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22 December 2017
Keppel Offshore & Marine Ltd. and U.S. Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Keppel Offshore & Marine Ltd. (KOM), a Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine USA Inc. (KOM USA), have agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore arising out of a decade-long scheme to pay millions of dollars in bribes to officials in Brazil. KOM USA pleaded guilty today in connection with the resolution. In addition, a guilty plea by a former senior member of KOM’s legal department was unsealed.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division made the announcement.
“Today’s resolution once again underscores the importance of the Department of Justice’s collaboration with foreign authorities to hold corrupt companies and individuals accountable for their crimes, while ensuring the fair and appropriate allocation of fines and penalties,” said Acting Assistant Attorney General Cronan. “This case also represents the first coordinated FCPA resolution with Singapore and the most recent of several coordinated resolutions with Brazil. The Criminal Division is committed to working with our international partners to ensure that honest, law abiding companies are able to compete on a level playing field across the globe.”
“The resolutions with KOM and its U.S. subsidiary are the result of a multinational effort to investigate and prosecute a corruption scheme that resulted in the payment by the defendant companies of over $50 million in bribes to Brazilian officials and in profits for the defendant companies of over $350 million from business corruptly obtained in Brazil,” said Acting U.S. Attorney Rohde. “In an attempt to conceal their crimes, the defendants used the global financial system – including the United States banking system – to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies. The United States, working with its law enforcement partners abroad, will continue to hold responsible those corporations and individuals who seek to enrich themselves through the corruption of government officials and legitimate governmental functions.”
“The resolution to this investigation shows to those around the world that the FBI and our law enforcement partners are dedicated to work together to bring justice to companies who play outside the rule of law,” said FBI Assistant Director Richardson. “The FBI won’t stand by while individuals operate their business illegally using bribes.”
KOM entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to U.S. District Judge Kiyo A. Matsumoto. In addition, KOM USA pleaded guilty and was sentenced by Judge Matsumoto on a one-count criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, KOM will pay a total criminal fine of $422,216,980, with a criminal penalty due to the United States of $105,554,245, including a $4,725,000 criminal fine paid by KOM USA. As part of the deferred prosecution agreement, KOM also committed to implement rigorous internal controls and to cooperate fully with the Department’s ongoing investigation.
In related proceedings, the company settled with the Ministério Público Federal (MPF) in Brazil and the Attorney General’s Chambers (AGC) in Singapore. The United States will credit the amount the company pays to Brazil and Singapore under their respective agreements, with Brazil receiving $211,108,490, equal to 50 percent of the total criminal penalty, and Singapore receiving up to $105,554,245, equal to 25 percent of the total criminal penalty.
The Department also unsealed charges today against a former senior member of KOM’s legal department, who pleaded guilty to one count of conspiracy to violate the FCPA on Aug. 29, 2017 in the Eastern District of New York. He is awaiting sentencing.
According to admissions and court documents, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate the FCPA by paying approximately $55 million in bribes to officials at the Brazilian state-owned oil company Petrobras and to the then-governing political party in Brazil, in order to win 13 contracts with Petrobras and another Brazilian entity. KOM effectuated and concealed the bribe payments by paying outsized commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of the Brazilian officials and the Brazilian political party.
In reaching the resolutions with the Department, KOM and KOM USA received credit for their substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, KOM has terminated and otherwise disciplined employees involved in the criminal conduct, and it has implemented an enhanced system of compliance and internal controls to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
The case is being investigated by the FBI’s International Corruption Squad in Houston. Trial Attorneys Derek J. Ettinger and David M. Fuhr and Assistant Chief Christopher J. Cestaro of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Eastern District of New York, are prosecuting the case.
The MPF in Brazil and the AGC in Singapore provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Kmart Corporation to Pay U.s. $32.3 Million to Resolve False Claims Act Allegations for Overbilling Federal Health Programs for Generic Prescription DrugsRead the Press Release
WASHINGTON – Kmart Corporation, a wholly owned subsidiary of Sears Holdings Corporation (SHC), has agreed to pay $32.3 million to the United States to settle allegations that in-store pharmacies in Kmart stores failed to report discounted prescription drug prices to Medicare Part D, Medicaid, and TRICARE, the health program for uniformed service members and their families, the Justice Department announced today.
The agreement resolves allegations arising from a lawsuit brought under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The 2008 lawsuit, which was filed by James Garbe in the federal district in Los Angeles and later transferred to the Southern District of Illinois, alleged that Kmart pharmacies offered discounted generic drug prices to cash-paying customers through various club programs but knowingly failed to disclose those prices when reporting to federal health programs its usual and customary prices, which are typically used by those programs to establish reimbursement rates.
“Pharmacies that are not fully transparent about drug pricing can cause federal health programs to overpay for prescription drugs.” said Acting Assistant Attorney General Chad A. Readler for the Department’s Civil Division. “This settlement should put pharmacies on notice that there will be consequences if they attempt to improperly increase payments from taxpayer-funded health programs by masking the true prices that they charge the general public for the same drugs.”
“Pharmacies and other providers who receive funds from taxpayers have a duty to follow the law,” said U.S. Attorney Donald S. Boyce for the Southern District of Illinois. “If healthcare providers do not provide fair and transparent pricing as required under the law, the False Claims Act allows the government and whistleblowers to ensure that the Medicare, Medicaid, and TRICARE programs are made whole.”
The settlement agreement with the United States is a part of a global $59 million settlement that includes a resolution of state Medicaid and insurance claims against Kmart. Garbe, who litigated the case after the government declined to intervene in the action, will receive $9.3 million.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Southern District of Illinois and Central District of California. Auditing assistance for the government’s investigation was provided by the U.S. Attorney’s Office for the Central District of California and the National Association of Medicaid Fraud Control Units. Investigative assistance was provided by the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Garbe v. Kmart Corp., Case No. 12-CV-881-NJR-PMF (S.D. Ill.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
Justice Department Requires Vulcan to Divest 17 Aggregate Facilities in Order to Acquire Aggregates USARead the Press Release
The Department of Justice announced today that it has reached a settlement that will require Vulcan Materials Company to divest all of Aggregates USA, LLC’s active aggregate quarries, plants, and yards in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas in order for it to proceed with its proposed $900 million acquisition of Aggregates USA from SPO Partners.
The Department’s Antitrust Division and Tennessee’s Attorney General filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“Without relying on a regulatory behavioral decree, these divestitures will ensure that customers, and ultimately taxpayers, in Tennessee and Virginia continue to benefit from robust competition and competitive prices,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The acquisition, as originally proposed, would have eliminated one of the two suppliers of coarse aggregate in parts of east Tennessee and southwest Virginia.”
According to the department’s complaint, Vulcan and Aggregates USA produce and sell coarse aggregate, a type of crushed stone, to customers such as the Tennessee and Virginia Departments of Transportation, highway construction contractors, and suppliers of asphalt concrete and ready mix concrete. Coarse aggregate, an essential input in asphalt concrete and ready mix concrete, is used to build, pave, and repair roads and highways, and is used widely in other types of construction. The complaint alleges that Vulcan and Aggregates USA are the only two producers of coarse aggregate in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas. According to the complaint, the loss of competition between Vulcan and Aggregates USA would likely result in higher prices and poorer customer service for aggregate customers in those areas.
Under the terms of the proposed settlement, Vulcan must divest Aggregates USA’s 13 active quarries and yards, and four inactive quarries, in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas to Blue Water Industries, or an alternate acquirer approved by the United States. The department said that the divestitures will remedy the acquisition’s anticompetitive effects by providing the acquirer with the quarries, including substantial reserves, and other assets necessary to compete in these local markets.
Vulcan, a New Jersey corporation headquartered in Birmingham, Alabama, is one of the largest producers of coarse aggregate and construction materials in the United States, with facilities in 20 states and the District of Columbia. In 2016, Vulcan’s revenues were approximately $3.5 billion.
SPO Partners, a Delaware limited partnership headquartered in Mill Valley, California, invests in a wide range of industries, including industrial materials, media, telecommunications, energy, power, and real estate. SPO has more than $7 billion in assets under management. SPO acquired Aggregates USA in 2010.
Aggregates USA, a limited liability company headquartered in Birmingham, Alabama, produces and sells aggregate in Florida, Georgia, Tennessee, and Virginia. In 2016, Aggregates USA’s revenues were approximately $124 million.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on December 21, 2017 and entering pleas of Not Guilty were:
- VERNELLE LYNN BADBEAR, a 39-year-old resident of Wyola, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, BADBEAR faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-127
Appearing before U.S. Magistrate Johnston in Great Falls on December 21, 2017 and entering pleas of Not Guilty were:
- CALVIN RED THUNDER, JR., a 48-year-old resident of Brockton, appeared on charges of abusive sexual contact. If convicted of the charge contained in the indictment, RED THUNDER faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-85
Appearing before U.S. Magistrate Johnston in Great Falls on December 20, 2017 and entering pleas of Not Guilty were:
- DANIEL GONZALEZ, a 29-year-old resident of Great Falls, appeared on charges of prohibited person in possession of a firearm. If convicted of the charge contained in the indictment, GONZALEZ faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-80
- KAREEM HIDARA, a 33-year-old resident of Winnipeg, Manitoba, appeared on charges of conspiracy to export a controlled substance, conspiracy to possess with intent to distribute cocaine, and possession with intent to distribute cocaine. If convicted of the most serious charges contained in the indictment, HIDARA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 14-30
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Henderson Man Sentenced to 18 Months in Prison for Selling Stolen U.S. Military Ammunition, Smoke Grenades and EquipmentRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man was sentenced today to 18 months in prison and two years supervised release for selling military-issued ammunition, smoke grenades, and other equipment stolen from the U.S. Air Force, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Temogen Tran Noguni, 38, was sentenced by U.S. District Chief Judge Gloria M. Navarro. He pleaded guilty on Aug. 18, 2017, to one count of unauthorized sale of property of the United States. Co-defendants Jonathan Owens, 27, a Staff Sergeant at Nellis Air Force Base Nevada, and Daniel Schwartz, 42, both previously pleaded guilty to criminal charges.
According to the plea agreement, Noguni admitted that, from August 2015 to November 2015, he purchased from Owens stolen smoke grenades; body armor plate carrier vests; a red dot optical rifle scope; a set of night vision binoculars and goggles; and military ammunition to include 9mm, 5.56x45mm, and .50 caliber cartridges, all from Nellis Air Force Base Nevada. The .50 caliber ammunition, which is not available for sale to the general public, is armor-piercing incendiary ammunition designed to pierce the shell of armored vehicles and explode inside. Noguni then listed the items for sale on the Internet.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney Jared L. Grimmer prosecuted the case.
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Former Lackawanna County Prison Employee Guilty of Providing Drugs and Other Contraband to InmatesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Defazio, age 39, of Archbald, Pennsylvania, a former contract employee with the Lackawanna County Prison, pleaded guilty on December 21, 2017, before Senior U.S. District Court Judge A. Richard Caputo, to providing and attempting to provide prohibited objects, including illegal drugs, to inmates at the Lackawanna County Prison.
According to United States Attorney David J. Freed, Defazio admitted that between November 2015 and April 2016, while overseeing the food service at the prison, he provided and attempted to provide Oxycontin pills (oxycodone), suboxone, and tobacco to inmates on several occasions and received payments ranging from $50 to $600 for smuggling the drugs and tobacco into the prison.
Judge Caputo scheduled sentencing for April 23, 2018.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Hershey Medical Center Research Technologist Sentenced for Making False Statements About Cancer TestsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd Benko, age 62, of Palmyra, Pennsylvania, was sentenced today to 15 months’ imprisonment by United States District Court Judge Yvette Kane on false statement charges in connection with his performance of flawed genetic diagnostic tests for 124 cancer patients.
According to United States Attorney David J. Freed, Benko, a former Research Technologist at the Hershey Medical Center in Hershey, Pennsylvania, was indicted in July 2015, and charged with one count of health care fraud and two counts of making false statements in health care matters. Benko performed DNA gene mutation tests (known as Epidermal Growth Factor Receptor (EGFR), KRAS gene mutation (KRAS), and BRAF gene mutation (BRAF) assays) for 124 advanced stage cancer patients at the Hershey Medical Center in 2013 and 2014. These genetic tests help physicians diagnose a patient’s particular type of cancer so specifically tailored treatments can be administered to the patient.
Benko failed to perform the assays in the manner called for by Hershey’s standard operating procedures. Subsequent retesting of the patients during summer 2014, revealed that 60 of the 124 patients had assay results discordant with results obtained by two outside laboratories.
Benko pleaded guilty in July 2017, to one count of making false statements in health care matters before Judge Kane. Benko admitted he lied to administrators at the Hershey Medical Center on April 11, 2014, about the manner by which he performed the genetic assays. Benko concealed the fact he did not follow Hershey’s standard operating procedures, procedures Benko co-authored, in performing the assays by failing to use a device known as a NanoDrop 2000 photo spectrometer to quantify the DNA and by failing to preserve the patients’ leftover tissue and DNA samples.
Judge Kane ordered Benko to serve three years of supervised release following his release from prison and to make restitution in the amount of $69,742 to the Hershey Medical Center for refunds Hershey paid for the flawed assays and for outside laboratory re-testing. Judge Kane also ordered Benko to surrender to the Bureau of Prisons for commencement of his sentence on January 22, 2018.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. Assistant U.S. Attorneys Kim Douglas Daniel and Joseph J. Terz prosecuted the case.
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Former Felon Convicted of Unlawful Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A jury convicted a former felon Thursday of unlawful possession of one Heckler & Koch machine pistol and one Sig Sauer automatic rifle after multiple prior felony convictions in California, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Following a three-day jury trial, Jack Benjamin Hessiani, 39, of Ventura, California, was found guilty of one count of felon in possession of a firearm. United States District Judge Larry R. Hicks presided over the trial and scheduled sentencing for March 22, 2018. At the time of sentencing, Hessiani faces the statutory maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Federal Jury Convicts Three Twin Cities Drug TraffickersRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of ALEJANDRO LLAMAS-DELGADO, 24, GREGORIO RAMIREZ-MALDONADO, 28, and ERICK PARRA-SALAZAR, 24, for drug trafficking-related offenses. Following a three-day trial before U.S. District Judge Joan N. Ericksen in Minneapolis, Minn., the jury found all three defendants guilty of conspiracy to distribute controlled substances, and possession with intent to distribute cocaine. In July 2017, co-defendant COLIN BLAIR MCAFEE, 46, pleaded guilty to one count of possession with intent to distribute cocaine. All four defendants will remain in federal custody pending their sentencing hearings.
Assistant U.S. Attorney Thomas Hollenhorst said: “This case involved the prosecution of one of the biggest methamphetamine and cocaine traffickers in the State of Minnesota. Mr. Llamas-Delgado’s drug trafficking organization spanned many states and involved numerous drug couriers and distributors. The community is safer with him behind bars.”
As proven at trial, since at least 2014, LLAMAS-DELGADO operated a drug trafficking organization responsible for transporting and distributing methamphetamine and cocaine from Texas and California into Minnesota. RAMIREZ-MALDONADO and PARRA SALAZAR assisted LLAMAS-DELGADO by transporting approximately two kilograms of cocaine from Texas to the Twin Cities.
As proven at trial, law enforcement agents in California seized approximately 17 pounds of suspected cocaine and 25 pounds of suspected methamphetamines concealed in hidden compartments under the front seats of a 2005 Mini-Cooper that had been loaded onto a vehicle transport carrier destined for LLAMAS-DELGADO in the Twin Cities area. During the spring of 2017, law enforcement agents in the Twin Cities area conducted surveillance of LLAMAS-DELGADO and his co-conspirators that revealed multiple residences linked to the conspiracy’s drug trafficking activities. On May 15, 2017, law enforcement agents conducted simultaneous searches of several residences, resulting in the seizure of more than $40,000 in cash, 28 pounds of marijuana, over 750 grams of cocaine, a firearm, and other drug trafficking paraphernalia.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, Orono Police Department, Riverside County Sheriff’s Office (California), Albertville Police Department, Brooklyn Center Police Department, Wright County Sheriff’s Office, Hennepin County Sheriff’s Office, the Minnesota State Patrol, and the California Highway Patrol.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Sarah E. Hudleston prosecuted this case.
Defendant Information:
ALEJANDRO LLAMAS-DELGADO, 24
Brooklyn Center, Minn.
Convicted:
- Conspiracy to distribute methamphetamine and cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
GREGORIO RAMIREZ-MALDONADO, 28
Houston, Texas
Convicted:
- Conspiracy to distribute cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
ERICK PARRA-SALAZAR, 24
Houston, Texas
Convicted:
- Conspiracy to distribute cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Leader of Armed Robbery Crew in Nine Heists of Chicago Retail Stores and BusinessesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man of leading an armed robbery crew that targeted retail stores and businesses on the city’s North and Northwest Sides.
ROBERT L. BERRIOS, 50, committed the nine armed robberies in 2012. His crew mainly struck at cellular telephone stores, often terrorizing store employees by wearing masks and brandishing firearms. In some of the heists, the robbers physically restrained store employees with zip ties. The heists netted the crew tens of thousands of dollars in cash and cell phones.
After an eight-day trial in federal court in Chicago, the jury on Thursday convicted Berrios on all twelve robbery, firearm and conspiracy charges against him. U.S. District Judge Matthew F. Kennelly set sentencing for March 22, 2018, at 1:30 p.m. Berrios faces a mandatory minimum sentence of 22 years in prison, and a maximum sentence of life in prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Angel M. Krull and Georgia Alexakis.
All four charged members of the robbery crew have now been convicted. The other charged members, JULIO RODRIGUEZ, 36, DAVID REVIS, 37, and LUIS DIAZ, 33, all of Chicago, previously pleaded guilty and admitted their roles in the heists. Revis was sentenced to 15 years in prison and Diaz was sentenced to three years. Rodriguez is awaiting sentencing.
Evidence at Berrios’ trial revealed that the crew worked together to identify businesses to target and obtain intelligence about the locations, including store hours and number of employees working at a given time. The crew communicated with one another via cell phone to plan the robberies and procure the necessary tools, including the masks, zip ties, firearms and getaway vehicles.
The jury convicted Berrios of leading the crew in nine robberies:
July 1, 2012: Walgreens store, 5935 W. Addison St., Chicago.
July 28, 2012: Currency Exchange, 2753 N. Ashland Ave., Chicago.
Aug. 15, 2012: Currency Exchange, 2814 N. Milwaukee Ave., Chicago.
Sept. 19, 2012: T-Mobile store, 1552 W. Chicago Ave., Chicago.
Sept. 28, 2012: T-Mobile store, 1958 W. Irving Park Rd., Chicago.
Oct. 2, 2012: T-Mobile store, 4000 W. Fullerton Ave., Chicago.
Oct. 13, 2012: T-Mobile store, 3951 N. Kimball Ave., Chicago.
Oct. 16, 2012: Cricket store, 3200 W. Armitage Ave., Chicago.
Oct. 22, 2012: AT&T store, 3955 W. Belmont Ave., Chicago.
Escambia County Man Receives One Year Probation and a $500.00 Fine for Failing to Report Income to Railroad Retirement BoardRead the Press Release
United States Attorney, Richard W. Moore, announces that Jesse Redmon, a 65-year-old resident of Brewton, Alabama, was sentenced today to a probationary term of one year and received a $500.00 fine for failing to report income after claiming disability retirement from the railroad.
Mr. Redmon began receiving disability benefits from the Railroad Retirement Board in November 2003 and continued receiving benefits until sometime in 2017. Prior to receiving benefits, Redmon agreed to and understood that he was required to report any work related activity. However, the defendant obtained an electrician’s license, started a business called Redmon Enterprises Inc. and began working as an electrician while receiving disability benefits. During the recertification process, Redmon stated that he had not returned to the work force during the time he received disability benefits. The defendant provided the following signed statement:
“I learned that the moneys that I made on a sideline business should have been reported to the RR Board. I didn’t work a regular job a forty hour week. This was part-time work here and there. I am not sure how much money was made at the time. The work was here and there. .This is my fault for not reading my paperwork in detail. I take full responsibility for my short sight. I will do my best to try and figure out how much money was made during the time and if I have to pay back to the RR Board, I am willing to pay back as I can. I apologize to the board for my oversight. I didn’t think those small amount[s] made a difference. Now I know . . . I realize that I started a business and didn’t notify the RR board.”This case was the result of investigation conducted by the U.S. Railroad Retirement Board/Office of Inspector General. Assistant United States Attorney, Gina S. Vann, from the United States Attorney’s Office – Southern District of Alabama led the prosecution.
East Stroudsburg Man Sentenced for Heroin Trafficking Near High SchoolRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on December 21, 2017, United States District Court Judge A. Richard Caputo sentenced Naajeh Torres, age 24, of East Stroudsburg, Pennsylvania, to 24 months’ imprisonment on drug trafficking charges.
According to United States Attorney David J. Freed, Torres pleaded guilty on October 25, 2017, to an indictment charging the distribution of heroin within 1,000 feet of Stroudsburg High School property in April 2016. Additionally, Torres admitted to distributing between 40 and 60 grams of heroin over a three-month period in 2016, which is the equivalent of between 1,600 and 2,400 individual doses.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Stroud Area Regional Police Department and was being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Drug Counselor Under Contract with U.S. Probation and Pretrial Services Sentenced to 39 Months in Prison for Conspiring to Obstruct JusticeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Chief United States District Judge James K. Bredar sentenced licensed drug counselor Jennifer Hamersky, a/k/a Jennifer Maroney and Jennifer Hurt, age 34, of Severn, Maryland, to 39 months in prison, followed by 3 years of supervised release for obstruction of justice and conspiring to conceal alleged violations of pretrial release by one of Hamersky’s clients.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; William F. Henry, Chief, U.S. Probation and Pretrial Services Office, District of Maryland; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to the open plea Hamersky was a Clinical Professional Addictions Counselor, licensed by the State of Maryland’s Department of Health and Mental Hygiene and was contracted to provide services for United States Probation and Pretrial Service Office (“USPO”) pretrial offenders and supervised release defendants in United States District Court for the District of Maryland, including mental health and substance abuse counseling, and urinalysis testing.
Person A, who was on supervised release under the supervision of USPO, met Hamersky in September 2015, when she conducted an initial substance abuse screening as part of his pretrial release supervision. Hamersky recommended and USPO concurred, that Person A attend individual and group counseling sessions and submit to random urinalysis testing to be performed by her employer.
Hamersky served as Person A’s pretrial release substance abuse and mental health counselor from September 2015 through February 2016, and again from August 2016 through February 2017, with a break due to Person A’s incarceration. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions of counseling and urinalysis testing to USPO.
According to her open plea, during Hamersky’s initial supervision of Person A, they used oxycodone pills and smoked marijuana and on at least one occasion and Hamersky met Person A’s oxycodone dealer to pick up the oxycodone pills and deliver them to Person A. In addition, court documents show that Hamersky conspired to, and obstructed justice in an effort to conceal from USPO officers and United States Magistrate and District Court Judges, Person A’s violations of his conditions of release. The violations include: use of narcotic drugs or other controlled substances; failure to appear for urinalysis testing; and failure to appear for counseling sessions.
Specifically, court documents show that Hamersky included false information and material omissions in Person A’s monthly treatment reports which were submitted to USPO, and that she provided false information to Person A’s attorney and USPO regarding Person A’s compliance with conditions of release. In November of 2015, Hamersky forged the initials of the company urinalysis collector on reports in order to make it appear that Person A had participated in urinalysis testing, when in fact, he had not. To facilitate these false submissions, Hamersky communicated with Person A. to have him sign and complete the required urinalysis testing log for submission to USPO.
Between October 2015 and through February 2016, Hamersky conspired to prevent the communication to a law enforcement officer or judge. While Person A was incarcerated, Hamersky facilitated his obtaining narcotic drugs for his personal use, then sent a report to Person A’s attorney to be used in court, which she knew contained false representations.
On January 24, 2017, Hamersky discussed how to conceal from Person A’s USPO officer the fact that Person A had missed a urinalysis test. Hamersky then called Person A’s USPO and left a voice message, falsely indicating that Person A had not missed his urinalysis test.
Acting United States Attorney Stephen M. Schenning commended the FBI, USPO, and DEA for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Philip Selden and Rachel Miller Yasser, who prosecuted the case.
Dominican National Sentenced for Role in Massachusetts RMV Identity Theft SchemeRead the Press Release
BOSTON – A Dominican national illegally residing in Jamaica Plain was sentenced yesterday in federal court in Boston for his role in a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles (RMV).
Angel Miguel Beltre Tejeda, 32, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to two years in prison and one year of supervised release. Tejeda will be deported following completion of his sentence. Tejeda was arrested in August 2017 along with five others, and pleaded guilty to aggravated identity theft in October 2017.
The RMV issues identification documents such as drivers’ licenses, learners’ permits and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV maintains systems to verify whether applicants’ identity information is accurate.
From 2016 to the spring of 2017, Tejeda participated in a scheme to issue Massachusetts identification cards and driver’s licenses to individuals who presented identification documents in identities other than their own. These identification documents included Puerto Rican birth certificates and U.S. Social Security cards that were either counterfeit, genuine but fraudulently obtained, or genuine but altered.
The scheme involved several steps. First, Tejeda would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejeda received hundreds of dollars when he sold an identity document as part of this scheme.
RMV clerks participating in this scheme would then accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
District Man Sentenced to 110 Months in Prison on Federal Firearms ChargeRead the Press Release
WASHINGTON – Marcellus Freeman, 27, of Washington, D.C., has been sentenced to 110 months in prison on a federal firearms charge, announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Freeman pled guilty in October 2017 in the U.S. District Court for the District of Columbia. He was sentenced on Dec. 21, 2017, by the Honorable Reggie B. Walton. The sentence is to run consecutively to a 308-month sentence that Freeman is serving in a federal armed carjacking and armored car robbery case prosecuted by the U.S. Attorney’s Office for the District of Maryland.
According to the government’s evidence, on Oct. 26, 2012, Freeman and three other men were involved in an armed robbery of an armored car, a carjacking, and shooting in Takoma Park, Md. The men shot at the armored car driver and a bystander who was the victim of the armed carjacking. The armored car driver was not injured. The bystander, however, was shot in the neck and arm, and required multiple surgeries. Freeman’s fingerprints were found on the armored car’s moneybag and a warrant was issued for his arrest.
On Feb. 18, 2013, Freeman was driving an automobile owned by his girlfriend when he was pulled over by police in the District of Columbia. He provided a false identification card and gave an address in Southeast Washington. Once officers realized the identification card was fake, Freeman provided yet another false name. Officers placed Freeman under arrest when they could not verify his information. Freeman told officers he lived with his girlfriend and asked the officers to call her to retrieve the car and his personal belongings. The girlfriend responded and retrieved the items. She provided the same Southeast Washington address as her place of residence. The FBI learned of Freeman’s arrest, confirmed the girlfriend’s address, and obtained a search warrant for the apartment in connection with the Maryland armored car investigation.
The FBI executed a search of the apartment on Feb. 20, 2013. During the search, the FBI recovered crack cocaine as well as a 50-round ammunition box that contained 42 rounds of .380 caliber ammunition. The agents then recovered a Smith & Wesson .380 caliber pistol that was loaded with eight rounds of ammunition, matching those found in the ammunition box, between the mattress and the box spring in the bedroom.
Forensic testing subsequently revealed Freeman’s fingerprints on the ammunition box that contained 42 rounds of ammunition. Freeman acknowledged, as part of his plea in this case, that he possessed the firearm in connection with his possession with the intent to distribute the crack cocaine.
In Maryland, Freeman previously pled guilty to robbery, discharging a gun during the robbery, and carjacking for his role in the crimes that took place in Takoma Park.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Mary Downing; Legal Assistants Kate Abrey, Holly Crouse, and Latoya Wade; Clerk Antonia Jackson, and Interns Jeslin Panicker and Max Ruocco. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys George Eliopoulos and Akhi Johnson, who prosecuted the case.
Defense Contractors Sentenced to Prison for Defrauding the United StatesRead the Press Release
Assistant U.S. Attorney Rebecca S. Kanter (619-546-7304)
NEWS RELEASE SUMMARY – December 14, 2017
SAN DIEGO – Jeffrey Harrington and Michael Mayer, owners of several defense contracting firms, were each sentenced in federal court today to 15 months in custody for conspiring to commit wire fraud and file false claims, and to making false statements on their federal income tax returns.
Harrington was also ordered to pay a $10,000 fine, $141,113 in restitution to the Internal Revenue Service, and to forfeit $708,679 in ill-gotten gains; likewise Mayer was ordered to pay a $10,000 fine plus $299,511 in restitution to the IRS and forfeit $708,678.
The defendants admitted fraudulently obtaining money from the United States by making false representations and false claims to the Department of Defense (“DoD”) for payment on items defendants knew had not been sold to the Navy, but which had been substituted with other, unauthorized products. Three of the companies owned by Harrington and Mayer – including San Diego-based Veteran Logistics, Inc. (“VLI”), Industrial Xchange, Inc. (“IXI”), and Boston Laser Technology, Inc. (“BLTI”) – were also ordered to forfeit over $1.4 million and pay a $1 million fine for their roles in the offenses.
According to court records, the defendants regularly sold supplies to the DoD, the Department of Navy, the General Services Administration and other federal departments and agencies. Each company had multiple contracts with DoD’s Defense Logistics Agency (“DLA”) to sell products to the federal government through “EMALL,” currently known as “FedMall,” which is a web-based electronic commerce site that allows authorized users to search, compare and purchase commonly used products. Each contract allowed the company to sell pre-approved goods at set, maximum prices. As detailed in court filings, however, the defendants fraudulently manipulated the EMALL system to substitute unapproved items for the goods purportedly sold to the government.
In one example, the defendants agreed on EMALL to supply Maritime Expeditionary Security Group Two at Norfolk Naval Shipyard with over 10,000 “Post-It” writing paper pads. After colluding with Navy personnel, the defendants replaced these approved items with 50 electronic transceivers they were not authorized to sell. By fraudulently substituting these products, the defendants were able to circumvent procurement controls and charge the military a 134% mark-up on the transceivers. The defendants repeatedly employed this fraudulent technique dozens of times, on a host of products, across a wide array of components in the military.
The scheme also allowed the defendants to conceal the sale of consumer electronics and other items that could be readily misused by corrupt military officials. For example, in one contract VLI agreed to supply the USS Ronald Reagan aircraft carrier with industrial, motorized plumber snakes. VLI then fraudulently substituted that order with 100 29” Toshiba TVs, 60 32” Toshiba TVs and 160 TV tilt mounts. VLI purchased these items for only $39,558, then turned around and billed the government $66,807. In another example discussed in court, VLI fraudulently substituted an order for the USS Germantown with, among other things, two pink Nintendo gaming systems, two iPod Touch devices, and a PlayStation.
The plea agreements also detailed a series of transactions between October 2013 and April 2014, wherein IXI and another VLI-affiliated company, At Your Command (“AYC”), created approximately twenty EMALL carts for Navy Explosive Ordnance Disposal Group #2 in Norfolk, Virginia, containing various items, including bags, canvas organizer bags, and pouches, for which the defendants billed DLA and received $1,303,024. In reality, the defendants actually provided EODG-2 group with parachutes, altimeters and other sky diving gear purchased for approximately $924,252, realizing a profit of $378,772 by substituting improperly procured parachuting equipment.
The defendants were hugely successful in their fraud, and received approximately $45 million for EMALL sales related to over 12,000 transactions between approximately March 1, 2008 and January 31, 2015. On a small sample of 60 of those transactions between August 2009 and October 2013, totaling approximately $2,868,590 in sales, the loss to the Navy was approximately $1,417,395, indicating a fraud loss of approximately 50%.
Harrington and Mayer also pleaded guilty to false statements on their tax returns for the tax years 2010 and 2014. Harrington and Mayer both used VLI to pay personal expenses in excess of $200,000 and $100,000, respectively, thereby underreporting their 2010 income on their personal tax returns. Both defendants, in contravention of the advice of their tax professionals, continued using VLI to pay for personal expenses and not declaring these benefits as income, causing their 2014 income tax returns to under-report their income by approximately $436,017 and $674,704, respectively. By under-reporting their income, Harrington underpaid taxes by $141,113, and Mayer underpaid taxes by $299,511, for 2010 and 2014.
In addition to these criminal sentences, all defendants will be suspended from government contracting.
United States Attorney Braverman observed: “Not only did the defendants inflict financial harm on the taxpayers by charging arbitrary mark-ups on these items, but they potentially compromised combat readiness by providing unauthorized, non-conforming parts. What’s more, their scheme posed a significant danger of corrupting Navy personnel and others by essentially creating a ‘slush fund’ to purchase non-military items, such as televisions, computers, gaming systems, cameras, iPhones and other electronics. This Office will continue to use all the tools available, including the District’s Procurement Fraud Working Group, to prevent and deter those who pose the threat of fraud and corruption to our procurement process.”
Chris Hendrickson, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service, said, “The defendants in this case exploited their connections with the U.S. Navy and others to grossly inflate their profitability and otherwise cheat the taxpayers and their commercial competition over a period of many years. This type of fraud will be aggressively investigated by DCIS and our partners at every opportunity to preserve the integrity of the contracting process.”
“The success of this case is a direct result of the joint efforts of the Naval Criminal Investigative Service, our Federal Law Enforcement Partners and the U.S. Attorney's Office,” said Edward Denion, Assistant Special Agent in Charge of the NCIS Southwest Field Office. “Protecting our warfighters is one of the top priorities of NCIS, and this investigation is an example of how we do this. Anyone considering defrauding the Navy and taxpayers should know NCIS will aggressively pursue all such allegations and work with our partners to ensure the conviction of all those involved.”
FBI Special Agent in Charge Eric S. Birnbaum stated, “Today’s convictions are a result of federal partners teaming together to stop the loss of millions of government dollars as well as the greed and deceit employed in this case.” SAC Birnbaum continued, “The FBI will continue to work to root out fraud against our government and uncover the schemes to steal federal taxpayer dollars.” The FBI encourages the public to report allegations of public corruption to the FBI public corruption hotline at telephone number (877) NO-BRIBE (662-7423).
“The sentences handed down today should serve as a warning to the public that those who seek to defraud the United States government by lining their pockets through fraudulent procurement schemes will face severe consequences,” said IRS Criminal Investigation’s Special Agent in Charge R. Damon Rowe. “The agents who worked this case should be commended for their thorough investigation and for expertly following the paper trail that led to the unraveling of this complex fraud scheme.”
U.S. District Judge Michael M. Anello had previously sentenced two other co-defendants, Kimberlee and Natalee Hewitt, on October 16, 2017, to 3 years’ probation and $100,000 each in forfeiture, as well as $3,500 each in criminal fines.
CORPORATE DEFENDANTS
Veteran Logistics, Inc.
Industrial Xchange, Inc.
Boston Laser Technology, Inc.
INDIVIDUAL DEFENDANTS
Jeffrey Harrington Age: 55 San Diego, CA
Michael Mayer Age: 63 San Diego, CA
Kimberlee Hewitt Age: 45 Ridgewood, New York
Natalee Hewitt Age: 49 Virginia Beach, Virginia
Criminal Case No.
17CR0488-MMA
SUMMARY OF CHARGES
Count 1 (All):
Conspiracy to commit wire fraud and file false claims (18 U.S.C. § 371).
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10.
Count 2 (Harrington):
False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
Count 3 (Mayer):
False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
AGENCIES
Defense Criminal Investigative Service
Defense Logistics Agency, Office of Inspector General
Federal Bureau of Investigation
General Services Administration, Office of Inspector General
Internal Revenue Service, Criminal Investigation
Naval Audit Service
Naval Criminal Investigative Service
December 2017 Grand JuryRead the Press Release
Acting United States Attorney Robert C. Stuart announced the federal Grand Jury for the District of Nebraska has returned 43 indictments charging 53 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Celedon Luna, age 39, of Grand Island, is charged with illegal reentry after deportation on or about November 27, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Manazheega Cleveland, age 18, of Winnebago, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with interference with commerce by robbery on or about October 24, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges Cleveland with using, carrying and brandishing a firearm during said robbery in Count I. The maximum possible penalty if convicted is 7-Life years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Warren Dwayne Vasser, age 44, Warren Dwayne Copeland, age 27, and Angelo C. Douglas, age 25, are charged in a three-count Indictment. Count I of the Indictment charges the defendants with armed bank robbery and aiding and abetting on or about November 15, 2017. The maximum possible penalty if convicted is 25 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Vasser, Copeland and Douglas with using, carrying and brandishing a firearm during said robbery on or about November 15, 2017, in Count I. The maximum possible penalty if convicted is 7-Life years imprisonment consecutive to any other imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Vasser with felon in possession of a firearm on or about November 15, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Laura Cortez-Avila, age 42, of Omaha, is charged with falsely representing a Social Security number on or about October 26, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* James Charles Fentress-Dismuke, age 20, of Omaha, Jonathan Ramone Franklin, age 33, of Papillion, Vincent L. McGee, age 27, of Omaha, and Corita Yvonne Burnett, age 44, of Omaha, are charged in a three-count Indictment. Count I of the Indictment charges the defendants with bank robbery on or about November 22, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Fentress-Dismuke, Franklin, McGee, and Burnett, with using, carrying and brandishing a firearm during said robbery on or about November 22, 2017, in Count I. The maximum possible penalty if convicted is 7-Life years imprisonment imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Franklin with felon in possession of a firearm on or about November 22, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kaelyn Foster, age 31, is charged in a two-count Indictment. Count I of the Indictment charges Foster with false statement in acquiring a firearm on or about July 27, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Foster with false statement to a Federally Licensed Firearms Dealer on or about July 27, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jordan Gilreath, age 23, is charged with felon in possession of a firearm on or about November 12, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Dustin Hansen, age 24, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with distribution of child pornography on or about April 17, 2016. The maximum possible penalty if convicted is 20 years imprisonment, there is a 5 year mandatory minimum sentence, a $250,000 fine, fe years term of supervised release, a $100 special assessment with an additional special assessment of $5,000. Count II of the Indictment charges Hansen with possession of child pornography on or about November 15, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 5-Life term of supervised release, a $100 special assessment with an additional special assessment of $5,000 for each count..
* Richard Allen Knight, age 47, of Omaha, is charged with failure to register as a sex offender on or about October 17, 2017 to on or about November 14, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Lucas J. Lacy, age 33, of Omaha, is charged in a two-count Indictment with failure to register as a sex offender both in October 2016 and again in November 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Juan Pablo Limon Martinez, age 38, is charged with illegal reentry after deportation following an aggravated felony conviction on or about November 17, 2017. The maximum possible penalty if 0convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Antonio M. Luna, age 27, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute a mixture or substance containing a detectable amount of cocaine on or about November 9, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Luna with felon in possession of a firearm on or about November 9, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Luna with use of a firearm on or about November 9, 2017. The maximum possible penalty if convicted is 5 years-Life consecutive imprisonment, a $250,000 fine, a 5 year term of supervised release and $100 special assessment.
* Carlos Manriquez-Aviles, age 28, Jorge Antonio Alonzo-Lopez, age 28, Roman Lazcano-Acosta, age 28, and America Saucedo-Moreno, age 43, are charged in a fourteen-count Indictment. The defendants are charged in Count I with conspiracy to manufacture 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about September 2016 and November 15, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 years term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count II with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about August 1, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count III with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about September 14, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 years term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count IV with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about September 17, 2017. The maximum possible penalty of convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Alonzo-Lopez and Saucedo-Moreno are charged in Count V with Distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about October 28, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count VI with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about October 28, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count VII with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about November 11, 2017. The maximum possible penalty of convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Lazcano-Acosta is charged in Count VIII with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about November 11, 2017. The maximum possible penalty of convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. . Manriquez-Aviles is charged in Count IX with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about October 28, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Lazcano-Aviles is charged in Count X with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about November 15, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Lazcano-Acosta is charged in count XI with illegal reentry after deportation on or about November 16, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count XII with use of facilities in interstate commerce in aid of racketeering between on or about July 2017 and on or about November 15, 2017. The maximum possible penalty of convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count XIII with money laundering between on or about October 24, 2017. The maximum possible penalty of convicted is 20 years imprisonment, a $500,000 fine, a 3 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count XIV with conspiracy to commit money laundering between on or about October 2017 and on or about November 15, 2017. The maximum possible penalty of convicted is 20 years imprisonment, a $500,000 fine, a 3 year term of supervised release, and a $100 special assessment. The Indictment also includes a Forfeiture Allegation for U.S. Currency.
* Chris Martinez, age 53, of Tilden, NE, is charged in a two-count Indictment. Martinez is charged in Count I with conspiracy to manufacture 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about January 1, 2014 and December 1, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 years term of supervised release, and a $100 special assessment. Martinez is charged in Count II with possession with intent to distribute 5 grams or more of actual methamphetamine on or about August 13, 2017. The maximum possible penalty if convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Darin Mason, age 41, is charged with felon in possession of a firearm on or about September 14, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kevin McRae, age 47, of Oklahoma City, Oklahoma, is charged with cyberstalking from on or about December, 2015, and continuing until on or about October, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Mejia Lopez, age 40, of Fremont, is charged with illegal reentry after deportation on or about November 9, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Edgar Israel Nino Nino, age 24, of Lincoln, is charged with illegal reentry after deportation following a felony conviction on or about November 24, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Clemente Reyna Casimiro , age 25, of Omaha, is charged with illegal reentry after deportation following an aggravated felony conviction on or about November 20, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Sandra Rivera-Manzo, age 43, of Council Bluffs, and Jose Manuel Lopez-Alvarado, age 27, of Omaha, are charged with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about December 8, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment and any property used to commit the offense should be forfeited to the United States.
* Wayne Devante Rolling, age 20, is charged in a three-count Indictment. Counts I through III of the Indictment charge the defendant with bank robbery on or about November, 7, 2017; on or about November 15, 2017; and on or about November 20, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Sara Ann Spencer. age 25, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about September 17, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Spencer with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about October 28, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Marco Antonio Tovaldo-Valadez, age 26, of Wahoo, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with fraud and misuse of identification documents on or about October 28, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Tovaldo-Valadez with false representation of a Social Security Number on or about October 28, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Clear Lake Man Sentenced to Nearly Three Years in Prison After Creating Fake Collateral Documents in Connection with $3.8 Million Loan RequestRead the Press Release
A man who created false documents to convince Farm Credit Services of America (FCSA) to give him and his son loans totaling more than $3.8 million was sentenced yesterday to 33 months in federal prison.
Michael Royster, 53, from Clear Lake received the prison term after a guilty plea to providing false documents to FCSA.
In a plea agreement, Royster admitted that, in an effort to get $3.8 million in credit for 2015 farming expenses, he created fake contracts to mislead FCSA into thinking that local cooperatives or other purchasers were storing more of his and his son’s corn and soybeans than what they actually had in storage. Royster created the fake documents by cutting and pasting additional digits on the actual contracts and then making photocopies of the altered documents. He admitted, for example, to falsifying a contract showing a cooperative had approximately 20,000 bushels of his corn by adding a 1 to make it appear as though the cooperative instead held 120,000 bushels. As part of the plea agreement, Royster admitted to creating and using similar fake documents to get loans in 2011, 2012, and 2013.
Royster was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Royster was sentenced to 33 months’ imprisonment, and a special assessment of $100 was imposed. He was also ordered to make $1,133,821.31 in restitution to FCSA. He must also serve a term of supervised release after the prison term.
The case was prosecuted by Assistant United States Attorney Jacob A. Schunk and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3018.
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Citizen of Mexico Pleads Guilty to Heroin Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVID SILVA PESTANO, 33, a citizen of Mexico, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to heroin trafficking charges.
According to court documents, SILVA PESTANO and others conspired to traffic multi-kilogram quantities of heroin from Mexico to the Bridgeport, Connecticut area. On multiple occasions between approximately April 2015 and March 2017, SILVA PESTANO personally transported more than 30 kilograms of heroin into Connecticut.
On February 14, 2017, SILVA PESTANO was arrested in Nogales, Arizona, after he crossed the border on a motorcycle carrying 11.94 kilograms of heroin in a concealed compartment.
On March 16, 2017, a grand jury in Hartford returned an indictment charging SILVA PESTANO and six other individuals with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and related offenses. SILVA PESTANO also was charged in the District of Arizona with possession with intent to distribute one kilogram or more of heroin. The Arizona case was transferred to the District of Connecticut for further prosecution.
SILVA PESTANO pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute one kilogram of heroin.
Judge Bryant scheduled sentencing for March 22, 2018, at which time SILVA PESTANO faces a mandatory minimum term of imprisonment of 10 years maximum term of imprisonment of life.
SILVA PESTANO has been detained since his arrest.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Camarillo Man Found Guilty of Being Felon in Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A jury convicted a former felon Thursday of unlawful possession of one Heckler & Koch machine pistol and one Sig Sauer automatic rifle after multiple prior felony convictions in California, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Following a three-day jury trial, Jack Benjamin Hessiani, 39, of Ventura, California, was found guilty of one count of a felon in possession of a firearm. United States District Judge Larry R. Hicks presided over the trial and scheduled sentencing for March 22, 2018. At the time of sentencing, Hessiani faces the statutory maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
California Man Arrested for Attempting to Provide Material Support to A Terrorist OrganizationRead the Press Release
A federal complaint was unsealed today, charging Everitt Aaron Jameson, 26, of Modesto, with attempting to provide material support to a foreign terrorist organization, Attorney General Jeff Sessions and United States Attorney Phillip A. Talbert announced. Jameson was arrested today and is scheduled to appear before U.S. Magistrate Judge Barbara A. McAuliffe in Fresno, California at 2pm.
According to court documents, Jameson had several online interactions with a confidential source in which he expressed support for the October 31, 2017, terrorist attack in New York City and offered his services for “the cause.” In subsequent communications with an undercover agent, Jameson referred to his training in the U.S. military and noted he had been trained for combat and war. Jameson later met with another undercover agent whom he believed to be associated with the senior leadership of the foreign terrorist organization, ISIS (the Islamic State of Iraq and al-Sham, also known as ISIL). During his interactions with this undercover agent, Jameson offered to carry out violent acts and to provide financial support for the terrorist organization."The Department of Justice works resolutely every day to prevent terrorist attacks," said Attorney General Sessions. "In my time back at the Department, nothing has impressed me more. Today, our incredible law enforcement officers have once again helped thwart an alleged plot to kill Americans. I want to thank the FBI agents and federal prosecutors and everyone else who helped make this possible. The threat from radical Islamic terrorism is real—and it is serious—but the American people can be assured that the Department of Justice remains vigilant in protecting our homeland."
U.S. Attorney Phillip A. Talbert stated, “I want to express my thanks to the FBI for working in partnership with my office on this case. We are grateful that our hardworking law enforcement partners remain vigilant in protecting our communities, especially during this holiday season.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Dawrence W. Rice and Christopher D. Baker are prosecuting the case, together with Trial Attorney Brenda Sue Thornton from the U.S. Department of Justice’s National Security Division, Counterterrorism Section.
If convicted, Jameson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Clarence Adams, 35, of Buffalo, NY, pleaded guilty, before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum 20 years in prison, a maximum of life and a $20,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on May 13, 2016, law enforcement officers seized three packages containing cocaine that were shipped from Texas to Buffalo to various recipients. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set-up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo. The three packages contained a total of five kilograms of cocaine. Adams recruited five individuals to receive the packages. He and co-defendant Robert Hall paid the recipients of the packages in money or crack cocaine. A total of 19 packages were shipped from Texas to Buffalo and each package contained at least one kilogram of cocaine.
During a search of the defendant’s home, law enforcement officers found a drug ledger, multiple cell phones, rubber gloves, digital scale and other drug paraphernalia.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for April 17, 2018, at 12:30 p.m. before Judge Arcara.
Brockton Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BOSTON – A Brockton man with two prior federal firearm convictions pleaded guilty yesterday in federal court in Boston to a federal firearms charge.
Darnell Upshaw, 35, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for March 22, 2018.
On May 10, 2017, police officers responded to a report of shots fired on Owens Avenue in Brockton. Based on information provided at the scene, law enforcement officers suspected that Upshaw was responsible for the shooting and began surveillance of his house. Subsequently, officers observed a vehicle matching the description of the shooter’s vehicle arrive and park near Upshaw’s house, where two men exited the vehicle. Minutes later, Upshaw was observed leaving his house and driving away in a black SUV.
The officers followed the SUV and when it stopped, Upshaw exited and took off running with his right arm braced tightly against his side. The officers followed Upshaw as he fled, climbed over a fence and entered his girlfriend’s mother’s house. Upshaw was apprehended inside the house and a loaded firearm was found lying on top of a pile of lawn clippings near the fence Upshaw had climbed. Subsequent lab analysis revealed that Upshaw’s shirt bore traces of gunshot primer residue.
The charge of being a felon in possession a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence of Lelling’s Criminal Division is prosecuting the case.
Attorney General Sessions Reiterates Support of DEA Efforts to Investigate Hezbollah’s Drug Trafficking and Related Activities and Orders Review of Prior DEA InvestigationsRead the Press Release
Attorney General Jeff Sessions today directed a review of the handling of Project Cassandra, a law enforcement initiative targeting Hezbollah’s drug trafficking and related operations in the United States and abroad, to evaluate allegations that certain matters were not properly prosecuted and to ensure all matters are appropriately handled.
“Protecting our citizens from terrorist organizations and combatting the devastating drug crisis gripping our nation are two of the Justice Department’s top priorities,” said Attorney General Sessions. “Operations designed to investigate and prosecute terrorist organizations that are also fueling that drug crisis must be paramount in this administration. The DEA has worked tirelessly on this front. I am committed to giving our hard working and dedicated DEA agents all the tools that they need to allow them to shut down these drug rings.
“While I am hopeful that there were no barriers constructed by the last administration to allowing DEA agents to fully bring all appropriate cases under Project Cassandra, this is a significant issue for the protection of Americans. We will review these matters and give full support to investigations of violent drug trafficking organizations
“The Department of Justice is absolutely committed to investigating and prosecuting international drug trafficking organizations and with the assistance of our DEA and FBI agents we will leave no stone unturned as we work to making America safer.”
Additional Charges Announced Against Two Bronx Men for A 2014 Murder and 2014 Drug-Related ShootingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Darcel D. Clark, the Bronx County District Attorney, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced additional charges in a Superseding Indictment[1] against members of a drug trafficking crew based in the Bronx. In the Superseding Indictment returned on Tuesday, December 19, JASON POLANCO, a/k/a “Jin,” a/k/a “Wolfman,” is charged with the August 31, 2014, murder of Shawn Ross, a/k/a “S.B.,” and RENE RUIZ, a/k/a “Lil’ Rene,” a/k/a “Nae Nae,” is charged with a May 2, 2014, non-fatal shooting.
POLANCO, RUIZ, and 12 others were previously charged in an Indictment unsealed on February 6, 2017. That prior Indictment charged narcotics trafficking, firearms possession, and participation in robberies of commercial establishments in the Bronx and Manhattan. In addition to the new charges described above, the Superseding Indictment re-alleges the charges that had previously been brought in the Indictment against POLANCO, RUIZ, and 10 others. The case is assigned to U.S. District Judge Laura Taylor Swain. POLANCO, RUIZ, and the 10 other defendants charged in the Superseding Indictment were arraigned today.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Jason Polanco and Rene Ruiz not only participated in a drug conspiracy, but also personally participated in the drug crew’s gun violence, including, for Polanco, a murder. Fortunately, federal authorities and our local law enforcement partners, working together, can make our streets safer, as they did in this case.”
Bronx District Attorney Darcel D. Clark said: “We are pleased to have assisted our federal law enforcement partners in their superseding indictment charging Jason Polanco with the murder of a Bronx man. It is one of numerous violent felonies that Polanco and his co-defendants allegedly committed in the Bronx and Manhattan. In addition to facing justice in federal court, he will face justice in the Bronx for shooting two New York City police officers in 2015. With seamless cooperation between city, state and federal agencies we will continue to do all we can to ensure safety for all who live and work in the Bronx.”
ATF Special Agent in Charge Ashan M. Benedict said: “Jason Polanco, Rene Ruiz and his charged co-conspirators are alleged to have committed a litany of crimes, including firearms offenses and violent crimes. The defendants are alleged to have possessed and used firearms in the commission of violent crimes with some crimes resulting in serious bodily injury and in one case death. The members of this violent drug trafficking crew have been a plague to the citizens of the Bronx and Manhattan for some time. I would like to commend our partners in the Bronx District Attorney’s Office and the United States Attorney’s Office for their collaboration that made this case possible. I also would like to extend my gratitude to the special agents of the DEA and ATF, and the NYPD detectives, who worked tirelessly to bring these individuals to justice.”
DEA Special Agent in Charge James J. Hunt said: “This case shows the intrinsic link between drug trafficking, crime and gun violence. New York law enforcement is committed to weeding out drug dealers in our neighborhoods so law abiding residents can live in neighborhoods free from drugs and safe from the consequences of drug trafficking.”
POLANCO is separately being prosecuted by the Bronx County District Attorney’s Office for his alleged shooting of two NYPD Officers in January 2015. Mr. Kim thanked the District Attorney’s Office for their cooperation in the federal investigation of POLANCO for the alleged murder of Shawn Ross.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Justina L. Geraci, Jordan Estes, Christopher J. Clore, and Amanda L. Houle are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
3 Linked to Medical Supply Firms in Hawthorne and Ventura Arrested in $24 Million Scam Involving Power Wheelchairs and RepairsRead the Press Release
LOS ANGELES – The operator of two now-defunct medical supply companies in Hawthorne and Ventura, as well as two former employees, have been arrested on federal healthcare fraud charges for allegedly billing Medicare well over $24 million for medically unnecessary power wheelchairs (PWC) and the repair of medical equipment.
The scheme is outlined in a 29-count indictment that was returned by a federal grand jury on December 14 and unsealed yesterday after the three defendants were arrested by special agents with the United States Department of Health and Human Services’ Office of Inspector General and the Federal Bureau of Investigation.
According to the indictment, Tamara Yvonne Motley operated Action Medical Equipment and Supplies, which was based in Hawthorne until 2014, and Kaja Medical Equipment & Supply, which was based in Ventura until late 2016. Motley allegedly orchestrated a scheme in which corrupt physicians prescribed medically unnecessary durable medical equipment (DME), such as PWCs, and Motley oversaw the submission of fraudulent bills to Medicare.
In January 2011, when Medicare changed the reimbursement rules for PWCs, Action largely stopped Medicare billing for PWCs and, instead, started billing Medicare for PWC repairs. Action and Kaja allegedly submitted bills for PWC repair or replacement services that were not medically necessary, were not needed to make the PWCs serviceable, and often simply were not performed. The majority of bills submitted in this case allegedly involve fraudulent repair work.
The defendants taken into custody yesterday are:
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Tamara Yvonne Motley, also known as Tamara Ogembe, 49, of Redondo Beach;
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Cynthia Karina Marquez, 42, of Paramount, who worked as an office manager at both Action and Kaja; and
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Juan Roberto Murillo, 41, of Montebello, who worked at both medical supply companies as a repair technician.
According to the indictment, over a nearly eight-year period, Action billed Medicare more than $18.2 million for DME – most for PWCs, but also for PWC accessories, knee braces and back braces – and the repair or replacement of PWCs. Medicare paid Action nearly $10.3 million.
Between July 2013 and November 2016, Kaja billed Medicare $6.3 million for PWCs, PWC-related accessories, and the repair or replacement of PWCs. Medicare paid Kaja approximately $2.8 million for those claims, the indictment alleges.
The indictment charges all three defendants with 20 counts of healthcare fraud and one count of conspiring to launder money.
Motley and Marquez are further charged with two counts of aggravated identity theft in relation to the use of other persons’ names to operate the medical supply companies. Motley is additionally charged with six counts of structuring cash transactions to avoid federal reporting requirements for transactions of more than $10,000.
If convicted, each of the three defendants would potentially face decades in federal prison. Each count of healthcare fraud carries a statutory maximum sentence of 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
At an arraignment yesterday afternoon in United States District Court, all three defendants entered not guilty pleas to the charges in the indictment and a trial was scheduled for February 13. A United States Magistrate Judge set bond for Motley and Murillo, and Marquez was ordered detained.
This case is the product of an investigation by the United States Department of Health and Human Services’ Office of Inspector General and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Julian L. André of the Major Frauds Section.
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21 December 2017
“Great Outdoors Bandit” Pleads Guilty to Bank RobberyRead the Press Release
BOISE – Josue Daniel Alfaro, a/k/a Danny Alfaro, a/k/a the “Great Outdoors Bandit,” age 32, of Portland, Oregon, pleaded guilty yesterday to five counts of bank robbery and one count of attempted bank robbery, U.S. Attorney Bart M. Davis announced. Pursuant to a written plea agreement filed with the court, Alfaro pleaded guilty to Counts 1, 3, 5, 7, 9, and 11 of the indictment.
According to the plea agreement, the defendant admitted to robbing, and attempting to rob, the following banks on the following dates and in the following amounts:
- On December 21, 2016, the U.S. Bank at 10500 West Overland Road in Boise, Idaho for $3,174;
- On December 21, 2016, the Idaho Central Credit Union at 1615 South Celebration Avenue in Meridian, Idaho for $2,100;
- On March 24, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho for $3,469;
- On May 24, 2017, the Alpine Credit Union at 351 East 800 South in Orem, Utah for $12,736;
- On August 7, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho. Attempted robbery, no loss;
- On August 7, 2017, the Pioneer Federal Credit Union at 850 East Fairview Avenue in Meridian, Idaho for $9,637;
- On August 7, 2017, the Clarity Federal Credit Union at 555 South Meridian Road in Meridian, Idaho for $100.
According to the plea agreement, for each of the robberies, Alfaro obscured his face with a baseball cap and black sunglasses. He provided the tellers with notes demanding money. One of the notes, provided to the Idaho Central Credit Union demanded $40,000 in large bills. Another note, provided to the Bank of the West on March 24, stated: “Give me money or I will shoot the teller next to you.” Yet another note, provided to the Pioneer Federal Credit Union on August 7, stated: “give me all of your hundred dollar bills, I have a gun.”
In total, Alfaro robbed $31,216 from the six banks and credit unions, whose deposits were federally insured. According to the plea agreement, Alfaro agreed to pay this sum in restitution to the banks and credit unions.
According to the plea agreement, on August 13, 2017, Alfaro was arrested at Los Angeles International Airport attempting to board an international flight to Brussels, Belgium. In his carry-on bag, the defendant possessed $2,826 in cash that he obtained from the robberies.
Separately, for each count, Alfaro faces a statutory maximum of 20 years in prison, a $250,000 fine, and not more than 5 years of supervised release.
Sentencing for Alfaro is set for March 13, 2018, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation (Boise, Salt Lake City, and Los Angeles field offices), the Boise Police Department, and the Meridian Police Department.
York Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Timothy Ray Wright, age 30, of York, Pennsylvania, was indicted on December 20, 2017, by a federal grand jury with drug trafficking and firearms violations.
According to United States Attorney David J. Freed, the indictment alleges that on August 17, 2017, Wright possessed with intent to distribute cocaine, cocaine base and fentanyl. It is further alleged that Wright possessed a 9mm Walther Creed pistol as a previously convicted felon, and possessed the firearm in furtherance of drug trafficking.
The charges stem from an investigation conducted by the York County Drug Task Force, assisted by the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug trafficking offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine; the maximum penalty for possession of a firearm in furtherance of drug trafficking is life in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilson Man Sentenced on Drug and Gun ChargesRead the Press Release
RALEIGH – The United States Attorney Office for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday in federal court, United States District Judge Terrence W. Boyle sentenced Deterri Obrian Lucas, 32, of Wilson, NC to 126 months of imprisonment followed by 5 years of supervised release.
On September 6, 2017, LUCAS pled guilty to a three-count indictment, charging Possession with Intent to Distribute Heroin, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm by a Felon.
The evidence established that on June 26, 2016, officers of the Wilson Police Department conducted a traffic stop on LUCAS to serve outstanding warrants for his arrest. Officers arrested LUCAS, and in a subsequent search of the vehicle, they located a loaded 9mm handgun under LUCAS’ seat. They later found a quantity of heroin hidden in LUCAS’ pants.
The Wilson Police Department conducted the investigation of this case. Assistant United States Attorney Jake D. Pugh is prosecuting this case on behalf of the government.
Wilmington, DE Man Charged with Illegal Re-entry After DeportationRead the Press Release
Sergio Jonathan Caal-Melendez, of Wilmington, DE, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about November 27, 2017, Caal-Melendez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about May 21, 2008.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wildwood Man Pleads Guilty to Wire FraudRead the Press Release
St. Louis, MO – Paul Creager, 39, of Wildwood, pleaded guilty to two counts of wire fraud in connection with the sale of equity in his construction business. Creager appeared before U.S. District Judge Rodney W. Sippel, and admitted to misrepresenting the financial health of his company in connection with the solicitation of $724,024.14 in investments from two individuals in 2016. Specifically, Creager admitted to omitting his company’s largest obligation from financial information provided to the investors. Without this large debt on its books, Creager’s company appeared valuable and profitable. With it, it was not. Only months after receiving the victims’ investment, Creager’s company became insolvent and the victims’ investments are now worthless.
Judge Sippel accepted Creager’s plea and deferred sentencing until March 21, 2018. The U.S. Attorney’s Office stated in court it has additional investigations into other aspects of Creager’s business that were not resolved by today’s guilty plea.
At sentencing, Creager faces up to 20 years’ imprisonment, a fine of not more than $250,000 or both for each count of wire fraud. Restitution to the victims is mandatory. The government has also seized financial accounts associated with Creager and a vehicle in the course of its investigation.
The case was investigated by the St. Louis Division of the FBI. Assistant U.S. Attorney Tom Albus is handling the case for the government.
Western District of Tennessee to Receive Two Additional Federal Prosecutors to Fight Violent CrimeRead the Press Release
Memphis, TN – The Western District of Tennessee will receive two additional federal prosecutors to combat violent crime in the district, announced United States Attorney D. Michael Dunavant.
As one of many steps Attorney General Sessions has announced to counter the surge in violent crime afflicting communities across our country, the Department of Justice is allocating 40 Assistant United States Attorney positions to U.S. Attorney’s Offices nationwide. These prosecutors will be solely focused on bringing violent criminals to justice through aggressive enforcement of federal laws.
The Western District of Tennessee is receiving two of the new dedicated positions. One of the additional prosecutors will be assigned to the Memphis office, and the other will be assigned to the Jackson office.
United States Attorney Dunavant said, "To those communities in the Western District that have been besieged by gangs and violent crime, I am thrilled to say that help is on the way. These dedicated prosecutors – working closely with our law enforcement partners – will help incapacitate violent offenders and remove them from our streets. I look forward to filling these slots promptly and putting these additional resources to work for the citizens of West Tennessee."
Violent crime is on the rise in Memphis and Jackson. For example, Memphis saw 228 murders and a major violent crime increase of 25% last year. And the violence is not confined to Memphis and Jackson. Other cities and communities in West Tennessee such as Dyersburg, Savannah, and Covington have also seen recent increases in these areas. These increases in violent crime led the Department to select Memphis and Jackson as two of the 12 cities in the National Public Safety Partnership (PSP). The Western District is the only district to have two cities selected for this program.
These two new AUSA positions will complement the Department’s ongoing enforcement efforts in West Tennessee. They will also be instrumental as the U.S. Attorney’s Office recommits to initiatives that have worked in the past to reduce violent crime, such as the Project Safe Neighborhoods program.
West Mifflin Man Charged with Trafficking CocaineRead the Press Release
PITTSBURGH - A resident of West Mifflin, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Diop Fitzgerald, 40, of West Mifflin, Pennsylvania, as the sole defendant.
According to the indictment, on or about October 26, 2017, Fitzgerald distributed and possessed with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine not to exceed $5,000,000, 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 Stephen S. Gilson is prosecuting this case on behalf of the government.
The Drug Enforcement Administration 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.
Waterbury Man Charged with ArsonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned an Indictment today charging Timothy Durkin, 42, with maliciously destroying by means of fire real property used in interstate commerce. Specifically, Durkin is accused of maliciously setting fire to a commercial building located at 3579 Waterbury-Stowe Road in Waterbury, Vermont on October 27, 2017. Durkin is currently detained in state custody pending unrelated charges in Washington County Superior Court.
The United States Attorney emphasizes that the charge contained in the Indictment is merely an accusation, and that Durkin is presumed innocent unless and until he is proven guilty. If Durkin is convicted, he faces a mandatory minimum sentence of five years, and a maximum possible sentence of twenty years.
United States Attorney Christina E. Nolan praised the collaborative efforts of state and federal law enforcement leading up to the charge. Nolan stated, “Combatting violent crime will continue be a top priority of the U.S. Attorney’s Office. We will work with our federal, state, and local partners to identify the most dangerous offenders and bring them to justice. We will never stop fighting for the right of every Vermonter to live in safety and security.”
The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Durkin has not yet appeared in federal court. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vermont State Police.
United States Settles False Claims Allegations Against Haven Hospice for More Than $5 MillionRead the Press Release
Jacksonville, Florida – Acting U.S. Attorney W. Stephen Muldrow announces that Haven Hospice (Haven), a hospice company headquartered in Gainesville, Florida, has agreed to pay $5,085,024 to resolve allegations that Haven violated the False Claims Act by knowingly billing the government for medically unnecessary and undocumented hospice services.
The government alleges that Haven knowingly submitted false claims to the Medicare and Medicaid programs for medically unnecessary hospice care for certain patients who had lengths of stays greater than three years. Typically, federal health care programs only pay for hospice care when patients are in a terminal condition and have a life expectancy of less than six months.
Since June 1, 2011, Haven treated at least 63 patients with lengths of stay exceeding three years. The government contends that for those 63 patients, Haven either knowingly or recklessly failed to document a valid basis for the initial start of hospice care and/or subsequent hospice coverage. Haven’s diagnoses were not adequately supported, or were supported only with inconsistent practitioner information. Many patients failed to demonstrate objective indications of decline throughout their time in the company’s care, despite some being in hospice for nearly six years. Some patients had their hospice diagnoses changed after several years when they did not show decline under their original “terminal” diagnosis. The government has agreed to accept $5,085,024 to resolve these allegations based on Haven’s ability to pay.
“Unfortunately, some healthcare providers seek to defraud Medicare by billing for unnecessary hospice services,” stated Acting U.S. Attorney Muldrow. “Left unchecked, this misconduct would deplete funds available for terminally ill patients desperately in need of the relief that hospice care provides. This settlement should serve as notice to others who consider similar practices that we will vigorously pursue them.”
“Charging taxpayers for unnecessary health care services such as hospice care is intolerable,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “Working closely with our law enforcement partners, we will vigorously protect the integrity of our Federal health care programs and hold health care companies accountable.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee of Haven Hospice, Dr. John Simons. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act that permits private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action. Dr. Simons will receive roughly $900,000 of the proceeds from the settlement with Haven.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, SafeGuard Services LLC (Medicare’s Zone Program Integrity Contractor), and the U.S. Department of Health and Human Services – Office of Inspector General. It was handled by Assistant United States Attorney Shea Gibbons.
The case is captioned United States ex rel. Simons v. North Central Florida Hospice, Inc. d/b/a Haven Hospice, Case No. 3:16-cv-330-J-32JRK. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office Collaborates with Local and State Partners to Provide Law Enforcement TrainingRead the Press Release
LEXINGTON, Ky. - The U.S. Attorney’s Office announced today the completion of three successful training events, promoting partnership and cooperation among federal, state and local law enforcement agencies and emphasizing efforts to combat civil rights violations and organized drug trafficking.
Over a two-week period in late November and early December, the Office sponsored three training sessions for over 150 law enforcement officers, prosecutors and victim advocates from local, state and federal law enforcement.
The first training session was a collaboration with the U.S. Attorney's Office for the Western District of Kentucky to train federal, state and local officers on the rules and best practices for criminal discovery. This training is conducted annually to inform law enforcement officers about emerging issues involving the proper collection, preservation, and production of evidence used in criminal prosecutions.
In the second training, the Office collaborated with the Fayette Commonwealth Attorney, the Federal Bureau of Investigation and the Department of Homeland Security to train federal, state and local officials on the prosecution of federal and state civil rights offenses. Topics covered included voter fraud, hate crimes, human trafficking, labor trafficking, law enforcement misconduct and civil investigations, such as fair housing and American with Disabilities Act violations.
In the third training, Office personnel, along with members of the Drug Enforcement Administration, provided training to federal, state and local narcotics officers as part of the Organized Crime Drug Enforcement Task Force, a federally supported program aimed at dismantling and disrupting drug trafficking and other criminal organizations.
“I am proud to support the men and women of law enforcement, including by partnering with them to provide training to our colleagues,” said United States Attorney Robert M. Duncan, Jr. “The recent training events highlight our Office’s strong partnerships with local, state, and federal law enforcement. These close working relationships with various law enforcement agencies tremendously benefit the communities that we serve.”
The U.S. Attorney’s Office will continue to provide important training events. For more information about future trainings, Please contact the Community Relations Unit or visit the Office website at www.justice.gov/usao-edky.
Two defendants plead guilty to federal weapons chargesRead the Press Release
CHARLESTON, W.Va. – Two men pleaded guilty today to federal weapons charges, announced United States Attorney Carol Casto. Steven Jones, 31, of Ripley, entered his guilty plea to possession of an unregistered weapon. In a separate prosecution, Jamie Edward Smith, 30, of Montgomery, entered his guilty plea to being a felon in possession of a firearm.
Jones admitted that on November 6, 2017, law enforcement executed a search warrant at his residence in Ripley and located a metal pipe bomb, gun powder, and other items used for a destructive device. Jones admitted in a Mirandized interview that he had built the pipe bomb, along with two others he had detonated on his property. The pipe bomb was not registered in the National Firearms Registration and Transfer Record.
In a separate prosecution, Smith admitted that on December 20, 2016, he possessed a Raven Arms .25 caliber semiautomatic pistol at a Montgomery apartment complex. Smith was prohibited from possessing any firearms under federal law because of a 2008 felony conviction in Fayette County Circuit Court for breaking and entering.
Both defendants face up to 10 years in federal prison. Jones is scheduled to be sentenced on March 19, 2018. Smith is scheduled to be sentenced on March 22, 2018.
The Jackson County Sheriff’s Office, the West Virginia State Police, the Kanawha County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Jones. Assistant United States Attorney Joshua C. Hanks is in charge of the Jones prosecution. The plea hearing for Jones was held before United States District Judge Joseph R. Goodwin.
The investigation of Smith was conducted by the Montgomery Police Department, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Matt Davis is responsible for the Smith prosecution. United States District Judge John T. Copenhaver, Jr., presided over Smith’s plea hearing.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Two More Defendants Sentenced and Two Others Plead Guilty to Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 82 of these defendants have been convicted, including 81 who have entered guilty pleas, and 54 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Last week, two more Albuquerque residents entered guilty pleas. On Dec. 15, 2017, Daniel Carmona, 31, pled guilty to violating federal firearms laws by using and carrying a firearm in relation to a drug trafficking crime. Under the terms of his plea agreement, Carmona will be sentenced to five years in federal prison followed by a term of supervised release to be determined by the court. Also on Dec. 15, 2017, in a separate case, Patrick Zamora, 22, pled guilty to a methamphetamine trafficking charge.
This week two other Albuquerque residents were sentenced for their convictions on drug trafficking and firearms charges. Keith Thompson, 49, was sentenced on Dec. 19, 2017, to 70 months in prison followed by three years of supervised release for distributing heroin, and Alex Villarreal, 35, was sentenced on Dec. 19, 2017, to 66 months in prison followed by four years of supervised release for being a felon in possession of firearms and distributing methamphetamine.
Carmona was charged in a criminal complaint with distributing methamphetamine on Aug. 3, 2016, in Bernalillo County, N.M., after he sold approximately 67 grams of methamphetamine to undercover law enforcement agents. Thereafter, on Aug. 9, 2016, Carmona and co-defendants Luis Arreola-Palma, 24, and Gaspar Leal, 47, were indicted and charged with conspiring to distribute methamphetamine from July 21, 2016 through July 25, 2016. Carmona also was charged with distributing methamphetamine on July 25, 2016 and Aug. 3, 2016, and using and carrying a firearm in relation to a drug trafficking crime on Aug. 3, 2016. On Dec. 15, 2017, Carmona pled guilty to carrying a firearm in relation to a drug trafficking crime, and admitted that on Aug. 3, 2016, he carried a firearm when he delivered approximately 55.3 actual grams of methamphetamine to another individual. Arreola-Palma pled guilty on July 28, 2017, and was sentenced on Oct. 26, 2017, to 48 months in prison followed by three years of supervised release. Leal has entered a plea of not guilty to the charges in this case and is pending trial.
Zamora was charged by criminal complaint with distributing approximately 116.8 grams of methamphetamine to an undercover law enforcement agent on June 20, 2016, in Bernalillo County. Zamora’s co-defendants Noe Urias and co-defendant Angelica Marie Santiesteban, 40, were charged in a four-count indictment filed on June 30, 2016, with methamphetamine trafficking offenses. The indictment was superseded on July 28, 2016, to include Zamora and an additional methamphetamine trafficking charge. The superseding indictment charged all three defendants with conspiracy to distribute methamphetamine from May 2, 2016 through June 20, 2016, and distribution of methamphetamine on June 20, 2016; Urias and Santiesteban with distribution of methamphetamine on May 2, 2016 and May 19, 2016; and Urias with distribution of methamphetamine on May 18, 2016. On Dec. 15, 2017, Zamora pled guilty to a felony information charging him with distribution of methamphetamine, and admitted that on June 20, 2016, he sold methamphetamine to another individual in exchange for money. At sentencing, Zamora faces a maximum penalty of 20 years in federal prison. Urias pled guilty on March 9, 2017, and was sentenced to 41 months in prison followed by three years of supervised release on Dec. 6, 2017. Santiesteban pled guilty on Dec. 8, 2016, and was sentenced to 63 months in prison followed by five years of supervised release on June 27, 2017.
Thompson and his co-defendant Matthew Sandoval, 38, were arrested in July 2016, and charged in a two-count indictment with distributing heroin on May 9, 2016, and distributing methamphetamine on May 19, 2016. Thompson entered a guilty plea on June 29, 2017 and Sandoval entered a guilty plea on June 30, 2017, to heroin trafficking charges. In entering their guilty pleas, Thompson and Sandoval both admitted that on May 9, 2016, they sold heroin to another individual. Sandoval was sentenced on Oct. 19, 2017, to 60 months in prison followed by three years of supervised release.
Villarreal was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 23, 2016, and distributing methamphetamine on May 25, 2016. At the time, Villarreal was prohibited from possessing firearms or ammunition because he was previously convicted on larceny, conspiracy to commit larceny, possession of marijuana with intent to distribute, and aggravated assault. On Aug. 18, 2017, Villarreal pled guilty to the indictment and admitted selling four firearms to an undercover law enforcement agent on May 23, 2016, and 115 grams of methamphetamine to the agent on May 25, 2016. Villarreal acknowledged knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Seventeen of the defendants charged as the result of the ATF investigation have entered not guilty pleas. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. The case against Carmona is being prosecuted by Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado. The case against Zamora is being prosecuted by Assistant U.S. Attorney Edward Han. The case against Thompson was prosecuted by Assistant U.S. Attorney Samuel A. Hurtado, and the case against Villarreal was prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Twin Buttes Man Sentenced on Multiple Child Molestation OffensesRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on December 20, 2017, Chief United States District Court Judge Daniel L. Hovland sentenced Lonnie Dale Spotted Bear, 73, Twin Buttes, ND, to serve 30 years in prison, followed by lifetime supervised release for multiple child molestation offenses.
On September 14, 2017, after a three-day trial, a federal jury found Spotted Bear guilty on two counts of aggravated sexual abuse of a child, one count of Attempted Aggravated Sexual Abuse of a Child, and one count of Abusive Sexual Contact of a Child. Evidence presented at trial demonstrated that, during a five-year period, Spotted Bear molested three girls under the age of twelve. Specifically, Spotted Bear, through his status as a trusted relative, gained access to, isolated, and individually molested these girls. Additionally, evidence at trial demonstrated that when Spotted Bear learned that two of his victims disclosed that he molested them, he attempted to intimidate and influence their guardians.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jonathan O’Konek prosecuted the case.
Twenty Individuals Sentenced for Involvement in Drug Trafficking and Money Laundering OrganizationRead the Press Release
Des Moines, Iowa – On December 21, 2017, sentencings were completed in the federal prosecution of twenty defendants charged with drug trafficking, money laundering, obstruction, firearms, and immigration offenses stemming from the investigation of a multi-state drug trafficking organization, announced United States Attorney Marc Krickbaum. This investigation began in March 2016 and revealed the organization was involved in the distribution of methamphetamine, cocaine, cocaine base, and marijuana in the Des Moines area. Subsequent investigation consisted of controlled narcotics purchases from the organization and the execution of over twenty search warrants of residences located in Des Moines, Colorado, and California in
September 2016. All defendants charged in this investigation pleaded guilty and were sentenced by United States District Court Judge Rebecca Goodgame Ebinger.- Jacinto Loza Gil, 48, sentenced to a term of imprisonment of 292 months
- Jonathan Escareno Chavez, 28, sentenced to a term of imprisonment of 210 months
- Gumaro Escareno Chavez, 33, sentenced to a term of imprisonment of 90 months
- Jairo Escareno Chavez, 27, sentenced to a term of imprisonment of 71 months
- Heriberto Escareno Chavez, 34, sentenced to a term of imprisonment of 108 months
- Dennis Ugarte, 28, sentenced to a term of imprisonment of 46 months
- Mujo Becirovic, 26, sentenced to a term of imprisonment of 73 months
- Israel Morales Flores, 33, sentenced to a term of imprisonment of 63 months
- Jose Manuel Cano Basurto, 43, sentenced to a term of imprisonment of 37 months
- Basman Danuvio Urbina Caceres, 42, sentenced to a term of imprisonment of 100 months
- David Coos Tello, 49, sentenced to a term of imprisonment of 24 months
- Marcos Caballero Ybarra, 30, sentenced to a term of imprisonment of 4 months
- Hugo Plaza Garcia, 19, sentenced to a term of imprisonment of time served (4 months)
- Lee Anthony Flores Escareno, 27, sentenced to a term of probation of five years
- Jimmy Oswald Kiapas Hidalgo, 28, sentenced to a term of imprisonment of 24 months
- Antonio Salazar, 48, sentenced to a term of imprisonment of time served (15 months)
- Helen Mariela Osorio Ventura, 22, sentenced to a term of probation of four years
- Oscar Corea Holt, 21, sentenced to a term of probation of three years
- Miguel Flores Torres, 39, sentenced to a term of imprisonment of 8 months
- Steven A. See, 31, sentenced to a term of probation of three years
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, Iowa Division of Narcotics Enforcement, and Internal Revenue Service – Criminal
Investigations, with significant assistance of numerous state and local agencies, including
Des Moines Police Department and Mid-Iowa Narcotics Enforcement Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.Twelve Members and Associates of the Mount Vernon Goonies Street Gang Charged in Superseding Indictment with Murder, Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Anthony A. Scarpino Jr., Westchester County District Attorney, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging MARKEL OVERTON, a/k/a “Kellz,” THOMAS BLANTON, a/k/a “LT,” MARQUIS COLLIER, a/k/a “Keise,” KADEEM DINHAM, a/k/a “Polo,” DONNIE DIXON, a/k/a “Scooter,” DAVID HARDY, a/k/a “Mooka,” JERMAINE HUGHLEY, a/k/a “Blacks,” RAHEEM JONES, a/k/a “Rah Trigger,” a/k/a “Trigga,” SINCERE SAVOY, a/k/a “Bitty,” JAMAAL SINCLAIR, a/k/a “Diggz,” NOEL SMITH, a/k/a “Georgie,” and ERNEST WEBB, a/k/a “Ern,” a/k/a “Ern Millz,” with various crimes relating to racketeering, murder, narcotics, and firearms offenses. The defendants have been charged as a result of their membership in the “Goonies” street gang that operated in the City of Mount Vernon, New York. Eight of the defendants were previously charged in United States v. Overton, et al., 17 Cr. 644 (NSR) (the “Indictment”). The Superseding Indictment, S1 17 Cr. 644 (NSR) (the “Superseding Indictment”), charges four additional defendants with racketeering charges and also charges the following two murders in Mount Vernon, New York:
- DAVID HARDY, a/k/a “Mooka,” MARQUIS COLLIER, a/k/a “Keise,” JERMAINE HUGHLEY, a/k/a “Blacks,” and SINCERE SAVOY, a/k/a “Bitty,” with the December 31, 2016, murder of Shamoya McKenzie, a 13-year-old innocent bystander; and
- ERNEST WEBB, a/k/a “Ern,” a/k/a “Ern Millz,” with the September 22, 2014, murder of Dean Daniels.
Acting U.S. Attorney Joon H. Kim said: “When gangs flourish, neighborhoods suffer, parents grieve, and children die. It is as simple as that. Dreams like the ones Shamoya McKenzie must have had for herself — as she sat innocently in the car, next to her mother on New Year's Eve, coming from basketball practice — should be cultivated and allowed to flourish, not violently crushed, a tragic victim of an utterly senseless war between street gangs. Shamoya McKenzie deserved better. Dean Daniels deserved better. Mount Vernon deserves better. And that is why we, with our federal and local partners, have brought this prosecution. Today’s announcement is part of our Office’s ongoing and steadfast commitment to making the streets of Mt. Vernon, and the communities of Westchester safe.”
Westchester County District Attorney Anthony A. Scarpino Jr. said: “For the better part of a decade, the Goonies have had a grip on neighborhoods in and around the City of Mount Vernon. Through intimidation and violence, they’ve jeopardized the safety and quality of life for the hard working residents of Mount Vernon. That violence turned deadly on at least two occasions when the lives of Shamoya McKenzie and Dean Daniels were cut short. While we were able to charge David Hardy for the senseless murder of Shamoya, our partnership with the United States Attorney’s Office and the FBI will now enable us to charge others who also participated in those crimes. Thanks to the collaborative efforts of federal, state and local law authorities, these defendants will all be held accountable for the crimes they now stand accused of.”
FBI Assistant Director William F. Sweeney Jr. said: “The new charges members of this criminal gang now face show just how badly they allegedly terrorized a community. They used violence to push illegal drugs and demonstrate how tough they were as a gang. They didn’t think about who was hit by their bullets, and in the end that disregard cost an innocent young girl her life. The FBI Westchester County Safe Streets Task Force won’t let up on their investigations into gangs that believe they act with impunity. They don’t and now they will face justice for their deadly actions.”
According to the Superseding Indictment[1] unsealed today in White Plains federal court, and prior proceedings in the matter:
From 2007 to 2017, in the Southern District of New York and elsewhere, OVERTON, BLANTON, COLLIER, DINHAM, DIXON, HARDY, HUGHLEY, JONES, SAVOY, SINCLAIR, SMITH, and WEBB were members or associates of a racketeering enterprise known as the “Goonies.” In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Goonies committed, conspired, attempted, and threatened to commit acts of violence, including murder, attempted murder and robbery; they conspired to distribute and possess with the intent to distribute narcotics; and they obtained, possessed, and used firearms, including by brandishing and firing them. BLANTON, COLLIER, DINHAM, DIXON, and JONES also conspired with one another, and certain other members of the Goonies, to distribute and possess with the intent to distribute crack cocaine and marijuana.
The Goonies have been engaged in a long-standing and violent feud with several rival Mount Vernon street gangs, including, among others, the “Boss Playa Family,” the “Get Money Gangstas,” the “Gunnas,” and the “Much Better Gang,” among others. On December 31, 2016, the intended target of the shooting was a rival gang member. Shamoya McKenzie was in the front passenger seat of a car driving by the shooting location, in the vicinity of Tecumseh Avenue and Third Street in Mount Vernon, New York, and was struck in the head by a bullet, resulting in her death. As set forth in the Superseding Indictment, on or about September 22, 2014, in the vicinity of Park Avenue in Mount Vernon, Dean Daniels was shot to death.
OVERTON, BLANTON, COLLIER, DINHAM, DIXON, JONES, and SMITH were already in custody based on the charges in the Indictment. HARDY and HUGHLEY were already in custody on state charges, and were transferred to federal custody today. SAVOY was arrested this morning in New Rochelle. WEBB remains a fugitive. The defendants who are in custody will be arraigned before the Honorable Lisa Margaret Smith, United States Magistrate Judge, this afternoon in White Plains federal court. The case is assigned the United States District Judge Nelson S. Román.
* * *
The maximum potential sentences in this case are prescribed by Congress and are provided in the attached table for informational purposes only, as any sentencings of the defendants will be determined by a judge.
Mr. Kim thanked the Westchester County District Attorney’s Office and praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives from the FBI, Yonkers Police Department, Westchester County District Attorney’s Office, Westchester County Police Department, Peekskill Police Department, Mount Vernon Police Department, New York City Police Department, and U.S. Probation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Anden F. Chow, Sarah Krissoff, Olga Zverovich, Christopher Clore, and Special Assistant United States Attorneys John O’Rourke and Lauren Abinanti are in charge of the prosecution.
The charges contained in the Indictment and Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Markel Overton, et al.
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Racketeering Conspiracy
MARKEL OVERTON
a/k/a “Kellz”
THOMAS BLANTON
a/k/a “LT”
MARQUIS COLLIER
a/k/a “Keise”
KADEEM DINHAM
a/k/a “Polo”
DONNIE DIXON
a/k/a “Scooter”
DAVID HARDY
a/k/a “Mooka”
JERMAINE HUGHLEY
a/k/a “Blacks”
RAHEEM JONES
a/k/a “Rah Trigger”
a/k/a “Trigga”
SINCERE SAVOY
a/k/a “Bitty”
JAMAAL SINCLAIR
a/k/a “Diggz”
NOEL SMITH
a/k/a “Georgie”
ERNEST WEBB
a/k/a “Ern,”
a/k/a “Ern Millz”
Life in prison
Count Two
Firearms Offense
MARKEL OVERTON
THOMAS BLANTON
MARQUIS COLLIER
KADEEM DINHAM
DONNIE DIXON
DAVID HARDY
RAHEEM JONES
JAMAAL SINCLAIR
NOEL SMITH
Life in prison with a mandatory minimum of 10 years in prison
Count Three
Conspiracy to Commit Murder in Aid of Racketeering
DAVID HARDY
MARQUIS COLLIER
JERMAINE HUGHLEY
SINCERE SAVOY
10 years in prison
Count Four
Murder in Aid of Racketeering
DAVID HARDY
MARQUIS COLLIER
JERMAINE HUGHLEY
SINCERE SAVOY
Mandatory minimum: Life in prison
Maximum sentence: Death
Count Five
Use, Carrying, and Possession of Firearms, Resulting in Death
DAVID HARDY
MARQUIS COLLIER
JERMAINE HUGHLEY
SINCERE SAVOY
Mandatory minimum: 5 years in prison
Maximum sentence: Death
Count Six
Conspiracy to Commit Murder in Aid of Racketeering
ERNEST WEBB
10 years in prison
Count Seven
Murder in Aid of Racketeering
ERNEST WEBB
Mandatory minimum: Life in prison
Maximum sentence: Death
Count Eight
Use, Carrying, and Possession of Firearms, Resulting in Death
ERNEST WEBB
Mandatory minimum: 5 years in prison
Maximum sentence: Death
Count Nine
Narcotics Conspiracy
THOMAS BLANTON
MARQUIS COLLIER
KADEEM DINHAM
DONNIE DIXON
RAHEEM JONES
Life in prison with a mandatory minimum of 10 years in prison
DEFENDANT
AGE
MARKEL OVERTON
27
THOMAS BLANTON
24
MARQUIS COLLIER
26
KADEEM DINHAM
26
DONNIE DIXON
28
DAVID HARDY
22
JERMAINE HUGHLEY
25
RAHEEM JONES
29
SINCERE SAVOY
20
JAMAAL SINCLAIR
29
NOEL SMITH
34
ERNEST WEBB
29
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Superseding Indictment, and the description of the Indictment and Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Woman Pleads Guilty to Use of A Communication Device in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Erin Melinda Penera, age 42, of Tulsa, Oklahoma, pled guilty to Use Of A Communication Device In Furtherance Of Drug Trafficking, in violation of Title 21, United States Code, Section 843(b), punishable by not more than 4 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that within the Eastern District of Oklahoma, the Defendant, and others known and unknown to the Grand Jury, knowingly and intentionally, and unlawfully used a communication facility, that is a telephone, in committing, causing and facilitating acts constituting felonies under Title 21, United States Code, Sections 841 and 846, in that the Defendant used telephones to discuss various matters concerning conspiracy, distribution of methamphetamine and possession with intent to distribute methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Tulsa Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Texas Man Pleads Guilty to Conspiring to Transport 28 Kilograms of CocaineRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that VICTOR ESQUIVEL, age 27, of Brownsville, Texas, recently pled guilty to conspiring to distribute and to possesses with the intent to distribute 5 kilograms or more of cocaine hydrochloride.
According to court documents, ESQUIVEL, along with co-defendants ROEL RANGEL and KEVIN DECUIR, conspired to distribute approximately 28 kilograms of cocaine hydrochloride.
RANGEL pled guilty to conspiracy to distribute or to possess with intent to distribute five kilograms or more of cocaine hydrochloride and is scheduled to be sentenced on February 28, 2018.
ESQUIVEL faces a sentence of imprisonment of at least ten years and up to life, followed by at least 5 years of supervised release. ESQUIVEL also faces a fine of up to $10,000,000 and a mandatory $100 special assessment. U.S. District Court Judge Ivan L. R. Lemelle will sentence ESQUIVEL on March 28, 2018.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security and the St. Tammany Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Texas Man Pleads Guilty to Access Device FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Froilan Tressord Bonilla, 31, of Houston, Texas, pleaded guilty to access device fraud, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that Customs and Border Protection officers encountered the defendant on April 10, 2017, at the Peace Bridge Port of Entry in Buffalo after he was refused entry into Canada by the Canadian Border Services Agency. Officers inspected Bonilla’s car and found 65 cards, including credit cards, gift cards and debit cards. Officers also found a laptop computer and a card-encoding device. Examination of the cards revealed that 28 of the cards were counterfeit, having had their magnetic strips re-encoded with new information inconsistent with the number, name, merchant or institution, listed on the front of the card. A search of the defendant’s phone revealed lists of credit card numbers, photographs of gift and credit cards, screenshots of online shopping carts for purchasing credit card numbers, and evidence of money transfers to China, Vietnam and the Ukraine.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for April 12, 2018, at 1:00 pm before Judge Arcara.
Tampa Man Sentenced to 10 Years for Trafficking FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Michael O. Johnson (28, Tampa) to 10 years in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on August 10, 2017.
According to court documents, Johnson sold undercover agents six firearms over a period of several months, including a Russian model SKS 7.62x39-caliber rifle with an extended magazine. He sold the guns to agents even after they told him that the guns would be resold illegally in other markets within the United States, including in New York City.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Staten Island Man Charged with Conspiring to Distribute and Possess with Intent to Distribute Heroin and FentanylRead the Press Release
A criminal complaint was unsealed earlier today, in federal court in Brooklyn, charging Michael Hitsous with conspiracy to distribute and possession with intent to distribute heroin and fentanyl in Staten Island, New York. Hitsous was arrested yesterday and is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Steven M. Gold.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Michael E. McMahon, District Attorney, Richmond County District Attorney’s Office (RCDA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
As alleged in publicly filed documents, between February 2017 and December 2017, Hitsous sold heroin and fentanyl from his Staten Island home, which resulted in near fatal overdoses of two young women. Notably, in or about September 2017, Hitsous sold narcotics to a 25-year-old female who overdosed at the defendant’s residence after ingesting drugs that he provided. While the victim was unconscious, a friend of the victim called emergency medical personnel who arrived in time to resuscitate her. Despite providing the narcotics that nearly killed the victim, Hitsous continued to regularly sell narcotics from his home knowing the harm they cause.
“As alleged, the defendant Michael Hitsous profited by selling dangerous drugs, including fentanyl and heroin, without regard for the potentially deadly consequences to the users of those drugs,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners, this Office will work tirelessly to identify and prosecute to the fullest extent of the law those who contribute to the opioid crisis, and, through these efforts, work to save lives by reducing the availability of opioids and to prevent new addictions in our District.”
“The illegal sale of heroin and fentanyl has caused unimaginable pain to families across Staten Island, as those suffering from addiction illness continue to overdose at alarming rates due to these deadly drugs,” stated District Attorney McMahon. “By investigating each overdose and tracing the dangerous narcotics back to the source, law enforcement has been able to hold drug dealers accountable for the lives they have destroyed and we are proud that our Overdose Response Initiative is getting these results. We will continue working together with our partners in the NYPD and the Eastern District to investigate and prosecute any individual who peddles this poison in our community so that we can save lives and finally put an end to the drug epidemic.”
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. The increase in overdose deaths has been driven in large part by fentanyl – a drug that has been described as 50 to 100 times more potent than morphine. In New York, from 2014 to 2015, fentanyl overdose deaths rose 135 percent, while heroin overdose deaths rose 28 percent. According to the CDC’s latest report analyzing overdose deaths nationally, in 2016 synthetic opioid deaths – which includes fentanyl – more than doubled from 9,580 in 2015 to 19,413 in 2016.
The arrest was the result of a long-term investigation by the NYPD’s Drug Overdose Task Force whose officers coordinated numerous controlled narcotics purchases from Hitsous.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Lizmi is in charge of the prosecution.
The Defendant:
MICHAEL HITSOUS
Age: 26
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 17-MJ-1063
St. Cloud Man Sentenced to 60 Years for Producing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Jeremy Craig Traylor (32, St. Cloud) to 60 years in federal prison for producing child pornography. He pleaded guilty on October 6, 2017.
According to court documents, on September 1, 2016, a tip from the National Center for Missing and Exploited Children (NCMEC) led law enforcement officers to identify Traylor as a suspect involved in the distribution of child pornography. During the execution of a search warrant at Traylor’s residence, agents found several items of computer media containing thousands of images of infants, toddlers, and young children engaged in sexually explicit conduct. During an interview, Traylor admitted that he had used file sharing software to search for, download, and view child pornography for at least the past six years. Forensic analyses of his computer media revealed images and a video that depicted Traylor sexually assaulting an infant girl and sexually explicit images of a minor boy that he had also produced. Traylor shared these images with others via text messaging and other applications on his phone.
"Two young lives are forever impacted by these incomprehensible crimes," said HSI Tampa Special Agent in Charge James C. Spero. "Nothing will return the innocence of these children, but we hope putting this criminal behind bars will help them in their recovery.”
This case was investigated by the Osceola County Sheriff’s Office with assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sentencings for December 19 - December 21, 2017Read the Press Release
Jeremiah John Martinez, 35, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 19, 2017, for being a felon in possession of a firearm. Martinez was arrested in Cheyenne, Wyoming. He received 51 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Laramie County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Christina Marquez, 22, of Sacramento, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 19, 2017, for possession with intent to distribute methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Marquez was arrested in Rawlins, Wyoming. She received 84 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Javonn Rae Lynch, 27, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 19, 2017, for assault, resisting, or interfering with a federal officer. Lynch was arrested in Fort Washakie, Wyoming. She received 12 months of imprisonment, to be followed by one year of supervised release, and was ordered to pay a $25.00 special assessment. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Allen James Hendrickson, 29, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 19, 2017, for being a felon in possession of a firearm. Hendrickson was arrested in Sweetwater County, Wyoming. He received 36 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cher Yang, 57, of Roberts Wisconsin, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 19, 2017, for possession with intent to distribute marijuana. Yang was arrested in Cheyenne, Wyoming. He received 5 months of imprisonment, to be followed by two years of supervised release; first five months in home confinement, and was ordered to pay a $100.00 special assessment and $300 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Charles E. Mathisen, 64, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 20, 2017, for production of child pornography. Mathisen was arrested in Gillette, Wyoming. He received 45 years of imprisonment, to be followed by a lifetime of supervised release, was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Angelo Michael Reyes, 50, of Blythe, California, was sentenced by Federal District Court Judge Alan B. Johnson on December 20, 2017, for conspiracy to distribute methamphetamine. Reyes was arrested in Riverside County, California. He received 70 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $900.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Manuel Jose Sanchez, 29, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 21, 2017, for conspiracy to distribute methamphetamine. Sanchez was arrested in Cheyenne, Wyoming. He received 97 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne Police Department.
Gabino Martinez-Jimenez, 30, of Oaxaca, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 21, 2017, for illegal re-entry of a previously deported alien into the United States. Martinez-Jimenez was arrested in Teton County, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Vazquez-Huerta, 29, of Tlaxcala, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 21, 2017, for illegal re-entry of a previously deported alien into the United States. Vazquez-Huerta was arrested in Teton County, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Reyna Castillo-Hernandez, 41, of Mexico City, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on December 21, 2017, for illegal re-entry of a previously deported alien into the United States. Castillo-Hernandez was arrested in Teton County, Wyoming. He received six months of imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Second Woman Sentenced and Denaturalized for Obtaining U.S. Citizenship Through LiesRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore sentenced Natasha Pierre (46, Davenport), a/k/a Elsie Petitfrere, to six months in federal prison for obtaining U.S. citizenship through false and misleading representations to U.S. immigration authorities. She pleaded guilty on August 30, 2017. The Court also entered an order denaturalizing Pierre and stripping her of her United States citizenship; she is now subject to deportation to Haiti.
According to her plea agreement and evidence presented in Court, Pierre first applied for asylum protection to remain in the United States in 1993, claiming that she had entered the United States from Haiti and feared persecution and arrest if she returned there. In June 1995, the INS rejected her application and ordered her to appear before an immigration judge for possible deportation proceedings. In July 1995, she failed to appear as directed and the court ordered her removal from the United States. The immigration judge also entered a warrant for her arrest and deportation.
While her case was still pending before the immigration court, Pierre assumed the new identity of Elsie Petitfrere and filed for legal protection and permanent resident status in the United States using this new identity and a different set of biographical data. In 2012, she applied for U.S. citizenship, and Petitfrere ultimately became a U.S. citizen on September 11, 2012.
In her immigration paperwork and application for citizenship, Petitfrere denied the use of prior names, denied having been subject to an order of deportation, and denied lying to immigration authorities. Photographic and fingerprint evidence later established that Pierre and Petitfrere were the same person and that Pierre had lied on several keys parts of her citizenship application.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from U.S. Citizenship and Immigration Services. This investigation was a part of “Operation Second Look,” a nationwide initiative of the Department of Homeland Security to review the files of hundreds of persons who were ordered deported from the United States but have not left the country as directed. The Pierre case is one of four similar investigations in the Tampa Bay area. These cases are being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Salvadoran national, who was previously charged with illegally reentering the United States after deportation, pleaded guilty and was sentenced yesterday in federal court in Boston.
Oscar Ayala-Herrera, 23, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel sentenced Ayala-Herrera to time served. Ayala-Herrera will be subject to deportation proceedings.
In August 2011, Ayala Herrera was encountered by the federal agents in Hidalgo, Texas, and determined to be illegally present in the United States. Ayala Herrera was released from federal custody on a deferred status. In October 2015, Ayala-Herrera was convicted in Chelsea District Court of assault and battery. Upon completion of his sentence, Ayala Herrera was placed into removal proceedings, and on April 22, 2016, he was deported to El Salvador.
On Sept. 18, 2017, police in Arlington encountered Ayala Herrera and determined that he was illegally present in the United States.
Ayala-Herrera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.