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Wednesday 8 November 2017
Eastern Connecticut Drug Trafficker Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS ALBERTO LOPEZ-ZELADA, also known as “Willi Mexico,” 40, a citizen of El Salvador last residing in Willimantic, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 62 months of imprisonment, followed by three years of supervised release, for trafficking heroin, cocaine and crack cocaine.
According to court documents and statements made in court, in October 2015, the DEA, Willimantic Police Department and Connecticut State Police initiated an investigation into a Willimantic-based narcotics trafficking ring after several overdoses in the region. The investigation, which included the use of confidential informants, physical surveillance, controlled purchases of drugs and court-authorized wiretaps on five cellular telephones utilized by the co-conspirators, revealed that Jose Miranda, also known as “Omar,” of the Bronx, N.Y., was supplying large quantities of heroin and cocaine to LOPEZ-ZELADA and others. LOPEZ-ZELADA converted a portion of the cocaine he received into crack cocaine. LOPEZ-ZELADA, with the help of other co-conspirators, then distributed heroin, cocaine and crack cocaine in the Willimantic area.
The investigation further revealed that LOPEZ-ZELADA utilized a garage unit located on Willimantic Road in Chaplin as a stash location and point of distribution for narcotics.
Miranda was arrested on June 23, 2016, after he was intercepted threatening to shoot a co-conspirator who refused to pay him for a quantity of heroin that Miranda had provided to the individual on consignment.
LOPEZ-ZELADA has been detained since his arrest on July 6, 2016. On May 9, 2017, he pleaded guilty to one count of conspiracy to distribute heroin, cocaine and cocaine base (“crack”).
LOPEZ-ZELADA faces immigration proceedings when he is released from prison.
Miranda pleaded guilty to related charges and, on June 13, 2017, was sentenced to 74 months of imprisonment.
This matter was prosecuted by Assistant U.S. Attorneys Patrick Caruso, David Nelson and Amy Brown.
Drug Enforcement Administration Collects Record Number of Unused Pills as Part of its 14th Prescription Drug Take Back DayRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina and William F. Baxley, Assistant Special Agent in Charge of the Drug Enforcement Administration’s Charlotte District Office announce that Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
The Eastern District of North Carolina collected the following amount of dosage units of prescription drugs: Raleigh 8,500, Jacksonville 4,000,and Greenville 1,108. All were collected at return sites set up by the DEA in the Eastern District of North Carolina.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.
Document Thief Sentenced on Mail Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Witek, 54, of Buffalo NY, who was convicted of mail fraud, was sentenced to time served (six months) by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay $2,100.00 in restitution.
Assistant U.S. Attorneys Michael DiGiacomo and Jonathan P. Cantil, who handled the case, stated that in the Spring of 2013, the defendant was a volunteer at the Buffalo History Museum. While volunteering at the museum, Witek devised a scheme to access and then stole certain historical writings addressed to Anson Conger Goodyear that belonged to the museum. The defendant then offered to sell the stolen documents to autograph dealers in New York City and New Jersey.
Today’s sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen, and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.District Court Enters Order Against Los Angeles Area Telemarketing Companies and Their ExecutivesRead the Press Release
A federal court entered an order against three Los Angeles area telemarketing companies and two executives, the Department of Justice announced today. That order, entered by Judge Michael W. Fitzgerald in the Central District of California, permanently bans the companies and one executive from future telemarketing activity and restricts the telemarketing activities of another executive. The order also imposes a civil monetary penalty.
The Department filed a complaint on March 10, 2016, alleging that three companies, KFJ Marketing LLC, Sunlight Solar Leads LLC, and Go Green Education, initiated at least 1.3 million telemarketing calls that violated the Telemarketing Sales Rule. Those calls, which were intended to entice consumers to schedule appointments with solar panel providers, began with a prerecorded message warning consumers of a “pending 14% rate increase” in their energy bills. Francisco and Julio Salvat owned and operated all three companies.
“Unwanted telemarketing calls invade the privacy of American consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission to ensure telemarketers adhere to laws designed to protect against abusive and deceptive telemarketing practices.”
The filing of the suit was prompted by numerous complaints made by consumers to the Federal Trade Commission about the defendants’ telemarketing calls. The complaint alleged defendants called telephone numbers listed on the National Do-Not-Call Registry, initiated unlawful robocalls, displayed false information on consumers’ Caller IDs, and ignored consumer requests not to receive additional calls. The government’s complaint sought a permanent injunction to prevent future unlawful calls and a civil monetary penalty.
On Oct. 31, 2017, the United States and the defendants filed a proposed stipulated order for permanent injunction and civil penalty judgment. That stipulated order, entered by the district court, permanently bans the three corporate defendants and Francisco Salvat from engaging in telemarketing activity. Additionally, the order prohibits Julio Salvat from violating the Telemarketing Sales Rule and restricts his ability to place robocalls. The stipulated order also requires defendants to pay a $1.4 million dollar civil penalty, all of which but $155,000 will be suspended based on defendants’ inability to pay the entire penalty.
This matter was handled by Trial Attorneys Jacqueline Blaesi-Freed and Lisa Hsiao of the Civil Division’s Consumer Protection Branch, with assistance from Syliva Kundig of the Federal Trade Commission’s Western Region.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Detroit One Collaboration Leads to Racketeering Indictment of Violent Gang Members from Detroit's EastsideRead the Press Release
The collaboration of local, state, and federal law enforcement under the Detroit One program has led to the investigation and racketeering indictment involving thirteen members of the violent eastside Detroit street gang, Smokecamp, a/k/a Original Paid Bosses (or OPB), Acting United States Attorney Daniel L. Lemisch announced.
According to the indictment unsealed today, the gang operates on the east side of Detroit, specifically the area in and around Albion Street and Seven Mile, an area Smokecamp/OPB members refer to as “ABlock.” This area is within a larger territory on Detroit’s east side claimed by the Bloods street gang known as the “Red Zone.” The gang has modified its name multiple times throughout the years going from “Runyon Boys” to “Original Paid Bosses” to “Paid Bosses Inc.” to “Smokecamp.”
While known to engage in robberies and extortion, the gang makes its money predominantly through the sale of narcotics, including cocaine, crack cocaine, heroin, marijuana, ecstacy, and other prescription pills. According to the indictment, the gang regularly sold these controlled substances on the “ABlock,” outside of vacant houses known as “trap houses,” and businesses in the area of Seven Mile and Albion. Additionally, between approximately 2014 – 2015, Smokecamp/OPB members regularly sold controlled substances from an apartment complex on East Seven Mile, which they branded the “Plaga,” sharing workers and firearms to distribute and protect their narcotics. However, this activity was not confined only to Detroit with some of their members traveling to Kentucky, West Virginia, and Ohio to sell their narcotics.
Under the Detroit One Initiative, and through the lead efforts of the ATF and Detroit Police Department Gang Intelligence Unit, along with the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Michigan Department of Corrections, investigators were able to identify the members of this particular gang while investigating a similar gang on Detroit’s westside and piece together the varied criminal misconduct of the Smokecamp/OPB organization.
Charged today are:
- Korey Sanders, a/k/a “No Loan Corleon,” “Stax,” 26, of Detroit, with RICO conspiracy and willful engagement in firearms business without a license;
- Jerray Key, a/k/a “Chino,” “Dre,” 28, of Canton, with RICO conspiracy and willful engagement in firearms business without a license;
- Deshawn Langston, a/k/a “Pook,” “Slips,” 26, of Detroit, with RICO conspiracy;
- Richard Langston, a/k/a “Dub,” “Rich,” “Blow,” 27, of Detroit, with RICO conspiracy;
- Hakeem Bunnell, a/k/a “LB Dub,” 24, of Detroit, with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and possession of a firearm during, and in relation to, a crime of violence;
- Keenan Nielbock, a/k/a “Dolla,” “Keno” 30, of Taylor, with RICO conspiracy and willful engagement in firearms business without a license;
- Caraun Key, a/k/a “Luch,” “Ron,” “Slick,” 26, of Detroit with RICO conspiracy;
- Darryl Key, a/k/a “DB,” “Big Baby,” 27, of Detroit, with RICO conspiracy;
- Tyree Williams, a/k/a “Snoop,” 24, of Detroit, with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and possession of a firearm during, and in relation to, a crime of violence;
- Romale Gibson Jr., a/k/a “Santana,” 24, of Detroit, with RICO conspiracy;
- Cary Dailey, a/k/a “Cease,” 28, of Detroit, with RICO conspiracy;
- Antonio Langston, a/k/a “Tone,” 29, of Detroit, with RICO conspiracy; and
- Carlos Davis, a/k/a “Los,” “Loso,” 24, of Detroit with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, possession of a firearm during, and in relation to, a crime of violence, and willful engagement in firearms business without a license.
Acting U.S. Attorney Daniel L. Lemisch said, “This indictment is the latest in a string of cases charging violent gang members in the City of Detroit. We are grateful to the Detroit One collaborative of law enforcement, who are all dedicated to improving the lives of the residents of Detroit.”
“ATF remains relentless in the effort to disrupt violent gangs operating in Detroit neighborhoods so law-abiding citizens can live in peace,” said ATF Detroit Acting Special Agent in Charge Marcus Watson. “This investigation is another example of how by working together, the Detroit One Initiative is making a difference.”
"Ensuring the safety and security of our residents in the city of Detroit is our number one priority. With the collaborative efforts of Detroit One partnership, we will continue our efforts to target and dismantle gangs, as well as, other violent offenders that pose a threat to the safety and wellbeing of our city," said Chief James Craig.
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of indictments or informations from the United States Attorney’s Office and Wayne County Prosecutor’s Office over the last five years involving violent street gangs in the city of Detroit, including:
- Fourteen members of the Playboy Gangster Crips street gang for federal racketeering conspiracy;
- Twenty members of the Seven Mile Blood street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Fourteen members of the Rollin’ 60s Crips street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Thirteen members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Fourteen members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Four Vice Lord members in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery;
- Nine Vice Lords members for racketeering charges stemming from the shooting of four individuals at their family residence on Detroit’s northwest side;
- Three members of the Band Crew street gang charged under the state of Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band Crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Ten members of the RTM street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering;
- Four members of the Bandgang street gang charged under the state of Michigan gang felony statute for conspiracy to commit murder and assaults with intent to commit murder and eighteen members/associates of Bandgang in federal court for access device fraud, aggravated identity theft, firearms, and obstruction of justice;
- Three members of the A1Killers street gang for federal narcotics offenses;
- Eleven members of the 6Mile Chedda Grove street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; and
- Four members of the HNIC street gang for violent acts in aid of racketeering.
These charges are just some more of the tangible and significant results of this joint effort. The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
Deported Honduran Charged with Illegally Re-Entering the United StatesRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Feliciano Ramirez, age 33, of Honduras, as the sole defendant.
According to the indictment presented to the court, Feliciano Ramirez, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on September 5, 2002 and December 23, 2016. Feliciano Ramirez was found to be illegally present in Pittsburgh, Pennsylvania, on October 3, 2017.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations 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.
Defendant Indicted with Sherman Park ArsonRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on November 7, 2017, Toronse Carter (age: 20) of Milwaukee was indicted for rioting, arson, and arson connected with a federal felony in violation of Title 18, United States Code, Sections 2101(a)(2), 844(i), and 844(h). If the defendant is convicted of arson connected with a federal felony, he faces a 10-year mandatory prison sentence; if convicted of arson, the defendant faces a 5-year mandatory prison sentence; and if convicted of rioting, the defendant faces a 5-year maximum prison sentence.
“This case reflects that the United States Attorney’s Office and the United States Department of Justice are committed to aggressively pursuing those who took part in violent and criminal conduct during the August 13, 2016 riots in Sherman Park,” explained U.S. Attorney Haanstad.
“We continue to work diligently on pursuing this joint investigation into the Sherman Park arsons,” said Assistant Special Agent in Charge Joel Lee of the St. Paul Field Division. “After a more than year-long investigation, we are proud of our team’s results, bringing justice to this community. These businesses, and more importantly this community, needs to know that these vandals will be held accountable for their actions and that we will continue to pursue the prosecutions of the remaining individuals involved in last summer’s riot-related arsons.”
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Milwaukee Police Department. The case is being prosecuted by United States Attorney Gregory Haanstad and Assistant United States Attorney Christopher Ladwig.
The public is cautioned that an indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Day Trader Indicted in Computer Hacking and Securities Fraud Scheme Targeting Online Brokerage AccountsRead the Press Release
A four-count indictment was returned today charging a self-described day trader with conspiracy to commit wire fraud, conspiracy to commit securities fraud and computer intrusions, securities fraud and conspiracy to commit money laundering.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
As alleged in the indictment, between September 2014 and May 2017, Joseph Willner, 42, of Ambler, Pennsylvania, and others conspired to hack into victims’ online securities brokerage accounts and used them to place unauthorized trades, at times fraudulently liquidating existing positions in the victims’ accounts in order to fund the unauthorized trades.
The indictment further alleges that, as a part of the conspiracy, the defendant used brokerage accounts in his name to place “short sale” offers for publicly-traded companies’ stock at artificially high, above-market prices. Simultaneously, Willner’s co-conspirators hacked into victims’ online brokerage accounts and used them to place buy orders for the stock at the artificially high prices, matching Willner’s short sale offers. After using the victims’ accounts to purchase the stock, Willner and his co-conspirators then re-purchased the stock from the victims’ accounts at market or below-market prices. This series of fraudulent trades usually took place within minutes, and Willner immediately profited based on the difference between his artificially high short sale price, and the lower price at which he subsequently re-purchased the stock.
According to the indictment, while discussing the scheme in private messages on Twitter, one of Willner’s co-conspirators said: “legal trading too hard.” Willner responded that he would be a “good trading partner.” As a result of Willner and his co-conspirators’ alleged actions, the affected brokerage firms lost more than $2 million.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New York field office investigated the case. Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section, Securities and Financial Fraud Unit, and Assistant U.S. Attorneys Tiana A. Demas, Mark E. Bini and David Kessler of the U.S. Attorney’s Office, Business and Securities Fraud and National Security and Cybercrime Sections, are prosecuting the case. The U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission provided significant assistance in the investigation.
Day Trader Indicted in Computer Hacking and Securities Fraud Scheme Targeting Online Brokerage AccountsRead the Press Release
Earlier today, a four-count indictment was returned by a federal grand jury in the Eastern District of New York, charging Joseph P. Willner, a self-described day trader, with Conspiracy to Commit Wire Fraud, Conspiracy to Commit Securities Fraud and Computer Intrusions, Securities Fraud and Conspiracy to Commit Money Laundering. As alleged in the indictment and other court filings, between September 2014 and May 2017, Willner engaged in a computer intrusion and securities fraud scheme, illegally profiting from a series of coordinated trades involving more than 50 hacked online brokerage accounts. The defendant laundered the proceeds of his crimes using Bitcoin, a cryptocurrency. Willner was arrested on a criminal complaint on June 13, 2017 in Ambler, Pennsylvania.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Kenneth A. Blanco, Acting Assistant Attorney General for the Justice Department’s Criminal Division and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges.
“Cybercriminals continue to come up with innovative ways to steal money from victims using the Internet, as in this case where defendant Willner’s co-conspirators allegedly hacked into the victims’ accounts in order to execute fraudulent short sales,” stated Acting United States Attorney Rohde. “Regardless of what innovative ways fraudsters come up with, this Office, together with our law enforcement partners, will prosecute them to the fullest extent of the law.” Ms. Rohde expressed her grateful appreciation to the United States Securities and Exchange Commission and the United States Commodity Futures Trading Commission for their significant assistance in the investigation.
“This case involves a 21st Century cyber boiler room, except the buyers were not even aware they were purchasing shares of stock,” stated FBI Assistant Director-in-Charge Sweeney. “As alleged, the scheme involved hacking into victims’ online securities brokerage accounts to make unauthorized trades that would benefit the defendant through the use of short sales. The scheme ultimately led to a loss of over $2 million to victim accounts. The FBI will continue to investigate and bring to justice those who commit securities fraud in an effort to ensure the fairness and integrity of our financial markets.”
As alleged in the indictment and other court filings, between September 2014 and May 2017, Willner and others conspired to hack into victims’ online securities brokerage accounts and used them to place unauthorized trades. As a part of the conspiracy, Willner used brokerage accounts in his name to place “short sale” offers for publicly-traded companies’ stock at artificially high, above-market prices. Simultaneously, Willner’s co-conspirators hacked into victims’ online brokerage accounts and used them to place buy orders for the stock at the artificially high prices, matching Willner’s short sale offers. After using the victims’ accounts to purchase the stock, Willner and his co-conspirators then re-purchased the stock from the victims’ accounts at market or below-market prices. This series of fraudulent trades usually took place within minutes, and Willner immediately profited based on the difference between his artificially high short sale price, and the lower price at which he subsequently re-purchased the stock. While discussing the scheme in private messages on Twitter, one of Willner’s co-conspirators stated: “legal trading too hard.” Willner responded that he would be a “good trading partner.”
As a result of Willner’s and his co-conspirators’ alleged actions, the affected brokerage firms lost more than $2 million. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment.
The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the U.S. Attorney’s Office’s Business and Securities Fraud and National Security and Cybercrime Sections, and the Securities and Financial Fraud Unit of the Department of Justice, Fraud Section. Assistant United States Attorneys Tiana A. Demas, Mark E. Bini and David Kessler and Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section are in charge of the prosecution.
The Defendant:
JOSEPH P. WILLNER
Age: 42
Ambler, PennsylvaniaE.D.N.Y. Docket No. 17-CR-620 (LDH)
Cumberland County, New Jersey, Man Admits Bank RobberyRead the Press Release
CAMDEN, N.J. – A Cumberland, County, New Jersey, man today admitted robbing two banks with an accomplice, Acting U.S. Attorney William E. Fitzpatrick announced.
Quintin L. Jones, 35, pleaded guilty before U.S. District Court Judge Renée Marie Bumb to an information charging him with two counts of bank robbery.
According to documents filed in this case and statements made in court:
On Oct. 11, 2016, Jones and an accomplice robbed a Cape Bank in Upper Deerfield Township, New Jersey. According to bank employees and video surveillance, two men wearing black hooded sweatshirts entered the bank. While one man crouched near the entrance and pointed what appeared to be a black revolver at employees, the other man approached bank tellers and directed them to place cash into a bag.
Afterwards, both robbers fled with $24,926 in stolen money from the bank. Employees observed a tan or gold vehicle with a black soft-top rapidly exit the parking lot and turn in the direction of Vineland. Security cameras at the bank and an employee also captured pictures of the car. Investigators determined that the car matched the description of a Chrysler Sebring that was stolen on Sept. 22, 2016, during a carjacking in the parking lot of a Walmart in Mays Landing, New Jersey.
The following Saturday, on Oct. 15, 2016, troopers with the N.J. State Police responded to a vehicle fire at a parking lot in Parvin State Park in Pittsgrove Township, New Jersey. After fire personnel extinguished the flames, troopers determined that the vehicle was the same car that had been stolen in the carjacking on Sept. 22, 2016.
Subsequent investigation revealed that Jones and the accomplice had purchased a gas can at a Walmart in Vineland and then took a cab to a Wawa gas station near Parvin State Park, where they purchased gas shortly before police responded to the vehicle fire. Investigators also learned that Jones, who had been staying at a local hotel on Oct. 15, 2016, had been observed by an employee placing a large amount of cash in a bag. Acting on this and other information, the State Police later obtained state arrest warrants for Jones and the accomplice along with search warrants for their residences. Law enforcement personnel who searched the accomplice’s residence also found clothing consistent with the outfits worn by the two men during the Cape Bank robbery as well as a toy revolver, cash, gloves, and a car key that appeared to be for the Chrysler Sebring.
Jones also admitted robbing Newfield National Bank in Newfield, New Jersey, on Oct. 7, 2016, with the accomplice. During that robbery, Jones and the accomplice stole $5,557 before fleeing in the same stolen Chrysler Sebring.
The counts with to which Jones pleaded guilty each carry a maximum punishment of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 16, 2018.
The charges against Jones’ accomplice, Nathan L. Wallace of Vineland, remain pending, and he is considered innocent unless and until proven guilty.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the N.J. State Police, under the direction of Col. Rick Fuentes. He also thanked the Vineland Police Department; the Hamilton Township Police Department; the Newfield Police Department; the Cumberland County Prosecutor’s Office; and the Salem County Prosecutor’s Office for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Megan J. Davies Esq., Cherry Hill, New Jersey
Connecticut Man Sentenced to over Eight Years for Conspiring to Distribute OxycodoneRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Michael Vicente, 29, of Waterbury, Connecticut, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 100 months in prison and three years of supervised release for conspiring to distribute oxycodone. He pleaded guilty on June 1, 2017.
According to court records, between June 2013 and April 2015, Vicente supplied about 15,000 30 mg oxycodone tablets to conspirators who distributed them in Central Maine. Conspirators from Maine travelled to Connecticut on a weekly basis to obtain the drugs from Vicente. On April 16, 2015, law enforcement agents and officers executed search warrants at the Central Maine residences of two co-conspirators and seized oxycodone, other controlled substances, drug paraphernalia and firearms. Vicente was arrested after being identified as the source of the drugs.
The case was investigated by the U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Department, with the assistance of the Waterville Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Colombian National Extradited to the United States to Face Charges for Encouraging and Inducing Aliens to Come to the United StatesRead the Press Release
A Colombian citizen was extradited from Colombia to the United States today to face a four-count federal indictment in the Southern District of Florida for encouraging and inducing aliens to come to the United States.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Selby U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Miami, made the announcement.
Carlos Emilio Ibarguen Palacios, 26, is charged along with three other defendants in a Jan. 6, 2017, indictment with one count of conspiracy to encourage and induce aliens to come to the United States as well as three counts of encouraging and inducing aliens to come to the United States. The indictment alleges that in at least one instance, the defendant’s conduct resulted in the death of two individuals.
This case is being investigated by HSI Miami, with assistance from the HSI Bogota field office. The government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent unless proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Colombian National Extradited to the United States to Face Charges for Encouraging and Inducing Aliens to Come to the United StatesRead the Press Release
A Colombian citizen was extradited from Colombia to the United States today to face a four-count federal indictment in the Southern District of Florida for his role in a scheme to smuggle illegal aliens from Colombia into the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge Mark Selby U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Miami made the announcement.
Carlos Emilio Ibarguen Palacios, 26, is charged along with three others in a Jan. 6, indictment with one count of conspiracy to encourage and induce aliens to come to the Unites States as well as three counts of encouraging and inducing aliens to come to the United States. According to allegations in the indictment, from as early as November 2014, Ibarguen and other co-conspirators organized and arranged the unlawful smuggling of illegal aliens to the United States. The indictment alleges that in at least one instance, the defendant’s conduct resulted in the death of two individuals.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent unless proven guilty.
This case is being investigated by HSI Miami, with assistance from the HSI Bogota field office. The government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
This case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida.
Cocaine, Methamphetamine Trafficker Sentenced to 262 Months in Federal PrisonRead the Press Release
SALT LAKE CITY -- Guillermo Lopez-Casillas, age 37, of Compton, Calif., will serve 262 months in federal prison for possession of methamphetamine and possession of cocaine with intent to distribute. U.S. District Judge Jill N. Parrish imposed the sentence Monday afternoon in U.S. District Court.
A jury deliberated for just a few hours before finding Lopez-Casillas guilty on both counts following a two-day trial in June.
“Drug trafficking organizations regularly travel along Utah roadways to deliver their poison to Utah neighborhoods and points beyond,” observed Utah U.S. Attorney John W. Huber. “The Utah Highway Patrol is one of the top law enforcement agencies in the nation in detecting and interdicting large shipments of narcotics. As partners, we will continue to doggedly pursue those who exploit addictions for profit,” Huber said.
In addition to the UHP, DEA and the Utah State Bureau of Investigations contributed to the investigation of the case.
In August 2015, a Utah Highway Patrol trooper stopped Lopez-Casillas on 1-70 in southern Utah for a traffic violation. The defendant told the trooper he did not have a driver’s license because it had been suspended for a DUI. After speaking with Lopez-Casillas and his juvenile passenger and observing their conduct, the trooper became suspicious that they were involved in criminal activity. Lopez-Casillas gave the trooper permission to search the car. The trooper found 1,009.5 grams of cocaine and 646.7 grams of methamphetamine. Both individuals were arrested.
The sentencing guideline range for the drug convictions was 262 to 327 months. Federal prosecutors argued for a 300-month sentence. In a sentencing memorandum filed with the court, prosecutors said the defendant was trafficking significant quantities of methamphetamine and cocaine. Prosecutors were also concerned that the defendant involved a juvenile in his drug trafficking activities.
Lopez-Casillas has a prominent gang affiliation and a lengthy history of criminal activity, including prior narcotics trafficking offenses, violent crimes, and possession and use firearms.
Judge Parrish ordered Lopez-Casillas to serve five years of supervised release when he completes his federal prison sentence. Among other standard conditions of supervised release, the judge ordered special conditions including prohibiting contact with any member or associate of a street gang or prison gang and prohibited Lopez-Casillas from possessing material which gives evidence of gang involvement or activity. He also cannot receive new tattoos associated with gangs or wear clothing identified with gangs.
The juvenile in the car with Lopez-Casillas was not prosecuted in federal court.
Citizen of Mexico, Deported Multiple Times, Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH – An individual found by the U.S. Immigration and Customs Enforcement has been indicted by a federal grand jury in Pittsburgh on charges of illegal reentry after deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Bartolo Fabian-Mendez, 47, a citizen of Mexico.
According to the indictment, Fabian-Mendez, an alien, who was removed from the United States by U.S. Immigration and Customs Enforcement on January 5, 2010, February 15, 2016, March 16, 2016, November 26, 2016, and June 17, 2017, was encountered in Verona, Pennsylvania, and taken into custody on October 5, 2017, by the U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Immigration and Customs Enforcement 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.
Central Falls Resident Pleads Guilty in Stolen ID, Fraud SchemeRead the Press Release
PROVIDENCE – Reynaldo Martinez, 25, of Central Falls, pleaded guilty today to federal charges relating to his participation in a scheme to use the stolen identity of numerous individuals to open retail store credit cards and lines of credits, which he used to purchase tens of thousands of dollars worth of goods in Rhode Island and Massachusetts.
Martinez pleaded guilty as charged in a superseding indictment returned on August 15, 2017, to four counts of aggravated identity theft, two counts of access fraud, and one count each of bank fraud, conspiracy to commit fraud, attempted access fraud, and interstate transportation of stolen goods.
Martinez’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch and Brian Deck, Resident Agent in Charge of the United States Secret Service.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Martinez admitted to the court that beginning as early as March 15, 2017, he used various sources, including internet websites, to obtain personal identification information of individuals, including their Social Security Numbers, dates of birth and addresses, after which he would have false, counterfeit government identifications manufactured bearing his photograph. Martinez admitted that he used the counterfeit identifications to secure credit to make purchases at various businesses including Sprint Cell Phone locations, Kohl's Department Store, Sak' s Fifth Avenue, Best Buy, Cardi' s Furniture, Raymour and Flanigan Furniture, and Home Depot. Martinez admitted that he used the stolen credit to make between $40,000 and $90,000 dollars in purchases, for which he had no intention of paying.
Martinez was first charged in this matter by way of a federal criminal complaint on May 17, 2017. He was arrested on May 24, 2017, and ordered detained in federal custody. Martinez is scheduled to be sentenced on January 25, 2018.
Bank fraud is punishable by up to 30 years imprisonment, $1,000,000 fine, and 5 years supervised release; conspiracy to commit access device fraud, attempted access device fraud, access devise fraud, and interstate transportation of goods are each punishable by up to 10 years imprisonment, $250,000 fine, and 3 years supervised release; and aggravated identity theft is punishable by 2 years imprisonment, $250,000 fine, and 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Middletown, Warwick, Richmond and Central Falls, R.I., Police Departments; Rhode Island State Police; Mansfield and Seekonk, Mass, Police Departments; West Hartford and Hamden, Conn., Police Departments; and the Richardson, Texas, Police Department for their assistance in gathering and providing information to the United States Attorney’s Office in Rhode Island and the United States Secret Service New England Electronic Crimes Task Force during the course of the investigation.
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Cedar Rapids Man Sentenced to over 17 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
A man who distributed child pornography was sentenced today to over 17 years in federal prison.
Scott Ristine, age 40, from Cedar Rapids, Iowa, received the sentence after a July 14, 2017 guilty plea to one count of distribution of child pornography. At the plea hearing, Ristine admitted that, in 2015, he knowingly distributed child pornography. He also admitted that he was convicted of receipt of child pornography in the Northern District of Iowa in 2002.
Ristine was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ristine was sentenced to 210 months’ imprisonment. A special assessment of $100 was imposed, and Ristine must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-37.
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Casey County, Kentucky, Man Sentenced to 12 Months in Prison for Defrauding the Farm Credit Administration Through Sales of Grain to Unauthorized PurchasersRead the Press Release
Ordered to pay $689,104 restitution
BOWLING GREEN, Ky. – a Casey County, Kentucky, man was sentenced today in United States District Court by District Judge Greg N. Stivers, to 12 months in prison, 3 years supervisory release, with the first 12 months spent in home confinement, and ordered to pay restitution in the amount of $689,104.28 to the Farm Services Agency, for his role in a conspiracy to defraud the Farm Credit Administration by concealing the sale of grain to unauthorized purchasers, announced United States Attorney Russell M. Coleman.
Christopher S. Fair, 38, of Liberty, Kentucky, previously entered a guilty plea to two counts of a criminal indictment including converting assets pledged to the Farm Credit Administration and bankruptcy fraud.
According to the plea agreement, between July 18, 2012, and October 29, 2013, defendant Fair obtained loans from Central Kentucky Agriculture Credit (CKAC) and secured these loans with the proceeds of expected grain sales and pursuant to the loan agreements, Fair was only authorized to sell grain to authorized buyers. CKAC is a subsidiary of the US Department of Agriculture (USDA), Farm Credit Administration, and the loans were guaranteed by the USDA Farm Service Agency (FSA).
Contrary to the loan agreement, and without CKAC’s knowledge or consent, Fair sold his grain to unauthorized purchasers, and transferred the proceeds of those sales to bank accounts under his own control and the control of others, including a bank account under the name FJ Holdings, an entity created by Fair’s friend, Timothy Jaynes. Fair subsequently used those proceeds for his own personal benefit. Fair ultimately defaulted on the CKAC loans, resulting in a loss to FSA of $689,104.28.
In July 2013 Fair filed for Chapter 7 bankruptcy protection and knowingly and fraudulently concealed his property and proceeds from his creditors and the US Trustee, including proceeds held in bank accounts under the names FJ Holdings and Jman Farms, LLC. Jman Farms LLC was created by another of Fair’s friends, at Fair’s request, for the purpose of hiding Fair’s assets from creditors.
Defendant Jaynes, 51, of Casey County, was charged in a separate case by Criminal Information and pled guilty in U.S. District Court to converting assets pledged to the Farm Credit Administration Defendant. Jaynes was sentenced to serve three years of probation with supervision, and ordered to pay restitution in the amount of $50,000 to the Farm Service Agency.
This case was prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Agriculture, the Federal Bureau of Investigation (FBI), and the US Bankruptcy Trustee’s Office.
California Man Pleads Guilty for His Role in A Drug Trafficking Ring Linked to A Mexican Drug CartelRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Enrique Munoz, 53, of California, pleaded guilty to conspiracy to distribute five kilograms or more or cocaine, and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between July 2012, and December 2014, the defendant conspired with others to illegally distribute narcotics. Specifically, Munoz managed bank accounts that were used to assist in the money laundering of the proceeds of drug transactions; he made structured deposits in other bank accounts with the proceeds of drug transactions; and 3) he received and sent packages containing kilograms of cocaine. The defendant obtained multiple kilograms of cocaine that were then distributed in cities including Buffalo and Chicago, IL.
In December 2014, Munoz was arrested in Buffalo with co-conspirators. The defendant had $69,320 in a black shoulder bag at that time. The defendant also had paperwork for a receipt for a hotel room from a co-conspirator, paperwork for a rental car utilized by Munoz and his co-conspirators, and a list of several Bank of America accounts into which structured deposits were made.
A total of seven defendants have been indicted in this sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of the Los Angeles, California area. The organization shipped drugs to various states including New York, New Jersey, Illinois, Colorado, and Ohio. To date, three defendants have been convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.
Sentencing is scheduled for February 8, 2018, at 4:00 p.m. before Judge Wolford.
Brookville Man Pleads Guilty to Receiving Child Pornography through Kik Messenger AppRead the Press Release
DAYTON – Zachery Van Meter, 21, of Brookville, Ohio, pleaded guilty in U.S. District Court to receiving child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Preble County Sheriff Michael L. Simpson and Perry Township Police Chief Bob Bowman announced the plea entered into before U.S. District Judge Thomas M. Rose.
According to court documents, Van Meter created a Kik messenger app account in July 2016. From that time until February 2017, Van Meter used Kik to receive images of child pornography from others and to communicate with others about the sexual exploitation of children.
During the course of these conversations, Van Meter took at least 15 photographs of clothed juveniles who were known to the defendant and sent these photographs to others in an effort to receive more child pornography files.
Van Meter received at least 30 sexually explicit photographs of children, including at least one that portrayed sadistic and/or masochistic conduct involving the binding of a child’s arms and legs by black material to a hook on the floor.
Receipt of child pornography is a federal crime punishable by a range of five to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Preble County Sheriff’s Office and Perry Township Police Department, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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Bristol Man Admits to Distributing Heroin, Fentanyl and Crack to Canton Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT DEWAYNE WATKINS, also known as “D,” 42, of Bristol, pleaded guilty today in New Haven federal court to one count of possession with intent to distribute, and distribution of, heroin and cocaine base (“crack”).
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 18, 2017, Canton Police responded to a suspected overdose incident at a Collinsville restaurant and encountered a 29-year-old male in a bathroom of the restaurant. After unsuccessful resuscitation efforts, the victim was pronounced deceased. The investigation, which included witness interviews and analysis of the victim’s cellphone, revealed that the victim purchased heroin and crack cocaine from WATKINS shortly before his death. Some of the heroin contained fentanyl.
The Office of the Chief Medical Examiner has determined that the victim died from acute intoxication due to the combined effects of fentanyl, heroin, cocaine, amphetamine and alprazolam.
WATKINS is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on January 31, 2018, at which time he faces a maximum term of imprisonment of 20 years.
WATKINS has been detained since his arrest on July 25, 2017.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Canton Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Brazilian National Sentenced to Prison, Ordered Deported for Inducing as Minor to Engage in Sexual ActivityRead the Press Release
PROVIDENCE – Rafael P. Leal, 39, a Brazilian national who most recently lived in Boston, Mass., was sentenced today in U.S. District Court in Providence, R.I., to 235 months in federal prison and ordered deported upon completion of his term of incarceration for enticing a minor to engage in illicit sexual activity and traveling interstate to engage in illicit sexual conduct.
Leal was arrested by Bristol Police on October 22, 2016, after an officer on patrol discovered Leal attempting to engage in illicit sexual conduct with a 14 year-old girl in a parked vehicle at the Bristol Town Beach. Leal pleaded guilty on June 7, 2017.
Leal’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by Acting United States Attorney Stephen G. Dambruch, Bristol Police Chief Josue D. Canario, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 188-235 months. The government recommended the court impose a sentence of 241 months in prison.
An investigation by the Bristol Police Department, with the assistance of the FBI, determined that Leal and the victim began communicating through social media in June 2016. During continued contact through various social media platforms and other means of communication, Leal groomed the victim through emotional manipulation and gifts. He escalated the relationship from an online relationship to numerous sexual encounters, despite the victim expressing to Leal that she did not want a sexual relationship. The investigation determined that Leal controlled the victim’s activity by insisting that she not engage in social activities with others, particularly male friends, and that she keep their contact and relationship from her parents.
Leal continued to attempt to communicate with the victim in a manipulating manner after he was arrested and ordered detained in prison.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Bozeman Man Sentenced to Prison for Illegal Gun PossessionRead the Press Release
MISSOULA - The United States Attorney’s Office announced today that Max Edward Samaniego, 27, of Bozeman, was sentenced to 10 months in prison, three years of supervised release, and a $100 special assessment. Chief U.S. District Judge Dana L. Christensen presided over the hearing.
On May 28, 2016, Samaniego possessed a Smith and Wesson 9mm pistol with an obliterated serial number in Bozeman, Montana. The pistol was found after he was stopped for reckless driving.
From June until August 2016, Samaniego possessed numerous firearms that were stolen from a Bozeman area residence. Samaniego then traded four firearms to someone in Butte for a motorcycle. Samaniego gave one firearm to a neighbor who helped him out. Another firearm was given to a friend.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bozeman Police Department, and the Gallatin 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.
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Blackfeet Head Start Employees Appear in Federal Court on Indictment for Embezzlement of over $230,000Read the Press Release
GREAT FALLS - Ethyl Lee Grant, Allen Shane Goss, and Carol Hall Bird appeared before U.S. Magistrate Judge John Johnston on November 8, 2017, at 10:00 a.m., in Great Falls, Montana. The defendants face charges of Theft from an Indian Tribal Government Receiving Federal Funding and Wire Fraud. The charges stem from the defendants allegedly embezzling federal funds while working at the Blackfeet Head Start Program. The maximum available penalties for these offenses include up to 30 years in prison, $500,000 in fines, full restitution, and forfeiture.
In outlining the charges, the indictment explains the purpose of the Head Start Program. It was designed to help break the cycle of poverty, providing preschool children of low-income families with a comprehensive program to meet their emotional, social, health, nutritional, and psychological needs. The Head Start and Early Head Start programs provide services to over a million children every year, in every U.S. state and territory, in farmworker camps, and in over 155 tribal communities. The program is one of the longest-running programs attempting to address systemic poverty in the United States by intervening to aid children.
The indictment explains that the Blackfeet Head Start Program received $8.0 million in federal funding during the period of the alleged embezzlement. According to the indictment, the fraud arose because the defendants and “others yet to be named” fraudulently claimed over 7,800 hours in overtime and inappropriately received over $232,000 in federal funds from the Head Start Program during a 15-month timeframe.
Trial is set for January 8, 2018 before United States District Judge Brian Morris, in Great Falls, Montana. The case was investigated by the Federal Bureau of Investigation and U.S. Department of Health and Humans Services, Office of Inspector General.
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
Barbour County man admits to role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Belington, West Virginia man has admitted to his participation in a methamphetamine distribution operation, United States Attorney William J. Powell announced.
Austin Jay Robinson, 18, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine-Aiding and Abetting.” Robinson admitted to conspiring with others to distribute methamphetamine in Randolph County in April 2017.
Robinson faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Armed Heroin Dealer Sentenced to over Five Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Matthew Barker (34, Jacksonville) to five years and five months in federal prison for distributing heroin and for possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on May 24, 2017.
According to court documents, during July 2016, detectives from the Jacksonville Sheriff’s Office and agents from the Federal Bureau of Investigation and the Drug Enforcement Administration were investigating Barker for selling heroin and firearms in Jacksonville. Task force agents purchased almost 7 grams of heroin mixed with fentanyl for $1,500 and a .40 caliber pistol from Barker. FBI SWAT team members later executed a search warrant at Barker’s home and recovered more than 40 firearms and thousands of rounds of ammunition. All of the firearms and ammunition were forfeited to the government.
This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation, and the Drug Enforcement Administration as part of the Organized Crime and Drug Enforcement Task Force. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. It was prosecuted by Assistant United States Attorney Frank Talbot.
Appleton Tax Return Preparer Sentenced to Prison for Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 27, 2017, Gerardo “Gerry” Garcia (age: 55) of Appleton, was sentenced to 18 months in prison, followed by one year of supervised release. On June 16, 2017, Garcia pleaded guilty to assisting in the preparation and filing of a false federal income tax return, in violation of Title 26, United States Code, Section 7206(2). Garcia was also ordered to pay restitution of $355,088 to the Internal Revenue Service.
According to the plea agreement, Garcia, who owned the tax preparation business Garcia Enterprises LLC, admitted that he had knowingly prepared fraudulent Federal tax returns that understated his customers' tax liabilities and claimed refunds to which his customers were not entitled. During the period from April 2011 through April 2015, Garcia filed at least 44 false and fraudulent income tax returns with the Internal Revenue Service. The fraudulent tax returns falsely claimed, among other things, ineligible dependents for customers, which resulted in inflated exemptions, child tax credits, and additional child tax credits. Garcia also claimed improper filing statuses on his customers’ tax returns.
During the sentencing hearing, United States District Court Chief Judge William C. Griesbach noted several factors affecting the sentence imposed, including the magnitude and serious nature of the of the offense and the need to send a strong message to other tax preparers who would consider similar conduct.
In rejecting Garcia’s request for a sentence of probation, Judge Griesbach stated that, “Our tax system relies upon voluntary compliance, and I agree that there is a loss of confidence in our system when somebody engages in this type of behavior, and if they were to be met with straight probation … that seems to me to be counter to the purpose of imposing a just sentence.” Judge Griesbach further stated, “This is an awful lot of money over a long, long period of time, and I think an argument can be made for a much higher sentence here. These are public funds, that you’ve deprived the government of. . . this is the kind of thing that a court should send a strong message on.”
The case was investigated by Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorney Elizabeth Monfils.
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For Additional Information Contact:
Public Information Officer Dean Puschnig - (414) 297-1700
Adelanto City Councilmember Arrested on Federal Charges Alleging $10,000 Bribe and Arson Plot to Burn Down his RestaurantRead the Press Release
RIVERSIDE, California – Adelanto City Councilmember Jermaine Wright is expected to make his first court appearance this afternoon after being arrested yesterday on federal charges that allege he took a $10,000 cash bribe and that he hired a man to burn down his restaurant to collect insurance proceeds.
Jermaine Wright, 41, was arrested yesterday by FBI special agents after he was named in a criminal complaint filed on Monday that charges him with bribery and attempted arson of a building.
Wright’s initial appearance will be this afternoon in United States District Court in Riverside.
The criminal complaint outlines two schemes. In the first, Wright allegedly solicited and accepted a $10,000 bribe from an undercover FBI agent who told Wright he wanted the councilmember’s assistance in navigating city rezoning and code enforcement issues related to a supposed marijuana transportation business.
In the second scheme, Wright allegedly paid $1,500 to another undercover FBI agent to burn down his restaurant.
The investigation into Wright, which began as a probe into possible corruption in the City of Adelanto, utilized an informant who introduced Wright to both of the undercover FBI agents and recorded a series of conversations in which Wright discussed both plots, according to the affidavit in support of the criminal complaint filed on Monday.
Soon after the investigation began, the informant – who is identified in the affidavit as a CHS, or confidential human source – introduced Wright to a man who said he wanted to move his marijuana cultivation business to Adelanto. The man who purportedly wanted to relocate his marijuana business was an undercover FBI agent who told Wright he was interested in using a property outside of the zone designated by the city for marijuana cultivation. The undercover operative – who is called UC-1 in the affidavit – specifically wanted Wright’s assistance in expanding the area where marijuana cultivation was permitted.
During a meeting in June, Wright said that “to obtain the necessary votes from the Adelanto City Council for the expansion of the area zoned for marijuana cultivation, UC-1 would have to purchase Wright’s vote,” according to the affidavit. After Wright said that his “price” was “20” – interpreted by the undercover agent to be $20,000 – Wright said a “donation” had to be made to a third party “because he keeps us out of jail.”
In mid-July, the Adelanto City Council approved the expansion of the marijuana zone with Wright voting in favor of the issue.
After the City Council action, the undercover agent sought Wright’s assistance in fast-tracking an approval for the purported marijuana business, which Wright agreed to do in exchange for “15.”
Wright did not receive the $20,000 for his vote because the City Council’s action occurred sooner than anticipated and the funds to pay the bribe were not available at the time, according to the affidavit. Wright similarly was not paid for his services in speeding up the permit process for the marijuana cultivation operation because it required the purchase of a property prior to paying the bribe. However, the informant later told the FBI that Wright was willing to take money in exchange for his help in securing an “exemption” that would allow the undercover operative to operate a marijuana transportation business.
After two meetings with the informant in which Wright discussed how the undercover agent could open a marijuana transportation business, Wright participated in a third meeting that also involved the undercover agent.
“During a meeting on October 6, UC-1 then placed $10,000 dollars on a box being used as a table, made up of two stacks of $50 bills, and told Wright, ‘that’s for you, or your non-profit, whatever,’” according to the affidavit. “Wright responded, ‘my non-profit, yes sir, thank you sir.’ Wright eventually placed the $10,000 in his pocket.”
After taking the bribe, Wright confirmed that he would assist with code enforcement and votes, according to the affidavit. Wright also said he could curtail code enforcement activities against the marijuana transportation business, but it would require a “stack” – which Wright identified as $2,000 – each time Wright interceded.
In the second scheme, Wright sought the informant’s assistance in setting fire to Wright’s business, an Adelanto restaurant called Fat Boyz Grill. The affidavit alleges that Wright subsequently solicited a second FBI undercover agent (UC-2) to assist Wright in burning down his restaurant so he could collect $300,000 in insurance proceeds. Wright eventually paid the second undercover agent $1,500, gave the agent a tour of the restaurant, and assisted in the planning of the arson by providing a ladder for the undercover agent and discussing various tactics to maximize the damage.
The informant first reported the arson scheme to the FBI in early August, according to the affidavit. In late August, the informant reported that Wright had again sought his assistance in finding someone to burn down Fat Boyz Grill. In late September, Wright asked the informant to pass his cell phone number to the “electrician” – so named because Wright wanted the cause of the fire to appear to be an electrical problem.
Wright met the “electrician” – actually the second undercover FBI agent – on October 3 and said he wanted the fire on the following Saturday when the sprinkler system would be turned off, according to the affidavit. After Wright assured the undercover agent that his insurance policy covers everything, the “electrician” agreed to do the job for $1,500. At a meeting three days later, Wright paid the $1,500 after the undercover agent told Wright he needed more time to prepare for the job.
On October 17, FBI agents executed a federal search warrant at the restaurant and interviewed Wright. According to the affidavit, Wright confessed to paying the undercover agent to burn down Fat Boyz Grill and that the would-be arsonist assured him that “this place be gone.” The FBI told Wright that the “electrician” was providing agents with information about the scheme. The affidavit states that, after Wright confessed to the attempted arson plot, Wright agreed to cooperate with the FBI’s investigation into corruption in the City of Adelanto, which included agreeing to surreptitiously use a recording device if requested by the FBI, tell the truth and maintain the confidentiality of the investigation.
The very next day, October 18, the informant reported to the FBI that Wright had called the informant, disclosed the FBI search warrant on the restaurant, and said that the so-called electrician was a “snitch.” Wright requested the CHS’s assistance in making UC-2 “go away,” according to the affidavit.
Wright later contacted the informant and asked the informant to attack Wright. According to the affidavit, one of the reasons Wright wanted to be assaulted was to obtain “the dismissal of criminal charges due to memory loss Wright would claim he suffered as a result of the assault.” Wright instructed the informant to “put a rat next to me,” explaining that the FBI “would suspect someone has found out that I have talked to them [the FBI], and they’re sending me a message.” According to the affidavit, Wright continued, “I am going to lose at least three months of memory or more.”
On the morning of November 3, the San Bernardino County Sheriff’s Department received a call for medical aid from an employee at Fat Boyz Grill. When deputies responded, they observed Wright on the ground in the restaurant’s parking lot being treated by firefighters. While he had no visible injuries, Wright was transported to a hospital, and he reported being attacked and robbed by an unknown assailant.
Wright was taken into custody yesterday by FBI agents after he was summoned for another interview.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If Wright were to be convicted of the two charges in the complaint, he would face a statutory maximum sentence of 10 years in prison for the bribery count and up to 20 years in prison for the arson charge. The arson charge also carries a mandatory minimum prison sentence of five years in prison.
The case against Wright is the product of an ongoing investigation being conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Sean D. Peterson of the Riverside Branch Office and Joseph B. Widman, Chief of the Riverside Branch Office.
22 Alleged Gang Members Indicted for Multiple Violent CrimesRead the Press Release
HOUSTON – More than a dozen alleged members and associates of the Southwest Cholos street gang are set to appear in federal court on a variety of charges to include sex trafficking, drug trafficking, selling firearms, human smuggling and identity theft, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the 37-count indictment Nov. 2, 2017. It was partially unsealed today following a motion in federal court.
Those arrested during the enforcement actions yesterday include Houston residents Giovani Alecio aka Whiteboy, 26, Victor Javiel Gonzalez, 29, Maria Angelica Moreno-Reyna aka Patty, 51, Gabriela Gonzalez-Flores aka Gabby, 46, Eddie Torres aka Monterrey 38, Jose Luis Moreno aka Lucky, 23, Gilberto Espinoza Garcia, 49, Hector Reyna aka Pantera, 26; Jimmy Mejia Chavez, 33; and Grisel Salas aka Cris, 34, of Donna; and Jose Ruben Palomo-Martinez, 48, of Mission. Those arrested in the Houston area are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. today.
Two more defendants – Erik Ivan Alvarez-Chavez aka Casa, 39, and Denis Amaya Calballero aka Keiko, 25, both of Houston - were already in custody on related charges and are expected to make their appearances in federal court in the near future.
Nine others are also charged but not as yet in custody. Bianca Stephanie Reyna aka Troubles, 20, Claudia Soriano-Hernandez, 26, Juan Carlos Contreras Cervantes, 25, all from Houston; Raul Moreno Reyna aka Coney, 53,William Alberto Lopez, 27, Anadalit Duarte aka Paola, 25, and Walter Lopez, 26, all originally from Houston but believed to have fled to Mexico; and Israel Juarez Sifuentes, 43, and Melissa Dominguez aka Missy, 50, both of Donna; are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI Houston field office at 713-693-5000.
All of the defendants are indicted in the criminal scheme as alleged members or affiliates of the Southwest Cholos. All are charged in varying counts to include multiple conspiracy counts; sex trafficking by force, fraud or coercion; sex trafficking of a minor by force, fraud or coercion; transportation to engage in prostitution; enticing or coercing another to travel in interstate commerce for prostitution; transportation of illegal aliens; importation of aliens for immoral purposes; possession with the intent to distribute heroin; possession with intent to distribute methamphetamines; illegal dealing of firearms; felon in possession of a firearm; illegal re-entry; false statements; and aggravated identity theft.
According to the indictment, the defendants operated several brothels in apartments throughout Houston as well as in Mexico. The primary location was the Carriage Way Apartment Complex on Dashwood in southwest Houston, which was also home to their base of operations for drug and firearms trafficking, according to the allegations.
In the sex trafficking scheme, illegal aliens were allegedly promised they could work in a restaurant to pay off their smuggling debts. After arriving in Houston, however, victims were told they actually had to work as prostitutes in brothels the alleged gang members controlled. The indictment alleges the defendants engaged in numerous acts and threats of violence against the victims and their families whenever the women refused to work as prostitutes or failed to make enough money.
The indictment further alleges the defendants would tattoo their names or nicknames on the victims to identify them as their property and demonstrate control over them.
Authorities have identified at least six trafficking victims, the youngest of whom was 14. At the time of arrests, seven more victims were found in the brothels.
Some of the defendants also allegedly engaged in human smuggling separate from the sex trafficking scheme. The indictment alleges at least nine aliens have been identified as being smuggled through stash houses some of the defendants controlled in the Rio Grande Valley to locations in Houston. The smuggled aliens paid substantial sums, including two Chinese nationals who each paid more than $40,000, according to the charges. During the enforcement actions yesterday, 16 more smuggled aliens were discovered in area stash houses.
The indictment also alleges several counts of heroin and methamphetamine trafficking and the selling of numerous stolen firearms
If convicted of sex trafficking, the defendants face a minimum of 15 years and up to life imprisonment. Those charged with the drug trafficking also face up to life with a minimum of 10 years as possible punishment. The human smuggling charges carry a maximum of 20 years imprisonment, while those convicted in the illegal trafficking of firearms face another five years imprisonment.
Soriano-Hernandez, Mejia-Chavez and Contreras-Cervantes were also indicted for illegally re-entering the United States following deportation for which they face up to two years imprisonment, while Javiel Gonzalez is also charged as a convicted felon in possession of a firearm and faces up to 10 years imprisonment.
Alvarez-Chavez also allegedly stole the identity of a Salvadoran man so he could obtain temporary protected status as a citizen of that country. If convicted, he faces a mandatory two years which must be served consecutively to any other prison term imposed.
The FBI, Drug Enforcement Administration, Harris County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, Houston Police Department, Texas Anti-Gang Center and ICE’s Enforcement Removal Operations conducted the investigation as part of both the Organized Crime Drug Enforcement Task Force and the Human Trafficking Rescue Alliance (HTRA). The case is also an example of the coordination among law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative announced in June 2017 which combines personnel and resources from numerous federal, state and local agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local law enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses. In 2016, the Human Trafficking Rescue Alliance received $1.5 million in federal funds from the Bureau of Justice Assistance and the Office for Victims of Crime through the Enhanced Collaborative Model Anti-Human Trafficking Task Force Program, which provides funding to investigate and prosecute cases of human trafficking and provide services to victims.
Assistant U.S. Attorney Adam Goldman is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Tuesday 7 November 2017
Westport Resident Sentenced to 4 Years in Prison for Stealing Almost $1 Million from His EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CLAUDE CARNAHAN, 54, of Westport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for embezzling more than $984,000 from his employer.
According to court documents and statements made in court, from approximately 2008 until approximately 2014, while serving as the regional controller for Nations Roof LLC, CARNAHAN embezzled from the company by issuing company checks made payable to credit card companies with which he had personal accounts. He then engaged in a sophisticated scheme to cover up his fraud by entering checks on company ledgers as being in payment of obligations to legitimate vendors, failing to post checks to the general ledger, removing copies of the checks from company bank statements so that anyone reviewing the statements would not see checks going to credit card companies, and entering invoices into the system but then voiding them after they were paid.
CARNAHAN stole $984,057.09 from Nations Roof during the approximately six-year period.
Judge Underhill ordered CARNAHAN to pay full restitution to Nations Roof.
On May 15, 2017, CARNAHAN pleaded guilty to one count of mail fraud.
CARNAHAN, who is released on a $100,000 bond, was ordered to report to prison on January 10, 2018.
This matter was investigated by the Federal Bureau of Investigation and the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
West Palm Beach Man Sentenced for the Distribution of Heroin and Fentanyl Resulting in DeathRead the Press Release
A Palm Beach County resident was sentenced to 102 months in prison for distributing heroin laced with fentanyl resulting in the death of a 24 year-old man.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Sarah J. Mooney, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
Travis Reshard Preston, 38, of Palm Beach County was found guilty of five counts of distributing heroin to an undercover officer in August of 2017. Preston was sentenced to 102 months’ imprisonment followed by three years of supervised release, and a $500 special assessment, after the Government asked the Court to enhance his sentence based upon a prior distribution he made which resulted in the death of a 24 year-old New Jersey man.
Mr. Greenberg commended the investigative efforts of the DEA, PBSO, WPBPD, and the Palm Beach Narcotics Task Force for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Weldon Man Sentenced for Drug and Firearm OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr., announced that in federal court today, United States District Judge Terrence W. Boyle Howard, sentenced ERVIN RODELL HUGHES, 39, of Weldon, NC to 75 months of imprisonment followed by 3 years of supervised release.
HUGES was named in an Indictment filed on July 24, 2017. On August 3, 2017, HUGHES pled guilty to Possession with Intent to Distribute a Quantity of Cocaine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
The investigation began in April 2016, after the Halifax County Sheriff’s Office (HCSO) received information from a confidential informant (CI) that HUGHES was selling cocaine from his residence in Weldon. Consequently, between April 13, 2016, and June 8, 2016, the HCSO utilized a CI to conduct two controlled purchases of cocaine totaling .73 gram from HUGHES at his home.
On June 10, 2016, the HCSO executed a search warrant at HUGHES’ residence. HUGHES was present during the search. Inside HUGHES’ bedroom closet, law enforcement found a loaded .380 Caliber handgun, 7.06 grams of cocaine, and two digital scales. Law enforcement also located a small-unspecified quantity of marijuana, a marijuana grinder, and other drug paraphernalia inside HUGHES’ home.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Halifax County Sheriff’s Office and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Waldorf Man Exiled to 20 Years in Federal Prison for Distribution of CocaineRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On November 6, 2017 United States District Judge George J. Hazel sentenced Darryl Michael Franklin, a/k/a “D”, age 43, of Waldorf, Maryland, to 20 years in prison, followed by 5 years of supervised release for Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, and 10 years in prison, followed by three years of supervised release, to run concurrent to that sentence, for Possession of a Firearm and Ammunition by a Convicted Felon.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration, Washington Division Office; Sheriff Timothy K. Cameron, St. Mary’s County Sheriff’s Office; and Chief Henry P. Stawinski III, Prince George’s County Police Department.
According to his guilty plea, from February 2015 through December 2016, Franklin, along with his co-conspirators, Darryl Eugene Hill, Marvin Leon Young, Joseph Darren Brooks, Thomas Larvell Herbert, Brandon Darnell Bowman, Joseph Marlow Brooks, Jr., and Andre Antwon Montgomery, trafficked cocaine in the Prince George’s County and St. Mary’s County areas.
On December 15, 2016, law enforcement officers executed search warrants at a number of different locations that were part of the narcotics organization, including Hill’s, Young’s and Franklin’s residences. Law enforcement officers seized approximately 34 bricks of cocaine weighing around 33 kilograms, with an approximate street value of $1,566,168 from Hill’s residence. At Franklin’s residence, law enforcement officers located seven cans with false bottoms; $3,366 in U.S. currency from drug proceeds, a gun cleaning kit, .380 caliber shotgun shells, a loaded Bersa Firestorm .380 semi-automatic pistol bearing serial number 882491, and a loaded Mossberg Mod 88 12 gauge shotgun. In addition, two vehicles located at Franklin’s residence contained hidden compartments used to conduct the drug transactions.
On December 19, 2016, law enforcement officers executed a second search warrant on another vehicle belonging to Franklin. During the course of this search, law enforcement officers located 3,845 grams of cocaine in various bags; a digital scale containing cocaine residue; $57,625 in U.S. currency representing proceeds of drug transactions; a loaded black Beretta PX4 Storm 9mm handgun with an extended magazine, and fourteen 9mm bullets. These items were found within a locked safe in the hatchback area of the car.
According to his plea agreement, Franklin told law enforcement officers that he had been selling cocaine for about seven years, and admitted that he used the hidden compartments in his cars to store money and drugs. Franklin noted that he typically sold narcotics to “the Country Boys,” a reference to his coconspirators, Young and Brooks, who operated in the St. Mary’s County area.
Prior to his December 15, 2016 arrest, Franklin had sustained convictions in Prince George’s County for Possession with Intent to Distribute Cocaine in 2003, 2010 and 2013, which made him ineligible to possess firearms or ammunition.
Acting United States Attorney Stephen M. Schenning commended the Drug Enforcement Administration, the St. Mary’s County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Erin Pulice, Leah Bressack, and Menaka Kalaskar who prosecuted this Organized Crime Drug Enforcement Task Force case.
Virginia Man Pleads Guilty in Manhattan Federal Court to $100 Million Market Manipulation Scheme Involving Fitbit StockRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ROBERT WALTER MURRAY pled guilty today in Manhattan federal court to securities fraud. In November 2016, MURRAY conducted a scheme to manipulate the market for the stock of Fitbit, Inc. (“Fitbit”) by filing a sham tender offer with the Securities and Exchange Commission (“SEC”). The sham tender offer falsely reported that another entity had made a bid to purchase all outstanding Fitbit stock at a significant premium to the then-existing market price. As a result, the price of Fitbit stock temporarily but significantly increased in price, allowing MURRAY to sell for a profit options that he had previously purchased. MURRAY’s sham tender offer, moreover, resulted in a temporary inflation in Fitbit’s market capitalization of over $100 million.
Acting U.S. Attorney Joon H. Kim said: “As Robert Murray admitted today, he manipulated the market in Fitbit stock by making a false filing with the SEC about a tender offer. After manipulating Fitbit's stock price and temporarily inflating its market capitalization by over $100 million, Murray sought to take a quick profit from trading in Fitbit stock. Murray’s ill-advised and criminal attempt to game the system has ended in a federal securities fraud conviction.”
According to the allegations in the Complaint and Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
On November 8, 2016, MURRAY, falsely purporting to be an officer at a China-based entity called ABM Capital, created an account on the SEC’s Electronic Data Gathering, Analysis, and Retrieval (or “EDGAR”) system. The next day, MURRAY submitted a filing on EDGAR that reported that ABM Capital had offered to purchase Fitbit for approximately $12.50 a share, a significant premium to the price of Fitbit stock at the time. This filing was made public on November 10, 2016, and, when it was, Fitbit’s stock temporarily increased in response to the news. While Fitbit’s stock had closed at approximately $8.55 a share on November 9, 2016, it reached a high of approximately $9.27 per share, with significantly increased trading volume, after the false tender offer filing was made public. MURRAY’s filing, however, was entirely fictitious, and was instead meant only to increase the value of options in Fitbit stock that he had purchased just before filing the sham tender offer.
MURRAY, moreover, took significant steps to hide his connection to the tender offer filing. He created a separate email account to register with the SEC and to file the sham tender offer, taking care to disguise his actual IP address when accessing it.
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MURRAY, 24, of Chesapeake, Virginia, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million. In addition, pursuant to a plea agreement with the Government, MURRAY agreed to forfeit proceeds of the offense. MURRAY is scheduled to be sentenced by Judge Katherine B. Forrest on March 9, 2018.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the exceptional work of the Office’s criminal investigators, and thanked the United States Postal Inspection Service and the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
Ventura County Man Who Used Peer-to-Peer Network to Distribute Child Pornography Sentenced to 15 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Simi Valley man who admitted that he distributed child pornography – including a video with a filename indicating an 8-year-old girl was being abused – has been sentenced to 15 years in federal prison.
Eric Allen Haensgen, 38, was sentenced yesterday by United States District Judge Percy Anderson.
Haensgen pleaded guilty on August 22 to one count of distribution of child pornography, admitting that he used peer-to-peer software on his computer to share files that he knew depicted minors, some of whom were under the age of 12, engaged in sexually explicit conduct.
During the execution of a search warrant in 2016 at Haensgen’s residence, federal law enforcement authorities recovered digital devices that contained at least 114 images of child pornography and at least 3 videos of child pornography.
During yesterday’s sentencing hearing, Judge Anderson noted Haensgen’s history of possessing child pornography, citing evidence that the defendant in 2003 had paid a website for child pornography. Judge Anderson also found that Haensgen had sexually abused a minor by taking photographs and videos of a 6-year-old girl that focused on her genitals.
Haensgen has been in custody since he was arrested on March 24 by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This case was prosecuted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Two Indicted in Store Break-In, ATM Cash TheftRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence today returned a four-count indictment charging two Albanian nationals from New York with allegedly conspiring to break into a Smithfield, R.I., Target department store in October by cutting a hole in the roof, prying open an ATM inside the store and stealing more than $14,000 in cash, and breaking through a wall inside the store to gain access to a pharmacy and attempting to steal more than $500 worth of controlled substances.
Smithfield Police Department officers responding to a burglary alarm allegedly located the men hiding inside air conditioning units on the roof of the building.
The indictment charges Epirot Krasniqi, 26, of Brooklyn, N.Y., and Liridon Gashi, 32, of Bronx, N.Y., with one count each of conspiracy to commit larceny from a financial institution, bank larceny, conspiracy to commit burglary involving controlled substances, and burglary involving controlled substances.
Acting United States Attorney Stephen G. Dambruch, Smithfield Police Chief Richard P. St.Sauveur, Jr., and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division announced the indictment.
According to the indictment, sometime after the store closed on October 9, 2017, and in the early morning hours of October 10, Krasniqi and Gashi, allegedly equipped with portable two-way radios and hand tools, cut through the roof of the store and used the tools to force open an ATM, and to forcibly break through the wall of a pharmacy inside the store and break open a locked container holding controlled substances.
It is alleged in the indictment that the pair stole approximately $14,720 from the ATM.
According to the indictment, it is alleged that the defendants fled from the store to the roof where they concealed themselves and items they had stolen inside air conditioning units. Krasniqi and Gashi were discovered and arrested by Smithfield Police Department officers who responded to an electronic burglary alarm and searched the premises. The defendants were initially charged in Rhode Island state court and released on bail.
Epirot Krasniqi was arrested today in New York by FBI agents on a federal arrest warrant issued by the U.S. District Court in Providence. He was ordered detained in federal custody during an initial appearance in the U.S. District Court for the Southern District of New York.
A federal arrest warrant has been issued for Liridon Gashi.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Smithfield Police Department, with the assistance of the Rhode Island FBI Safe Streets Task Force.
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Twenty-Two Individuals Indicted for Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On November 2, 2017, a federal grand jury returned seventeen separate indictments charging twenty-two individuals for trafficking firearms without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The agencies in charge of the investigation are the Puerto Rico Police Department, the Bureau of Alcohol, Tobbaco, Firearms and Explosives (ATF), and the Puerto Rico Department of Justice with the collaboration of Immigration and Customs Enforcement Homeland Security Investigations.
The defendants are also facing charges for: possession of a firearm by a convicted felon, possession of a firearm with an obliterated serial number, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. During the investigation and leading up to today’s take-down, authorities seized 35 firearms, including 20 pistols and 15 rifles, among these, five were machine guns.
Today, as part of this joint effort, the Puerto Rico Department of Justice charged eight other defendants with firearms violations.
“We will vigorously prosecute those involved in the illegal sale and trafficking of firearms, which are then used in the commission of violent crimes,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “We will continue working with the state authorities to keep firearms out of the hands of criminals, who all too frequently endanger our community.”
“Today is a good day for the citizens of Puerto Rico as these indictments exhibit a collective effort to combat violent crime in the community. Together with the Police of Puerto Rico and HSI, we have dismantled a group dedicated to firearms trafficking in Puerto Rico,” said Ari C. Shapira, Assistant Special Agent in Charge for the Bureau of Alcohol, tobacco, Firearms and Explosives, Miami Field Division.
Assistant U.S. Attorney Marie Christine Amy and Special Assistant U.S. Attorney Daynelle M. Álvarez-Lora are in charge of the prosecution of the cases. If convicted, the defendants face up to five years in prison for engaging in the business of dealing firearms without a license, up to 10 years for possession of a machine gun and for possession of a firearm by a convicted felon, and up to life in prison for possession of firearms in furtherance of a drug trafficking crime. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Three Cuban Nationals Convicted of Credit Card Fraud and Identity TheftRead the Press Release
Three Cuban nationals who traveled across Iowa while using stolen identities and credit and debit card numbers pled guilty in federal court in Cedar Rapids.
Pedro Alvarez Rodriguez, age 36, from Miami, Florida, was convicted of aggravated identity theft and conspiracy to commit access device fraud on September 21, 2017. Dunieski Santana Moreno, age 26, from Miami, Florida, was convicted of aggravated identity theft and conspiracy to commit access device fraud on November 1, 2017. Liliany de Armas Mena, age 21, from Louisville, Kentucky, was convicted of aggravated identity theft and conspiracy to commit access device fraud on November 1, 2017. Though living in the United States, all three are Cuban citizens.
In their plea agreements, Alvarez Rodriguez, Santana Moreno, and de Armas Mena admitted that in January and February of 2017, they used counterfeit cards with account information stolen from at least thirty-five accounts. They used the counterfeit cards to make unauthorized purchases at Wal-Mart stores throughout Iowa. These purchases included goods as well as the purchase and reloading of “shopping cards” or “gift cards.”
In his plea agreement, Alvarez Rodriguez admitted that the account numbers on the counterfeit cards were obtained via “skimming” devices designed to obtain victims’ numbers without their authorization or knowledge. These stolen account numbers would then be encoded onto counterfeit magnetic stripe cards that had the appearance of credit cards, which were then used at Wal-Mart self-checkout registers.
In the four-day period of January 29, 2017, to February 1, 2017, Alvarez Rodriguez, Santana Moreno, and de Armas Mena drove hundreds of miles across the state of Iowa to use these counterfeit cards for fraudulent purchases at various Wal-Mart stores, including those in Mount Pleasant, Altoona, Le Mars, Sioux Center, Spencer, Spirit Lake, Mason City, Waverly, and Cedar Falls, Iowa.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after presentence reports are prepared. Alvarez Rodriguez, Santana Moreno, and de Armas Mena remain in the custody of the United States Marshal and will remain in custody pending sentencing. Each faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 9.5 years’ imprisonment, a $500,000 fine, $200 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Lyndie M. Freeman and was investigated by Homeland Security Investigations and the Waverly Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2044.
Follow us on Twitter @USAO_NDIA.
Texas man sentenced to more than 15 years in prison for meth distribution in Shreveport/Bossier areaRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that the last defendant remaining in a Shreveport/Bossier City area methamphetamine distribution case was sentenced Monday to 188 months in prison.
Jose Mejia Jr., 33, of Tyler, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of conspiracy to possess with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to documents filed in the case, Mejia and others conspired to distribute methamphetamine in the Shreveport/Bossier City area from March 1, 2016 to December 1, 2016. Mejia was the source of supply from Texas. Meija would provide drugs and took part in directing their sale.
Other defendants prosecuted and sentenced include:
Joshua Caleb Tanner, 38, of Shreveport, sentenced on October 25, 2017 to 70 months in prison and five years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
Dusty Eugene Loughridge, 35, of Monroe, sentenced on October 25, 2017 to 235 months in prison and five years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
Cody James Bradberry, 33, of Shreveport, sentenced on October 11, 2017 to 124 months in prison and five years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
Jimmy E. Sollers, 29, of Shreveport, sentenced on October 5, 2017 to 70 months in prison for one count of conspiracy with intent to distribute methamphetamine and 60 months in prison for possession of firearms in furtherance of a drug trafficking crime, to run consecutively. He was also sentenced to five years of supervised release and possession of firearms in furtherance of a drug trafficking crime.
Jonathan S. Hall, 33, of Bossier City, sentenced on October 5, 2017 to 37 months in prison and three years of supervised release for one count of conspiracy with intent to distribute methamphetamine.
The DEA and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Take Back Initiative an Overwhelming SuccessRead the Press Release
- 11,076 pounds of prescription drugs collected in Kentucky on October 28th!
LOUISVILLE, KY – Kentuckiana residents assisted in dramatically reducing the number of potentially dangerous prescription drugs from their homes by cleaning out medicine cabinets and safely disposing of 11,076 pounds of unused medications at more than 70 collection locations on Saturday, October 28th, announced United States Attorney Russell M. Coleman and DEA Associate Special Agent in Charge D. Christopher Evans.
In the Western District of Kentucky, residents did their part to reduce the opioid crisis by bringing DEA and participating law enforcement partners, 4,565 pounds of potentially dangerous, expired, unused, and unwanted prescription drugs for disposal. That is 665 more pounds than was collected at last spring’s event.
DEA’s Detroit Field Division, which covers Michigan, Ohio, and Kentucky, collected 67,211 pounds—over 33 tons of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its more than 526 collection sites.
According to DEA, Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com DEA’s next Prescription Drug Take Back Day is April 28, 2018.
Swiss Citizen Serves 11 Months for Bankruptcy PerjuryRead the Press Release
DALLAS — Rudolf Suter, 67, formerly of Dallas, appeared in federal court yesterday before U.S. District Judge David C. Godbey and was sentenced to time served (nearly 11 months in federal custody) for committing perjury in a federal proceeding under oath. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Based on witness testimony at the sentencing hearing, Judge Godbey ordered Suter to appear on March 9, 2016 for a show cause hearing to determine if Suter should be held in contempt for violation of several court orders in Civil Case No. 3:11-CV-02559-N. Instead of appearing at the show cause hearing, Suter fled to Switzerland. On March 10, 2016, Judge Godbey held Suter in civil contempt of court and also ordered the issuance of a civil contempt arrest warrant.
In August and early September 2016, the United States Marshal Service (USMS) in Dallas had several contacts with Suter while he was in Switzerland. Despite repeated efforts by the USMS encouraging Suter to return to Dallas, fugitive Suter refused to voluntarily surrender.
Based on witness testimony at the sentencing hearing, fugitive Suter traveled to Canada on September 13, 2016 and testified at a civil deposition. In his sworn deposition testimony, Suter testified falsely under oath that he had “made arrangements” with the judge and caused the arrest warrant to be dismissed.
On December 11, 2016, Suter was arrested in New York City based on Judge Godbey’s civil contempt warrant when he attempted to re-enter the United States. On January 6, 2017, a criminal complaint was filed in Dallas. On January 17, 2017, Suter was ordered detained as a flight risk following a contested detention hearing. Suter has remained continuously in custody for nearly 11 months since his arrest.
According to the plea documents, on January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas. Suter concealed his true financial condition when he filed several bankruptcy related documents. In his plea documents, Suter admitted to making a false statement under penalty of perjury in his filed Statement of Financial Affairs, in which Suter concealed several banks accounts which he recently closed. Some of the concealed bank accounts were closed in December 2013, the month before he filed for bankruptcy. After remaining a fugitive outside the United States for approximately nine months, on December 11, 2016, Suter was arrested as he attempted to re-enter the U.S. at JFK International Airport in New York City.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Each felony indictment is the result of a bankruptcy criminal referral submitted to the United States Attorney’s Office by the United States Trustee’s Office in Dallas, Texas. As part of that initiative, 23 defendants have been convicted and 2 defendants are pending trial.
The Internal Revenue Service Criminal Investigation was in charge of the investigation. Assistant U.S. Attorney David Jarvis prosecuted.
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St. Louis County Man Pleads Guilty to Scamming IndividualsRead the Press Release
St. Louis, MO – David E. Schultz, 50, of St. Louis County, pleaded guilty to two counts of wire fraud. He appeared in federal court this morning before U.S. District Judge Ronnie White.
David E. Schultz defrauded multiple victims by falsely stating that he could provide various legal remedies to them. He demanded victims provide him cash or assets, such as jewelry, gold, silver, and other items of value that could quickly be converted into cash in exchange for future services. Schultz demanded victims borrow money from their family members or open lines of credit in order to provide him with money in exchange for future services.
As part of his fraudulent scheme, Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended in 2014. David E. Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David E. Schultz approximately $50,000 for services which were never provided and which David E. Schultz never intended to provide.
He also developed a relationship with victim E.B. Victim E.B. owned and operated a health care products distribution firm and was convicted of health care fraud in 2015. David E. Schultz falsely represented to Victim E.B. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. David E. Schultz represented to Victim E.B. that in exchange for payments, he would be able to have E.B.’s conviction overturned. In July 2016, David E. Schultz presented to Victim E.B. two fraudulent and forged documents falsely representing that E.B.’s conviction was overturned. Victim E.B. paid David E. Schultz approximately $81,000 for services which were never provided.
Schultz also developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in 2014. David E. Schultz falsely represented to Victim D.G. that in exchange for payments, he would have D.G.’s conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David E. Schultz approximately $17,000 for services which were never provided.
Schultz also developed a relationship with Victim O.G. Victim O.G. was the sister of Victim D.G. David E. Schultz falsely represented to Victim O.G. that he was working with attorneys to secure her brother’s release from prison. David E. Schultz also falsely represented to Victim O.G. that upon Victim D.G’s release from prison, he intended to open several Dollar Stores with Victim D.G. David E. Schultz represented to Victim O.G. that in exchange for payments, he would pay attorneys to have her brother released from prison and pay for hotel and meal expenses for Dollar Store executives that he hosted. Victim O.G. paid David E. Schultz approximately $22,000 for services which were never provided.
Schultz developed a relationship with Victim R.J. Victim R.J. was a former cardiologist convicted of health care fraud in 2002 and 2009. David E. Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David E. Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney, V.A., to secure “immunity” for Victim R.J. Additionally, David E. Schultz falsely represented that he would pay attorneys to testify for R.J. during the medical license reinstatement process; hire private investigators; and make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David E. Schultz approximately $162,000 for services which were never provided.
Furthermore, Schultz developed a romantic relationship with Victim S.M. David E. Schultz falsely represented to Victim S.M. that he was a “hard money lender” and was a wealthy real estate investor. David E. Schultz promised to marry Victim S.M. and provide her with a lifetime of financial security. David E. Schultz represented to Victim S.M. that he needed to borrow money from her only until he received several large cash payments from his overseas accounts. Victim S.M. drained her own saving and retirement accounts, borrowed money from her parents, borrowed money from her siblings and opened credit accounts to generate money for David E. Schultz. In total, Victim S.M. paid David E. Schultz approximately $120,000.
Schultz faces up to 20 years imprisonment on each of two counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office.
Seven-time Convicted Felon Pleads Guilty to Bank RobberyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to robbing a Wells Fargo Bank in Newport News.
According to court documents, on Nov. 18, 2016, Carl E. Knightor, 33, went into a Wells Fargo Bank in Newport News with his face covered and demanded money from a bank teller. After the teller gave Knightor money, he stated that it was not enough, and the teller handed him more money from a second drawer. Knightnor fled the bank with a total of $5,368 and got into a taxi. The money Knightnor stole contained a GPS tracker, and law enforcement tracked the signal. Knightor was apprehended minutes later in the back seat of a taxi with the money from the bank robbery.
Knightnor, who has seven prior felony convictions, including possession of a sawed off shotgun and grand larceny, pleaded guilty to bank robbery and faces a maximum penalty of 20 years in prison when sentenced on February 26, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Michael C. Grinstead, Acting Chief of Newport News Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-10.
Record Amounts of Unwanted and Expired Pills Collected on Drug Take Back DayRead the Press Release
PROVIDENCE – Rhode Islanders joined Americans nationwide to do their part to reduce the opioid crisis by bringing the DEA nearly two tons - 3,825 pounds - of expired, unused and unwanted prescription drugs to 149 collection points across the state on National Drug Take Back Day on October 28, 2017. That’s a fifty-percent increase over last year’s collection. Nationwide more than 4,200 local and tribal law enforcement partners collected a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible—and everyone who participated. They're helping us end this crisis one pill at a time.”
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.
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Randolph County man indicted for failure to update sex offender registryRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Mill Creek, West Virginia, man was indicted by a federal grand jury today on a charge of failing to update his sex offender registry, United States Attorney William J. Powell announced.
Daniel Lee Vance, age 22, was indicted on one count of “Failure to Update Sex Offender Registration.” Vance is accused traveling from West Virginia to Ohio and failing to update his sex offender registration. The crime is alleged to have occurred from July to October 2017 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The United States Marshal Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Princeton drug dealer sentenced to nearly five years in federal prison for heroin crimeRead the Press Release
BLUEFIELD, W.Va. – A Princeton heroin dealer was sentenced today to four years and nine months in federal prison for a drug charge, announced United States Attorney Carol Casto. Terrance Raheem Simmons, 41, previously pleaded guilty plea to distribution of heroin.
Simmons admitted that on April 20, 2017, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in Princeton.
The case was investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John L. File is responsible for the prosecution. Senior United States District David A. Faber imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Phoenix Man Sentenced to 260 Years in Prison for Violent Robbery SpreeRead the Press Release
PHOENIX – Yesterday, U.S. District Judge John. J. Tuchi sentenced Anthony Wayne Hamilton, 27, of Phoenix, Ariz., to 260 years in prison for a series of violent gas station robberies committed throughout the Phoenix area. Hamilton was found guilty by a federal jury on June 12, 2017, of 11 counts of Hobbs Act Robbery and 11 counts of brandishing a firearm during a crime of violence.
“The U.S. Attorney’s Office is committed to vigorously prosecuting all violent offenders,” said Acting United States Attorney Elizabeth A. Strange. “We commend the federal and local law enforcement agencies for their collaboration in investigating and apprehending this violent criminal.”
“Anthony Hamilton was convicted of committing violent armed robberies throughout Arizona which impacted countless victims. The FBI and our law enforcement partners are committed to keeping our communities safe through shared information, collaboration, and investigative initiatives,” said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office. “This case was worked jointly with almost a dozen Arizona law enforcement agencies and is yet another example of law enforcement agencies coming together to combat violent crime and ensure the safety of our citizens.”
Evidence at trial showed that during a seven-week period from Dec. 20, 2015 through Feb. 9, 2016, Hamilton robbed eleven different gas stations and convenience stores at gunpoint. During the course of the robberies, Hamilton stole money from the gas stations and from gas station employees while displaying and threatening to use a handgun. Hamilton robbed stores in nearly every city in the Phoenix metropolitan area.
The investigation in this case was a product of significant collaboration between the FBI’s Robbery Task Force, the Phoenix Police Department, the Glendale Police Department, the Tempe Police Department, the Peoria Police Department, the Scottsdale Police Department, the Mesa Police Department, the Chandler Police Department, the Maricopa County Sheriff’s Office, the Pinal County Sheriff’s Office, and the U.S. Marshals Service. The prosecution was handled by Robert I. Brooks and Anthony W. Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-0268-PHX-JJT
RELEASE NUMBER: 2017-109_Hamilton
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pharmacist Pleads Guilty in Scheme to Re-use Medications Left over from Nursing HomesRead the Press Release
PITTSBURGH - A resident of Butler County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, Acting United States Attorney Soo C. Song announced today.
Gino Cordisco, 47, of Mars, PA, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that according to Pennsylvania Board of Pharmacy, pharmacists are not permitted to restock medications that have left the pharmacy’s control. These must be destroyed. According to the FDCA, if a prescription or a container of stock drugs falsely describes the lot numbers, expiration dates or manufacturers, then the drugs are rendered/deemed misbranded. For example, when pills that left the pharmacy are returned and comingled with stock drugs instead of being destroyed, and the required labeling on stock containers does not accurately state the actual manufacturer, date of expiration and lot number, then the drugs in the stock container or prescription package are misbranded.
The evidence would show that at all times relevant to the charges, Cordisco, a pharmacist, was the supervisor over a chain of about nine pharmacies known as MedFast Pharmacies. He reported directly to its owner, Kaleugher. Most of the conduct that supports the charges occurred at MedFast Institutional Pharmacy, 2003 Sheffield Road, Aliquippa, PA.
MedFast Institutional Pharmacy supplied nursing home chains with individualized medication packages for the patients/residents. If the nursing home had unused pills from prescriptions filled by MedFast or other pharmacies from, for example, a resident passing or a change in medications, MedFast delivery drivers were instructed to collect the unused medications and return them to MedFast. Once these drugs were returned to MedFast, the drugs would be removed from their packaging and returned to stock. As a result, pills with different lot numbers, different expiration dates and different manufacturers were comingled. These comingled pills were thereafter used to fill new prescriptions. This conduct was initially directed by the defendant. The immediate supervisor of the MedFast Institutional Pharmacy, Correna Pfeiffer, who reported directly to the defendant, was responsible for carrying out this policy on a day-to-day basis. The evidence would establish that the defendant was a leader and organizer of the criminal conduct under 3B1.1 (a) of the USSG.
In addition to the crime charged, the parties have agreed to a two-point enhancement under the guidelines for obstruction of justice, pursuant to Section 3C1.1. The government would prove that the defendant became aware that narcotic drugs were being stolen from the MedFast, and that Jade Gagianas was suspected of stealing the drugs and providing them to her boyfriend, a drug dealer named David Best. In October 2011 the defendant arranged for a surveillance technician to focus a camera in her area in an attempt to catch Gagianas stealing. A day after the camera was moved, the defendant reviewed the recording and did not see anything suspicious, but noted that Gagianas was the one who unpacked a shipment of drugs. Between 1 p.m. and 2 p.m. that day, the defendant conducted an inventory and realized there was a shortage of Opana ER 40 mg. The defendant took Gagianas to a back room and questioned her about the theft. She eventually admitted to this theft as well as additional thefts that had taken place in the past. She told the defendant that she gave the Opana prescription to her boyfriend, David Best. The defendant told Gagianas that he wanted the drugs back and told her to call Best to ask him to return them. Gagianas made the call, but Best would not bring them back for fear of getting arrested. The defendant told Best he would contact the police if Best did not agree to return the stolen Opana. After about two hours, Best showed up at the pharmacy but did not have the drugs in his possession. Best told Gagianas where he had hidden the drugs down the street. The defendant took Gagianas and drove to the location where Best said he had hidden the drugs. The drugs were recovered by Gagianas from a bush in front of a convent. The defendant took the Opana pill vial from Gagianas and observed that the seal had been broken on the prescription vial and opened the vial to see that the cotton was still in the vial. He returned to the pharmacy with it. The drugs had been out of the possession of the pharmacy from between two and six hours. Knowing that the drugs had been stolen, had been in the hands of a drug dealer, that they were recovered from a bush after being gone from the pharmacy from between two and six hours, the defendant thereafter ordered another pharmacist to restock the Opana. The Schedule II log of the pharmacy relflects that 79 Opana pills were restocked. Jade Gagianas was fired that day by the defendant for stealing Opana.
The defendant was interviewed by DEA S.A. Vijay Nemani on May 29, 2013. S/A Nemani asked the defendant if there had ever been any diversion of pharmaceutical or disciplinary problems of any current or former employees. The defendant stated there were "none that he knew of." This statement was not true.
S/A Nemani then asked the defendant about any former employees and he stated Jade Gagianas worked there as a Pharmacy Technician for a while and that her boyfriend had drug issues. The defendant stated Gagianas quit awhile back claiming she was "stressed out." The defendant stated Gagianas quit her job but was not fired or let go. This statement was not true.
S/A Nemani asked the defendant pointedly if there were any instances of any current or former employees, at the Baden pharmacy, where the employee had stolen controlled substances and then was asked to return the controlled substances to the pharmacy. The defendant stated that he was not aware of any instances. This statement was not true.
S/A Nemani also asked if there were any current or former employees that had been fired or asked to resign as a result of the diversion of controlled substances and the defendant stated, "no." This statement was not true.
We have no evidence that any patient was harmed in any way as a result of any of the conduct described herein.
Judge Schwab scheduled sentencing for April 16, 2018. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 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 Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Health and Human Service-OIG and the Office of Personnel Management-OIG conducted the investigation leading to the information in this case.
Palmetto Man Sentenced to Four Years in Prison for Tax FraudRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody Jr. today sentenced Samuel Priester to four years in federal prison for tax fraud. As part of his sentence, the Court also ordered him to forfeit the proceeds from the offense and to pay restitution to the Internal Revenue Service in the amount of $152,418.
Priester pleaded guilty on June 13, 2017.
According to court documents, in March 2012, Priester was in possession of numerous unauthorized prepaid cards, in other peoples’ names, that had been loaded with tax refunds from unauthorized and fraudulently filed federal tax returns. Some of the cards were still attached to mailers from the card issuers. Preister also possessed a hand-written ledger containing personally identifying information (PII) with notations such as “used,” “good,” or “rejected,” along with instructions as to how much money could be withdrawn from ATMs daily, using various types of prepaid debit cards. One of the cards and PII found matched a card that had been used to purchase new merchandise found in Priester’s room.
In total, there were 34 false 2011 income tax returns filed with the IRS from the PII and prepaid cards in Priester’s possession, claiming a total of $230,045. Of these, $205,785 had been accurately noted in the hand written ledger. A total of $152,418 in fraudulent tax refunds were issued.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Orlando Lawyer Convicted of Tax EvasionRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found William B. Pringle, III (55, Orlando) guilty of tax evasion. He faces a maximum penalty of five years in federal prison and a maximum fine of $100,000. His sentencing hearing is scheduled for January 22, 2018.
Pringle was indicted on June 14, 2017.
According to evidence presented at trial, Pringle owed more than $2.1 million in federal income taxes, interest, and penalties for the years 1996 and 1998-2010. Over a period of at least nine years, Pringle avoided paying his income taxes by hiding his substantial income and luxury assets from the Internal Revenue Service and engaging in tactics to stop the IRS from locating and seizing his assets to pay the taxes that he owed.
This case was investigated by the Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Gable.