of two decades. He cared and he fought, and he made a difference in the lives of many. There will never be another Ted McBride.”
“This award is a recognition of a career marked by zealous advocacy on behalf of victims and the community at large. It is the unique role of the U.S. Attorney’s Office in South Dakota that the prosecutors in that office, unlike most federal prosecutors, are active with the same kinds of violent crimes that we deal with in state court,” said Vargo. “And we recognize in him a kindred spirit, one who stands at the top of our profession. There are generations of both federal and state prosecutors who Ted helped recruit, train, and lead. As he leaves the USAO, we wanted to make public our appreciation for all that he has done.”
The South Dakota State’s Attorneys’ Association has, since 2002, given out several different awards, including Prosecutor of the Year, the Distinguished Service Award and a Lifetime Achievement Award.
The presentation took place during the Law Enforcement Appreciation and Children's Charity Dinner.
Tampa Man Pleads Guilty to Firearms ChargeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Javis D. Wilson (39, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. He faces up to life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2016, Wilson sold undercover agents cocaine, ammunition, and several firearms, including a 30-06 caliber rifle, a .25 caliber handgun, and a .40 caliber handgun. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank 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, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Stockton Man Sentenced to 3 Years in Prison for His Participatin in a Large-Scale Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Arthur Change Menefee, 46, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years in prison and ordered to pay over $5 million in restitution, United States Attorney Phillip A. Talbert announced.
According to court documents, Menefee was a licensed real estate agent who aided unqualified buyers in obtaining loans to purchase properties. Some of the properties were sold by co‑defendant Aleksandr Kovalev, who offered kickbacks to the buyers that were not disclosed to the lenders. Menefee assisted the buyers in preparing loan applications that included false information, and used fictitious companies he created to generate false information about the buyers’ employment and income to support the fraudulent loan applications. At least 23 properties were involved in Menefee’s mortgage fraud scheme, with substantial losses to the lenders.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
To date, co-defendants Aleksandr Kovalev, Jannice Riddick, Florence Francisco, Adil Qayyum, Elsie Pamela Fuller, and Leona Yeargin have pleaded guilty and been sentenced. Two other defendants, Valeriy Vasilevitsky, charged in United States v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in United States v. Willis, 2:13-cr-00228 MCE, have also pleaded guilty and been sentenced with respect to their involvement in the scheme.
South Bend Man IndictedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced the return of a four-count indictment charging Cordero Love, age 25, of South Bend, Indiana with 3 counts of Hobbs Act Robbery and 1 count of using a firearm during a crime of violence.
According to documents in this case, it is alleged that Love committed 3 robberies in the South Bend/Mishawaka area. The three robberies are outline below:
- August 13, 2017 a Gas Station in South Bend was robbed by means of actual or threatened force, violence and fear of injury
- On October 1, 2017 a Gas Station in Mishawaka was robbed by means of actual or threatened force, violence and fear of injury.
- On October 3, 2017, a Gas Station in Mishawaka was robbed during which Love allegedly brandished a firearm.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the South Bend Police Department. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
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Sioux Falls Man Charged with Bank Robbery Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for bank robbery.
Cody Maynard, age 27, was indicted on August 16, 2017. He appeared before Veronica L. Duffy on November 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Maynard entered the Voyage Federal Credit Union in Sioux Falls, South Dakota, on April 27, 2017, and demanded money from the teller.
The charge is merely an accusation and Maynard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Maynard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Simpson Man Charged with Armed Bank RobberyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John C. Ryall, age 38, of Simpson, Pennsylvania, was indicted on November 7, 2017, by a federal grand jury and charged with armed bank robbery.
According to United States Attorney Bruce D. Brandler, Ryall robbed the Honesdale National Bank in Scott Township, Pennsylvania, on October 20, 2017. Ryall obtained $5,255, but was restrained by a bank customer, and taken into custody by the Scott Township Police Department shortly thereafter. Ryall brandished a CO2 BB-gun during the robbery.
The matter was investigated by the Federal Bureau of Investigation and by the Scott Township Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charge is 25 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sex Offender Sentenced for Failing to Register in MassachusettsRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for failing to register as a sex offender.
Charles Towers, 52, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years in prison and five years of supervised release.
Towers is required to register as a sex offender based on a 2009 conviction in San Diego Superior Court of attempted forcible oral copulation. He was sentenced to 18 months in prison and ordered to register as a sex offender for life.
After serving his sentence, Towers registered as a sex offender in California. In April 2014, Towers moved from San Diego to Brockton and failed to both notify the San Diego Police Department’s Sex Offender Unit of his change of address and to register as a sex offender with the Massachusetts Sex Offender Registry Board, as he was legally required to do.
Acting United States Attorney William D. Weinreb and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sentencings for November 3 - November, 8 2017Read the Press Release
McKleen Miranda-Bencomo, 28, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 8, 2017, for distribution of methamphetamine and aiding and abetting. Miranda-Bencomo was arrested in Gillette, Wyoming. He received eight months of imprisonment, to be followed by two years of supervised release, and was ordered to pay $400.00 in restitution and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Carroll Thomas Manning, Jr., 40, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 7, 2017, for being a felon and unlawful user of a controlled substance in possession of a firearm. Manning was arrested in Casper, Wyoming. He received 78 months imprisonment, to be served consecutive to his state sentence. Upon release from custody, Manning will be on supervised release for three years, and he was ordered to pay a $100.00 special assessment. This case was investigated by the Casper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
John Edward Hatch, 24, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 7, 2017, for conspiracy to distribute methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Hatch was arrested in Casper, Wyoming. He received 113 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Glenn William Getter, 40, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute methamphetamine. Getter was arrested in Casper, Wyoming. He received 60 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Matthew Aaron Cook, 52, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute methamphetamine. Getter was arrested in Casper, Wyoming. He received 36 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Vincent Lee Greenough, 48, of Buffalo, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute methamphetamine. Greenough was arrested in Sheridan, Wyoming. He received 36 months of imprisonment, to be followed by two years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Tony Vincent Apodaca, 53, of Wheat Ridge, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Apodaca was arrested in Wheat Ridge, Colorado. He received 87 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Ivan Thomas Gorzalka, 44, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Gorzalka was arrested in Sheridan, Wyoming. He received 87 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Rosebud Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Conroy Chasing In Timber, age 35, was sentenced to time served in custody until December 1, 2017 (approximately 9 months), 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Chasing In Timber was indicted by a federal grand jury on February 15, 2017. He pled guilty on August 15, 2017.
The conviction stemmed from an incident that occurred on December 24, 2016. On that date, Chasing In Timber was arrested for disorderly conduct and transported to the Rosebud Adult Correctional Facility near Rosebud. As he was completing the booking process, Chasing Timber struck a corrections officer in the face with a closed fist.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Chasing In Timber was immediately turned over to the custody of the U.S. Marshals Service.
Roanoke Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who investigators with the Southern Virginia Internet Crimes Against Children (ICAC) task force identified as someone who received at least 144 files containing child pornography, pleaded guilty today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Richard B. Morgan, 67, waived his right to be indicted and pleaded guilty today to an Information charging him with one count of receipt of child pornography. A sentencing hearing has been scheduled for February 16, 2018 at 9:30 a.m.
According to information presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, In June 2015, an investigator with the Southern Virginia ICAC identified the IP address attached to the home address of the defendant as one associated with an IP address downloading files containing child pornography. Investigators successfully downloaded images of child pornography from the defendant via peer-to-peer, file-sharing software often used by those who trade in child pornography.
A search warrant was obtained for Morgan’s home address. During the search, Morgan told officers, “I know why you are here.” Morgan admitted to officers that he downloaded child pornography and was the only person with access to the computer in his apartment. Morgan’s computer and an external hard drive were seized and forensically examined, revealing 1,849 images and 4,406 videos containing child pornography.
The investigation of the case was conducted by the Southern Virginia Internet Crimes Against Children Task Force, the Bedford County Sheriff’s Office and U.S. Customs Enforcement, Department of Homeland Security. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Registered Sex Offender Sentenced to Ten Years in Prison for Possession of Images of Child RapeRead the Press Release
A registered sex offender with two prior convictions for child molestation was sentenced today in U.S. District Court in Seattle to ten years in prison and ten years of supervised release, announced U.S. Attorney Annette L. Hayes. DOUGLAS BLOUIN, 51, of Sedro Woolley, Washington came to the attention of law enforcement in 2016, when an agent with Homeland Security Investigations (HSI) used law-enforcement software to investigate individuals sharing child pornography over peer-to-peer file sharing networks. At the sentencing hearing, U.S. District Judge Thomas S. Zilly said BLOUIN has “gone to great lengths to view child pornography.”
According to records filed in the case, the HSI agent was working with the Seattle Internet Crimes Against Children Task Force (ICAC) when he downloaded multiple images and videos of child pornography being shared by a computer at an internet protocol address later traced to BLOUIN. A records check revealed that BLOUIN was a registered sex offender with convictions for two counts of child molestation in 1998 in Skamania County, Washington.
Law enforcement served a search warrant on BLOUIN’s home and seized a number of devices. BLOUIN told law enforcement that he used peer-to-peer software to download child pornography. BLOUIN also admitted that he used a specific ‘scrubbing’ software to remove evidence of the child pornography from his electronic devices. A forensic review of the devices found evidence of the scrubbing software, the file-sharing software, file names consistent with child pornography, and one image of child pornography.
BLOUIN pleaded guilty to possession of child pornography on August 8, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Registered Nurse Charged with Stealing Pain Medications Intended for Patients from Minneapolis HospitalRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the indictment of MATTHEW ALLEN AMUNDSON, 30, a registered nurse, for fraudulently obtaining hydromorphone, a prescription opioid pain medication. AMUNDSON, who is charged with one count of obtaining a controlled substance by fraud, made his initial appearance in U.S. District Court in Minneapolis, Minn. earlier today.
According to the indictment, from January 2015 through April 2015, AMUNDSON, while employed as a registered nurse at Abbott Northwestern Hospital in Minneapolis, Minn., fraudulently obtained possession of controlled substances, namely, hydromorphone, which was intended for hospital patients. While working in his capacity as a nurse, AMUNDSON accessed the hospital’s secured automated medication dispensing systems and used syringes to extract hydromorphone from vials intended for patient use. AMUNDSON subsequently injected the vials with saline solution to replace the missing hydromorphone before returning the vials to the medication dispensing systems.
This case is the result of an investigation conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Drug Enforcement Administration (DEA) Tactical Diversion Squad, which is comprised of agents, officers and deputies from the DEA, Federal Bureau of Investigation, Minneapolis Police Department, Plymouth Police Department, Washington County Sheriff’s Office, and the Minnesota Army National Guard.
Assistant U.S. Attorney Richard A. Newberry is prosecuting the case.
Defendant Information:
MATTHEW ALLEN AMUNDSON, 30
Northfield, Minn.
Charges:
- Obtaining a controlled substance by fraud, 1 count
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ravenna man indicted for selling carfentanil, heroin, fentanyl and illegally having a firearmRead the Press Release
A Ravenna man was indicted for selling carfentanil, heroin, fentanyl and illegally having a firearm, said U.S. Attorney Justin E. Herdman.
A grand jury returned a six-count indictment charging Deangelo Frost, 28, with distributing narcotics and with being a felon in possession of a firearm.
Frost sold carfentanil and fentanyl on May 3, 2017. He sold synthetic cannabinoids in April 2017 and sold heroin on multiple dates in October 2015, according to the indictment.
Frost also possessed a Deutsche Werke, 7.65 mm pistol in October 2015 despite previous convictions for attempted witness intimidation and possession of cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Mahoning Valley Law Enforcement Task Force and the Portage County Drug Task Force. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Queens Man Charged with Conspiracy to Produce Child PornographyRead the Press Release
A criminal complaint was unsealed earlier today in federal court in Brooklyn, New York, charging Keith Liwanag with conspiracy to produce child pornography. Liwanag was arrested today and is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the charges.
“As alleged, the defendant victimized vulnerable children abroad by soliciting photographs and videos of their sexual abuse in exchange for money,” stated Acting United States Attorney Rohde. “The safety and protection of children is a priority for this Office and our law enforcement partners and we will pursue those who would endanger children to the fullest extent of the law.” Ms. Rohde extended her grateful appreciation to INTERPOL’s Crimes Against Children Unit for its investigative work and assistance in the investigation.
“This individual is alleged to have convinced women overseas to commit sexual acts with children in return for payment,” stated ICE-HSI Special Agent-in-Charge Melendez. “His version of a ‘show,’ among other criminal acts against children, allegedly included enticing a mother to sexually abuse her own son for his pleasure. We will be relentless in our pursuit of child predators to ensure they face justice for their unfathomable acts.”
According to the complaint, in September and October 2016, Liwanag used a Facebook account to direct women in the Philippines to engage in sexual acts with children in exchange for money, and to produce and send child pornography over Facebook’s private messaging service. On September 8, 2016, the defendant sent several messages to a woman asking her to sexually abuse a six-year-old boy as part of a “show” in exchange for money. On September 11, 2016, the defendant sent and received messages from another woman about a “show” with the woman’s son and offered her money to perform a sex act on him. On October 12, 2016, the defendant sent a message to a third woman soliciting photographs of the sexual abuse of her child. In response, on October 27, 2016, the woman sent the defendant two images depicting child abuse. As set forth in court filings, the evidence obtained during the course of the investigation includes 10 recorded video conferences between the defendant and women engaged in the sexual abuse of children.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Tanya Hajjar and Erin Reid are in charge of the prosecution.
The Defendant:
KEITH LIWANAG
Age: 26
Residence: Queens, New YorkPreviously Convicted Child Sex Offender from Albuquerque Sentenced to 25 Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE –David Abrisz, 56, of Albuquerque, N.M., was sentenced this afternoon in federal court to 25 years in federal prison followed by ten years of supervised release for his conviction on child pornography charges. Abrisz will be required to register as a sex offender after he completes his prison sentence. Abrisz also was ordered to pay $5,000 in restitution to the victims of his crimes.
Acting U.S. Attorney James D. Tierney and Bernalillo County Sheriff Manuel Gonzales, III, said that Abrisz, a previously convicted child sex offender, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“The exploitation of children on the Internet has no geographical or jurisdictional boundaries and requires that we share information and work as a team to protect our children,” said Acting U.S. Attorney James D. Tierney. “This case is an example of the law enforcement community’s commitment to identifying, locating and prosecuting predators who exploit children and undermine the normalization of child sexual abuse.”
“The Bernalillo County Sheriff’s Office is committed to collaborating with federal agencies to proactively investigate crimes against children,” said Bernalillo County Sheriff Manuel Gonzales, III. “As recent high profile events have shown us, adults who fantasize about sexual relations with kids can turn deadly. Let this serve as a warning to all those who seek out children as victims, we are dedicated to identifying anyone who preys on children and we will hold those who commit these repulsive crimes accountable.”
The Bernalillo County Sheriff’s Office arrested Abrisz in Aug. 2016, on an indictment charging him with one count of distributing child pornography and three counts of possessing child pornography. The indictment charged Abrisz with distributing child pornography from July 2013 through Dec. 2015, and possessing child pornography on two computers and a thumb drive from Aug. 2014 through Feb. 2016. Abrisz committed the crimes in Bernalillo County, N.M.
Abrisz pled guilty to the indictment on June 28, 2017. In entering the guilty plea, Abrisz admitted committing the following criminal acts: (i) distributing approximately 80 child pornography files between July 2013 and Dec. 2015; (ii) possessing a computer that contained approximately two video files and 880 image files of child pornography from Dec. 2014 through Feb. 2015; (iii) possessing a second computer that contained approximately 145 image files of child pornography from Dec. 2014 through Feb. 2015; and (iii) possessing a thumb drive that contained approximately 147 video files and one image file of child pornography from Aug. 2014 through Feb. 2015.
This case was investigated by the Bernalillo County Sheriff’s Office and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorney Sarah Mease prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Child hood, please visit http://www.justice.gov/psc/.
Plainville Man Sentenced to 5 Years in Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL KELLEY, 36, formerly of Plainville, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that KELLEY supplied Eduardo Zayas with large quantities of crack cocaine. Zayas, in turn, suppled crack to members and associates of Los Solidos.
On May 14, 2015, investigators learned that KELLEY and Zayas planned to meet to conduct a drug transaction. That evening, Hartford Police confronted KELLEY and ZAYAS in a parking lot on New Britain Avenue. A search of KELLEY’s person revealed approximately 320 grams of crack. KELLEY also possessed four cell phones and $2,573 in cash. KELLEY and Zayas were arrested on state charges at that time.
A subsequent search of an apartment in Plainville where KELLEY resided revealed approximately 1.1 kilograms of crack, approximately two kilograms of powder cocaine, approximately two kilograms of marijuana, and $49,026 in cash. In addition, a search of a Hartford apartment connected to KELLEY revealed approximately 50 grams of crack.
KELLEY was arrested on federal charges on June 15, 2015. On April 17, 2017, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Zayas, of East Hartford, pleaded guilty to the same charge and, on January 27, 2017, was sentenced to 65 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Philadelphia Man Charged with Aggravated Identity Theft.Read the Press Release
Terrence Williams, 31 of Philadelphia, PA, was charged today by Indictment with Aggravated Identity Theft and thirteen counts of Bank Fraud, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that between February and June 2017, Mr. Williams repeatedly stole and altered checks and deposited or attempted to deposit those altered checks into various bank accounts. The indictment additionally alleges that, in the course of perpetuating his bank fraud scheme, Mr. Williams possessed without permission the name and bank account numbers of a victim.
If convicted the defendant faces a potentially significant sentence of incarceration, including a mandatory minimum sentence of two years for the commission of Aggravated Identity Theft.
The case was investigated by the United States Department of State and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pawtucket Man Charged with Trafficking Crack Cocaine, FentanylRead the Press Release
PROVIDENCE, RI – A federal criminal complaint was filed in U.S. District Court in Providence today charging David J. Reis, 40, of Pawtucket, with trafficking crack cocaine and fentanyl.
The filing of the federal criminal complaint charging Reis with possession with the intent to distribute 28 grams or more of cocaine base and possession with the intent to distribute fentanyl is announced by Acting United States Attorney Stephen G. Dambruch; Pawtucket Police Chief Tina Goncalves; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to federal court documents, the Pawtucket Police Special Squad Narcotic Unit received information that Reis was allegedly distributing large amounts of cocaine throughout the city of Pawtucket. As part of the investigation, on November 1, 2017, members of the Pawtucket Police Special Squad Narcotic Unit executed a court authorized search of Reis’ residence and seized nearly 200 grams of crack cocaine, 10 small plastic bags with a substance that tested positive for fentanyl, and packaging materials and cutting agents consistent with the distribution of narcotics.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Reis is currently being held in state custody on Rhode Island state charges brought by the Pawtucket Police Department.
The case in federal court is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Owner of Hudson County, New Jersey, Scrap Metal Company Admits Role in 17-Year Conspiracy to Defraud CustomersRead the Press Release
Former Chief Financial Officer Has Pleaded Guilty to Related Charge
NEWARK, N.J. – The minority owner of Cinelli Iron & Metal Co. (CIMCO) today admitting operating a 17-year conspiracy that defrauded customers out of millions of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Craig Cinelli, 47, of Allendale, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count One of an indictment that charged him with conspiracy to commit wire fraud.
David Barteck, 53, of Wood Ridge, New Jersey, the former chief financial officer of CIMCO, and Michael A. Valenti III, 43, of Hasbrouck Heights, New Jersey, the former senior vice president of sales at CIMCO, each previously pleaded guilty before Judge Wigenton to participating in the conspiracy.According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Craig Cinelli, his brother, Joseph Cinelli Sr., Barteck, Valenti, and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul. Cinelli admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million.
The wire fraud conspiracy and substantive wire fraud counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 15, 2018.
Charges against Joseph Cinelli Sr., remain pending, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Ray Flood Esq., Hackensack, New Jersey
Okreek Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, man convicted of Abusive Sexual Contact was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Marcos Lorenzo Bear Shield, age 22, was sentenced to 33 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bear Shield was indicted by a federal grand jury on December 14, 2016. He pled guilty on August 10, 2017.
The conviction stemmed from an incident that occurred on August 3, 2015, wherein Bear Shield sexually assaulted a 15-year-old girl at a house in North Antelope, South Dakota. Bear Shield had been drinking with the girl that evening and she was intoxicated at the time of the sexual assault.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Bear Shield was immediately turned over to the custody of the U.S. Marshals Service.
Oklahoma City man sentenced to 188 months in federal prison for his role in the robbery of Haltom’s JewelersRead the Press Release
FORT WORTH — Melvin Lewis Andrews, 55, of Oklahoma City, Oklahoma, was sentenced this week by U.S. District Judge Reed C. O’Connor to serve 188 months in federal prison, following his guilty plea in August 2017 to his role in the conspiracy to rob Haltom’s Jewelers in Grapevine, announced U.S. Attorney John Parker of the Northern District of Texas.
Andrews pleaded guilty to one count of interference with commerce by robbery. He has been in Federal custody since his arrest in March 2017.
According to plea documents filed in the case, on October 3, 2014, Andrews, along with co-defendants Garland Gilmore Lenoir III, Willie Thompson Jr., Tony Eugene Gabriel and Kim Yvette Brown, traveled to Haltom’s Jewelers in a stolen vehicle. Andrews, Lenoir, Thompson and Gabriel, entered the store wearing masks and carrying handguns and hammers. Andrews, Lenoir, and Gabriel smashed the display cases with hammers and stole merchandise, to include jewelry and watches. After the robbery, Andrews was paid approximately $10,000 for his participation.
The FBI and Grapevine Police Department investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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New York Man Pleads Guilty to Trafficking in Endangered Lion and Tiger PartsRead the Press Release
Arongkron “Paul” Malasukum, a resident of Woodside, New York, pleaded guilty today to illegally trafficking parts from endangered African lions and tigers.
The guilty plea was announced by Acting Assistant Attorney General Jeffrey Wood for the Department of Justice’s Environment and Natural Resources Division and Brit Featherston, Acting United States Attorney for the Eastern District of Texas.
Malasukum, 41, pleaded guilty today in Plano, before U.S. Magistrate Judge Kimberly Priest Johnson for the Eastern District of Texas, to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
In papers filed in federal court in April 2016, Malasukum admitted to purchasing a tiger skull from undercover agents who were working for the U.S. Fish and Wildlife Service. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents on another occasion. The agents were acting as “straw buyers” for Malasukum. Malasukum, who knew his out-of-state purchases could draw attention from federal law enforcement, gave the undercover agents cash and told them which items to bid on and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer.
As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he exported approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000. All of the exports were sent to Thailand.
“This guilty plea is another positive result from the continued partnership between the U.S. Fish and Wildlife Service and the Justice Department,” said Acting Assistant Attorney General Wood. “Together we will continue to investigate and prosecute those who engage in illegal trade in protected wildlife.”
“Reasonable laws are in place to protect endangered animals, and to ensure that future generations have the opportunity to see and enjoy wildlife as we do today,” said Acting United States Attorney Featherston. “There are fewer than four thousand tigers remaining in the wild and they must be protected from harm. Malasukum’s illegal actions breed further destructive behavior by others, such as the poaching of other endangered animals for greed. Lawful hunting and conservation go hand in hand; and law enforcement will protect those animals that are deemed endangered.”
"The U.S. Fish and Wildlife Service works to combat the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Ed Grace. “We work closely with the Department of Justice and others to investigate these cases and will continue to apprehend those who exploit these species for commercial gain.”
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, U. S. Attorney’s Office for the Eastern District of Texas, the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
New Orleans Woman Convicted for Role in $3.2 Million Medicare Kickback SchemeRead the Press Release
WASHINGTON – A federal jury found a New Orleans woman guilty today for her role in an approximately $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Acting Special Agent in Charge Daniel Evans of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
After a three-day trial, Sandra Parkman, 61, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, two counts of health care fraud and five counts of accepting kickbacks. Sentencing is scheduled for Jan. 17, 2018, before U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who presided over the trial.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to provide medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from the equipment supply company in return for providing eligible Medicare beneficiaries’ personal information to the company, as well as to obtain physican signatures on order forms.
As a result of the scheme, Parkman’s co-defendant, Tracy Richardson Brown, caused Medicare to pay over $3.2 million based on those illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in June 2016 and was sentenced to 48 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New Orleans Woman Convicted for Role in $3.2 Million Medicare Kickback SchemeRead the Press Release
A federal jury found a New Orleans woman guilty today for her role in an approximately $3.2 million Medicare fraud and kickback scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Acting Special Agent in Charge Daniel Evans of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
After a three-day trial, Sandra Parkman, 61, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, two counts of health care fraud and five counts of accepting kickbacks. Sentencing is scheduled for Jan. 17, 2018, before U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana, who presided over the trial.
According to evidence presented at trial, from 2004 to 2009, Parkman and others engaged in a scheme to provide medically unnecessary durable medical equipment, including power wheelchairs, to Medicare beneficiaries in and around New Orleans. The evidence showed that Parkman received kickback payments from the equipment supply company in return for providing eligible Medicare beneficiaries’ personal information to the company, as well as to obtain physican signatures on order forms.
As a result of the scheme, Parkman’s co-defendant, Tracy Richardson Brown, caused Medicare to pay over $3.2 million based on those illegally obtained referrals, the evidence showed.
Brown was previously convicted following a trial in June 2016 and was sentenced to 48 months in prison.
This case was investigated by the FBI and HHS-OIG. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New Jersey Man Sentenced to Prison for Using Stolen IDS to Seek Fraudulent Tax RefundsRead the Press Release
A New Jersey man was sentenced to three months in prison for conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting U.S. Attorney Louis D. Lappen
According to documents filed with the court, Peterson Blanc, 36, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false tax returns using stolen personal identifying information. At least one of Blanc’s co-conspirators electronically filed the returns, which directed that the fraudulently claimed refunds be deposited into bank accounts at TD Bank and Citizens Bank in the name of Peterson Tax Services. Blanc did not have a tax preparation or bookkeeping service, but had opened up the accounts in order to facilitate the crime. He admitted to causing a loss of more than $100,000.
In addition to the term of prison imposed, U.S. District Judge John R. Padova ordered Estelly to serve three years of supervised release and to pay $100,049.10 in restitution to the Internal Revenue Service (IRS).
The case was investigated by Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations and is being prosecuted by Assistant United States Attorney David J. Ignall
New Hampshire Man Sentenced to 11 Years in Prison for Bank Robberies During Spring 2016 Crime SpreeRead the Press Release
CONCORD, N.H. – Michael Munroe, a/k/a Michael Monroe, 34, previously of Raymond, New Hampshire, was sentenced in federal court on Tuesday to 11 years in prison for his role in two bank robberies and other criminal conduct in 2016, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Munroe robbed a Northway Bank branch location in Ossipee, New Hampshire on March 28, 2016, and a Granite State Credit Union branch location in Seabrook, New Hampshire on April 1, 2016. He committed each robbery by passing a demand note to the teller threatening that he had a gun and demanding money. There was no evidence that Munroe actually was armed at the time. Following each robbery, Munroe fled the scene.
The two bank robberies, to which Munroe pleaded guilty in June 2017, were part of a larger well-publicized two-state multi-week crime spree perpetrated by Munroe in March and April 2016. As part of his federal plea agreement, Munroe also admitted to other criminal conduct, including: (1) the March 19, 2016, assault on an individual in his home in Epping, New Hampshire; (2) the March 27, 2016, taking of a victim’s Honda Pilot from her possession in Manchester, New Hampshire; (3) the March 30, 2016, taking of a victim’s Lexus ES300 from her possession in Tewksbury, Massachusetts; (4) the March 31, 2016, attempted taking of a victim’s Toyota Highlander from her possession in Reading, Massachusetts; and (5) the April 1, 2016, theft of a Honda CRV while it was parked in Derry, New Hampshire. Munroe has been in custody since his arrest by Hancock Police on April 2, 2016.
Munroe, who previously pleaded guilty, will serve three years of supervised release following completion of his sentence. The Court additionally ordered Munroe to pay restitution to the banks and other victims, totaling $14,856.63.
“The United States Attorney’s Office is committed to working with our federal, state, and local law enforcement partners to combat violent crime,” said Acting U.S. Attorney Farley. “The robberies and other violent acts committed by this defendant cannot be tolerated. I commend the hard work of the law enforcement officers who put a stop to this defendant’s crime spree and prevented him from committing further acts of violence.”
“The FBI will do everything in its power to prevent criminals like Mr. Munroe from casting a shadow of violence over our streets,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “While his crime spree has come to an end, we’ll continue to work with our law enforcement partners to combat violent crime and keep our communities safe.”
This matter was investigated by the Federal Bureau of Investigation, the Manchester Police Department, the Ossipee Police Department, the Seabrook Police Department, the Hancock Police Department, the Epping Police Department, the Derry Police Department, the Tewksbury, Massachusetts Police Department, and the Reading, Massachusetts Police Department. Assistance was provided by the County Attorney’s Offices for Hillsborough, Carroll, and Rockingham Counties in New Hampshire and the Middlesex County, Massachusetts District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Nashville Man Indicted in Drug Distribution ConspiracyRead the Press Release
Walter Jones, 46, of Nashville, Tenn., was indicted yesterday by a federal grand jury for his role in a drug distribution conspiracy, which included the possession and intent to distribute cocaine, heroin and fentanyl, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. The indictment also charged Jones with being a convicted felon in possession of firearms and possessing a firearm in furtherance of a drug trafficking crime.
“The quantity of fentanyl seized, 40 grams or more, as alleged in the indictment, is significant enough to have posed a grave danger to the community,” said U.S. Attorney Cochran. “In the midst of our nation’s opioid epidemic, had law enforcement not seized these illicit drugs, we could have been dealing with numerous overdoses and deaths. I commend the Metro Nashville Police Department and our federal law enforcement partners for their outstanding work in this investigation and preventing these drugs from making it to the streets of middle Tennessee.”
According to the indictment, and documents filed with the court, on February 21, 2017, Metropolitan Nashville police detectives from the East Precinct Crime Suppression Unit were conducting a drug investigation and stopped the car Jones was driving. As the detectives approached the car they smelled an odor of marijuana and observed the juvenile passenger attempting to conceal a pistol in his waistband. Based on evidence recovered from the car, detectives obtained a search warrant for a storage unit located in Antioch, Tenn.
During the search of the storage unit, detectives recovered drug processing materials, two loaded handguns and additional ammunition, approximately 10 kilograms of cocaine and three kilograms of heroin, among other items.
If convicted, Jones faces mandatory minimum sentences of 10 years, up to life in prison.
This case was investigated by the Metropolitan Nashville Police Department, the DEA and the ATF. Assistant U.S. Attorney Amanda Klopf is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Munster Man Indicted in East Chicago, Post Office Bombing CaseRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that a grand jury sitting in South Bend returned a 5-count indictment against Eric P. Krieg, age 45, of Munster, Indiana.
Krieg was indicted on the following charges:
- Count 1- Making an Unregistered Destructive Device
- Count 2- Mailing a Destructive Device
- Count 3- Malicious Use of Explosive Materials
- Count 4- Possessing a Destructive Device In Furtherance of a Crime of Violence
- Count 5- Mailing a Threatening Communication
The indictment alleges from at least 2012 through August 2017, Krieg engaged in a series of online postings and communications concerning other residents of Northwest Indiana. Krieg made these statements in multiple online forums, including a webpage “blog” format that he controlled. A lawsuit was filed in the Lake County, Indiana Superior Court in 2013 based upon statements Krieg made on his blog. After the lawsuit was filed against Krieg, he filed for bankruptcy. Victim 1 was the attorney who represented an individual in a lawsuit against Krieg. Through filings in Bankruptcy Court, Victim 1 claimed the lawsuit could not be discharged in bankruptcy. Krieg and Victim 1’s client agreed to settle the lawsuit. The settlement required Krieg to pay the client $45,000 and post an apology on Krieg’s blog.
The indictment alleges that an explosion took place at an U. S. Postal facility in East Chicago, Indiana on or about September 6, 2017 injuring a Postal Service employee (Victim 2). The package that exploded was addressed to Victim 1. The indictment also alleges that on or about September 29, 2017, a suspicious package was mailed to Victim 3 that contained a threat to injure Victim 3.
U.S. Attorney Kirsch said, “When individuals use dangerous, explosive devices as the means to commit or attempt to commit violent acts, those individuals will be held accountable for their actions. We will continue to partner with our Federal, State and Local law enforcement agencies to vigorously investigate and prosecute all manner of violent crime.”
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This complaint results from an investigation by the United States Postal Inspection Service; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco Firearms and Explosives; United States Marshal’s Service; East Chicago Police; Hammond Police; Indiana State Police; Munster Police; and Porter County Sheriff’s Department. This case is being handled by Assistant United States Attorney Joshua P. Kolar and Jennifer Chang.
Members and Associates of Gambino and Bonanno Organized Crime Families Arrested in Coordinated U.S.-Canadian TakedownRead the Press Release
Earlier today, three indictments were unsealed in United States District Court for the Eastern District of New York charging four defendants with narcotics trafficking, loansharking and firearms offenses. The defendants—Damiano Zummo, an acting captain in the Bonanno crime family; Salvatore Russo, an associate of the Bonanno crime family; Paul Semplice, a member of the Gambino crime family; and Paul Ragusa, an associate of the Bonanno and Gambino crime families—were arrested yesterday and are scheduled to be arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. In a coordinated operation, Canadian law enforcement authorities today arrested nine organized crime members and associates in Canada, including members of the Todaro organized crime family, who are charged with, among other crimes, narcotics trafficking.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Today’s arrests send a powerful message that this Office and our law enforcement partners here and abroad are committed to dismantling organized crime groups wherever they are located — whether local or international in scope,” stated Acting United States Attorney Rohde. “The recording of a secret induction ceremony is an extraordinary achievement for law enforcement and deals a significant blow to La Cosa Nostra.” Ms. Rohde praised the exceptional investigative efforts of the FBI, and extended special thanks to U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and the New York City Police Department (NYPD). Ms. Rohde also expressed her thanks to the Office’s law enforcement partners in Canada, including the Royal Canadian Mounted Police and the GTA Combined Forces Special Enforcement Unit Public Prosecution Service of Canada, Ontario Regional Office.
“Criminal enterprises, both national and international, contribute to the breakdown of a lawful society,” stated FBI Assistant Director-in-Charge Sweeney. “And yet, the allure of this gangland culture is often embraced and glamorized in movies and on television, where the threats posed to our economic and national security are seldom displayed. Dismantling and disrupting major international and national organized criminal enterprises is a longstanding area of FBI expertise, which is significantly enhanced through collaboration with our law enforcement partners and our Canadian partners. While we have more work to do, this operation is a giant step in the right direction.”
The coordinated investigation lasted more than two years and revealed criminal activity spanning the United States and Canada. As detailed in court filings, in 2015, one of the defendants sponsored a confidential informant to become a full-fledged member of the Bonanno crime family and as part of the investigation, law enforcement secretly video- and audio-recorded the induction ceremony, which occurred in Canada.
As detailed in the indictment and other court filings, Zummo, an acting captain in the Bonanno crime family, engaged in a cocaine trafficking conspiracy with Bonanno associate Salvatore Russo and others introduced by the confidential informant. In one transaction, on September 14, 2017, Zummo and Russo sold over a kilogram of cocaine inside a Manhattan gelato store. Zummo is also charged with laundering over $250,000 in cash by providing business checks issued to a fictitious consulting company that purported to bill the company for consulting services. Zummo took a fee of approximately 10 percent for each money laundering transaction.
As also detailed in the indictments and other court filings, Semplice, a member of the Gambino crime family, is charged with conducting a loansharking scheme in which he and others extended extortionate loans with interest rates of up to 54% per year. The alleged scheme generated thousands of dollars per week for Semplice and others. Paul Ragusa, a long-standing associate of the Bonanno and Gambino organized crime families, is charged with being a felon in possession of nine firearms, including three automatic assault rifles and one silencer. As alleged, Ragusa transported the firearms in exchange for $2,000 in cash.
If convicted, Zummo and Russo each face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment; Semplice faces a maximum sentence of 20 years’ imprisonment on each of three loansharking charges; and Ragusa faces a mandatory minimum sentence of 15 years and a maximum sentence of life imprisonment under the Armed Career Criminal Act.
The charges in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys M. Kristin Mace, Tanya Hajjar and Drew Rolle are in charge of the prosecution.
The Defendants:
DAMIANO ZUMMO
Age: 44
Residence: Roslyn Heights, New YorkSALVATORE RUSSO
Age: 45
Residence: Bellmore, New YorkPAUL SEMPLICE
Age: 54
Residence: Brooklyn, New YorkPAUL RAGUSA
Age: 46
Residence: Brooklyn, New YorkE.D.N.Y. Docket Nos. 17-CR-601 (ENV); 17-CR-612 (PKC); and 17-CR-613 (PKC)
Member of Lawrence Kidnapping Crew Sentenced to 13 Years in PrisonRead the Press Release
BOSTON – A member of a Lawrence-based kidnapping crew was sentenced yesterday in federal court in Boston for his role in a 2012 kidnapping.
Thomas Wallace, 29, of Raymond, N.H., was sentenced by U.S. District Court Judge Richard G. Stearns to 13 years in prison and three years of supervised release. In January 2014, Wallace pleaded guilty to conspiracy to commit kidnapping.
Wallace was charged in connection with a wide-ranging investigation targeting violent kidnapping and home invasion crews operating in Lawrence. According to court documents, these crews – often referred to as “joloperros,” which loosely translates to “stick-up guys” – were organized, armed and violent.
Wallace was identified as part of a violent, sophisticated kidnapping crew that included Danny Veloz, a/k/a “Maestro;” Jose Guzman, a/k/a “Cano;” Jose Matos, a/k/a “Boyca;” Luis Reynoso, a/k/a “Prieto;” and Gadiel Romero, a/k/a “TC,” all of Lawrence; and Henry Maldonado, of Manchester, N.H.
On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H., and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement. Several cooperating defendants advised that the July 23, 2012 kidnapping was one of several kidnappings or attempted kidnappings committed by this crew in Lawrence in 2012.
A federal investigation identified this crew as one of several kidnapping and home invasion crews. The crews typically kidnapped drug dealers for large ransoms that were paid in cash or drugs; used safe houses to stash their victims; and used sophisticated tracking techniques, such as GPS devices, to follow their victims. The crews targeted drug dealers because they believed that the drug dealers were unlikely to cooperate with law enforcement, were subject to deportation, or feared reprisals, either against themselves or their families in Lawrence or in their native country. Numerous kidnapping victims described how they were abducted, tortured, and forced to pay ransoms of hundreds of thousands of dollars (either in the U.S. or in the Dominican Republic) to joloperros crew members. Victims were burned, scarred, bruised, and given other significant physical injuries marking them as kidnapping victims. During the investigation, law enforcement seized dozens of firearms, including shotguns, GPS devices, irons used to torture victims, masks, zip ties, t-shirts with the word “police” on them, fake police badges, handcuffs, and drugs.
Veloz was convicted by a federal jury in August 2017, and will be sentenced on Nov. 16, 2017. Matos and Romero were previously sentenced to 12 years and 23 years in prison, respectively. Guzman, Reynoso and Maldonado previously pleaded guilty and are scheduled to be sentenced in November 2017.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Essex County Sheriff Kevin F. Coppinger; Lawrence Police Chief James X. Fitzpatrick; and Manchester (N.H.) Police Chief Nick Willard made the announcement today. The cases are being prosecuted by Weinreb’s Organized Crime and Gang Unit.
Massachusetts Man Charged with Travelling in Interstate Commerce to Transport Child PornographyRead the Press Release
PROVIDENCE, RI – A federal criminal complaint was filed in U.S. District Court in Providence today charging Fetahe Makonnen, 34, of Malden, Mass., with travelling in interstate commerce for the purpose of transporting child pornography, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
It is alleged that Makonnen travelled from Massachusetts to Rhode Island on October 28, 2017, for the purpose of transporting digital storage devices containing hundreds of videos and images of child pornography.
According to an affidavit in support of a criminal complaint filed with the Court, it is alleged that in July 2017, Makonnen began communicating online with a member of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. The conversation turned to a discussion about the sharing of child pornography. Makonnen did not communicate again with the ICAC Detective until September 16, 2017.
According to the affidavit, it is alleged that beginning on September 16, 2017, Makonnen began again to communicate with members of the ICAC Task Force through various methods, including by telephone, with discussions centered around his interests in the viewing of child pornography involving prepubescent minors between 1 year and 13 years of age. On October 27, 2017, Makonnen agreed to travel to Rhode Island the next day, expecting to meet with the person he had been communicating with and to view child pornography. He agreed to bring images and videos of child pornography with him. When they met the next day, it is alleged that Makonnen provided an undercover ICAC Task Force Detective with two thumb drives which the detective opened on his laptop computer. It is alleged both thumb drives contained images and videos depicting child pornography involving prepubescent children.
Makonnen was arrested on a Rhode Island state charge and ordered held on $10,000 surety bail.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case in federal court is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Massachusetts Business Owner Charged with Tax CrimesRead the Press Release
A business owner was charged by a federal grand jury in Boston, Massachusetts, with attempting to obstruct the internal revenue laws, aiding and assisting in the filing of fraudulent corporate, personal, and employment tax returns, tax evasion, and structuring financial transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Nicholas Boulas, of North Reading, owned and operated Nick’s Painting Service Inc. (NPS), which provided painting services to residential and commercial customers in the Boston area. From 2009 through 2014, Boulas allegedly concealed approximately $4 million in business receipts by cashing approximately $2.7 million in checks and directing a substantial number of customers to write checks to him personally, which he cashed and deposited using multiple personal bank accounts. According to the indictment, he structured cash transactions to involve less than $10,000 in currency in order to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for transactions involving more than $10,000 of currency, conducted by or on behalf of the same person on the same day.
The indictment alleges that Boulas caused the filing of fraudulent corporate and personal income tax returns that underreported NPS’s gross receipts, and as a result, the income Boulas earned from NPS. It further alleges that Boulas underreported income he earned from several rental properties. Boulas also allegedly paid employees “off the books” in cash to avoid paying payroll taxes, and caused the filing of fraudulent employment tax returns that concealed the number of NPS’s employees, wages paid and taxes owed.
Boulas is also charged with obstructing the internal revenue laws by, among other things, falsely stating to IRS special agents that he reported all of NPS’s income, obstructing an IRS summons and following his interview with special agents, altering checks he received from NPS customers to conceal the memo line and hide the purpose of the payments.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Boulas faces a statutory maximum sentence of five years in prison for tax evasion, three years for obstructing the internal revenue laws, three years for aiding and assisting in the filing of fraudulent returns and ten years in prison for structuring financial transactions as a part of a pattern of illegal activity involving more than $100,000 in a 12-month period and while violating another law of the United States. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant Chief John Kane and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Manager of Express Lane Market Sentenced on Federal Charges Involving Food Stamp FraudRead the Press Release
St. Louis, MO – Ayman Barghouty, 55, of Maryland Heights, was sentenced to 13 months in prison on charges of conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) fraud. SNAP was formerly known as the food stamp program.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT) for SNAP Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Ayman Barghouty managed the Express Lane Market located at 3846 Keokuk, St. Louis, MO. He employed and trained employees Steven Holman and Timothy Zollner on the SNAP rules.
On March 28, 2012, Express Lane was permanently disqualified from the SNAP by the U.S.D.A. and prohibited from accepting EBT cards or SNAP benefits for payment. To continue to obtain money from the SNAP program, Barghouty, Holman and Zollner agreed to engage in a scheme to purchase food with other individuals’ EBT cards at local stores and place that food in Express Lane for sale in spite of being barred by the USDA from participating in SNAP. They engaged in this scheme from approximately March 2010 to November 2015 and purchased approximately $145,107.75 of food for resale in Express Lane
Barghouty pled guilty in August to conspiracy to commit SNAP fraud. He appeared yesterday before United States District Judge Catherin D. Perry.
Zollner pled guilty in September and was sentenced to 5 years’ probation and Holman will be sentenced in December.
This case was investigated by the Missouri Department of Social Services, United States Department of Agriculture, and Department of Homeland Security. Assistant United States Attorneys Anthony L. Franks and Gwen Carroll handled the case for the U.S. Attorney’s Office.